New Delhi, Feb. 26 -- The Securities and Exchange Board of India (Sebi) has cautioned investors against fake notices demanding payment of securities transaction tax (STT).

In a notice issued on Thursday, the market regulator said that some entities were forging Sebi's letterhead and demanding payments of outstanding STT amounts under the Finance Act, 2004, by exercising powers conferred under the Sebi Act, 1992.

The regulator clarified that it does not issue notices to investors for the remittance of STT, nor does it coordinate with the Reserve Bank of India (RBI) for such collections. STT is automatically levied on every purchase and sale of securities executed on stock exchanges and is collected directly by brokers, the regulator said...