Sebi warns investors against WhatsApp stock tips. Here's how you can avoid such traps
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Market regulator Sebi warned investors against joining invitation-only WhatsApp groups offering stock tips.
- ✓Fraudsters pose as experts and use fake profit claims to lure people.
- ✓Sebi said investors should avoid these groups and only deal with registered market intermediaries.
Story at a Glance
- Category
- MARKET
- Reported By
- The Economic Times
- Reading Speed
- 4 Minute(s)
- Market Focus
- India Economy
Market regulator Sebi has warned investors against joining invitation-only WhatsApp groups offering stock tips and trading recommendations, saying fraudsters pose as market experts and use fake profit claims to lure unsuspecting investors.
In a cautionary statement, the Sebi said several unregistered individuals were operating closed WhatsApp groups, mostly through overseas mobile numbers, and circulating unauthorised buy and sell calls under the pretext of providing free investor education.
The regulator said these groups often use members working with the operators to post misleading messages about profits earned from stock recommendations. Such members also praise the supposed market expert to create an impression that the trading calls are reliable.
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The Economic Times
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