The Securities and Exchange Board of India (SEBI) on Thursday cautioned investors against fraudulent stock tips and trading recommendations circulated through invitation-only WhatsApp groups, warning that unregistered individuals are posing as market experts to mislead investors through fake profit claims and unauthorised trading calls, ANI reported.
Source: ANI via Latestly
"The operators of these fraudulent groups pose as market experts, mostly using overseas WhatsApp numbers, and share unauthorised buy/sell calls in the name of free investor education," SEBI said in its press release, according to the report.
The regulator flagged a deceptive practice it called 'astroturfing', in which certain group members coordinate with the operators to post fabricated profit claims and praise the purported experts, creating a false impression of credibility. SEBI also said that when such groups are suspended after action by enforcement agencies or regulators, the operators try to reconnect with members through new groups, telling them the previous group was banned because of the platform's risk control measures and inviting them to replacement groups promising daily stock recommendations.
Do not join invitation-only WhatsApp groups run by unknown persons claiming to be market experts, especially on overseas numbers. Do not believe profit claims or praise posted in such groups. Do not open accounts on platforms they recommend, transfer money to them, or share trading account details and holdings. Deal only with SEBI-registered intermediaries and verify trading apps through SEBI's official websites.
SEBI said the advisory was issued to caution investors against acting on stock tips and trading calls offered through fraudulent closed WhatsApp groups and to encourage vigilance while participating in the securities market.
Source: ANI via DevDiscourse