SEBI has issued a public advisory cautioning investors against joining closed WhatsApp groups offering stock tips, fake profit claims, and fraudulent trading apps.
SEBI Issues Advisory on Fraudulent WhatsApp Stock-Tip Groups
The Securities and Exchange Board of India (SEBI) has issued a warning against invitation-only WhatsApp groups that disseminate stock recommendations, fabricated profit proofs, and links to fake trading applications. These groups often operate as part of coordinated market manipulation schemes targeting retail investors.
Key red flags identified by SEBI include promises of guaranteed returns, pressure to invest quickly, accounts showing manipulated trade histories, and redirects to unauthorised platforms. Some groups also use replacement links upon takedown, making enforcement challenging. SEBI reiterated that unregistered entities offering investment advice violate the SEBI (Investment Advisers) Regulations, 2013.
Investors are advised to verify the registration status of any financial adviser through SEBI’s official portal and report suspicious groups to SCORES. Market intermediaries must also strengthen client education initiatives to prevent vulnerability to such scams.
