Fake tips on stocks are taking gullible investors for a ride. Investors are lured into buying shares of little-known companies. It is a welcome sign that the Securities and Exchange Board of India and the Department of Telecommunications (DoT) have decided to take stern action against brokers sending such messages. Brokers found guilty of indulging in this practice should be blacklisted and barred from trading.
Investors need to be educated; they should cross-check with credible brokers if the message sent has come from a scrupulous broker. Along with DoT and telecom operators Sebi should launch a campaign to warn investors about such messages. Investors should research penny stocks on the internet. A cautious approach is better than believing blindly in such fake tips.
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