 "Sebi warns investors about stock market scams via social media platforms")
The Securities and Exchange Board of India (Sebi) on Wednesday warned investors against unsolicited messages from unverified sources, and advised them not to join WhatsApp groups or online communities related to investments.
The market regulator issued the warning amid a surge in incidents where individuals and entities are exploiting social media platforms to lure and mislead unsuspecting investors in the securities market.
Sebi issued a statement advising investors "not to trust unsolicited messages from unverified sources and refrain from joining such WhatsApp groups/communities. Investors are advised to deal only with Sebi-registered intermediaries and use genuine, authorized trading applications."
It also noted that these entities employ various tactics to gain investors' trust and confidence. Typically, they send unsolicited links inviting individuals to join WhatsApp groups — often named as 'VIP Group' or 'Free Trading Courses' — in an attempt to lure vulnerable individuals.
To appear authentic, these entities often create fake profiles presenting themselves as experts in the securities market. In many cases, they pose as Sebi-registered intermediaries, prominent public figures, celebrities, or chief executives or managing directors of reputed organisations to build credibility.
As their modus operandi, they deceive investors using fake testimonials, falsely claiming that others have made huge profits — when, in reality, these 'others' are also part of the scam. These false promises of high returns tempt potential investors into transferring funds to such frauds.
To protect their interests, investors are encouraged to verify the registration status of any entity with Sebi by visiting https://www.sebi.gov.in/intermediaries.html before making any investments.
Moreover, the market regulator also advised investors to use only authentic trading apps of Sebi-registered intermediaries for transactions. Investors have also been urged to communicate solely through the genuine social media handles of Sebi-registered entities.
(With inputs from PTI)