SEBI Issues Warning on Fraudulent WhatsApp Stock Tips Groups

The Securities and Exchange Board of India (SEBI) has issued a public warning cautioning investors to beware of fraudulent WhatsApp groups that offer unauthorized stock tips.

The SEBI has released a press release, detailing the forms of such fraudulent groups, their activities and what investors should be aware of. According to SEBI, investors should be aware of the unregistered organizations that provide stock recommendations and trading calls via WhatsApp groups that are only open to members, alerting them to misleading profit claims and deceptive activities.

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The regulator advised investors to avoid these offers, refrain from giving money to the platforms that have been suggested or from disclosing their trading account information and only engage with intermediaries that have received SEBI’s approval. The SEBI has also shared the format of the message by how these people attract investors for invite only groups.

The SEBI stated on Thursday that clearing companies will no longer demand margins from trading and clearing members for a client’s subsequent buy or sale positions in the cash segment, up to the value of securities for which early pay in (EPI) has been successfully accepted.

(Disclaimer: Given the input is on an information basis, please seek professional advice.)