<p><a href="https://www.mid-day.com/business/business-news/article/sebi-seeks-to-overhaul-settlement-framework-plans-fasttrack-route-for-cases-up-to-rs-10-lakh--23644933" target="_blank" rel="none noopener">The Securities and Exchange Board of India (SEBI) </a>on Thursday cautioned investors against fraudulent stock tips and trading recommendations circulated through invitation-only WhatsApp groups.</p>
<p>The market regulator said certain unregistered persons were posing as market experts offering stock recommendations to investors in the name of free investor education. It pointed out that the operators of these fraudulent groups often use overseas WhatsApp numbers.</p>
<p>"To make these calls look credible, certain members, acting in concert with the operators, post false claims of profit and praise the 'expert'. This practice, known as astroturfing, creates a false impression of genuine support and induces unsuspecting investors to act on the call," SEBI said in a press release.</p>
<h2>Suspended groups ask members to join a new group</h2>
<p>It further said that when &nbsp;such a <a href="https://www.mid-day.com/mumbai/mumbai-crime-news/article/mumbai-business-consultant-duped-of-rs-7-1-lakh-in-fake-whatsapp-trading-scheme-23606858" target="_blank" rel="none noopener">fraudulent WhatsApp group</a> is &nbsp;suspended &nbsp;following action &nbsp;by &nbsp;enforcement &nbsp;agencies/ regulatory bodies, its members receive a message, to join a new group, claiming that the previous group had been banned due to social media platform restrictions. These messages are usually sent from a new number, the regulator said.&nbsp;</p>
<p>Giving an example of such a message, it said, "Due to social media platform's risk control measures, our previous group has been banned. This new group will provide daily recommendations of quality stock information and trading guidance. Please join the group."</p>
<p>The market regulator cautioned investors to not &nbsp;join &nbsp;invitation-only &nbsp;WhatsApp &nbsp;groups &nbsp;run &nbsp;by &nbsp;unknown &nbsp;persons &nbsp;or &nbsp;by &nbsp;persons claiming to &nbsp;be &nbsp;stock &nbsp;market &nbsp;experts, &nbsp;particularly &nbsp;those &nbsp;operated &nbsp;from &nbsp;overseas numbers. It further said investors must not act on tips shared in such fraudulent groups.</p>
<h2>What should investors do?</h2>
<p>It asked investors to not be influenced by messages of praise, profit claims or trade confirmations posted by other members, as these may be fabricated to mislead investors into believing the credibility of the market expert.</p>
<p>SEBI said that any message claiming that a group has been suspended, closed or banned, and inviting them to join a new group should be treated as a red flag, and investors must immediately exit such groups.</p>
<p>It advised investors to not open an account on, or transfer money to, any trading platform or app suggested in such groups. It highlighted that investors must not share their holdings or trading account details with the operators of the WhatsApp group.&nbsp;</p>
<h2>Verify the details on SEBI website</h2>
<p>"Deal only with SEBI registered intermediaries and use only authentic trading apps," the regulator said. It said that investors could verify the registration status of intermediaries through SEBI's official website.</p>
<p>&nbsp;The regulator said it was issuing the release to &nbsp;caution &nbsp;investors &nbsp;against &nbsp;acting &nbsp;on &nbsp;stock &nbsp;tips &nbsp;and trading calls offered through such closed <a href="https://www.mid-day.com/mumbai/mumbai-crime-news/article/stock-market-fraud-mumbai-ex-banker-loses-over-rs-23-lakh-in-two-separate-cyber-frauds-23597334" target="_blank" rel="none noopener">fraudulent WhatsApp groups</a>, and to urged them to remain vigilant while dealing in the securities market.</p>

The regulator said  unregistered persons were posing as market experts offering stock recommendations to investors in the name of free investor education

SEBI warns investors against stock tips on WhatsApp groups

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SEBI said  certain unregistered persons were posing as market experts. They claimed to offer stock recommendations to investors in the name of free investor education

SEBI warns investors against WhatsApp stock tip and trading guidance groups

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