Mumbai, April 12
Alarmed at frauds related to securities market on various social media platforms, capital markets regulator SEBI has issued an advisory for investors to exercise caution and due diligence to verify the genuineness of social media handles of SEBI-registered entities while accessing them.
SEBI noticed an increase in frauds related to securities market on various social media platforms such as YouTube, Facebook, Instagram, X, WhatsApp, Telegram, Google Play Store and Apple Store, etc.
“With increasing adoption of digital communication platforms, it is observed that scamsters are enticing victims by giving trading calls in the name of providing education. They also provide misleading or deceptive testimonials, promise or guarantee of assured or risk-free return etc. through various social media platforms,” according to a SEBI statement.
SEBI noticed unregistered investment advisory services being provided by entities that falsely claim to be registered intermediaries with SEBI or by showcasing fake certificates purportedly issued by the regulator.
It also observed impersonation of SEBI-registered entities by fraudulent trading platforms, WhatsApp, Telegram channels which deceptively claim or suggest affiliation with SEBI-registered entity claiming to provide assured or risk-free return.