Caution
to Investors on Stock Market Scams through Social Media Platforms..!
The rise
and adoption of social media has redefined the way we connect and share information.
However, some entities are using Social Media Platforms (SMPs) to entice and
deceive gullible investors in the securities market. It has been observed that
such entities use strategies to induce investors into trusting them by gaining
their confidence.
Such
entities usually send unsolicited invitations in the form of links to join
WhatsApp Groups (like VIP Group, Free Trading Courses etc.) to prospective
clients.
These
entities create fake profiles that portray them as experts in the securities
market.
Many
times these entities impersonate SEBI registered intermediaries, well known
public figures, celebrities, CEOs/ MDs, etc. of established organisations.
They
exploit investors by showcasing fake testimonials of achieving huge profits, from
other group members who play a supporting role in these scams. Investors are
then tricked into transferring funds to the bank accounts of these entities,
with false assurances that such unreasonable returns can also be earned by
them. In view of the above, investors a
Re advised
to not trust such unsolicited messages from unverified people and refrain from joining
such Whatsapp Groups/ Communities.
Investors
are advised to deal with only SEBI registered intermediaries and through authentic trading apps. Investors are a dvised
to verify the status of registration of entities
with SEBI
at https://www.sebi.gov.in/intermediaries.html before investing and to carry
out transactions only through authentic trading apps of SEBI registered
intermediaries at
https://investor.sebi.gov.in/Investorsupport.html.
Investors
are hereby alerted to communicate with only genuine social media handles of SEBI
registered entities.
SEBI is
issuing this Press Release to caution investors about the rampant frauds and scams
being carried out by unscrupulous entities and the means with which
Investors
can protect themselves while carrying out transactions in the securities market
by dealing with
SEBI
registered intermediaries.
