Sebi Warns Against Deceptive Social Media Scams

Sebi has alerted investors to avoid unsolicited messages and unverified WhatsApp groups. Rising fraud cases in securities involve fake testimonials and impersonation. Sebi advises dealing solely with registered intermediaries and using verified trading apps, encouraging investors to confirm entity registration on its official site.

The Securities and Exchange Board of India (Sebi) on Wednesday issued a strong warning to investors, advising them to steer clear of unsolicited messages and WhatsApp groups created by unverified individuals.

This cautionary notice comes in response to an escalating number of fraud cases in which entities exploit social media to deceive unsuspecting investors in the securities market. These entities often masquerade as credible figures, manipulating trust through fake profiles and testimonials.

Sebi urged investors to engage only with registered intermediaries and authentically verified communication channels. The regulator's intervention is part of a broader initiative to safeguard investors' interests amid rampant market scams.