Sebi has observed that such entities use various strategies to gain investors’ trust and confidence. Generally, these entities send unsolicited invitations in the form of links to join WhatsApp groups — often under names like “VIP Group” or “Free Trading Courses”– targeting prospective clients
New Delhi: Markets regulator Sebi on Wednesday cautioned investors against unsolicited messages from unverified people and asked them to refrain from joining WhatsApp groups or communities.
This warning comes amid a rise in cases where entities are using social media platforms to entice and deceive gullible investors in the securities market.
Sebi has observed that such entities use various strategies to gain investors’ trust and confidence. Generally, these entities send unsolicited invitations in the form of links to join WhatsApp groups — often under names like “VIP Group” or “Free Trading Courses”– targeting prospective clients.
To appear credible, these entities often create fake profiles that depict them as experts in the securities market. In many instances, they impersonate Sebi-registered intermediaries, well-known public figures, celebrities, or CEOs/MDs of established organisations.
They exploit investors by showcasing fake testimonials of large profits, supposedly earned by other group members who are actually playing a supporting role in the scam. This misleading portrayal tricks investors into transferring funds to the bank accounts of these entities, lured by false promises of similarly high returns.