SEBI Warns about Rapidly Increasing Stock Market Scams via Social Media
Moneylife Digital Team 21 May 2025
Market regulator Securities and Exchange Board of India (SEBI) has issued a strong warning to investors about an increasing number of stock market scams being carried out through social media platforms like WhatsApp, Telegram and others. As social media grows in popularity for communication and information sharing, fraudsters are using it to trick and defraud unsuspecting investors.
 
SEBI says it noticed that scammers often pretend to be market experts, registered intermediaries, celebrities or senior executives from well-known organisations. By creating fake profiles and making false promises of high returns, they lure investors into their traps.
 
A common tactic involves sending random invitations to join WhatsApp groups with names like ‘VIP Group’ or ‘Free Trading Courses’. Within these groups, scammers post coordinated messages and fake testimonials from supposed members to gain trust and appear legitimate.
 
“Once they have built enough confidence among group members, the fraudsters ask them to transfer money to private bank accounts, claiming they will earn big returns. These claims are completely false, and victims often lose their money,” the market regulator says.
 
In response, SEBI has urged investors to stay cautious and avoid trusting messages or invitations from unknown sources. Investors should only deal with SEBI-registered intermediaries and use official trading apps for all transactions, it added.
 
Before making any investment, SEBI urged investors to check the registration status of intermediaries on its official website https://www.sebi.gov.in/intermediaries.html and all transactions should be done through secure and verified platforms listed here https://investor.sebi.gov.in/Investor-support.html
 
SEBI also advises investors to interact only with official social media accounts of registered entities. Engaging with unknown or unverified accounts can significantly increase the risk of falling victim to scams.
Comments
sudhir.sr.rao
2 months ago
On one hand SEBI is taking care for avoiding scams, on the other hand some fraudsters hand-in-glove with some insiders from companies / their RTAs, are harrasing genujine share-holders. They file legal suits against companies claiming that certain shares are lost by them and companies should not allow any transactions in such shares. The Companies promptly adher to the Plea made by fraudsters AND Stop paying dividend to genuine share-holders. After some time the share holders, who are already tired of legal battle at some remote corner of the country, are approached by the fraudsters offering some settlement drama - say surrender 50% of shares to fraudster and be happy with remaining 50%. There are such cases filed by the SAME PERSON - 15 TO 20 CASES a year for 25 years, and in the same court. How is it that a person is losing shares of certain companies for 25 years ? And why such companies PROMPTLY adher to the pleas ? Isit not a fraud ?
Caveat Emptor: IPO Mania Has Returned but You’ve Been Warned
Sucheta Dalal, 23 May 2025
Unchecked fraud in initial public offerings (IPOs), especially listings by small and medium enterprises (SMEs) should set off loud alarm bells for retail investors, especially those hunting for multi-bagger in this segment. As many as...
Advance Tip: Consumer Protection Authority Issues Notice to Uber after Minister's Nudge
Moneylife Digital Team 21 May 2025
The central consumer protection authority (CCPA) has issued a notice to Uber about the platform's practice of offering an advanced tip to drivers for faster pickup. 
 
Taking cognisance of the 'advance tip' issue, Pralhad Joshi,...
JRK Stock Broking Penalised Rs1 Lakh by SEBI for Multiple Regulatory Lapses
Moneylife Digital Team 21 May 2025
Market regulator Securities and Exchange Board of India (SEBI) has imposed a penalty of Rs1 lakh on JRK Stock Broking Pvt Ltd following an inspection that uncovered several compliance failures by the firm and its authorised persons...
Supreme Court Says Cryptocurrency Needs To Be Regulated, Banning Not an Option
Ummar Jamal (Bar  and  Bench) 20 May 2025
The Supreme Court on Monday orally questioned why no regulation is being considered to govern cryptocurrency (Shailesh Babulal Bhatt v. State of Gujarat & Another).
 
A Bench of Justice Surya Kant and Justice NK Singh observed that...
Array
Free Helpline
Legal Credit
Feedback