SEBI issues advisory warning investors about fraudulent WhatsApp groups offering stock tips, fake apps, and fabricated profit claims targeting retail investors.
SEBI Alerts Public on Fraudulent WhatsApp Investment Groups
SEBI has issued a public advisory cautioning against invitation-only WhatsApp groups that disseminate stock recommendations, claim guaranteed returns, and promote fake trading applications. The regulator noted a surge in such schemes involving coordinated pump-and-dump tactics and identity masking.
These groups often lure investors with doctored profit screenshots, followed by requests to deposit funds into unauthorized platforms or overseas accounts. SEBI emphasized that legitimate research analysts and brokers do not solicit investments through encrypted messaging apps and are bound by strict client onboarding and KYC norms.
Practical Implication: Intermediaries must reinforce client education and report suspicious activities. Investors are advised to verify registration status via SEBI’s official portal and avoid unsolicited investment advice through unregulated channels.
Citations
- SEBI Public Advisory, October 26, 2026
