Mumbai, May 21 (IANS). The Securities and Exchange Board of India (SEBI) on Wednesday alerted investors about the growing fraud in the stock market via social media and said that only through registered units or apps.
SEBI said in his statement that the growth of information has changed due to the increase in social media. Some institutions are using social media to woo and cheat innocent investors.
SEBI further stated that it has been observed that such institutions use strategies to win the trust of investors and trust them. It usually sends unwanted invitations to potential customers as a link to join WhatsApp group (such as VIP Group, Free Trading Course, etc.).
According to the market regulator, these institutions make fake profiles, which introduce them to the securities market expert. Many times such institutions use SEBI registered middlemen, famous personalities and CEOs/MDs of established organizations etc. At the same time, promising big profits, transfer money from investors to their bank account and fraud.
SEBI further said that investors are advised not to trust such unwanted messages of untouchable people and avoid joining such WhatsApp group.
The market regulator further said that only SEBI should do business through registered middlemen and authentic trading apps. Also said that before trading, check the authenticity of these apps by visiting SEBI website.
At the end of the previous month, SEBI has issued a strict warning to investors to use opinion trading platforms.
The warning states that these platforms do not work under regulatory inspection of SEBI and do not provide any protection to investors under securities laws.
SEBI said in an advice that some online platforms, called the ‘opinion trading platform’, allow users to trade on the results of the event of ‘yes or no’.
-IANS
ABS/ABM
