Mumbai, April 12 (IANS). Capital market regulator SEBI has cautioned investors on different social media platforms for frauds related to securities market. SEBI has advised investors to take precautions and examine the reality of SEBI-registral institutions.
SEBI has cautioned investors on social media platforms such as YouTube, Facebook, Instagram, X (first Twitter), WhatsApp, Telegram, Google Play Store and Apple Store in view of increasing cases of fruiting frauds related to securities market.
According to a SEBI statement, “With the increasing use of the digital communication platform, it has been observed that scamsters are enticing people by giving trading calls in the name of providing education. They also give a promise or guarantee of misleading or false testimonials, sure or risk-free returns through different social media platforms.”
SEBI found that such institutions are providing unarjigished investment advisory services and falsely claimed to be registered with SEBI or demonstrate fake certificates issued by the regulator.
SEBI also saw cases of fake Sebi-registard institutions by fraudulent trading platforms, which suggest that they would provide sure or risk-free returns.
SEBI said, “Scamsters are enticing innocent investors on their platforms (fake trading/advisory apps) that they provide special services. They say the facility of securities trade and share price, institutional trading account, IPO at discounted price, block trade at discounted price and specific allotment of IPOs with special allotment.”
In addition, the scamsters are asking investors to join private chats, groups and channels on WhatsApp/ Telegram through fraud advertisements/ posts on different social media platforms. They are preparing misleading and manipulative content to woo investors.
The regulator said, “Investors are advised to take care for the access of social media handles of SEBI registered institutions and confirm their reality.”
In addition, while investing in the securities market, investors are advised only to make transactions from SEBI-Penked Mediations and Certified Trading App.
-IANS
SKT/CBT
