Markets regulator Securities and Exchange Board of India (SEBI) on Thursday took major action against profiteers by fraudulently posting stock tips on social media. SEBI has raided people in different cities along with a company in the country. In a statement issued by SEBI, it was said that these raids were carried out by Ahmedabad and Bhavnagar in Gujarat, Neemuch, Mumbai and Delhi in Madhya Pradesh.
What was found in the raid: In the raids done by SEBI, many more such evidences have been found which contain many important information. It has got laptops, mobile phones, tablets, hard drives and pen drives used for giving stock tips.
Used to earn like this: SEBI informed that “it is conducting a detailed investigation against those giving fake stock tips on social media. So far 9 such Telegram channels have been identified. More than 50 lakh people are connected on these channels. These people used to give stock tips to small investors on Telegram channels. Before giving tips, he used to buy a large number of those stocks with himself. On the other hand, after giving tips, a large number of investors associated with Telegram channels used to buy these stocks, during this time due to high demand, these people used to earn big profits by selling the stocks they had.
Earlier on January 12, 2022, a similar fraud was disclosed by SEBI on social media. Six persons guilty of this fraud were banned from the market by SEBI and fined Rs 2.84 crore.
SEBI’s advice to investors: Markets regulator SEBI has advised all investors not to rely on unsolicited investment tips from anyone found on social media such as WhatsApp, Instagram, Facebook and Telegram. These unsolicited investment tips received through social media are only meant to make illegal profits by bringing about fluctuations in the stock price.