SEBI warns of fraudulent WhatsApp stock tip groups

The Securities and Exchange Board of India (SEBI) has issued an urgent warning to investors regarding fraudulent, invitation-only WhatsApp groups. These groups often use overseas mobile numbers and pose as market experts to provide unauthorized stock recommendations under the guise of free investor education.

SEBI highlighted the use of ‘astroturfing,’ a deceptive practice where group members coordinate with operators to post fabricated profit claims and fake endorsements. This creates a false sense of credibility to lure unsuspecting investors into following misleading trading calls.

Additionally, the regulator noted that when enforcement agencies shut down these groups, operators often attempt to migrate members to new groups. They typically claim the previous group was banned due to social media platform risk controls. SEBI advises the public to verify all market experts and deal exclusively with registered financial intermediaries.