The Securities and Alternate Board of India (SEBI) on Wednesday cautioned traders towards inventory market scams involving the usage of social media platforms.
The regulator has urged traders to take care of entities which are registered with SEBI and thru genuine buying and selling apps.
SEBI mentioned that some entities are utilizing social media platforms to entice and deceive gullible traders within the securities market. These entities use methods to induce traders into trusting them by gaining their confidence. They ship unsolicited invites within the type of hyperlinks to affix WhatsApp teams (like VIP group, free buying and selling programs and so on.) to potential shoppers.
“These entities create faux profiles that painting them as specialists within the securities market. Many instances these entities impersonate SEBI registered intermediaries, well-known public figures, celebrities, CEOs/ MDs, and so on. of established organisations,” SEBI mentioned in a launch.
They exploit traders by showcasing faux testimonials of attaining large earnings, from different group members who play a supporting position in these scams. Buyers are then tricked into transferring funds to the financial institution accounts of those entities, with false assurances that such unreasonable returns can be earned by them.
The regulator suggested traders to not belief such unsolicited messages from unverified individuals and chorus from becoming a member of such WhatsApp teams/ communities. Buyers talk with solely real social media handles of SEBI registered entities, it mentioned.
Buyers can confirm the standing of registration of entities with SEBI at https://www.sebi.gov.in/intermediaries.html earlier than investing. They need to additionally perform transactions solely by way of genuine buying and selling apps of SEBI registered intermediaries at https://investor.sebi.gov.in/Investor-support.html.
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