Exclusive: SEBI raids unregistered investment advisors in Ahmedabad, Mehsana; finds manipulation via social media platform Telegram

Market regulator Securities and Exchange Board of India (SEBI) has upped its stranglehold on unregistered fraud financial advisors. Zee Business’ Tarun Sharma tells in his exclusive report what this means and which type of advisors are likely to get impacted.

SEBI has conducted a search and seizure operations after nearly four years at two places in Gujarat – Ahmedabad and Mehsana. The operation was carried out on companies who ran their channel on social media platform Telegram. The followers of these companies followed tips given by these companies.

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The market watchdog found that the admins or advisors of these apps created their positions and as soon as the followers of these groups followed the recommendations, they squared-off their positions.

Similar incidences came to SEBI’s notice earlier too, but this is the first time that the regulator had conducted a search and seizure operation on those who have been giving tips through such platforms.

Citing his top sources, Sharma said that the ongoing investigation spans only over a few months as of now and the scope of investigation could be expanded further.

At least three people have been apprehended and the mobiles and laptops have also been confiscated. This could lead to more information on who all are involved in this activity.

While, Zee Business has been at the forefront of raising investor related issues and now SEBI has also come out to address this issue.

As a caution to the channel viewers, Sharma said that investors must not believe on such tips as the intention of the company or individual is not known.

He said that while it is illegal for an unregistered advisor to do this, even if the SEBI registered advisor is indulging in such practices, it amounts to manipulation, he further said. This comes under the ambit of fraudulent and unfair practices and is dealt by SEBI.

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Such actions have happened on previous occasions but this time it is different. He said that SEBI is now keeping a vigil on such apps too. It can find out about these malpractices through trading patterns, he further said.