SEBI warns against unregistered entities over fake investment tips and strategy

The government has cautioned against stock market investors or players amid rising number of fake investment scams on social media platforms.

Investors should only trust entities registered with the Securities Exchange Board of India (Sebi), Executive Director Manoj Kumar warned on Monday, amidst rising concerns over investment scams at World Investor Week 2024.

SEBI director also stated that information about authentic persons or institutions registered with Sebi is available on the website.

In contrast, the Ministry of Home Affairs also cautioned the public on its X platform (@Cyberdost), "Beware! Fake investment social media groups are popping up everywhere promising high returns with little risk."

"Don't fall for these scams! Always use SEBI-approved apps for investment, verify the legitimacy, and consult trusted sources before investing." it further added.

Beware!

Fake investment social media groups are popping up everywhere promising high returns with little risk. Don't fall for these scams! Always use SEBI - approved apps for investment, verify the legitimacy, and consult trusted sources before investing. #I4C #AapkaCyberDost pic.twitter.com/05iX3LdvJL

— Cyber Dost (@Cyberdost) October 15, 2024

Additionally, the National Stock Exchange (NSE) also has issued dozens of warnings on the matter to get safe from stock market scams.

ALSO READ | Stock Market Fraud: NSE warns against 14 fraudsters, 9 entities; YouTube, Telegram, WhatsApp on radar

The exchange has issued a release in September against 14 fraudsters and nine entities,  engaged in such activities on YouTube, Telegram, and WhatsApp other platforms.

Moreover, a few month ago a businessman from Kandivali was the victim of a stock market fraud in which he lost Rs 1.25 crore. The businessman was scammed by an Instagram ad in July month that promised high returns on stock market investments.

ALSO READ | Stock market fraudster dupes businessman of more than 1 crore rupees

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