The Securities and Exchange Board of India (SEBI) issued a public caution after observing an increase in securities market frauds on social media platforms including YouTube, Facebook, Instagram, X, WhatsApp, Telegram and mobile app stores. SEBI warned that scammers are using “education” themed trading calls, deceptive testimonials and promises of assured or risk-free returns to entice investors. SEBI highlighted common fraud patterns, including unregistered investment advisory services falsely claiming SEBI registration or displaying fake SEBI certificates, impersonation of SEBI-registered entities through fraudulent trading platforms and messaging channels, and misleading content designed to push investors into private WhatsApp or Telegram groups. It also flagged fake trading or advisory apps offering purportedly preferential access such as “institutional” trading accounts, discounted IPOs or block trades, and “sure shot” IPO allocations. Investors were advised to verify the authenticity of social media handles, deal only with SEBI-registered intermediaries and authentic trading apps, and use SEBI’s online resources to check registration status and trading app information. SEBI also noted it has advised intermediaries to use the ‘1600’ phone number series exclusively for service and transactional voice calls to existing customers to help investors identify legitimate calls. SEBI cautioned investors not to invest or trade through unregistered intermediaries, web applications, platforms or apps, noting that disputes arising from such activity would not be eligible for investor protection and dispute resolution mechanisms under SEBI or exchanges, including SCORES, exchange-administered grievance redressal, or the online dispute resolution mechanism operated by exchanges and depositories. The public was invited to share details of unregistered entities or platforms via SEBI’s Market Intelligence portal (mi.sebi.gov.in).
Securities & Exchange Board of India 2025-04-11
Securities and Exchange Board of India cautions investors on rising securities scams on social media platforms
SEBI cautioned about rising securities market frauds on social media, involving fake SEBI registrations and deceptive trading calls. Investors should verify social media authenticity and only deal with SEBI-registered intermediaries, as disputes with unregistered entities aren't covered by SEBI's protection mechanisms. Investors are encouraged to report unregistered entities via SEBI’s Market Intelligence portal.