The Securities and Exchange Board of India (SEBI) has warned investors against acting on stock tips and trading calls offered by unregistered persons through invitation-only WhatsApp groups. Operators pose as market experts, often using overseas numbers, and present unauthorized buy and sell recommendations as free investor education. Members working with the operators post fabricated profit claims and praise to make the recommendations appear credible. This practice, known as astroturfing, creates a false impression of genuine support. When enforcement or regulatory action leads to a group’s suspension, operators invite members into replacement groups, usually through a new number. Investors should treat messages about a group being suspended, closed or banned that invite them into another group as warning signs and exit such groups. Investors should avoid joining these groups or following their tips and should not rely on members’ profit claims or trade confirmations. They should neither open accounts nor transfer money through platforms or apps promoted in the groups, and should not share holdings or trading account details with the operators. SEBI advises investors to deal only with registered intermediaries and use authentic trading apps, both of which can be checked through its online resources.

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