Sebi Warns Against Rising Securities Market Frauds on Social Media Platforms

• Key Announcement:
  • Sebi has issued a public warning about increasing fraudulent securities market activities on social media platforms (SMPs).
  • Investors are urged to report suspicious activity at: https://mi.sebi.gov.in
• Modus Operandi of Fraudsters:
  • Fraudsters pose as educational content creators offering trading tips.
  • Use of fake testimonials and unrealistic claims of risk-free or guaranteed returns.
  • Promotion of unauthorised investment advisory services by impersonating Sebi-registered entities or showing fake registration certificates.
• Common Fraud Tactics:
  • Floating fake trading platforms mimicking those of licensed intermediaries.
  • Guaranteeing fixed returns, which is prohibited under Sebi regulations.
  • Disseminating misleading content to lure individuals into private chat groups for further deception.
• Sebi Guidelines:
  • Only Sebi-registered intermediaries are allowed to provide investment advice.
  • No entity is permitted to guarantee returns in the securities market.
• Investor Advisory:
  • Be cautious of offers that promise quick or guaranteed profits.
  • Always verify the credentials of investment advisors or platforms through official Sebi sources.
  • Report fraudulent activities directly on Sebi’s market intelligence portal.

TOI