Sebi warned investors about the growing fraud in the stock market through social media

Mumbai, May 21 (IANS). The Securities and Exchange Board of India (Sebi) on Wednesday warned investors about the growing fraud in the stock market via social media and said it was only through registered units or programs. Sebi said in his statement that the growth of information has changed due to the increase in social media. Some institutions use social media to woo and cheat innocent investors. Sebi further stated that it was noted that such institutions were using strategies to gain and trust the trust of investors. It usually sends unwanted invitations to potential customers as a link to join WhatsApp group (such as VIP group, free trading course, etc.). According to the market regulator, these institutions make false profiles, which they introduce to the Securities Market Expert. Such institutions often use SEBI registered middlemen, famous personalities and CEOs/MDS of established organizations, etc. At the same time, promising big profits, transfer money from investors to their bank account and fraud. Sebi further said that investors are advised not to trust such unwanted messages from untouchable people and avoid joining the WhatsApp group. The market regulator further said that only Sebi should do business through registered middlemen and authentic trading programs. Before trading, you must also examine the authenticity of these programs by visiting the Sebi website. At the end of the previous month, Sebi issued a strict warning to investors to use opinion trading platforms. The warning states that these platforms do not work under SEBI regulatory inspection and that investors under security laws do not provide protection. Sebi said in an advice that some online platforms, called the ‘Opinion Trading Platform’, enable users to trade on the results of ‘Yes or No’. -Ians ABS/ABM shares this story tags