Sebi cautions investors against unsolicited investment tips
New Delhi: Markets regulator Sebi on Wednesday cautioned investors against unsolicited investment tips with respect to listed companies.
Besides, it advised investors to exercise appropriate due diligence before dealing in the securities market, it said in a statement.
The Securities and Exchange Board of India (Sebi) has noticed that unsolicited messages containing stock tips or investment advice with respect to listed companies are increasingly being circulated through bulk SMS, websites and social media platforms like WhatsApp, Telegram.
Such messages are sent to investors and general public usually recommending to deal in specific stocks of listed companies, indicating target prices and giving fraudulent, misleading information relating to listed companies, inducing them to deal in these stocks, the regulator noted.
The circulation of such misleading messages is not only detrimental to the interest of the investors but also adversely affects the integrity of the securities market, it added.
“All investors and the general public are hereby advised/cautioned not to rely on such unsolicited stock tips/investment advice circulated through bulk SMS, websites and social media platforms,” Sebi said.