SEBI has warned investors against unsolicited stock tips and investment advice that are circulated through bulk SMS, websites and social media platforms.
In a press release, the market regulator further advised investors to exercise appropriate due diligence before dealing in the securities market.
"It has come to the notice of the Securities and Exchange Board of India (SEBI) that unsolicited messages containing stock tips/ investment advice with respect to listed companies are increasingly being circulated through bulk SMS, websites and social media platforms like WhatsApp, Telegram, etc. Such messages are sent to investors and the general public usually recommending to deal in specific stocks of listed companies, indicating target prices and giving fraudulent, misleading/false information relating to listed companies, inducing them to deal in these stocks," noted the release.
SEBI further said that 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.
