Sebi's warning: Stay guarded against frauds

MUMBAI: Markets regulator Sebi on Wednesday cautioned investors about growing cases of market-related frauds using various social media platforms. Several such cases were reported to Sebi in recent times where the perpetrators initially lured gullible investors under the guise of trainers or educators for investing-related activities. They gained their confidence, added them to WhatsApp groups, asked them to download an app for trading, and then slowly induced those investors to transfer money to some select bank accounts. However, money transferred to those accounts never returned to the investors.

Often, these gullible investors were induced using pictures of celebrities, VIPs, and CEOs of big companies. Those frauds also used the credentials of Sebi registered market intermediaries to gain the confidence of investors. Sebi asked investors to check credentials of every entity before making any monetary transaction.