SEBI Cautions Investors Against Stock Tips, Trading Calls In WhatsApp Groups Run By Unregistered Persons

The Securities and Exchange Board of India has cautioned investors against acting on stock tips and trading calls circulated through invitation-only WhatsApp groups operated by unregistered persons.

In a press release dated October 22, 2026, SEBI stated that such operators often pose as market experts, use overseas WhatsApp numbers and circulate unauthorised buy/sell recommendations under the guise of free investor education.

The regulator noted that members acting in coordination with the operators post misleading profit claims and praise the purported experts to create a false impression of credibility, a practice known as “astroturfing”.

SEBI further warned that when such groups are suspended following regulatory or enforcement action, members may receive messages from new numbers inviting them to join replacement groups offering stock recommendations and trading guidance.

It stated that members of such groups are often invited to join new groups through messages claiming: “Due to Social Media Platform's risk control measures, our previous group has been banned. This new group will provide daily recommendations of quality stock information and trading guidance. Please join the group.”

Investors have been advised against joining such groups, relying on their recommendations, transferring money to trading platforms suggested by them or sharing their trading account details.

SEBI has also urged investors to deal only with registered intermediaries and use authentic trading applications.