Fraudsters are using private WhatsApp groups to lure investors with fake stock tips and profit claims. The Securities and Exchange Board of India (SEBI) has cautioned investors against such scams.
In a press release dated October 22, 2026, the regulator said certain unregistered persons were offering unauthorised buy and sell calls under the guise of free investor education.
How Fraudsters Make Stock Tips Appear Genuine
According to Sebi, the people behind these groups often use overseas WhatsApp numbers and present themselves as market experts. To make their calls appear credible, some members allegedly work with the operators to post false claims of profits and praise the supposed expert.
Sebi described this practice as astroturfing, which creates a false impression of genuine support for the recommendations and encourages unsuspecting investors to act on them. The regulator also flagged a pattern in which members receive invitations to join another group after the original one is suspended following enforcement or regulatory action.
These invitations are usually sent from a new number and may claim that the previous group was banned because of a social media platform’s risk-control measures. The message then invites members to join a replacement group promising daily stock recommendations and trading guidance.
One such message cited by Sebi reads: “Due to the 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.” Sebi advised investors to treat messages claiming that a group has been suspended, closed or banned, followed by an invitation to join another group, as a red flag and exit such groups.
What Sebi Advises Investors to Do
SEBI advised investors not to join invitation-only WhatsApp groups run by unknown people or those claiming to be stock market experts, particularly when the groups use overseas numbers. It also cautioned investors against acting on tips shared in these groups.
The regulator warned that messages praising an expert or claiming profits could be planted to make the recommendations appear genuine. It advised investors not to be swayed by such messages, including trade confirmations posted by other group members.
Sebi also advised investors not to open accounts on trading platforms or apps suggested through such groups, transfer money to them or share details of their holdings and trading accounts with the people behind them.
The regulator urged investors to deal only with SEBI-registered intermediaries and use authentic trading apps. Investors can check the registration status of intermediaries through SEBI’s official website at https://www.sebi.gov.in/intermediaries.html.
The trading apps of SEBI-registered intermediaries can also be checked through SEBI’s investor support portal at https://investor.sebi.gov.in/Investor-support.html.
