BSE cautions investors against stock tips via SMS, WhatsApp
Cautioning investors against rumours via social media platforms and SMSes in the name of ‘festive bonanza’, BSE has advised members to remain on the guard on tips circulated for dealing in securities listed on the exchange.
In a notice, the exchange has also asked the brokers to advise their clients not to blindly follow rumours and tips and invest in securities. They should only do so after conducting appropriate analysis of respective companies.
“On the background of festive season and in continuation to its various measures for the purposes of investor protection and maintaining market integrity, BSE is once again issuing this advisory to exercise greater caution with respect to tips/rumours circulated via various mediums such as analyst websites, social networks, SMS, WhatsApp, Blogs etc. while dealing in the securities listed on the Exchange on behalf of their clients,” BSE said in a circular.
In recent past, the exchange has come across SMS tips being circulated whereby as a festive bonanza, various stocks are being recommended with higher price targets leading to heightened trading activities in such stocks, BSE said.
Market regulator Sebi has busted various scams wherein ‘trading tips’ were being offered through SMSes and WhatsApp messages by unregistered investment advisors while promising guaranteed returns.
In a large number of cases, those offering such ‘SMS tips’ services are not registered with the market authorities to carry out such operations and make wrong claims of being authorised entities and also use the names of stock exchanges, for their messages and websites.