SEBI cautions investors against stock tips in invitation-only WhatsApp groups

The Securities and Exchange Board of India (SEBI) on 22 October 2026 cautioned investors against stock tips and trading calls offered through invitation-only WhatsApp groups. SEBI said certain unregistered persons run these groups, which it described as fraudulent, mostly from overseas WhatsApp numbers. The regulator urged investors to stay away from such groups and to deal only with SEBI-registered intermediaries.

What Happened

According to SEBI's press release, the operators of these groups pose as market experts and share unauthorised buy and sell calls in the name of free investor education. SEBI said that certain members, acting in concert with the operators, post false claims of profit and praise the so-called expert to make the calls look credible.

SEBI called this practice astroturfing: creating a false impression of genuine support so that unsuspecting investors act on the calls. The regulator said that when such a group is suspended after action by enforcement agencies or regulators, its members usually receive a message from a new number inviting them to join a new group. SEBI quoted a typical message, which claims that the previous group was banned because of the social media platform's risk-control measures and that the new group will provide daily stock recommendations and trading guidance.

What It Means

SEBI has advised investors not to join invitation-only WhatsApp groups run by unknown persons or by people claiming to be stock market experts, particularly those operated from overseas numbers, and not to act on tips shared in them. Investors should not be swayed by praise, profit claims or trade confirmations posted by other members, as SEBI said these may be planted.

Any message saying a group has been suspended, closed or banned and inviting members to a new group should be treated as a red flag, and investors should exit such groups, according to SEBI. The regulator also asked investors not to open an account on, or transfer money to, any trading platform or app suggested in these groups, and not to share their holdings or trading account details.

The registration status of an intermediary can be checked at https://www.sebi.gov.in/intermediaries.html, and the trading apps of registered intermediaries at https://investor.sebi.gov.in/Investor-support.html. Anyone who has lost money in such a scheme can report it at https://cybercrime.gov.in or on helpline 1930.

Source: SEBI press release