SEBI Stock Market Scam Advisory – Beware Social-Media Gurus

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  • Last Updated on 23 May, 2025

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SEBI stock market scam warning

PR No. 27/2025; Dated: 21.05.2025

1. Regulatory Snapshot

SEBI Press Release PR No. 27/2025 (21 May 2025) warns of an uptick in stock-market scams perpetrated on social-media platforms—especially WhatsApp and Telegram—and cautions investors against joining unknown groups or following unverified “gurus.”

2. Key Points from SEBI’s Advisory

  1. Ignore Unsolicited Links – Any invitation to join a trading/stock-picking group from an unknown number or ID is a red flag.
  2. Deal Only with SEBI-Registered Intermediaries – Use authentic trading apps provided by brokers/RIAs whose SEBI registration can be verified.
  3. Check Registration Before You Act – Use the “Intermediary Search” tool on SEBI’s website to confirm the entity’s licence status.
  4. No ‘Guarantee’ in Markets – SEBI does not authorise anyone to promise assured returns.

3. Red-Flag Indicators of a Likely Scam

  • “Guaranteed 10% daily” or “0% risk” claims.
  • Requests to transfer money to personal bank accounts or UPI IDs.
  • Pressure to act today to avail a limited-period multibagger tip.
  • Screenshots of profits without verifiable contract notes.
  • Link to install an APK file (Android app) from outside Google Play.

4. How to Report Suspicious Activity

  1. SEBI SCORES Portal – lodge an online complaint with evidence (screenshots, numbers, money-transfer details).
  2. Cyber-Crime Cell (National Cyber Crime Reporting Portal) – for fraud involving money transfers or data theft.
  3. WhatsApp/Telegram In-App Report – flags the account for takedown.

5. Conclusion

SEBI’s latest alert underscores that if a trading tip or group finds you first, it’s probably a trap. Always rely on SEBI-registered professionals, transact only through recognised platforms, and remember—credible investment advice comes with credentials, not guarantees.

Click Here To Read The Full Press Release

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied