SEBI warns of fake WhatsApp stock-tip groups that use planted praise to lure investors
The markets regulator says unregistered operators run invitation-only groups where planted members post false profit claims.
The 30-second read
- SEBI warned on Oct 22, 2026 about fraudulent WhatsApp stock-tip groups that use astroturfing.
- Operators use overseas numbers, pose as experts and get members to post fake profit claims.
- SEBI says deal only with registered intermediaries, and check their status on its website.
SEBI, India's markets regulator, cautioned investors on Thursday, Oct 22, 2026, about fraudulent WhatsApp stock-tip groups. The warning was first reported by The Hindu. SEBI says unregistered persons run invitation-only groups, presenting them as free lessons for investors. They use overseas numbers and pose as experts.
To build trust, some members work with the operators. SEBI said: "To make these calls look credible, certain members, acting in concert with the operators, post false claims of profit and praise the 'expert'. This practice, known as astroturfing, creates a false impression of genuine support and induces unsuspecting investors to act on the call," as reported by The Hindu. When enforcement action follows, members get a message from a new number. They are invited to another group and told the old one was banned due to platform restrictions.
SEBI's advice: avoid invitation-only groups run by unknown persons and ignore praise or profit posts by members. Treat "banned group" messages as red flags. Do not open accounts or send money to recommended platforms, and do not share holdings or account details. SEBI also said: "Deal only with SEBI-registered intermediaries and use only authentic trading apps," and registration can be checked on SEBI's official website. In a separate order, first reported by CNBC-TV18, SEBI directed Avadhut Sathe Trading Academy and its founder Avadhut Sathe to refund ₹546.17 crore plus ₹67.87 crore interest. The total penalty is ₹11.5 crore, and the order bars them for two years.
Why it matters
Indian retail investors who get stock tips on WhatsApp are the target of these schemes, at a time when more people are entering the market. Checking SEBI registration before acting on any tip is the simplest safeguard.