Sebi warns against SMS, social media tips for stocks

MUMBAI: Capital markets regulator Sebi today cautioned the general public against trading on the basis of unsolicited tips received through SMSes, social media, websites and other public media platforms.

In a caution notice, the regulator asked the public to deal with only Sebi-registered investment advisers and research analysts and warned the unregistered entities of strict action.

It said that Sebi has taken action against seven such entities for providing investment advice without registration.

"Further, the public in general is cautioned to take their informed investment decisions without being influenced by any such messages or by any other misleading advertisements through websites or any other public media, mass messaging, emails and telephone calls which solicit investments and/or promise unrealistic returns," Sebi said.

The regulator said the investors must deal with only Sebi-registered investment advisers and research analysts for availing investment advisory services or research services.

The details of such registered investment advisers and research analysts are available on the Sebi website.

"The public in general are advised to check the registration status of the entity/person on the Sebi website before availing the investment advisory services/research services," the regulator said.

"The general public should also be wary of trading in the securities markets based on the tips/recommendations provided by unregistered entity/person and should not get attracted or lured by such trading tips and stock specific recommendations received through Short Message Services (SMSes) or through any public media including websites or through any other social networking media," Sebi said.