SEBI warning on WhatsApp stock tips groups: how the scam works
On 22 October 2026 SEBI warned investors about invitation-only WhatsApp groups that share stock tips. How the trick works and how to stay safe.
The Securities and Exchange Board of India (SEBI) issued a press release on 22 October 2026 warning investors about stock tips shared in invitation-only WhatsApp groups. SEBI says unregistered people are running these groups and giving buy and sell calls in the name of free investor education.
How the trick works
According to SEBI:
- You are added to, or invited into, a WhatsApp group that only joins by invitation. The people running it call themselves market experts. Most of them use overseas WhatsApp numbers.
- The group shares buy and sell calls on shares. These calls are not authorised, because the people giving them are not registered with SEBI.
- Other members, who work with the operators, post claims of big profits and praise the "expert". SEBI calls this astroturfing: it creates a false picture of genuine support so that real investors trust the calls.
- When enforcement agencies get a group shut down, members get a message from a new number inviting them to a new group. SEBI quoted a typical message: "Due to Social Media Platform's risk control measures, our previous group has been banned. This new group will provide daily recommendations of quality stock information and trading guidance. Please join the group."
Such groups often push members to open accounts on a "trading platform" or app they suggest and to send money there. SEBI's advice covers this directly.
What SEBI tells investors to do
- Do not join invitation-only WhatsApp groups run by unknown people or by people who claim to be stock market experts, especially groups run from overseas numbers. Do not act on tips shared there.
- Ignore the praise. Messages of praise, profit claims and trade confirmations from other members may be planted.
- Treat "our old group was banned" as a red flag. If a message says a group was suspended, closed or banned and invites you to a new one, leave the group.
- Do not open an account or send money on any trading platform or app suggested in such a group. Do not share your holdings or trading account details with these people.
- Deal only with SEBI-registered intermediaries and use only genuine trading apps.
How to check a broker or adviser
You can check whether a broker, investment adviser or research analyst is registered on SEBI's list of intermediaries. SEBI also lists the genuine trading apps of registered brokers on its investor support page. Anyone who gives buy or sell calls for a fee must be registered with SEBI as an investment adviser or research analyst.
If you have lost money
- Call the national cyber fraud helpline 1930 or file a complaint at cybercrime.gov.in. Report quickly, because the sooner you report, the better the chance of stopping the money.
- Tell your bank at once if you sent money by UPI or bank transfer.
- Complaints against SEBI-registered entities can be filed on SEBI's SCORES portal.
Saifu is not a SEBI-registered investment adviser and this is not investment advice. Investments in shares are subject to market risk.
Also read: fake government scheme ads with deepfake videos.
Sources: SEBI: Caution to investors against stock tips offered through invitation-only WhatsApp groups, PR No. 65/2026, 22 October 2026, SEBI: Recognised intermediaries, National Cyber Crime Reporting Portal.
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