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

URL: https://kasba.co.in/en/story/sebi-cautions-investors-against-stock-tips-in-invitation-onl
Language: en · Section: Money · Published: 2026-10-24
Source: SEBI, "Caution to Investors against Stock Tips offered through Invitation-only WhatsApp Groups", 2026-10-22, https://www.sebi.gov.in/media-and-notifications/press-releases/oct-2026/caution-to-investors-against-stock-tips-offered-through-invitation-only-whatsapp-groups_105389.html

SEBI issued a press release on 22 October 2026 warning investors not to act on stock tips and trading calls given in invitation-only WhatsApp groups run by unknown persons. The caution applies to ordinary people who invest in the stock market or are members of such groups.

## What this means for you

If you are in a WhatsApp group where strangers give buy or sell advice, be careful. SEBI has asked people not to transfer money to any trading app suggested in such groups, not to share holdings or trading account details, and to exit such groups. Before investing, check whether the entity or app you are dealing with is registered with SEBI.

## Key facts

- SEBI issued the press release on 22 October 2026 from Mumbai.
- Some unregistered persons are offering stock tips and trading calls through invitation-only WhatsApp groups.
- These operators pose as market experts, mostly using overseas WhatsApp numbers.
- Some group members post false profit claims and praise for the 'expert', a practice SEBI calls astroturfing.
- When a group is suspended, members get a message from a new number inviting them to a new group.
- Registration status of entities can be checked at sebi.gov.in/intermediaries.html.

## What SEBI has said

SEBI said some unregistered persons are offering stock tips and trading calls to investors through invitation-only WhatsApp groups. These operators pose as market experts and mostly use overseas WhatsApp numbers. According to SEBI, the calls are shared in the name of free investor education.

## How the groups look credible

SEBI said certain members of these groups act in concert with the operators and post false claims of profit along with praise for the 'expert'. This practice is known as astroturfing. It creates a false impression of genuine support and pushes unsuspecting investors to act on the calls.

## What happens when a group is suspended

According to SEBI, when such a group is suspended after action by enforcement agencies or regulatory bodies, its members get a message, usually from a new number, inviting them to join a new group. The message says the earlier group was banned due to social media platform risk control measures and that the new group will give daily stock information and trading guidance. SEBI has called such messages a red flag.

## What investors should do

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 run from overseas numbers, and not to act on tips shared there. It also said investors should not be swayed by praise, profit claims or trade confirmations posted by other members, as these may be planted.

## Money and account details

SEBI said investors should not open an account on, or transfer money to, any trading platform or app suggested in such groups. They should also not share their holdings or trading account details with such persons.

## How to check registration

SEBI has asked investors to deal only with SEBI registered intermediaries and use only authentic trading apps. The registration status of entities can be verified at sebi.gov.in/intermediaries.html, and the trading apps of SEBI registered intermediaries at investor.sebi.gov.in/Investor-support.html. SEBI said the press release was issued to caution investors and urge them to remain vigilant while dealing in the securities market.

## Questions and answers

**What has SEBI said about WhatsApp stock tips?**
SEBI has advised investors not to act on stock tips shared in invitation-only WhatsApp groups run by unknown persons. It said such tips may come from unregistered people posing as experts.

**Why do some group members post profit screenshots and praise?**
According to SEBI, some members act along with the group operators and post false profit claims and praise. This creates a false impression of genuine support, a practice called astroturfing.

**What should I do if I get a link to a new group after the old one was banned?**
SEBI says treat such a message as a red flag and exit such groups. The message usually comes from a new number and claims the old group was banned.

**Should I open an account on an app suggested in such a group?**
No. SEBI has advised investors not to open an account on, or transfer money to, any trading platform or app suggested in such groups.

**How can I check if a company or app is SEBI registered?**
SEBI says registration status can be verified at sebi.gov.in/intermediaries.html. Trading apps of SEBI registered intermediaries can be checked at investor.sebi.gov.in/Investor-support.html.

Kasba Desk, Kasba. This story was drafted with AI from an official notice and checked by an editor before publishing.
