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SEBI Warning on Social Media Securities Fraud and Fake Advisers

12 April 20251 min read
BANKING & FINANCESEBI Warning onSocial MediaSecurities Fraudand Fake Advisers12 April 2025safalsetu.com

Why in the news

SEBI cautioned investors about growing fraud via social media and asked them to report suspicious activity.

Key facts

  • Tactics: fake educational creators, fake testimonials, claims of risk-free returns, copied trading platforms and private chat groups.
  • Impersonation: unauthorised advice posing as SEBI-registered, even with fake certificates.
  • Advice: beware quick profit offers, verify credentials via official SEBI sources and report on the market intelligence portal.

Exam angle

  • Guaranteed returns are prohibited.
  • Reporting channel: SEBI’s market intelligence portal.

Test yourself

1. Who alone may provide investment advice in the securities market, as per SEBI's warning on social media frauds?

Only SEBI-registered intermediaries are allowed to give investment advice.

2. Which promise made by fraudsters is prohibited under SEBI regulations, according to the social media fraud warning?

No entity is permitted to guarantee returns in the securities market.

3. Where did SEBI ask investors to report suspicious securities market activity on social media?

Investors were told to report on SEBI's market intelligence portal.

This topic is part of Daily Current Affairs 12 April 2025 (27 topics).

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