The Securities and Exchange Board of India (SEBI) is once again looking to clamp down on fraudulent and unsolicited investment tips and offers made through SMSes, Whatsapp and other social media platforms, reports PTI. The regulator is looking to coordinate with the Reserve Bank of India (RBI) and the Telecom Regulatory Authority of India (TRAI) to do this more effectively. This is because SEBI depends on call and data usage records from telecom companies ( to obtain the numbers and URLs used by the perpetrators) and statements of financial transactions (for the account numbers) from banks to establish the identity of the perpetrators and investigate these cases. The modus operandi of the fraudsters seems to be: first send out fake investment tips and offers through SMSes, instant messaging platforms like Whatsapp, and even social media platforms like Facebook and Twitter to lure investors, then give them a bank account number to deposit the investment money. Investment advisers and market research analysts registered with SEBI are the only ones allowed to offer investment advise regarding the stock market or other financial instruments connected to the stock market (such as mutual funds). The report mentions that in the past, SEBI has taken action against unregistered companies like MCX Biz Solutions, Moneyworld Research and Advisory, Global Mount Money Research and Advisory, Orange Rich Financials, GoCapital, and CapitalVia Global Research among others for offering fraudulent investment advice. SEBI consultation on investment advisory services Last year, SEBI had released a consultation paper with the objective of…
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