The regulator said it has been undertaking several campaigns to educate the investors to be vigilant while taking investment decisions based on stock tips. Perpetrators of such fraud use various marketing techniques to attract subscribers on their social media channels. These administrators had built substantial positions in these scrips prior to the circulation of recommendations and offloaded their positions subsequent to rise in price of these scrips, making significant profits at the expense of unsuspecting investors, Sebi noted. Although some channels have been removed, the curation process is considered opaque and insufficient by analysts. However, the perpetrators of such frauds are now adopting new methods and technologies to defraud the investors.
from id
