BSE asks brokers to be vigilant against on SMS tipsters

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Press Trust of India Mumbai
Last Updated : Dec 29 2015 | 6:57 PM IST
As investors get duped by scamsters promising huge stock market gains, top stock exchange BSE has asked its trading members to exercise caution with respect to tips circulated through social media, SMS, WhatsApp and blogs.
It has also asked the brokers to advise their clients not to blindly follow unfounded rumours and tips and invest after conducting appropriate analysis of respective companies.
"Trading members are aware that the exchange has been taking various measures for the purposes of investor protection and maintaining market integrity," the BSE said in a notice today.
"In this regard, it is once again reiterated that the trading members should exercise necessary caution with respect to tips / rumours circulated via various mediums like social networks, SMS, WhatsApp, blogs while dealing in the securities listed on the Exchange on behalf of their clients," it added.
Market regulator Sebi, has busted various scams wherein 'trading tips' were being offered through mobile SMSes and WhatsApp messages by unregistered investment advisors while promising guaranteed returns.
In a large number of cases, those offering such 'SMS tips' services are not registered with the market authorities to carry out such operations and make wrong claims of being authorised entities and also use the names of stock exchanges, for their messages and websites.

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First Published: Dec 29 2015 | 6:57 PM IST

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