 "NSE cautions investors against stock tips via SMS, WhatsApp")
Leading bourse NSE on Tuesday cautioned investors against falling prey to stock tips circulated through SMSes and social media platforms like WhatsApp.
In a notice, the exchange also asked brokers to advise their clients not to blindly follow unfounded rumours and tips and invest in securities only after conducting appropriate analysis of respective companies.
NSE advised its members to "exercise greater caution with respect to tips/rumours circulated via various mediums such as analyst websites, social networks, SMS, WhatsApp, blogs etc, while dealing in the securities listed on the exchange on behalf of their clients".
It has also asked members and investors to inform the exchange about any systemic wrongdoing, potential frauds or unethical behaviour they come across.
"In recent past, exchange has come across SMS tips being circulated whereby as a festive bonanza, various stocks are being recommended with higher price targets leading to heightened trading activities in such stocks," NSE said.
Yesterday, leading exchange BSE too advised members to remain on guard against tips circulated through SMSes and social media platforms.
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Market regulator Sebi has busted various scams wherein 'trading tips' were being offered through mobile SMSes and WhatsApp messages while promising guaranteed returns.
Sebi has proposed to ban trading tips via bulk SMSes and emails in its Board meeting held last month. The regulator would be coming out with a consultation paper in this regard.