Market operators try to make profits by duping such investors. You must have often seen that many tips are given regarding buying shares in Telegram Group or WhatsApp Group. New and small investors blindly trust him and buy his suggested stock.
Security and Exchange Board of India means SEBI has started tightening the noose on similar market operators.
On Wednesday, officials of Sebi’s surveillance wing conducted ‘search and seizure’ operations at the offices of three firms in Gujarat’s Ahmedabad and Mehsana. These entities are suspected of using chat apps like Telegram to manipulate stock prices.
The mobile phones of these people have been confiscated by the SEBI officials during their action. Recommendations of many such stocks have been found in the investigation, in which they were positioned. Meaning they bought first and then got others to buy.
The Economic Times report says that these operators from Gujarat were working under the BTST meaning Buy Today, Sell Tomorrow (Buy Today, Sell Tomorrow) strategy. In this, the shares are bought a day before the sale.