This is how Telegram stock channels make lakhs per free tip; SEBI cracks down

The Securities and Exchange Board of India (SEBI) on Wednesday carried out 'search and seizure' operations on three Gujarat-based stock market operators.

They have been accused of manipulating stocks via Telegram channels.

These suspected entities leverage their large subscriber base. They would first buy a stock and then recommend the same through the social media app. As subscribers start buying the stocks and their value goes higher, these tipsters would then square off their positions.

Reports say these tipsters on Telegram have made a killing by just cheating people. Some say, they make lakhs of profit on every transaction.

One must take all the financial recommendations from a SEBI-registered investment advisor.