With scamsters being more active on social-media, are regulators planting more eyes on the channels too? A recent development suggests so. In an unconventional move, a few brokerages were directed by exchanges to send out mails to investors asking them to keep away from certain bad actors in the market. The mails sent out from exchanges to investors give names and numbers of people who are selling stock tips or investment advisory services, though they are not registered to do so, and of people who offer money-management services though they don’t have the licence to do the same. This isn’t usual practice but, as someone connected with an exchange told us, with many investors coming online after the pandemic and scamsters targeting them with advertisements on social-media handles, exchanges who are also frontline regulators are keeping their eyes peeled.
