- Says some of the stock tips on social media and use of messaging services tantamount to market manipulation
In the backdrop of increased stock market activities, the Securities and Exchange Commission (SEC) yesterday cautioned investors and the general public not to rely on unsolicited stock tips/advice circulated through bulk SMS, websites and social media platforms.
“The Securities and Exchange Commission of Sri Lanka (SEC) has observed that unsolicited messages purporting to be stock tips/investment advice with respect to listed companies being circulated through short message service (SMS), websites and social media platforms like WhatsApp, Facebook, Twitter, YouTube etc.
The SEC has noted that these messages have been directed towards investors and the general public, recommending to deal with particular stocks of listed companies, indicating target prices and providing misleading/false information relating to listed companies and inducing them to deal in such stocks,” SEC said in a brief statement issued to media.
It added that SEC has taken serious note of these developments and pointed out that the circulation of such misleading information is not only detrimental to the interests of investors but also adversely affects the integrity of the securities market.
“Some of these messages would be tantamount to market manipulation,” the statement cautioned.
“All investors are further advised to engage in appropriate due diligence and to obtain advise from Registered Investment Advisors when dealing with the securities market,” it added.