By ipomarket.in Editorial Team · Last reviewed: 2026-10-06
Disclaimer: This article is for informational purposes only and does not constitute investment advice. IPO investments are subject to market risks. Please read the offer document carefully and consult a SEBI-registered investment advisor before investing.
As IPO activity has grown, so has a parallel economy of scams that target retail investors on WhatsApp, Telegram, Instagram and other platforms. The promises vary "guaranteed IPO allotment, discounted shares, insider knowledge of anchor demand, real-time trading tips "but the pattern is familiar: urgency, false certainty and a stranger asking for your money or your login.
The Securities and Exchange Board of India (SEBI) has issued a string of warnings through 2025 and 2026 about exactly these schemes. This article pulls those warnings together, explains the most common frauds and sets out practical checks any investor can do before acting on something seen online.
What SEBI has actually said
In a circular dated 11 April 2025, SEBI warned investors about rising fraud and manipulation linked to the securities market on social media platforms, including fraudsters impersonating SEBI-registered intermediaries using fake but sophisticated websites and apps.
A month later, on 21 May 2025, SEBI reiterated that investors should not trust unsolicited messages from unverified sources and advised them to refrain from joining WhatsApp groups or online communities related to investments, citing a surge in frauds and scams. The regulator noted that fraudsters impersonate SEBI-registered intermediaries, prominent public figures, celebrities or chief executives of reputed organisations to build credibility and gain investors' trust. On 22 May 2025, SEBI urged investors to deal only with SEBI-registered intermediaries and to use authentic trading applications.
More recently, in August 2026, SEBI cautioned investors against taking decisions based on live trading or real-time trading strategies promoted on social media, warning that such sessions could involve unregistered investment advisory services. On 17 August 2026 the regulator made clear that sharing live market data for trading recommendations without proper registration is not permitted.
SEBI has also moved against the infrastructure that enables these scams. On 7 November 2025, it urged major social media platforms and internet search engine providers to fast-track mandatory advertiser verification in the securities market, so that only SEBI-registered entities can promote investment products.
This is not a new concern. Back in 2016, the National Stock Exchange (NSE) advised members to exercise greater caution regarding tips and rumours circulated via analyst websites, social networks, SMS, WhatsApp and blogs while dealing in listed securities.
The most common IPO-related scams
1. The "guaranteed allotment" trap
The single most important thing to understand: no SEBI-registered broker, bank, registrar, portfolio manager or investment adviser can legally promise a guaranteed IPO allotment to a retail investor. Allotment in an oversubscribed retail category is decided by a computerised lottery overseen by the registrar "nobody can reserve shares for you for a fee.
SEBI has warned investors about fake trading platforms and social media schemes advertising institutional trading accounts, discounted IPOs and sure-shot IPO allocations. If an account or group offers any of these, that is the red flag, not the opportunity.
If you want to understand how allotment genuinely works, our explainer on the IPO allotment process and the legitimate ways to improve allotment chances both describe a system in which outcomes are probabilistic, never guaranteed.
2. Fake "inside information" groups
According to reports, unregulated Telegram and WhatsApp groups claim to provide inside information about upcoming IPOs, anchor investor demand or hidden listing gain opportunities. These claims are frequently misleading or entirely fabricated. The same reports note that such groups attract large followings by showing live charts with entry and exit points and promising quick profits, often run by unregistered operators.
Real anchor investor allocations and subscription data are published through official channels and exchange filings, not leaked in a paid group. If you want to track genuine demand, the subscription status across QIB, NII and retail is public information.
3. Cloned apps and payment-request fraud
According to reports, fraudsters exploit the ASBA/UPI IPO application process by sending fake payment requests or cloned UPI approval links. In a legitimate IPO application, you initiate the mandate from your own bank or broker app; you block funds in your own account via ASBA and no money leaves your account until shares are allotted. Any inbound "collect" request asking you to approve a UPI payment to someone else is not a normal IPO flow.
Reportedly, common recent frauds also include fake investment apps, social media stock tips, insider trading leaks, IPO manipulation and Ponzi-style schemes that rely on urgency and false promises. In one case, the Enforcement Directorate reportedly filed a prosecution complaint against eight accused who allegedly lured people through fake IPO allotments and stock market investments using fraudulent apps promoted on Facebook, Instagram, WhatsApp and Telegram.
Why retail investors are so exposed
Part of the problem is a simple supply gap. According to reported figures, India has about 62 million unique investors as per the NSE, compared with just 1,330 registered investment advisers. With so few qualified, registered advisers relative to the number of investors, many people turn to whoever is loudest online "which is exactly where unregistered operators concentrate.
The fix is not to stop learning online. It is to separate education from advice, and to verify the source before you act on anything specific.
A practical checklist before you act
- Verify registration. Check whether the person or firm giving advice is a SEBI-registered intermediary before taking any tip. SEBI itself recommends verifying registration first.
- Treat "guaranteed" as disqualifying. Guaranteed allotment, assured listing gains or sure-shot allocation are impossible to deliver legitimately.
- Ignore unsolicited messages. SEBI has advised refraining from joining investment WhatsApp groups and online communities, and not trusting unverified sources.
- Confirm the app. Use only authentic, official trading and broker applications "not links shared in chats. Our guides on the best demat account for IPOs and applying for an IPO online walk through the legitimate route.
- Check who you are actually paying. In a real IPO, you block your own funds via ASBA; you never approve a UPI payment to a third party.
- Distrust celebrity endorsements. SEBI has flagged impersonation of celebrities and executives as a common tactic.
Understanding the grey market itself also helps you see through hype. Grey market premium is an unofficial, unregulated indicator, as our GMP explainer sets out "anyone promising certainty based on it is overstating what GMP can tell you.
FAQ
Can anyone legally guarantee me an IPO allotment?
No. No SEBI-registered broker, bank, registrar, portfolio manager or investment adviser can legally promise a guaranteed IPO allotment to a retail investor. Allotment in an oversubscribed retail category is decided by lottery. Any offer of "sure-shot" allocation is a warning sign SEBI has specifically flagged.
Are WhatsApp and Telegram IPO tip groups safe?
SEBI has advised investors not to trust unsolicited messages from unverified sources and to refrain from joining investment-related WhatsApp groups and online communities, citing a surge in frauds. Reports indicate many such groups claim inside information on upcoming IPOs or anchor demand that is frequently misleading or fabricated, and are often run by unregistered operators.
What did SEBI say about live trading sessions on social media?
In August 2026, SEBI cautioned investors against taking decisions based on live or real-time trading strategies promoted on social media, warning these could involve unregistered investment advisory services. On 17 August 2026 it stated that sharing live market data for trading recommendations without proper registration is not permitted.
How can I check if an adviser is genuine?
SEBI urges investors to deal only with SEBI-registered intermediaries and verify registration before acting on any tip. The regulator has also, as of 7 November 2025, pushed social media and search platforms to introduce mandatory advertiser verification so that only registered entities can promote investment products.
What should I do if I get a UPI payment request during an IPO application?
In a legitimate ASBA/UPI IPO application you block funds in your own bank account and no money is transferred to a third party until allotment. Reports warn that fraudsters send fake payment requests or cloned UPI approval links. An inbound request asking you to pay someone else is not part of the normal IPO process.
Last reviewed: 2026-10-06 by the ipomarket.in Editorial Team.