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Spotting stock-tip scams and unregistered advisers

Beginner · 5 min read

Anyone who gives buy or sell recommendations for a fee in India must be registered with SEBI as a Research Analyst (or an Investment Adviser for personal advice). Most “tip” channels are not.

Warning signs

• Guaranteed or “sure-shot” returns, or an accuracy percentage. Markets guarantee nothing, and registered analysts may not promise returns.
• Profit sharing — “pay us 30% of what you make”. Registered research analysts charge a fee, not a share of profits.
• Asking for your login, password or OTP, or offering to trade your account for you.
• Payment to a personal UPI ID or bank account, or pressure to pay before a “VIP” group fills up.
• Screenshots of huge profits with no full record of the losses.
• Pump-and-dump — an obscure small stock pushed hard on Telegram or WhatsApp; those sending the messages are often the ones selling.

How to check a registration

1. Find the registration number on the website or message — a research analyst's starts with INH.
2. Look it up on SEBI's website under Intermediaries → Recognised intermediaries → Research Analysts, and check the name matches.
3. Registered analysts must show their number, a grievance contact and a link to SEBI SCORES.

Kestrel is not yet registered with SEBI, and it does not sell research until it is.