Beware of stock tip messages and calls

January 8, 2020

In the past few years, the scourge of stock tip messages, calls, and websites has become a dangerous nuisance. We’ve been seeing queries from unwitting investors who have invested based on these messages and calls. We are writing this as a cautionary note urging you to not invest or trade based on anonymous and fraudulent stock tips.

These schemes are commonly known as “pump and dump” scams. Here’s how a typical scam works. Operators pick illiquid stocks which typically don’t trade actively. The operators would already be holding these stocks and start sending out SMS, Telegram, and WhatsApp messages like these in order to boost the stock price. Here are some examples of these messages where these tipsters are impersonating us with variations of Zerodha such as “ZRODHA”, “ZERDHA” etc. This is illegal and we’ve always reported such cases to the relevant authorities including SEBI and Cyber cell.

Example of some of these messages

The prices of these stocks go up as people flock in as the messages are circulated. As the price keeps going up, these operators keep offloading the stocks in large quantities. And these stocks start hitting lower circuits for months together leaving investors trapped. Here’s a chart of Agrophos, 7NR Retail, and Mauria Udyog – 3 stocks for which these fraudulent messages were circulated:

Consecutive lower circuits

Here’s the Google Trends data which shows the search volume for these stocks. Very little search activity and then sudden sharp spike right around the time that the tips were sent.

Please remember that there are no get rich schemes and most of these stocks have dubious fundamentals at best. Please stay away from trading or investing based on stock tips messages and calls. It’s very important that you understand the basics of trading and investing and there’s no better place than Varsity to learn about the markets.

What should you do if you have already bought these stocks?

These stocks hit lower circuits right at the market open, in which case it is not possible to exit. If you have invested in one of these stocks, there isn’t much you can do other than placing an AMO order.

How do these tipsters get the contact details?

This has become a particularly nasty and deeprooted industrywide issue. When you open an account with any broker, the broker is required to share details of your mobile & email to the Exchange, Depositories, KYC agencies. The Exchange uses this information to send you SMS on days you have traded and alerts when brokers upload your fund balances. The Depositories use this to send SMS whenever there’s a debit transaction on your demat account. The KYC agencies use this to send you updates whenever an entity fetches your PAN and does your KYC. Many of these entities use third party IT solutions and SMS gateways and the leak could’ve happened anywhere. Kailash Nadh had answered the same query in detail on a Reddit AMA we had done last year.

How to report these calls and messages

We have raised the issue with the regulators and have been also been constantly educating users on Tradingqna and across our social media channels. If you’ve received these calls or messages, it would help if you could report them on SEBI and the Exchange tiplines.

  1. Enable DND and report the numbers to TRAI. You can download the DND app here for Android and iOS. If enough people report these messages, it’ll make it hard for these guys to keep getting new numbers.
  2. File a complaint on SEBI SCORES
  3. Report the messages to the BSE and NSE exchange tiplines

Please do spread the message.

Team Zerodha

India's largest retail brokerage

73 comments

  1. Mohit Mehra says:

    स्टॉक टिप्स को अनदेखा करने में ही समझदारी है। टिप्स के आधार पर लिए गए शेयर से जादातर निवेशकों को नुक्सान झेलना पड़ता है क्यों की टिप्स भेजने वाला अपना हित पूरा करने के लिए यह टिप्स देता है।

    अगर आपको शेयर्स खरीदने के लिए calls या SMS आ रहे हैं तो पहले आप अपनी रीसर्च करें। हमारी सलह रहेगी की अगर आपको टिप्स देने वाले की नीयत पे शक है तो नीचे दिए गए लिंक्स पर रिपोर्ट करें:

    सेबी: https://www.scores.gov.in/scores/Welcome.html
    एनएसी: https://www.nseindia.com/int_invest/dynacontent/any_portal.htm
    बीएससी: https://www.bseindia.com/investors/tip-off-registration.aspx

  2. Sunny says:

    I think you mean ZROHDA, and not ZRODHA.

  3. kamesh says:

    send the messages of stocks to me

    • Pruthviraj Mohite says:

      It is all OK!! But why don’t you give tips to your subscribers? Just flash the companies to be traded for intraday trade and CNN trading. It will be helpful to all your customers.

  4. Saurabh Sonawane says:

    How will the call May be Tecnology based or fundamental based

  5. Ravindra says:

    Please publish this information in hindi….

  6. Pradeep Kumar says:

    I want daily stock details and fo strike which to buy

  7. krishna sutarwala says:

    Shares tip

  8. satya says:

    it all started for me when i opened Zerodha account what do you say ?

  9. Karan Rinait says:

    I’m in loss with these stocks Agrophos and Darjeeling please tell how to exit

  10. hispeed says:

    lol people asking for tips here as well.

  11. TEJASH JOSHI says:

    I wonder how they get our numbers

  12. Bishnu says:

    Commodity

  13. Mansukh says:

    9783615355
    Sand me F&O call

  14. Vivek says:

    How do these scamsters get our phone numbers and know that we are trading?

  15. Rohit g gohel says:

    Send me tip and massage

  16. SUNIL KUMAR DALABEHERA says:

    There are so many calls are coming and they cheating that client very cleverly.it is a day to day affairs,

  17. Chirag pravinbhai jakasaniya says:

    I want nifty and bank nifty call

  18. Nitin says:

    Hindi massage also for retail investors

  19. Sundeep says:

    The SEBI SCORES link is pointing to the Zerodha support portal.

  20. Pradeep kumar says:

    I am also badly suck in these 3 stocks,now all money is going slowly on everyday basis.3 stocks are 7nr retail,mauriya udyog and agro.what i will do now.how can recover my hard earned money.

  21. GANGA NAGESH NAYAK says:

    1 received sms from telephone no. 9016804842 ” still suffering from trading in share market? start earning 50K per month with indias leading SEBI REGISTERED Advisory to know more give miss call 8512830830 sms received on 02.01.20
    2 received sms from no 8810407054 DEAR STOCK MARKET TRADER TODAY LOSS IN YOUR ACCOUNT STOP TRADE FOR YOUR SELF JUST LOW INVEST PROFT 60/80K DAILY https:/ api.whatsapp.com/send? phone =918462904144

  22. San says:

    Yes. True.
    I remember the messages to “accumulate” Sawaca Business (it was more than 30 that time) and now its around Re.1.
    No buyers even!
    Don’t fall prey for such prank sms’.

  23. BHAWANA DUTT says:

    Very well explained with examples…

  24. Rahul Kumar says:

    I also bought Agro Phos Stock in high quantity, now what i do , how to exit this stock ?
    Please help and take strictly action on these companies

  25. Samir Rizvi says:

    I have stucked in these stock i have invested my saving on mul n agro phos. I did 70000. How to exit from this now. Please suggest me.

  26. Yogesh says:

    I received a msg buy ICICI bank tomorrow at 335 .. then I buy the goes down 315 .. I am in loss because of these messages …

  27. Girish says:

    Sir, Is der any solution to exit from 7NR?

  28. Dipak Das says:

    Hi Dear Zerodha Team
    How To Complain SEBI SCORES About This Kind Calls I Resister on SEBI SCORES Website but cant get that option.
    There only option who are resister SEBI advisory. Please help me I need to complain.
    Thanks

  29. Nagarajan C says:

    Pls sent details

  30. Don't wanna reveal my name says:

    Yes . True.. I borrowed money and then it happened to me

  31. Sudha says:

    Thanks for sharing this information. I had been observing this more than an year now.i had opened a demat account on Motilal Oswal and that is when i started to get number of calls. I some how feel like someone is watching my trading activity. The day i keep involving more in it is the day i get more calls. I have been blocking and reporting ever since.

  32. Chandra Prakash says:

    Many of investors got stuck in these scraps. Around 2to3 thousand people stuck in these three stocks.

  33. Sudha says:

    I remember very well, i never got calls from zerodha or claiming to be from zerodha. But only after giving details for Motilal Oswal website, i started getting calls from nameless investment companies

  34. Sunil says:

    In addition, midcapgains send one more share ‘Darjeeling rope’ which is also fake.

  35. Ranjeet Kumar says:

    I have purchased mauriya Udyog, agro phos and 7nr retails. All are 3000-3000 unit. Please suggest how can I sell my share.

  36. Sudha says:

    I never heard to these fraudsters on phone on which stock to invest. I never do believe what is told on top business news channels too.I feel they all are playing mind games too!

  37. Ashutosh says:

    I am also in loss how to exit

  38. ritesh singh says:

    i have also received 3 different types of share company name like mentioned above. i seen these share’s P/E value which is already so high which cause to make a sock in my mind. i was tracking all these 3 but not invested. and one day fall down started. msg was circulating that invest more, its minor downfall…. i was happy that i was not invested in that.

  39. mahendra tiwari says:

    Will there be any charge for this service

  40. Arup says:

    These Market is cheater. I have tried so many way to get profit. When I buy good Stock it falls drastically, and If I make reverse they make it upside. I don’t know how they make it. Already I lost more than 2 lakhs.

  41. B N Phaniraja says:

    Few month back I received same type of SMS, as per that I take Agrophos 175 share @ 115/- Thanks god I selled the same for Rs.140/share few days before it is stated to lower circuit. Other I will loose my hole amount.

  42. Darshan Bhavsar says:

    hindi me jankari ho to hi muje share kare muje.
    jyadatar log english nahi janty utni achchi ,
    mera ek suggestion he eng or hindi dono me jankari honi chahiye taki jyada s jyada log jaan sake.
    khaskar eng n janne wale log aware ho!
    Jai hind.

  43. Bhavik Patel says:

    There are many sources to leak your no. Or personal details, if u registered in e.g. moneycontrol, policybazar, etc. means any mobile application or website which gives you a stock information they are main culprits and the sources of leak.

    • Iyer says:

      True.. one should never give their aadhar linked, bank linked phone to nos to such websites.. we should keep a separate no for such nuisances. One more point never give away your primary nos to builders, channels partners of builders during enquiry stage of property buying

  44. Iyer says:

    Am yr client – I’d.. SXxxxx

    Yes it’s TRUE tipsters work overtime to send fake tips.. If no is mentioned them then I ask them give 10 lakh loan and same will be invested.. Tipsters should stop this idiotic method as no one will act based on SMS tips

  45. Balaji says:

    Hello Folks,

    please guide us how to sell these 3 killer stocks(7NR, AGROPHOSE, MUL) before loose all the money , already lose 70 % of money.

  46. DHIRAJ KHOBRAGADE says:

    Kindly, tell us, what to do now???
    As already we lossed money, should we hold it there only, or any other strategy????
    Is there any other legal action, which can be taken?????

  47. Rushikesh says:

    I have 500 quantity of 7NR please help ? I can exit

  48. Khemraj says:

    What action can be taken against the tipsters, if already bought these stocks?

  49. Kundan Kumar says:

    Sir I also trapped in above advisory services and shares as you mentioned. And now a new advisory services continuously send me SMS. The SMS is

    ” LOOK
    EXPIRY SPECIAL HEDGING STRATEGY
    BN CE 31800 HIGH 176 BUY 85
    HOLD BN PE 31800.
    Dear Traders,
    PAY 24,999/- GET 1 YEAR SERVICE.
    HURRY UP Call me 0898098835″

    Sir please look this matter or Can I complain this in SCORES

  50. C M Mahato says:

    Sir I also trapped in above advisory services and shares as you mentioned. And now a new advisory services continuously send me SMS. The SMS is
    VX-PIGIND
    MCX BLASTER JACKPOT CALL
    BUY [email protected] TGT 51350
    BUY [email protected] TGT 49200
    LOOK BANKNIFTY PUT 31100 CMP 210
    ENJOY PAY 22222 CALL ON 09824712667

  51. Ram gore says:

    It’s correct.
    It wil help to all new traders.

  52. Rishabh says:

    I am your costumer and I need to talk you executive I want to know how can I buy ipo of sbi card plz contact with me immediately

  53. RISHI KUMAR says:

    DON’T SEND ANY MESSAGE ON MY NO 7250578552

  54. Dinesh sen says:

    I have received SMS from TX-PIGIND on 20.04.2020
    TODAY ALL TARGET DONE.
    PROFIT 2.68LAKH.
    PAY 25000/- FOR 1 YEAR SERVICE.
    SPECIAL BANKNIFTY OPERATOR TRADE.
    OPERATOER. Call On : 07567533821

    Then again I have received SMS from same TX-PIGIND on 21.04.2020 at 9.30am
    BUY [email protected] TG 600/900.
    BUY [email protected] TG 600/900.
    BUY [email protected] TG 700/900.
    PAY 25000/- FOR 1 YEAR SUPER JACKPORT SERVICE Call On : 07567533821

    then again Received on 21.04.2020 at 10.48am
    ALL PUT FIREE.
    BN19500PE HIGH 470,[email protected]
    BN19600PE HIGH 520,[email protected]
    BN19700PE HIGH 570,[email protected]
    PROFIT 1.68LAKH.
    PAY 25000/- FAST. Call On : 07567533821
    then SMS at 12.37pm

    BN19500PE HIGH 604,[email protected]
    BN19600PE HIGH 670,[email protected]
    BN19700PE HIGH 734,[email protected]
    ALL FIRE HI FIREEE.
    PAY FAST 25000/- FOR 1 YEAR. Call On : 07567533821

    then on 21.04.2020 at 4.15pm
    BN19500PE HIGH 683,[email protected]
    BN19600PE HIGH 747,[email protected]
    BN19700PE HIGH 813,[email protected]
    DAILY 500POINTS IN OPTION.
    PAY 25000/- FOR 1 YEAR. Call On : 07567533821
    I have ignored all SMS.
    but now checked up that all calls worked.
    is it fraud or what??

  55. Ashok says:

    Well said Dinesh Sen.
    I also checked some. Almost all worked. Then how do these people call it fraud.

    I do know that, this is illegal as they are not sebi registered but not fraud. And the point mentioned in the article could also be true, Manipulating the Stock Price.

    But who else people should trust?
    1. The brokers who earn crores while common people lose lakhs and lakhs.
    OR
    2. Those who earn Lakhs in the name of charts, indicators, webinars, training etc etc from low income people.

    • Matti says:

      Ask yourself this: If someone knew what stocks to buy or what trades to take, why are they telling you instead of taking the trade themselves? When something is too good to be true, it’s most often because it isn’t.

  56. Anirban Shaw says:

    All these 3 shares have the exact same histprical price pattern. what were the other stocks affected? why do you say dubious fundamentals at best? have you done any fundamental analysis for these companies? 7NR owns Gini and jonny. i just am not able to figure out this crash in the current market price of 7NR…

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