Negative impactStocks
WhatsApp stock tips: Nithin Kamath warns of more pump-and-dump schemes as ED freezes accounts worth Rs 200 crore
Economic Times 1 hr ago·20 Oct 2026, 7:33 am
Nithin Kamath, co-founder of Zerodha, has raised a fresh alarm about the persistence of stock market scams. He highlighted that despite regulatory crackdowns, fraudulent 'pump-and-dump' schemes continue to operate, often using WhatsApp groups and social media influencers to lure investors.
This warning is significant because these schemes rely on spreading false hype to artificially inflate a stock's price before unscrupulous promoters sell their holdings. For retail investors, this means the risk of significant financial loss remains high, even in a mature market cycle.
Investors should exercise extreme caution and avoid acting on unsolicited tips found on social media. It is crucial to verify information independently and understand that high returns from such schemes are often a trap. Keeping a close watch on regulatory actions and media reports can help investors stay ahead of potential frauds.
Excerpt from Economic Times
In a post on X, formerly Twitter, Kamath said such schemes remain a concern even in 2026, calling them one of the silliest ways for investors to lose money. He also warned that these cases could become more frequent as the market cycle advances, pointing to a rise in alleged pump-and-dump schemes operating through…Read the original at Economic Times
Key takeaways
- Category: Stocks.
- AI reads the tone as negative (potentially bearish) for the stock.
Why it matters
A routine update. The tone is negative — watch for downside reaction. Use the price and stock snapshot to gauge how the market is responding.
