The Securities and Exchange Commission of Sri Lanka (SEC) yesterday cautioned investors against unsolicited tips or recommendations amidst the bull run at the Colombo stock market.
SEC said it had observed that unsolicited messages purporting to be stock tips/investment advice with respect to listed companies were 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 in 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.
The SEC said it had taken serious note of these developments and wished to point out that the circulation of such misleading information was not only detrimental to the interests of the investors but also adversely affected the integrity of the securities market. Some of these messages would tantamount to market manipulation.
“Accordingly, all investors and the general public are hereby advised/cautioned not to rely on such unsolicited stock tips/investment advice circulated through bulk SMS, websites and social media platforms. All investors are further advised to engage in appropriate due diligence and to obtain advise from registered investment advisors when dealing in the securities market,” the SEC said in a statement.