Fraudsters manipulating share prices by misusing social media

Spread the love

KARACHI: Taking advantage of China’s flagship investment projects in Pakistan, tricksters are misleading equity investors by spreading false news on social media about probable heavy investment or acquisition of Pakistani ventures by Chinese investors, it is learnt.

As a result, in the local equity markets, share prices of some companies have been rising rapidly without any concrete developments that might impact on the share prices.

In this regard, the Securities and Exchange Commission of Pakistan (SECP) has cautioned general public yet again that fraudsters are manipulating share prices by spreading false and misleading information through social media, SMS and emails.

The public warning issued by the SECP on Monday said that never invest if any of red flags is spotted including unsolicited investment offers and pressure to buy or sell now.

“If the receiver does not personally know the sender, he/she should exercise extreme caution regarding social media posts that solicit an investment or provide information about particular share,” the commission stated.

Take time to research the stock before investment and never trade on social media tips where the recommendations are claimed to be based on inside or confidential information, SECP cautioned.

Nazir Cotton Mills Limited (NCML) is one of the companies that witnessed sharp increase in its share price lately despite the fact that the operations of the mill are closed due to unfavorable business environment.

‘It has been noted that the prices of the shares of the company has been rising since many days without any base. In this situation, ‘We would like to inform the members, investors and general public that don’t believe the rumors which have been spread in the stock market”, said the management of the NCML.

The management of NCML informed its shareholders that there is no foreign investment plan expected for the company. No Chinese company taking charge or willing to buy the company and the operation of the Mill is still closed since long ago. The management of the company is hopeful that the operation of the mill will be re-started in near future as the operation of the company will start only after the betterment of yarn market which is in miserable condition now days.

The SECP also advised investors that their investment decision is not based on hearsay, rumors, and tips/advice disseminated by unregulated persons through various social media networks like Facebook, Twitter and Whatsapp.

Limited history of posts fraudsters can setup new accounts to carry out their scam while concealing their true, it added. The authority suggests to the general public that before making any decision check license and registration status of seller/advisor on ‘Jamapunji’ portal or through Jamapunji 8181 SMS verification service.

Similar Posts