‘It’s crazy that even in 2026…’: Nithin Kamath in disbelief over WhatsApp-driven stock manipulation

Falling for stock tips on WhatsApp, Telegram, SMS and social media is the silliest way to lose money, that too in 2026, said Zerodha founder Nithin Kamath. He said such instances are only going to increase, and urged unsuspecting people to use artificial intelligence (AI) assistants like Claude and ChatGPT instead.

“It's crazy that even in 2026, people still fall for stock tips on WhatsApp, Telegram, SMS, and social media. This is probably the silliest way to lose money. Given how late in the cycle we are, these instances are only going to increase. We're already seeing more pump and dumps, whether through WhatsApp groups or influencers peddling IPOs and stocks. This won't end well,” he said, adding that the next time one gets a message promising easy money, they should just ask Claude or ChatGPT instead whether it is a good idea.

“It could save you a lot of money,” he said.

Kamath’s remarks come after the Enforcement Directorate (ED) said it conducted searches at 29 premises across six cities as part of an investigation into the alleged manipulation of shares of listed companies R M Drip and Sprinklers Systems Ltd (RMDSSL) and R&B Denims Ltd. The agency froze trading accounts worth about ₹200 crore.

The premises searched included the offices of the two companies, residences of their promoters and preferential allottees, stock-broking and finance firms, and locations linked to people suspected of operating promotional WhatsApp groups.

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According to the ED’s investigation, the companies issued more than 3.5 crore shares and convertible warrants to selected individuals and entities between April 2023 and March 2024. A significant portion of the funds for these allotments came from a small network of connected persons, firms and lenders. The share prices were subsequently pushed up, while much of the stock remained with the same holders.

From late December 2025 to February 2026, WhatsApp communities with names such as ‘Multibagger Stocks’ circulated daily buy tips to retail investors. The groups reportedly used SIM cards registered in other people’s names in Haryana and Mumbai but were operated from Bhavnagar, Gujarat. The campaign attracted more buyers to the two stocks, driving prices higher. The ED said preferential allottees took advantage of the increased buying interest to sell part of their holdings to a large number of investors.

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Searches identified clusters of family-linked beneficiaries, including Affluence Gems, Kawa HUF and Komalay Consultancy, along with connected persons. The investigation found that these beneficiaries acquired shares at low prices through preferential warrants before prices were allegedly inflated through campaigns on WhatsApp, X, SMS and other channels.

The agency also seized documents, digital devices, share-transaction records and property papers during the searches.