Zerodha founder tells investors to vet stock tips with AI chatbots

Nithin Kamath, founder and CEO of Zerodha, urged retail investors on October 20 to run stock tips received via messaging apps past Claude or ChatGPT. The advice followed the Enforcement Directorate's statement that it froze trading accounts worth about Rs 200 crore in an alleged WhatsApp-driven pump-and-dump scheme.

• ED froze accounts worth about Rs 200 crore in a WhatsApp pump-and-dump case
• Tips came from groups like "Multibagger Stocks" between December 2025 and February 2026
• Searches covered 29 premises across six Indian cities on October 16
• Kamath: "We're already seeing more pump and dumps... This won't end well"