COLOMBO, Nov. 19 -- Sri Lanka's Securities and Exchange Commission (SEC) has issued a strong warning against individuals and groups who promote investment recommendations online without proper regulatory approval, amid a surge in social-media-driven stock tips and fraudulent schemes targeting retail investors.

In a statement, the regulator said that no investment recommendation should be shared via social media without a proper analytical basis and that those doing so should be registered investment advisors or entities licensed by the SEC.

"The SEC will take strict action against individuals or groups who violate this requirement," it cautioned.

Under Sri Lanka's securities law, individuals who contravene these provisions can be prose...