NSE, BSE, MCX, NCDEX, MSE issue Joint Fraud Alert to Caution Investors: All the major stock and commodity exchanges of the country including NSE, BSE, MCX, NCDEX and MSE have asked the common investors to be cautious of fake investment advisors and their increasing fraud. All these major exchanges have also issued a joint statement for this on Monday. The statement said that some unscrupulous persons / institutions are falsely claiming to provide trading opportunities by imitating reputed financial institutions through Indian and international mobile numbers, social media platforms like WhatsApp groups, Telegram channels, Facebook and Instagram channels and showing fake certificates issued by SEBI / exchanges. According to the statement, these fraudsters often also use mobile numbers registered under false names to carry out their schemes.
In a joint statement issued by the exchanges, investors have been advised to exercise utmost caution to avoid such fraud and to refrain from joining any WhatsApp/Telegram group. The way the exchanges have issued a detailed statement in this regard shows how serious this issue is becoming now. You can see this entire statement here, so that by following the instructions and instructions mentioned in it, you can save yourself from becoming a victim of such fraud.
Also read: 5 lakhs were deposited in this retirement fund of HDFC by SIP of Rs 2600, only 50 thousand had to be deposited at once
Highlights of the joint statement of the exchanges
It has been brought to the notice of the exchanges that certain unscrupulous individuals/entities are falsely claiming to offer trading opportunities through Foreign Portfolio Investment (FPI) or Foreign Institutional Investor (FII) sub-accounts or SPECIAL PRIVILEGE INSTITUTIONAL ACCOUNTS through Indian and international mobile numbers, social media platforms such as WhatsApp groups, Telegram channels, Facebook, Instagram channels etc. by impersonating reputed financial institutions, showing fake certificates purported to be issued by SEBI/exchanges. These operations often use mobile numbers registered in false names to carry out their schemes.
The activities of such persons/entities may include the following:
- Claims of association with reputed organisations/individuals
- Providing regular trading platforms and unauthorised trading applications that resemble or impersonate the applications/websites of registered trading members
- Luring people to join/create “Institutional Account” to receive guaranteed/higher returns without the need for an official trading or Demat account,
- Offering assured/guaranteed returns on investments in capital/forex/commodity markets,
- Offering to handle investors’ trading accounts by asking the investors to share their login credentials (including passwords)
- Claiming to offer pre-IPO subscription facility with false promises of assured returns
- Providing dabba/illegal trading services,
- Enticing victims through online trading courses, seminars and mentorship programs in the stock market, leveraging social media platforms as well as live broadcasts.
Also read: Mutual Fund: Top 6 multi asset funds gave up to 32% return on SIP in 5 years, should you invest?
Do not join WhatsApp/Telegram groups
The Exchange advises investors to exercise caution and refrain from joining any WhatsApp/Telegram groups where stock recommendations are given along with market analysis or downloading any apps offering institutional account services for members of WhatsApp/Telegram groups with features like trading in upper circuit stocks, block deals at discounted prices, preferential allotment in IPOs, etc. Please note that you may be the next victim of international financial fraud promising unrealistic returns through fake institutional account services offered through fake trading apps.
Victims of these scams are asked to transfer funds to third-party bank accounts and the funds are immediately withdrawn from these accounts, leaving them only with paper profits shown in the fake trading apps.
Also read: Mutual Fund Return: This is how 50 thousand rupees became 5 lakhs! Nippon India’s ETF gave bumper return in 5 years
Report fraud here
Therefore, investors are cautioned to be skeptical of any social media claims of high returns from trading in securities market through fake institutional accounts and not to fall prey to false stock market advice/analysis.www.sancharsaathi.gov.in Report such suspected fraudulent communication by visiting and if you have already lost money, call the Cyber Crime Helpline number 1930 issued by the Government of India in public interest orwww.cybercrime.gov.in Report it to Investors are advised to refer to the webpage links of stock exchanges to verify the genuine trading apps, websites and bank accounts of the recognized stockbrokers.
Also read: SBI Mutual Fund’s scheme to turn 1 lakh into 5 lakh, SIP of just Rs 1100 did wonders in 5 years
Beware of such schemes
Investors are also cautioned and advised not to subscribe to any such scheme, referral, product offered by any person offering indicative/assured/guaranteed returns in the stock market, as doing so without verifying its genuineness and authentic source is prohibited by law. Further, investors are advised not to share their trading credentials such as user ID/password or any other sensitive information with anyone. It is important for investors to understand that investments offering high returns usually involve high risk including the risk of fraud and there can be no guarantee of assured returns in the securities market.
Verify information from official websites
Investors are urged to exercise extreme caution, conduct due diligence and verify the registration status of any entity claiming to be a SEBI/NSE/BSE/MCX/MSE/NCDEX registered intermediary. It may also be noted that the exchanges have provided a facility on their website given below to check the details of registered members and its authorised persons, genuine trading apps and websites. Further, the designated bank accounts designated as client bank accounts for receiving/paying money from/to investors as disclosed to the exchanges by the trading members are also displayed under the said link.Investors are advised to visit the official websites and check the correct details while transacting with any entities.
