NSE issues warning on fake account management services for investor protection

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NSE Fake Account Warning

Highlights

The National Stock Exchange of India has issued a warning regarding fake account management services operated via mobile number 7424893664 and Telegram channels 'CRUDE OIL COMMODITY MCX TRADE' and 'NIFTY DESK'.
NSE clarified that the concerned entity is neither a registered member of the exchange nor listed as an authorized member, and advised investors to stay away from such offers.
The exchange stated that investor protection, dispute resolution, or grievance redressal facilities will not be available for transactions in fake schemes.

This article was translated from the original. Read the original version by our correspondent here.

Unauthorized Service and Exchange Warning

According to NSE India, the National Stock Exchange of India states that an individual is offering account management services to investors via mobile number 7,424,893,664 and Telegram channels “CRUDE OIL COMMODITY MCX TRADE” and “NIFTY DESK”. The exchange has advised investors to stay away from any such scheme or product that claims indicative, assured, or guaranteed returns in the stock market.

NSE also stated that the concerned entity is not a registered member of the National Stock Exchange of India Limited, nor is it listed as an authorized person of any registered member. Investors are advised not to share their trading credentials, such as user ID and password, with anyone.

Verification Process and Risks for Investors

The exchange has provided a “Know/Locate your Stock Broker” facility on its website, through which investors can verify details of registered members and their authorized persons. Details of client bank accounts reported to the exchange by trading members are also displayed at this link, so investors can verify before transacting with any person or entity.

NSE has said that such prohibited schemes are neither approved nor supported by the exchange. Investors are also warned that in case of disputes in such matters, facilities like investor protection, exchange dispute resolution mechanism, and investor grievance redressal mechanism operated by the exchange will not be available.

In our previous report, we detailed the Enforcement Directorate’s action against Jeevan Suraksha Group of Companies in connection with alleged illegal deposit/Ponzi-like schemes, where movable and immovable assets worth Rs 5.54 crore linked to the group and its directors were provisionally attached. According to the report, there were indications of raising large sums from investors by promising abnormal returns without valid authorization and alleged misuse/layering of funds, while the investigation is ongoing.

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