NSE warns investors about illegal trading services linked to TradeInn

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NSE's TradeInn warning

Highlights

NSE revealed that a person named 'Disha' is providing illegal services like dabba trading through www.tradeinn.in and mobile number 7974092256.
The exchange stated that upon conviction under securities laws, penalties may include imprisonment for up to 10 years or a fine of up to Rs 25 crore.
Investors have been warned that in case of trading on such illegal platforms, the exchange’s dispute resolution or grievance redressal mechanism will not be available.

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

Illegal Trading Service and Exchange Warning

As reported by NSE India on behalf of the National Stock Exchange of India, a person named “Disha,” who claims to be associated with “TradeInn,” is offering dabba or illegal trading services through mobile number 7974092256 and the website www.tradeinn.in. The exchange stated that this person or entity is not registered as any of its members or authorized persons.

Investors are advised to exercise caution before subscribing to any scheme or product of any person or entity in the stock market, as such activities are legally prohibited. The exchange has provided a “Know/Locate your Stock Broker” facility on its website, through which investors can verify registered brokers and their authorized persons.

NSE has also clarified that a police complaint has been filed in this matter. The exchange has urged investors not to trade on any such illegal trading platforms, as these platforms are neither approved nor supported by the exchange.

Legal Risks and Impact on Investors

The exchange stated that under Section 23(1) of the Securities Contracts (Regulation) Act, 1956, any person or entity violating Sections 13, 16, 17, or 19 can be prosecuted. Upon conviction, penalties may include imprisonment for up to ten years, a fine of up to Rs 25 crore, or both.

According to Section 25, offenses punishable under Section 23 are cognizable and can also be investigated by state law enforcement agencies. NSE also mentioned that dabba trading, apart from violating securities laws, also falls under Sections 316, 318, and 61 of the Bharatiya Nyaya Sanhita, 2023.

The key point for investors is that participation in such prohibited platforms is entirely at their own risk, cost, and consequences. The exchange has clarified that in such cases, investors will not have access to formal relief such as the exchange’s dispute resolution mechanism or the investor grievance redressal mechanism operated by the exchange.

Our previous report on NSE seeking explanations from listed companies regarding unusual share price or volume activity mentioned that the exchange had sent letters to companies to verify non-standard movements in several stocks and certain news/events. This included cases like Archean Chemical, CARYSIL, JITF Infralogistics, Kronox Lab Sciences, Shreedhar Spinners, and Swaraj Suiting, as well as clarification processes involving IDBI Bank, Instamart-HPCL, Tata Motors-UCO Bank, and Zydus’s drug Ikra.

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