NSE warns investors about guaranteed return schemes in the stock market

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NSE: Guaranteed return warning

Highlights

The National Stock Exchange of India has warned investors about guaranteed return schemes offered by the 'ZERO TO HERO NIFTY CALL' Telegram channel.
NSE clarified that the said individual or entity is not a registered member or authorized person of the exchange and advised investors not to share trading credentials.
The exchange stated that investors in such schemes remain outside the formal protection framework, and no exchange protection will be available in the event of disputes.

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

Exchange warning over Telegram channel

According to an NSE circular issued by the National Stock Exchange of India, a Telegram channel called “ZERO TO HERO NIFTY CALL” is offering investors securities market-related tips, assured or guaranteed returns on stock market investments, and account handling services. The exchange stated that any such schemes or products offered by any individual, entity, or social media platform that promise indicative, assured, or guaranteed returns are prohibited under the law.

The exchange also clarified that the individual, entity, or social media platform concerned is not registered as a registered member of National Stock Exchange of India Limited or as its authorized person. Investors have been advised not to share their trading credentials, such as user IDs and passwords, with anyone.

NSE has made a “Know/Locate your Stock Broker” facility available on its website, through which the details of registered members and their authorized persons can be verified. Details of client bank accounts reported to the exchange by trading members are also available under the same link, allowing investors to verify them before transacting with any individual or entity.

Impact on investor protection and dispute resolution

The exchange stated that participation in such prohibited schemes is entirely at investors’ own risk, cost, and consequences, as they do not have the exchange’s approval or backing. This means that investors may remain outside the formal exchange protection framework in such cases.

NSE clarified that in disputes related to such schemes, investors will not have access to investor protection, the exchange dispute resolution mechanism, or the investor grievance redressal mechanism operated by the exchange under its jurisdiction. This warning is significant at a time when social media-based investment advice and unauthorized market services are increasingly targeting retail investors.

Our previous report summarized NSE’s warning regarding the risks of activities such as providing securities market tips while claiming guaranteed returns under the name ‘Gokul Patel’ and inducing investors to share sensitive trading details. The article also clarified that such individuals/services are not registered members or authorized persons of the exchange, and investors do not have access to the exchange’s investor protection, dispute resolution, and grievance redressal mechanisms in disputes related to prohibited schemes.

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