NSE warns investors about illegal trading services

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NSE illegal trading warning

Highlights

NSE has warned that illegal trading services linked to 'Ravi Singh' and 'Trade Future' are being operated through the YouTube channel 'Trade with Ravi'.
According to the exchange, the accused individual or entity is not an authorized representative of any NSE-registered member, and a police complaint has also been filed in this regard.
Under the Securities Contracts (Regulation) Act, 1956, conviction may result in imprisonment of up to 10 years, a fine of up to ₹25 crore, or both.

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

Exchange warning on illegal trading services

According to National Stock Exchange of India, an individual named "Ravi Singh", who claims to be associated with an entity called "Trade Future", is offering dabba or illegal trading services to investors through the YouTube channel "Trade with Ravi". The exchange clarified that such schemes and products are prohibited by law, and investors should therefore not subscribe to such offerings from any individual or entity.

The exchange also stated that the individual or entity concerned is not registered as one of its members or as an authorized person of any registered member. A police complaint has also been filed in this matter.

Legal risks and verification facility available to investors

NSE has made the "Know/Locate your Stock Broker" facility available on its website, through which investors can verify the details of registered brokers and their authorized persons. This facility helps investors distinguish between legitimate and illegal market participants.

Citing Section 23(1) of the Securities Contracts (Regulation) Act, 1956, the exchange said that an individual or entity violating Sections 13, 16, 17, or 19 may be prosecuted. Upon conviction, penalties may include imprisonment for up to ten years, a fine of up to ₹25 crore, or both.

The exchange also cautioned investors that participation in such illegal trading arrangements will be entirely at their own risk, cost, and consequences, as these are neither approved nor endorsed by the exchange. Investors involved in disputes related to such prohibited arrangements will also not have access to the exchange's dispute resolution mechanism or investor grievance redressal mechanism.

Our previous report detailed the NSE's warning about alleged dabba/illegal trading services being offered through the ‘Trader With A.s’ YouTube channel. That article advised investors to verify broker/authorized person registration using the “Know/Locate your Stock Broker” tool and highlighted risks such as severe penalties under the SCRA, 1956, as well as the lack of protection from the exchange's grievance redressal/dispute resolution mechanisms in disputes involving prohibited platforms.

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