NSE issues investor warning over illegal trading services

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NSE illegal trading warning

Highlights

NSE warned investors about illegal trading services and guaranteed return offerings by Sanjay, the 'Trade with Manish' YouTube channel, and app.globalcorefx.pro.
NSE clarified that these individuals/entities are not registered members of the exchange and advised investors to transact only through authorized brokers.
Violations of the Securities Contracts (Regulation) Act, 1956 may result in up to 10 years’ imprisonment or a fine of up to ₹25 crore, as well as the risk of law enforcement investigation.

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

Alleged illegal offering and regulatory action

According to the National Stock Exchange of India, an individual named “Sanjay” is providing investors with securities market-related tips, assured or guaranteed stock market returns, and dabba or illegal trading services through the mobile number 9211242824, a YouTube channel called “Trade with Manish,” and the website app.globalcorefx.pro. The exchange has advised investors to stay away from any such scheme or product, as such offerings are prohibited by law.

NSE also clarified that the individual or entity operating the pages mentioned above is not registered as a member of the exchange or as an authorized person. The exchange has made the “Know/Locate your Stock Broker” feature available on its website, allowing investors to verify details of registered brokers and authorized persons.

Risks and legal consequences for investors

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

According to NSE, offences punishable under Section 23 are cognizable offences within the meaning of the Bharatiya Nagarik Suraksha Sanhita, 2023, under Section 25, and may therefore also be investigated by state law enforcement agencies. The exchange also said that dabba trading, in addition to violating securities laws, falls within the scope of Sections 316, 318, and 61 of the Bharatiya Nyaya Sanhita, 2023.

Investors have been advised not to transact on illegal trading platforms, as such platforms are neither approved nor supported by the exchange. NSE warned that investors will not have access to the exchange’s investor protection, dispute resolution, or investor grievance redressal mechanisms in disputes involving such prohibited platforms.

Our previous report discussed the NSE warning urging investors to stay away from services offered through alleged dabba/illegal trading channels and a website linked to ‘Jaidev Tripathi.’ It also noted that trading on such unregistered platforms may result in severe penalties under the SCRA, 1956, and that the exchange’s investor grievance redressal and dispute resolution mechanisms are not available in the event of a dispute.

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