NSE issues warning over claims of guaranteed returns on investments

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NSE's guaranteed returns warning

Highlights

NSE warned that individuals named 'Ganesh Patidar' and 'Pawan' are claiming to offer guaranteed returns in association with the Tradex entity.
Tradex and the associated individuals/entity are neither registered NSE members nor authorised persons, meaning investments will not be protected.
Investing in such prohibited schemes will not provide access to NSE’s investor protection, dispute resolution, or grievance redressal benefits.

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

Exchange warning over activities operating under the name Tradex

According to the National Stock Exchange of India (NSE), the exchange has become aware that individuals named “Ganesh Patidar” and “Pawan” are claiming to be associated with an entity called “Tradex” and are offering investors securities market-related tips, assured or guaranteed returns on investments, and account handling services through the mobile number “6265034012”, a Telegram channel named “Tradex”, and the “TradeX” username “@YourTradeX”.

The exchange has advised investors to stay away from any scheme or product offered by any person or entity that promises indicative, assured, or guaranteed returns in the stock market. NSE also clarified that the individuals or entity concerned are not registered as any of its registered members or as authorised persons of any registered member.

Investors have also been told not to share their trading user ID and password with anyone. The exchange referred to the “Know/Locate your Stock Broker” facility on its website, where details of registered members, their authorised persons, and bank accounts designated for receiving or paying funds from or to clients can be checked.

Impact on investor protection and dispute resolution

The exchange said that participation in such prohibited schemes will be at investors’ own risk, cost, and consequences, as these schemes are neither approved nor endorsed by the exchange. This means that investors who fall prey to such offers will not receive the protection available within the formal market framework.

NSE clarified that in such cases, investors will not be eligible for investor protection benefits, the exchange dispute resolution mechanism, or the investor grievance redressal system operated by the exchange under the exchange’s jurisdiction. The broader message of this warning is that investors should independently verify the registration and banking details of any market intermediary before transacting with them.

Our previous report detailed NSE’s warning advising investors to stay away from claims of guaranteed returns, market tips, account operations, and dabba/illegal trading services allegedly offered through ‘Trade Titan’ associated with ‘Vicky Dhakad’ and other social media channels. The article mentioned the possibility of severe penalties under the SCRA, 1956, and also explained that the exchange’s investor protection, dispute settlement, and grievance redressal mechanisms do not apply when investors fall into such unauthorised schemes.

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