NSE warns investors against unauthorized investment advice

Traders Union
All News
Regulators
NSE investment advice warning

Highlights

NSE warned that 'Nitin Kumar Singh' and the 'TRADE WITH SUNIL NIFTY BANK NIFTY' Telegram channel are making illegal assurances on investments.
The exchange clarified that the individual concerned is not a registered NSE member or authorized person, and such schemes are prohibited under the rules.
NSE said that investors who invest in these schemes will not receive the benefit of investor protection, dispute resolution or grievance redressal mechanisms.

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

Warning on unauthorized tips and risks

According to the National Stock Exchange of India, an individual named “Nitin Kumar Singh” is offering securities market-related tips and assured or guaranteed returns on investments through the mobile number “8239928188” and a Telegram channel called “TRADE WITH SUNIL NIFTY BANK NIFTY”. The exchange said investors should refrain from subscribing to any scheme or product offering indicative, assured or guaranteed returns in the stock market, as such offers are prohibited by law.

The exchange also clarified that the individual concerned is not registered as a member of National Stock Exchange of India Limited or as its authorized person. NSE asked investors to verify the details of registered brokers and authorized persons using the “Know/Locate your Stock Broker” facility available on its website.

Limits of investor protection and dispute resolution

The exchange said participation in such prohibited schemes is at investors' own risk, cost and consequences, as these schemes are not approved or endorsed by the exchange. It warned that investors will not be entitled to investor protection available under the exchange's jurisdiction in such cases.

Additionally, the exchange's dispute resolution mechanism and investor grievance redressal system will not apply to such disputes. This NSE warning underscores for India's retail investors that only registered and verified intermediaries should be used for market-related services.

Our previous report mentioned an NSE warning that advised investors to stay away from alleged market tips, guaranteed returns and prohibited activities such as dabba trading offered through channels/groups such as ‘Trade Titan’, ‘Online Dabba Traders’ and ‘Dabba Trading’ linked to Vicky Dhakad. That article also outlined the potential severe penalties under the SCRA, 1956, and noted that the exchange's investor grievance redressal and dispute resolution mechanisms are not available in the event of disputes on such unauthorized platforms.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.