NSE warns investors to stay away from an unregistered social media channel

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NSE warns investors

Highlights

NSE warned that an X channel named 'VOLCANO TRADE ACHIEVER'S' is offering investors unauthorized tips and services and is not registered.
The exchange said that investors will bear full responsibility and risk for investments in schemes that promise guaranteed returns through an unregistered platform.
In such cases, investors will not have access to investor protection, dispute resolution, or grievance redressal mechanisms under NSE.

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

Warning about the channel and verification process

According to the National Stock Exchange of India, as reported by NSE India, an X channel named “VOLCANO TRADE ACHIEVER'S” is offering investors tips related to the securities market and account management services. The exchange said that the channel is neither registered as one of its members nor as an authorized person of a registered member.

NSE has advised investors not to subscribe to any scheme or product offered by any person, entity, or social media platform that claims to provide indicative, assured, or guaranteed returns in the stock market. The exchange also said that investors should not share their trading credentials, such as their user ID and password, with anyone.

The exchange provides a “Know/Locate your Stock Broker” facility on its website to check registered brokers and authorized persons. Details of client bank accounts disclosed to the exchange by trading members can also be viewed through the same link, allowing investors to verify them before transacting.

Risks for investors and limits to protection

The exchange clarified that such prohibited schemes are neither approved by nor operated with the support of the exchange. Any risks, costs, and consequences arising from participation in such offers will be entirely the responsibility of investors.

NSE said that investors will not be entitled to investor protection under the exchange's jurisdiction in any dispute related to such schemes. In addition, they will not be able to use the exchange's dispute resolution mechanism or its investor grievance redressal mechanism in such cases.

Our earlier report detailed NSE's warning about alleged guaranteed returns, account management services, and prohibited activities such as dabba trading promoted through social media channels linked to Vicky Dhakad, including ‘Trade Titan’ and ‘Online Dabba Traders’. It also covered the potential severe penalties under Section 23(1) of the SCRA, 1956, and noted that disputes involving such unauthorized platforms are not eligible for the exchange's dispute resolution or investor grievance redressal mechanisms.

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