NSE warns investors against unauthorized trading tips

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NSE warning on unauthorized trading

Highlights

NSE warned investors about unauthorized trading tips and services offered by the “Trading with Kunal” WhatsApp group under the name “Kunal,” using mobile number 8976221704.
NSE advised investors not to participate in schemes offered by unregistered individuals that promise indicative, assured or guaranteed returns, and not to share their trading credentials with anyone.
Investors who participate in such unauthorized schemes will not have access to the exchange’s investor protection, dispute resolution or grievance redressal mechanisms.

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

Scope of the warning and verification process

As reported by NSE India, citing the National Stock Exchange of India, an individual using the name “Kunal” is offering investors securities market tips and account-handling services through the mobile number “8976221704” and a WhatsApp group called “Trading with Kunal.” The exchange clarified that this individual is not registered with the NSE as a member or as an authorized person of any registered member.

The exchange urged investors not to subscribe to any schemes or products offered by individuals, entities or social media platforms that promise indicative, assured or guaranteed returns. NSE also reminded investors that such offers are prohibited by law.

Investors have been advised not to share their trading credentials, such as their user ID or password, with anyone. NSE asked investors to use the “Know/Locate your Stock Broker” facility on its website to verify registered brokers, their authorized persons, and the client bank accounts declared by trading members.

Risks for investors and regulatory implications

The exchange said participation in such prohibited schemes would be at investors’ own risk, expense and consequences, as these schemes are neither approved nor endorsed by the exchange. This suggests that unauthorized market advice and fund-handling activities may fall outside the investor protection framework.

NSE also said that in such cases, investors would not have access to investor protection benefits under the exchange’s jurisdiction, the exchange’s dispute resolution mechanism, or the investor grievance redressal mechanism operated by the exchange. This warning underscores the importance of compliance checks, broker verification and caution around investment offers encountered through digital channels for Indian retail investors.

Our previous report summarized NSE’s warning about alleged market tips, guaranteed returns and account-handling services, as well as prohibited activities such as dabba trading, being offered through Telegram/Facebook/YouTube channels associated with “Vicky Dhakad.” The article also noted that such cases may attract severe penalties under the SCRA, 1956, and that investors in disputes involving unauthorized platforms cannot access the exchange’s investor grievance redressal and dispute resolution mechanisms.

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