NSE warns investors about illegal guaranteed-return schemes

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NSE warning on illegal guaranteed returns

Highlights

NSE warned investors about illegal guaranteed-return schemes offered by 'Vikram Singh' and 'Shabnam Trader', 'Options Den', and 'Optionsdenadmin'.
NSE told investors not to subscribe to schemes offering indicative, assured, or guaranteed returns and to check brokers’ registration.
Investors in such unregistered schemes will not be able to access the exchange’s investor protection or dispute resolution mechanisms.

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

Warning about social media accounts and investment offers

According to the National Stock Exchange of India, an individual named "Vikram Singh" is offering tips related to the securities market and assured or guaranteed returns on stock market investments through an X handle named "Shabnam Trader," a Telegram channel named "Options Den," and a Telegram handle named "Optionsdenadmin." The exchange said that this individual or entity is not registered as a trading member or authorised person of the National Stock Exchange of India Limited.

The exchange has advised investors not to subscribe to any scheme or product offered by a person or entity claiming indicative, assured, or guaranteed returns in the stock market. NSE provides a "Know/Locate your Stock Broker" facility on its website, where investors can verify registered brokers, their authorised persons, and client bank accounts declared by trading members.

Risks to investors and remedies that are unavailable

NSE said that participation in such prohibited schemes is at investors’ own risk, cost, and consequences, as these schemes are neither approved nor supported by the exchange. In disputes arising from such cases, investors will not be able to access investor protection under the exchange’s jurisdiction, the exchange dispute resolution mechanism, or the investor grievance redressal mechanism operated by the exchange.

The exchange reiterated that investors should check the registration and bank account details of any person or entity before transacting with them. Investors were also advised not to share trading credentials such as user IDs and passwords with anyone.

Our previous report discussed NSE’s warning about several channels, including 'Trade Titan' associated with 'Vicky Dhakad', which allegedly offered guaranteed returns, account management services, and prohibited activities such as dabba trading. The report also noted that such unauthorised offers may attract severe penalties under the SCRA, 1956, and that investors cannot access the exchange’s investor grievance redressal and dispute resolution mechanisms in the event of a dispute.

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