NSE cautions investors against a fake stock market returns scheme

Traders Union
All News
Regulators
NSE issues a cautionary warning

Highlights

NSE has cautioned investors against a fake scheme involving a person named ‘Ranjan’ and ‘Pulse Trading’ that promises guaranteed returns and asks for user IDs.
NSE clarified that the person/entity concerned is not listed as a registered member of the exchange or as an authorized person.
Investors in such prohibited schemes will not receive the benefits of 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.

Fraudulent claims and NSE’s warning

According to NSE India, an individual named “Ranjan” is contacting investors through mobile number 9081730118, claiming to be associated with an entity called “Pulse Trading.” The exchange said that this individual is asking investors to share their login IDs and passwords, claiming to offer assured or guaranteed returns on stock market investments and account-handling services.

The exchange has cautioned investors against subscribing to any scheme or product that promises indicative, assured or guaranteed returns in the stock market, as this is prohibited by law. NSE also clarified that the individual or entity concerned is not registered as one of its registered members or as an authorized person of any registered member.

Investors have also been advised not to share their user IDs, passwords or other trading credentials with anyone. The exchange asked investors to use the “Know/Locate your Stock Broker” feature available on its website to verify registered members, their authorized persons, and the client bank accounts declared for receiving funds from or making payments to investors.

Investor protection and the extent of risk

NSE said that participation in such prohibited schemes would be entirely at investors’ own risk, cost and consequences, as the exchange neither approves nor endorses them. The warning comes at a time when fraud cases involving outreach to investors through digital channels and mobile communications continue to be a concern for the financial sector.

The exchange also said that if investors become involved in a dispute related to such prohibited schemes, they will not be entitled to investor-protection benefits under the exchange’s jurisdiction. In addition, the exchange’s dispute-resolution mechanism and its investor grievance-redressal mechanism will not be available in such cases.

Our previous report detailed NSE’s warning about alleged guaranteed returns, account-management services and prohibited activities such as dabba trading through channels linked to ‘Vicky Dhakad’, including ‘Trade Titan’ and ‘Online Dabba Traders’. The article also outlined the potentially severe penalties under Section 23(1) of the SCRA, 1956, and noted that the exchange’s dispute-resolution and investor grievance-redressal mechanisms do not apply to disputes involving 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.