NSE, BSE urge investors to deal only with registered stockbrokers
On Friday, major stock exchanges NSE and BSE urged investors to only deal with registered stockbrokers amid instances of unregistered entities targeting gullible investors with bogus promises of exorbitant returns.
In separate statements, the two exchanges asked investors not to transfer funds or securities to a stock broker under any arrangement or agreement of assured or guaranteed returns.
The advisory came after exchanges noticed that some unregistered entities and unregulated internet platforms were targeting gullible investors with false promises of high/exorbitant returns on their investment programs or products.
“Investors are advised to only deal with brokers registered with Sebi and to check the registration details of said entity they deal with as this allows for recourse to regulatory measures,” NSE and BSE said.
They have been warned not to transfer funds, for trading purposes, to anyone, including an Approved Person or an associate of the broker, other than a Sebi-registered stockbroker.
Exchanges have advised investors to refrain from investing/trading arising from a contract in securities that are not permitted by the rules.
They alerted investors not to fall prey to scammers who send emails and text messages urging them to trade stocks or securities promising huge profits in unregistered systems/products.
Earlier this week, the two exchanges asked investors to refrain from investing in unregulated derivatives such as contracts for difference and binary options offered by internet trading platforms.
Exchanges have said that investors plagued by promises of high or exorbitant returns from these trading platforms could potentially lose a lot of money.
(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)