Mumbai: The National Stock Exchange of India Ltd (NSE) on Tuesday cautioned investors against dealing with an individual allegedly offering illegal trading services and assured returns in the securities market.
In a press release, the exchange said it has come to its notice that a person identified as “Giri”, operating through a mobile number, Facebook groups and an application and website named Tradezone, is providing stock market tips, promising guaranteed returns and offering to operate investors’ trading accounts by seeking login credentials.
The activities also allegedly include dabba or illegal trading services.
NSE clarified that the said individual and associated entities are not registered either as members or authorised persons of any registered trading member of the exchange. A police complaint has been lodged in the matter.
The exchange advised investors not to subscribe to any scheme or product offered by unregistered persons, noting that such activities are prohibited under securities laws.
It also urged investors to verify the credentials of brokers and authorised persons through the “Know/Locate Your Stock Broker” facility available on the NSE website. NSE warned that violations of the Securities Contracts (Regulation) Act, 1956, can attract severe penalties, including imprisonment of up to 10 years, a fine of up to Rs 25 crore, or both.
Dabba trading is also punishable under provisions of the Bharatiya Nyaya Sanhita, 2023, and related offences are cognisable in nature. The exchange cautioned investors against trading on illegal platforms, stating that participation is entirely at the investor’s own risk.