(THE NEWSMAN OF INDIA.COM)
Indian Stock Exchanges in a Joint Press Release Cautioned to Investors: It has been brought to the notice of the Exchanges that some unscrupulous persons/ entities operating through Indian and International mobile numbers, through social media platforms like WhatsApp Groups, Telegram Channels, Facebook, Instagram Channels, etc. are falsely claiming to offer trading opportunities through Foreign Portfolio Investment (FPI) or Foreign Institutional Investor (FII) Sub-accounts or Institutional Accounts with special privileges impersonating reputed financial institutions, showcasing fake certificates purportedly issued by SEBI/ Exchanges. These operations often use mobile numbers registered under false names to orchestrate their schemes.

The activities of such persons/ entities may include:

Claims of being associated with organisations/individuals of repute,

Providing unregulated trading platforms and unauthorized trading applications which resemble or impersonate Applications/Websites of registered trading members,

Luring to join/create “Institutional account” to get guaranteed/high returns without the need for an official trading or Demat account,

Offering assured/guaranteed returns on Investment in Capital/Forex/Commodities market,

Offering to handle trading account of investors by asking investors to share their login credentials (including passwords),

Claiming to facilitate pre-IPO subscriptions with false promises of assured profits

Offering dabba/ illegal trading services,

Enticing victims through online trading courses, seminars and mentorship programs in the stock market, leveraging social media platforms as well as live broadcasts.

The Exchanges hereby advise investors to exercise due caution and refrain themselves from joining any WhatsApp/Telegram group where stock recommendations are given along with market analysis or downloading any App offering Institutional account services for members of WhatsApp/Telegram groups which have the features of trading in UPPER CIRCUIT stocks, Block Deals at discounted prices, preferential allotment in IPOs etc. Please note that you could be the next victim of transnational financial fraud promising unrealistic returns through fake institutional account services offered through fake trading Apps.

Victims of these scams have been asked to transfer funds to third-party bank accounts and funds are siphoned off from these accounts immediately and left in lurch with only the paper profits shown in the fake trading Apps.

Therefore, investors are cautioned to be skeptical of any social media claim of high returns from trading in securities market through fictitious institutional accounts and do not fall for stock market advice/analysis. Report such suspected fraud communications at Chakshu facility on www.sancharsaathi.gov.in and in case you have already lost money, then report the same on cybercrime helpline number 1930 or www.cybercrime.gov.in issued in public interest by the Government of India. Investors are advised to refer webpage link of stock exchanges to verify the genuine trading App, websites and bank accounts of recognized stockbrokers.

Investors are also cautioned and advised not to subscribe to any such scheme, referral, product offered by any person offering indicative/ assured/ guaranteed returns in the stock market without verifying its genuineness and authentic source as the same is prohibited by law. Further, investors are advised not to share their trading credentials such as user id/password or any other sensitive information with anyone. It is imperative for investors to understand that investments offering high returns usually involve high risk including fraud risk and there can be no guarantees of assured returns in the securities market.

Investors are urged to exercise utmost caution, conduct due diligence, and verify the registration status of any entity claiming to be a SEBI/NSE/BSE/MCX/MSE/NCDEX registered intermediary. It may also be noted that Exchanges have provided a facility on their website as given below, to check the details of the registered members and its Authorised Persons, the genuine trading Apps and websites. Further, the designated bank accounts named as client bank accounts to receive/pay money from/to investors as disclosed by the trading members to Exchanges are also displayed under the said link.