Mumbai (Maharashtra) [India], August 26 (ANI): Amidst an increasing number of unscrupulous persons or entities trying to provide unrealistic investment tips, stock exchanges in India have come together with an advisory to sensitize investors about its consequences.
In a joint advisory on Monday, leading stock exchanges, BSE, NSE, NCDEX, MCX, and MSE advised investors to exercise due caution and refrain from joining any social media groups where stock recommendations are given along with market analysis or downloading any App offering investment opportunities.
Joining such groups or downloading such fake apps could make investors victims of “transnational financial fraud promising unrealistic returns,” the joint advisory said.
It has been brought to the notice of the Exchanges that some unscrupulous persons or entities operating through Indian and international mobile numbers, through social media platforms, are falsely claiming to offer trading opportunities through Foreign Portfolio Investment (FPI) or Foreign Institutional Investor (FII), impersonating reputed financial institutions.
The joint advisory accused those entities of showcasing fake certificates purportedly issued by SEBI/ Exchanges.
“These operations often use mobile numbers registered under false names to orchestrate their schemes,” the joint advisory read.
The activities of such unscrupulous entities include claims of being associated with organizations/individuals of repute, promising guaranteed or high returns without the need for a demat account, offering to handle trading accounts by asking investors to share their login credentials, facilitating pre-IPO subscriptions with false promises of assured profits, among many others.
Hence, the exchanges came together and cautioned investors to be skeptical of any social media claim of high returns from trading in the securities market through fictitious institutional accounts and not fall for stock market advice/analysis.
Victims can report such suspected fraud communications at the Chakshu facility on www.sancharsaathi.gov.in and in case one has already lost money, they can report the same on cybercrime helpline number 1930 or www.cybercrime.gov.in.
Investors are also advised to refer to webpage links of stock exchanges to verify the genuine trading App, websites, and bank accounts of recognized stockbrokers.
Investors must 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. (ANI)
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