In an effort to keep the investors' risk at the minimum, the National Stock Exchange (NSE) has issued a warning regarding unregistered stock market tips available on social networking app Telegram, more specifically on a channel named 'Premium by Vijay'.
The NSE, in a cautionary notice, said that Telegram channel 'Premium by Vijay' is allegedly providing securities market tips for trading along with promises of assured returns on stock market investments, reported ANI.
The Exchange said in its press release that investors subscribing to these schemes that offer guaranteed returns and profits on the stock market is prohibited by law. It said that "Premium By Vijay" is neither registered as a member nor an authorized person of any registered member of NSE.
Notably, the Telegram channel in question has multiple times offered guaranteed returns through its schemes and products. Subscribing or endorsing any such unregistered scheme can be considered a punishable offence.
In an effort to verify the credentials of market participants, NSE has started a service called 'Know/Locate your Stock Broker' on its website, which can be accessed through the link https://www.nseindia.com/invest/find-a-stock-broker.
This tool enables investors to check the details of registered members and their authorized persons. Additionally, designated bank accounts disclosed by trading members for receiving or paying money from or to investors are also displayed under the same link.
{{/usCountry}}This tool enables investors to check the details of registered members and their authorized persons. Additionally, designated bank accounts disclosed by trading members for receiving or paying money from or to investors are also displayed under the same link.
{{/usCountry}}The NSE said that participation of subscribers in in such prohibited schemes is at the investors' own risk, cost, and consequences, as these schemes are neither approved nor endorsed by the Exchange.
Investors will not have access to any benefits under the Exchange's investors protection rules in case of any disputed regarding investing in such prohibited schemes. All investors are expected to verify the details of any such person or entity engaged in a scheme like this, said NSE.
(With inputs from ANI)