NSE cautions investors against persons & entities promising assured returns

National Stock Exchange (NSE) on Friday issued a fresh stern warning against entities and people providing illegal trading services. It said persons identified as Vinod Verma, Aditya Malhotra, Harsh Bhagat and Dileep have been identified as operating unregistered trading schemes promising guaranteed returns through social media.

Vinod Verma is linked to 'Master Stroke', operating via a Telegram channel and Facebook groups, offering illegal trading services. Similarly, Aditya Malhotra is associated with 'Fortune Solution', providing securities tips and illegally managing investor accounts by requesting their login credentials.

Harsh Bhagat has been collecting funds and promising assured returns through his Telegram channel, while also requesting access to investors' trading accounts. Another entity, 'VFX', led by Dileep, too engages in unauthorised trading and credentials collection, raising significant concerns.

In response, NSE has advised investors to avoid entities promising assured returns, as these are not only misleading but also illegal. The exchange stresses that these entities are not registered with it, and sharing sensitive trading credentials with such parties can lead to financial loss.

NSE has provided a facility named 'Know/Locate your Stock Broker' on its website to help investors verify the legitimacy of brokers and authorised persons. This tool is intended to assist investors in safeguarding their investments by ensuring they engage only with registered professionals.

This warning comes amidst a rise in fraudulent schemes exploiting naive investors. By leveraging social media and direct communication, these entities have managed to attract unsuspecting investors with the lure of easy profits.

The facility also provides information on designated bank accounts disclosed by trading members, enhancing transparency and security.

Aiming to protect investors and uphold market integrity, NSE continues to monitor and report on fraudulent activities. Investors are recommended to remain vigilant and report suspicious activities to the authorities to prevent financial fraud.