NSE warns investors against 'Way2Labh' for offering unauthorised trading tips

National Stock Exchange (NSE) has issued a warning concerning individuals named Nitin Kumar and Pankaj Bhardwaj, who are associated with an entity called 'Way2Labh'. These individuals are reportedly offering securities market tips and assured returns through a mobile number, '8209712762', and Telegram channels 'Trading Ways Pankaj Bhardwaj' and 'WAY 2 LAABH.com'.

In response to these activities, the exchange said investors are urged to exercise caution and avoid subscribing to any schemes or products offered by unauthorised persons or entities within the stock market. NSE has highlighted that such activities are prohibited by law and emphasised the importance of verifying the legitimacy of stock brokers through their 'Know/Locate your Stock Broker' facility available on the NSE website.

The entity in question, 'Way2Labh', is neither registered as a member nor as an authorised person of any registered member of the exchange. A police complaint has been lodged regarding these activities, signalling the seriousness with which the NSE is addressing this issue. This underscores the importance of ensuring that all trading activities are conducted through recognised channels.

Engaging with illegal trading platforms, such as those operated by 'Way2Labh', is undertaken at the investor's own risk, costs, and consequences. The NSE has clarified that these platforms are neither approved nor endorsed, and investors engaging in such activities will not be protected by the exchange’s Dispute Resolution or Investor Grievance Redressal Mechanisms.

Violations of the Securities Contracts (Regulation) Act, 1956, which include unauthorised trading activities, can lead to severe penalties. Offenders may face imprisonment for up to ten years or fines reaching Rs 25 crores, highlighting the stringent measures in place to safeguard the integrity of the securities market.

Additionally, these violations fall under cognisable offences as defined by the Bharatiya Nagarik Suraksha Sanhita, 2023, and can be investigated by state law enforcement authorities. This extends the scope of legal repercussions for those engaging in or facilitating such activities.

For further guidance, the NSE website hosts a consolidated list of press releases under the 'advisory for investors' section. Investors are encouraged to reference these materials to stay informed about potential threats and measures to protect their investments.