NSE warns investors of "high returns" from scamsters posing as associates with reputed firms

The exchange asked investors to verify the registered status of entities on Sebi's websites.

The National Stock Exchange (NSE) has cautioned investors against entities trying to defraud investors by falsely claiming to be associated with reputed financial institutions and showing fake certificates.

The fake certificates will be purportedly issued by the Securities and Exchange Board of India (SEBI) and the exchanges, according to a press release from the exchange dated March 11.

The activities of these scamsters will include claims of being associated with organisations/individuals of repute; providing unregulated trading platforms and unauthorised trading applications which resemble or impersonate applications/websites of registered trading members; promising to create "institutional accounts" for investors for "guaranteed high returns", offering assured returns on investment in forex/commodities market; offering to handle trading account and asking for login details; claiming to facilitate IPO subscriptions; and offering dabba/illegal trading services, according to the release.

"Investors are cautioned and advised NOT to deal with such persons/ entities in any manner including participation on their illegal platforms. Such participation is at the investor’s own risk, cost and consequences as such illegal trading platforms are neither approved nor endorsed by the SEBI/Exchanges," it added. "The investors are also cautioned and advised not to subscribe to any such scheme/ product offered by any person offering indicative/ assured/ guaranteed returns in the stock market 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."

The exchange asked investors to verify the registered status of entities on Sebi's websites.