The National Stock Exchange (NSE) has cautioned investors against dealing in unregulated investment schemes.
The exchange noted that some unregistered entities and unregulated internet-based platforms are targeting gullible investors with false promises of exorbitant returns on their investment schemes and products.
“Investors are advised to deal only with SEBI registered stockbrokers and check the registration details of the said entity they are dealing with, since it allows recourse to regulatory action,” it said in a statement.
It has suggested investors not to transfer funds or securities to the stockbroker under any arrangement or agreement of assured returns.
Investors are alerted not to fall prey to fraudsters sending emails and SMSs luring to trade in stocks promising huge profits or trading in unregistered products, it said.
The bourse has also advised investors to refrain from any investments arising out of a contract in securities which are not permitted, or which are not made subject to bye laws, rules and regulations of the exchange.
“Investors are also cautioned not to transfer funds, for the purposes of trading to anyone, including an authorised person or an associate of the broker, other than a SEBI registered stock broker,” the NSE said.