A joint statement by the two exchanges said individuals/entities operating through social media platforms such as mobile numbers, WhatsApp groups, Facebook, Telegram and Instagram channels, both in India and overseas, are showcasing fake certificates purportedly issued by Sebi/the exchanges.
The statement said these criminal organisations often use mobile phone numbers registered under false names to carry out their schemes.
Activities of such individuals/organizations include:
These entities have been offering unregulated trading platforms and unauthorized trading applications that resemble or disguise themselves as registered trading member applications/websites. These entities have been luring people to join/create institutional accounts in order to earn guaranteed/high returns without the need for an official trading or demat account.
The capital markets, foreign exchange markets and commodity markets offer guaranteed investment returns.
These firms ask investors to share login credentials, including passwords, and offer to manage their trading accounts.
It is alleged that these entities/individuals are facilitating pre-IPO subscriptions with false promises of assured profits and providing dhaba and illegal trading services.
“The Exchange advises investors to be cautious and refrain from joining WhatsApp/Telegram groups where stock recommendations are made along with market analysis, downloading apps offering Institutional Account services for members of WhatsApp/Telegram groups with features like trading in UPPER CIRCUIT shares, block trading at discounted prices, preferential allotment in IPO etc. Investors should beware as they may become the next victims of an international financial scam promising unrealistic profits through fake Institutional Account services offered through fake trading apps,” the release said.
Victims of these scams are asked to transfer funds to third-party bank accounts, and the funds are quickly siphoned off from these accounts, leaving them with only paper profits shown on fake trading apps.
The NSE advised investors to report any suspected fraudulent communications to the Ministry of Telecommunications’ Çakş facility.
Those who have already lost money can report it on the cybercrime helpline number 1930 or at www.cybercrime.gov.in.
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