Should Investors Beware of Unregistered Entities Offering Stock Tips?
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Synopsis
In a recent alert, BSE Limited has warned investors about four unregistered entities that are illegally providing stock market tips. This serves as a crucial reminder for investors to be vigilant and protect their financial information. Read more to understand the risks involved and how to safeguard your investments.
Key Takeaways
- BSE Limited warns against four unregistered entities.
- Investors should not share personal trading information.
- Verify the registration of intermediaries through official channels.
- Participation in schemes by unregistered entities carries risks.
- Report suspicious activities to the appropriate authorities.
New Delhi, Sep 2 (NationPress) The stock exchange BSE Limited issued a warning to investors regarding four unregistered entities that are purportedly providing illegal services. Investors are urged to exercise caution and avoid any schemes or products associated with these groups.
The entities in question—Money Talks with Payal, NSE Stock Pro, PTS Prabhat Trading, and PTS Prabhat Trading Service—are currently operating on platforms such as Telegram and Instagram, offering stock market tips or promising guaranteed returns on investments, according to an official statement.
Moreover, some of these groups are requesting to manage investors' trading accounts, which involves asking for confidential information such as login IDs and passwords. The BSE clarified that these individuals or entities are not registered with the exchange and lack the necessary Research Analyst Registration.
Investors are strongly cautioned against sharing their trading credentials, including user IDs and passwords, with anyone for account management or portfolio handling.
The BSE emphasized that these schemes carry significant risks and do not provide any investor protection or means for dispute resolution. It is recommended that investors verify the registration of intermediaries through the BSE website and utilize the SEBI portal for access to investor protection and dispute resolution services.
Participation in such schemes is at the investor's own risk, and the BSE will not entertain any complaints arising from them.
Recently, SEBI has also raised concerns about unregistered investment advisory services offered by entities that falsely claim to be registered intermediaries or present counterfeit certificates purportedly issued by the regulator.
To tackle market abuse, a Market Intelligence portal has been created for market participants to report any suspicious activities.
Furthermore, SEBI has prohibited its registered intermediaries or agents from engaging in any monetary or non-monetary associations with unregistered entities for promoting or advertising their services or products.
Point of View
I stand firmly behind the need for investor vigilance. The recent warning from BSE serves as a vital reminder of the risks associated with unregistered entities. It is our duty to inform and empower investors, ensuring that they remain informed and protected in today's complex financial landscape.
NationPress
02/09/2025
Frequently Asked Questions
What should I do if I interacted with an unregistered entity?
If you've engaged with an unregistered entity, cease all communication and do not share any personal information. Report the incident to the BSE or SEBI immediately.
How can I verify if an investment entity is registered?
You can verify the registration status of investment entities by visiting the official BSE website or checking the SEBI portal for authorized intermediaries.
What are the risks of dealing with unregistered entities?
Dealing with unregistered entities poses significant risks including potential financial loss, lack of investor protection, and no dispute resolution mechanisms.
