Is BSE Cautioning Investors Against Unauthorized Investment Tips?
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Synopsis
The Bombay Stock Exchange has issued a critical alert to investors, warning them about unauthorized investment advice circulating on social media. With the rise of scams, investors must remain vigilant and avoid falling for promises of guaranteed returns from unauthorized entities.
Key Takeaways
- BSE warns against unauthorized investment advice.
- Scammers are using social media to lure investors.
- Stay cautious of promises of guaranteed returns.
- Verify the legitimacy of investment tips before acting.
- Report any suspicious activities to the authorities.
Mumbai, Dec 18 (NationPress) - On Thursday, the Bombay Stock Exchange (BSE) issued a warning to investors regarding unsolicited communications circulating on social media, WhatsApp, and phone calls that pertain to investments in 'A-1 Ltd'.
The exchange stated, "Investors are urged to exercise extreme caution and avoid making any decisions based on recommendations from unauthorized or unregistered entities, including those received via WhatsApp, Telegram, SMS, calls, and other social media platforms."
As the oldest stock exchange in the country, BSE highlighted that it has encountered numerous instances where unauthorized parties are disseminating investment advice through various channels concerning this specific stock.
The exchange has cautioned investors to remain vigilant and avoid falling prey to scams.
"Investors should be wary of claims of high or guaranteed returns from trading in the securities market via social media platforms, including YouTube, Telegram channels, WhatsApp groups, Instagram, and X (previously known as Twitter)," the exchange added.
Earlier this month, the National Stock Exchange (NSE) alerted investors about five individuals — Krishnam Raju, Pratiban, Pooja Sharma, Aman, and M Amit — who have been providing unauthorized investment advice.
According to the exchange, these individuals offer to manage investors' trading accounts while promising guaranteed returns, operating through YouTube channels such as Profit Trading, Trade Room Official, Profit Maximisers, and other social media and communication platforms.
"It has come to the attention of the National Stock Exchange of India Ltd that individuals named Krishnam Raju, Pratiban, Pooja Sharma, Aman, and M Amit, who operate through YouTube and other social media channels, are giving unauthorized securities market tips, requesting Login IDs/Passwords to manage investor accounts and guaranteeing returns, while also engaging in illegal trading practices," NSE stated in an official release.
The NSE further advised investors against subscribing to any schemes or products that promise assured returns in the stock market, as such practices are illegal.
Point of View
I emphasize the importance of investor education and awareness. The BSE's warning serves as a reminder for individuals navigating the financial landscape to be vigilant about unauthorized advice. It's crucial to rely on credible sources and registered entities to ensure the safety of your investments.
NationPress
21/12/2025
Frequently Asked Questions
What should investors do if they receive unauthorized investment tips?
Investors should ignore such messages and refrain from acting on them. It's essential to consult with registered financial advisors.
How can I identify unauthorized investment advice?
Look for signs such as unrealistic promises of guaranteed returns, unsolicited messages, and lack of credibility in the source.
What actions can I take if I have fallen victim to such scams?
Immediately report the incident to the relevant authorities and seek advice from a licensed financial advisor.
