NSE warns investors against this Instagram handle promising assured returns
NSE warns investors against this Instagram handle promising assured returns
The National Stock Exchange (NSE) has issued an advisory for investors warning against individuals promising assured returns. The exchange calls out person named “Hiren” and “Sunil” associated with “Sparsh Consultancy” who are offering stock tips with assured high returns on investment.
NSE names Instagram handle of the frauds
In its advisory, the NSE also names Instagram user ID and mobile numbers through which the scammers are operating.
“It has been brought to the notice of the Exchange that a person named “Hiren” and “Sunil” associated with “Sparsh Consultancy” operating through Instagram user ID “Tradedabba”, application named “Trade Vista” and mobile number “9285324929” and “7357901400” is providing stocks tips and dabba/illegal trading platform with assured returns,” NSE said in the advisory.
“Participation in such illegal platforms is at the investor’s own risk, cost and consequences as such illegal trading platforms are neither approved nor endorsed by the Exchange,” NSE says.
The stock exchange says that these persons and entities are not registered either as a member or authorized person of any registered member of the National Stock Exchange of India Limited. It has advised investors to not subscribe to any such schemes or products that are offered by any entities that are prohibited by law.
What is the punishment for these convicts?
NSE states that under Sections 23(1) of Securities Contracts (Regulation) Act, 1956 (SCRA), any entity/person who contravenes sections 13,16,17 or 19 of the SCRA shall be prosecuted. He shall be punishable with imprisonment for a term which may extend to ten years or with the fine up to twenty-five crores or with both on conviction.
As per Section 25 of SCRA, offences punishable under section 23 are cognizable offences within the meaning of Code of Criminal Procedure,1973 and as such can be investigated by state law enforcement authorities also. Dabba trading also falls within the purview of Section 406,420 and Section 120-B of Indian Penal Code,1870.
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