The National Stock Exchange of India Limited (NSE) has published a Circular urging investors to exercise caution in dealing with unsolicited videos and messages on social media. The Circular was issued on 24th February, 2023 and the surveillance action mentioned therein will be effective from 27th February, 2023.
It has been brought to the notice of the NSE that several messages and/or videos were circulating with recommendations to deal in certain scrips.
Therefore it has been decided that based on the unusual price, volume variation, trading concentration and/or other factors, such scrips may be shortlisted for surveillance action similar to GSM stage IV.
The names of these scrips will also be available on the “Investors Beware” page on the Exchange website.
Trading members are also advised to monitor unusual trading pattern by any of their clients, and/or group of clients having significant selling, trading, dealing concentration in relation to circulation of such videos and/or messages.
Trading members are also required to educate their clients, investors by way of social media, SKIS campaigns, mailers, etc. to be aware of unregistered Investment advisors offering assured returns and seeking trading credentials. Any non-compliance in the matter shall be viewed seriously and may attract further action which may inter alia include disciplinary action as deemed fit in terms of rules, bylaws and regulations of the Exchange provided the facts and circumstances so demand.