At Paytm Money, your safety and well-being are our top priority. As part of our ongoing efforts to keep investors informed and protected, we would like to alert you to the growing presence of unregistered advisors and entities in the market.
What’s Happening?
The Exchange has identified certain individuals engaging in illegal and misleading activities, including:
- Promising assured or guaranteed returns on stock market tips
- Offering dabba (illegal) trading services
- Managing investors’ trading accounts without proper regulatory approval
These practices are not only misleading but also illegal.
Entities Involved
Some Specific Unregistered Advisors Brought to Light in the Month of July Include
- Gagan Jain (Jain Futurology Stocks / Futurology Indian Share Market / Future Research)
- Phone: 9871280737
- Email: teamgaganjain@gmail.com
- Online Presence: Telegram, X (Twitter), YouTube (Jain Futurology Stocks / @Futurologyindiansharemarket), Instagram (@stock.market.11)
- Disha (claiming association with TradeInn)
- Phone: 7974092256
- Website: tradeinn.in
- Activity: Allegedly providing dabba/illegal trading services.
- Unknown Individual (CRUDE OIL COMMODITY MCX TRADE / NIFTY DESK)
- Phone: 7424893664
- Online Presence: Telegram channels – CRUDE OIL COMMODITY MCX TRADE and NIFTY DESK
- Activity: Allegedly providing account handling services.
- Amit, Venktesh Reddy & Anand Kumar
- Phone: 8401907771, 7224974471
- Online Presence: Facebook group – Dabba Trading
- Activity: Allegedly providing dabba/illegal trading services.
- Let’s Trade India
- Phone: 9773687281
- Online Presence: Telegram, Instagram, YouTube (Letstradeindia639), Websites – mbhai.info and tradefuturefx.com
- Activity: Allegedly providing dabba/illegal trading services.
- Legendry Traders
- Online Presence: Telegram
- Activity: Allegedly providing securities market tips and account handling services.
- Unknown Entity
- Online Presence: Telegram and a mobile application
- Activity: Allegedly providing securities market tips and account handling services.
- ZeroToHeroCalls
- Online Presence: YouTube
- Activity: Allegedly providing securities market tips.
- Vihan (claiming association with Trade Mitra)
- Phone: 7096478505
- Online Presence: Telegram (MarketX – Dabba Trading) and website (thenkblife.life)
- Activity: Allegedly providing securities market tips, assured/guaranteed returns on stock market investments, account handling services, and dabba/illegal trading services.
Advisory for Investors
To help protect your investments and ensure a secure investing experience, keep the following best practices in mind:
- Verify that any funds or securities due to you are credited to your account within one working day of the payout date.
- If your stock broker requests a Power of Attorney (PoA), understand exactly what permissions you are granting and for how long. Remember, providing a PoA is optional and not a regulatory requirement.
- Check that you receive your contract note within 24 hours of every trade and your account statement at least once every quarter.
- Securities pledged as margin should only be used for the intended purpose and must not be utilised by the broker to raise funds.
- If you have opted for a running account, ensure your broker settles your funds and securities at regular intervals, no later than every 90 days, or every 30 days if you have selected that settlement cycle.
- Do not leave excess funds or securities with your broker unless they are required for trading or investment purposes.
- Log in to your trading and Demat accounts periodically to review balances and verify that all holdings are accurate.
- Carefully review SMS and email alerts received from stock exchanges regarding your account balances, and report any mismatches without delay.
- Keep your registered mobile number and email address up to date so that you continue receiving important notifications from your broker, exchanges, and depositories.
- If you notice any issue or discrepancy, first raise it with your stock broker. If the matter remains unresolved, escalate it to the relevant stock exchange or depository for further assistance.
Warning Against Fraud and Unauthorized Activities
- Investors are advised not to engage with individuals or entities that approach them through social media platforms such as WhatsApp, Telegram, Facebook, or Instagram with trading offers.
- Be cautious of anyone claiming association with reputed financial institutions or showing fake certificates allegedly issued by regulators or exchanges.
- Avoid dealing with entities that promote unregulated trading platforms or applications that resemble registered brokers.
- Do not trust offers that promise guaranteed or assured returns in the stock market, as such claims are misleading and often fraudulent.
- Never share your trading account login credentials, including your user ID and password, with anyone.
- Stay away from offers that claim to provide access to special or institutional accounts with exclusive benefits or higher returns.
- Be alert to schemes offering easy profits through pre-IPO opportunities without proper verification.
- Avoid illegal practices such as dabba trading or any off-market trading arrangements.
- Be cautious of trading courses, seminars, or mentorship programs that promise unrealistic profits or guaranteed success.
Important Note on Investor Protection
Investments made through such unauthorized schemes are not covered under regulatory protection. You will not have access to exchange dispute resolution mechanisms in case of any issues. Grievance redressal systems provided by exchanges will not be available for such transactions.
Our Advice
Always stay alert and verify the credentials of anyone offering investment advice or trading services, especially unregistered advisors. If it sounds too good to be true, it probably is. If you ever feel unsure or spot any suspicious activity, don’t hesitate to contact us. We’re here to help. Stay smart. Stay safe.
Disclaimer: Investment in the securities market is subject to market risks. Read all the related documents carefully before investing. Investors are requested to do their own due diligence before investing.
SEBI Reg No.: Broking – INZ000240532, Research Analyst – INH000020086, Depository Participant – IN-DP-416-2019, Depository Participant Number: CDSL – 12088800, NSE (90165), BSE (6707), MCX (57525), NCDEX (1315), MSEI (85300).
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