What Do You Do With Unsolicited Stock Tips? Ignore Them!2 min read
Who doesn’t like a little help in making the decision to buy or sell? That little nudge in a certain direction.
Many of us might have received messages that promise to give profitable stock tips to buy or sell shares at a particular time or price. We can assure you that these definitely aren’t the kind of nudges you are looking for.
These fraudulent and unethical messages are often shared through social media posts, SMS, WhatsApp, Telegram, etc. We urge you to muster all your will power and turn a blind eye to these messages. We completely understand how tough that can be. But it just needs to be done.
The National Stock Exchange (NSE) recently cautioned investors about such unsolicited messages from “unregistered or unauthorised entities” in a recent circular.
The BSE, too, released a similar circular about such stock tips, and cautioned investors about the same.
“The circulation of such posts is not only detrimental to the interest of the investors but also adversely affects the integrity of the securities market,” the BSE said in the circular.
You can go a step further than ignoring these messages and report them to the NSE and BSE through their portals – https://www.nseindia.com/submit-tipoff and https://www.bseindia.com/investors/tip-off-registration.
You can also alert the exchanges through a phone call or email. The NSE also lets investors report such behaviour to the exchange through +91 8291833676 or on this email id – email@example.com/. You can contact the BSE by calling +91 7506840578 or sending an email to firstname.lastname@example.org.
The exchanges have alerted trading members, including brokers, to monitor unusual trading activity by their clients, in order to keep an eye out for such conduct.
What do these messages usually look like?
Such messages and posts can easily be recognized by their recommendations to buy or sell certain stocks at specific times and prices.
They might even promise to earn you a massive return on an investment in a short period of time. It may be along the lines of “Invest Rs 50,000 in a multi-bagger stock and get guaranteed return of Rs 1.5 lakh in 5 months”.
Such communication might even recommend a position, suggesting a stop loss and holding period, in an attempt to get investors to sell the stock at a particular price.
These messages could also potentially ask people to give a missed call or subscribe through a website to get returns on the investment.
We at Paytm Money, strongly advise you to ignore these financial advice and tips given in such messages and posts and spend time learning about trading and doing your research before making your own decisions.
Disclaimer: Investments in securities market are subject to market risks, read all the related documents carefully before investing. This content is purely for educational, information and investor awareness purposes only. Please refer www.paytmmoney.com for further information.