Beware of Fake Stock Brokers! NSE Issues Warning to Investors

The National Stock Exchange (NSE) has issued a warning to investors regarding fraudulent activities linked to Lazard Asset Management India. Reports have surfaced that investors are being lured through WhatsApp groups with false promises of discounted shares and fake trading account offers.

Details of the Fraudulent Activities

According to a report by PTI, a WhatsApp group named “JO HAMBRO” was involved in convincing investors to purchase shares at a discount after market hours. Investors were also offered seat trading accounts, which were falsely advertised as legitimate.

Fake Registration Certificates

The group falsely claimed that Lazard Asset Management was a SEBI-registered stockbroker. The NSE has clarified that no such entity is registered with SEBI under the name Lazard Asset Management India. A fake registration certificate was circulated in the WhatsApp group to deceive investors, which is illegal.

NSE Official Statement

In its official statement, the NSE said, “We want to clarify that there is no entity by the name of Lazard Asset Management India registered as a stockbroker with SEBI. The registration certificate being circulated is fake and entirely unlawful.”

Advice to Investors

Due to these developments, the NSE has advised investors to be cautious and avoid dealing with unauthorized individuals or entities. Investors are encouraged to verify the credentials and regulatory status of any financial entity before engaging in any transactions or fund transfers.

NSE also reminded investors that if they engage with such unauthorized schemes, they will not have access to the Exchange’s dispute resolution or investor grievance redressal mechanisms.

Additional Advice:

Always verify the credentials of the broker or platform.

Avoid making transactions or transferring funds without checking the legitimacy of the entity.

Be wary of schemes offering discounted shares or false promises.

By staying vigilant, investors can protect themselves from falling prey to such fraudulent activities.