In the recent times, the interest of investors in the stock market has increased rapidly, so do fraud. The National Stock Exchange (NSE) in its latest press release has warned investors against an Instagram and Telegram channel that offers that offer investment tips. The exchange has also alerted investors about Dabba/Illegal Trading. The entities that are named “Bear&Bull PLATFORM” and “Easy Trade”.In its official press release, the NSE has also cautioned the investors not to subscribe to any such scheme/product offered by any person in stock market. Apart from this, the stock exchange has also warned about the Telegram channel named “VR Technicals” which provides tips on share market. The press release further says that these persons entity are not registered either as a member or authorized person of any registered member of the National Stock Exchange of India Limited.Taking swift action in the case, NSE has moved a police complaint. According to Section 23(1) of the Securities Contracts (Regulation) Act, 1956 (SCRA), any entity or person in violation of Sections 13, 16, 17, or 19 of the SCRA will be prosecuted, and if found guilty, they will face a maximum sentence of ten years in prison, a fine of up to twenty-five crores, or both. Section 25 of the SCRA states that offenses punishable under Section 23 are cognizable offenses under the 1973 Code of Criminal Procedure, and as such, state law enforcement agencies may also look into them. Apart from breaching the securities laws, dabba trading is also subject to the provisions of Section 406,420 and Section 120-B of Indian Penal Code, 1870.
