The National Stock Exchange warned investors to be wary of entities promising guaranteed returns on stock market investments on Friday. This advisory follows the discovery that an authorised representative of one of its registered brokers was making such promises and collecting commissions based on these assured returns.
"It has been brought to the notice of the exchange that Amit Lilhare, authorised person of one of our registered stockbroker, operating through various addresses (mentioned below) is providing assured/guaranteed returns on investment in the stock market and is also collecting a commission on such assured/guaranteed returns from investors in his personal bank accounts," NSE said in a statement.
The exchange is in the process of taking disciplinary actions against the trading member, it said.
Earlier in February, the Securities and Exchange Board of India had cautioned investors against placing money with unregistered entities promising assured or exceptionally high returns on investments.
(With inputs from PTI).
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