The National Stock Exchange (NSE) on Wednesday asked investors not to subscribe to any scheme with assured returns offered by an individual named Jay Prakash.
The advisory comes after the NSE found that the individual was collecting funds from the public and was providing guaranteed returns on investment. He was also offering to handle trading accounts of investors by asking them to share their user ID and password.
The bourse pointed out that the person is not registered either as a member or authorized person of any registered member of the NSE.
Cautioning the investors, the NSE asked them not to subscribe to any such scheme or product offered by any individual offering assured returns in the stock market as the same is prohibited by law, according to the statement.
Further, investors have been asked not to share their trading credentials such as user ID and password with anyone.
"Participation in such prohibited schemes is at investors' own risk, cost and consequences as such schemes are neither approved nor endorsed by the exchange," the NSE said.
For any kind of disputes relating to such prohibited schemes, mechanisms such as benefits of investor protection under exchange's jurisdiction, exchange dispute resolution mechanism and investor grievance redressal mechanism administered by exchange, would not be available to investors, it added.