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NOTICES
Notice No.   20221021-12   Notice Date   21 Oct 2022
Category   Trading   Segment   General
Subject   Caution towards dealing with unsolicited videos and messages circulated in Social Media
Attachments   Annexure I - List of scrips.pdf ;
Content

Sub: Caution towards dealing with unsolicited videos and messages circulated in Social Media

 

Exchanges, of late, have received multiple references where messages / videos are being circulated with recommendations to deal in certain scrips. Such recommendations are being circulated to investors by unregistered or unauthorized entities inducing them to deal in these stocks. 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 Exchange has already issued Exchange notice no. 20220325-56 dated March 25, 2022, cautioning market participants on unsolicited messages being circulated by unregistered or unauthorized entities via social media platforms like WhatsApp, Telegram, etc. and advising trading members to carry out necessary due diligence before releasing the pay-out to the clients.

 

Further, reference is drawn to Exchange notice no. 20171117-18 dated November 17, 2017, cautioning market participants on unsolicited messages being circulated by unregistered or unauthorised entities inducing to deal in such stocks.

 

Based on the unusual price / volume variation and other factors as deemed fit by the Exchange, such scrips may be shortlisted for surveillance action which may inter alia include reduction of price band, levy of additional margins, shifting the scrip in Trade for Trade segment, including the scrip in Periodic Call auction framework, etc. It may be noted that, the shortlisting of securities in above mechanism is purely on account of market surveillance and it should not be construed as an adverse action against the concerned company.

 

The list of scrips shortlisted based on circulation of videos and unusual price / volume movement are provided in Annexure I and the surveillance actions will be effective from October 31, 2022.

 

Trading members are advised to monitor unusual trading pattern by any of their clients / group of clients having significant selling / trading / dealing concentration in relation to circulation of such videos / messages. Trading members are also required to educate their clients / investors by way of Social media / SMS campaigns / Mailers, etc. advising clients / investors to beware of unregistered investment advisors, offering assured returns and seeking trading credentials.

 

Any non-compliance in the matter shall be viewed seriously and may attract further action which may inter alia include disciplinary action as deemed fit in terms of Rules, Bye-laws and Regulations of the Exchange provided the facts and circumstances so demand.

 

The aforesaid measure is without prejudice to the rights of SEBI and Exchanges to take any further actions, in any manner, as may be warranted.

 

Further, market participants are aware that Exchange has provided facility to share their information or evidence of systemic wrongdoing, potential frauds or unethical behaviour to the Exchange through the anonymous portal as per web page link given below:

 

https://www.bseindia.com/investors/tip-off-registration.aspx?expandable=0

 

The Exchange has also provided a facility to report unsolicited stock tip / recommendation on +91 75068 40578 or on designated email id – attentioninvestors@bseindia.com.

 

Market participants are advised to use facility to report any such information anonymously and confidentially.

 

Trading members are advised to exercise caution and take note of the above and ensure compliance with aforementioned requirements, as may be applicable from time to time.

 

In case of any clarification, members may contact on 022 2272 8852 / 8347.

 

 

For & On behalf of BSE Ltd.

 

 

 

Anantnag Katkar                                                                                            Paras Makani

Assistant General Manager                                                                           Manager

Surveillance                                                                                                    Surveillance

 

Date: October 21, 2022.