<p class="title">New Delhi, pti: Leading stock exchange NSE has cautioned traders and investors against unsolicited messages being circulated by unregistered entities to induce investment and sale of shares.</p>.<p class="bodytext">Earlier, BSE had also issued similar message to investors. The direction comes after the bourses and capital markets regulator Sebi noticed that "unsolicited messages are being sent to induce investment or sale of the stock of certain listed companies, indicating target prices by unregistered or unauthorised entities".</p>.<p class="bodytext">"Trading members are requested to advise their clients to remain cautious on such unsolicited messages being circulated by unregistered or unauthorised entities," NSE said in a notice. The exchange also said that in case the trading member "suspects that there is an unusual trading pattern" by any client then it should release the payout only after carrying further scrutiny of KYC documents to compare income range declared and value of such transactions.</p>.<p class="bodytext">The trading member should also scrutinise whether the client is individual or private corporate body and directly or indirectly connected to the company or promoters or directors of the firm.</p>.<p class="bodytext">The method of acquisition of shares by client and whether the source of funds and period of holding is in line with the client's usual behaviour should also be inspected by the member. The trading member should intimate the decision to withhold the payout to the client along with rationale to the stock exchange within three days of withholding of payout.</p>
<p class="title">New Delhi, pti: Leading stock exchange NSE has cautioned traders and investors against unsolicited messages being circulated by unregistered entities to induce investment and sale of shares.</p>.<p class="bodytext">Earlier, BSE had also issued similar message to investors. The direction comes after the bourses and capital markets regulator Sebi noticed that "unsolicited messages are being sent to induce investment or sale of the stock of certain listed companies, indicating target prices by unregistered or unauthorised entities".</p>.<p class="bodytext">"Trading members are requested to advise their clients to remain cautious on such unsolicited messages being circulated by unregistered or unauthorised entities," NSE said in a notice. The exchange also said that in case the trading member "suspects that there is an unusual trading pattern" by any client then it should release the payout only after carrying further scrutiny of KYC documents to compare income range declared and value of such transactions.</p>.<p class="bodytext">The trading member should also scrutinise whether the client is individual or private corporate body and directly or indirectly connected to the company or promoters or directors of the firm.</p>.<p class="bodytext">The method of acquisition of shares by client and whether the source of funds and period of holding is in line with the client's usual behaviour should also be inspected by the member. The trading member should intimate the decision to withhold the payout to the client along with rationale to the stock exchange within three days of withholding of payout.</p>
