BSE Issues Investor Warning Against Unauthorized Entity EZInvest
The Bombay Stock Exchange (BSE) has issued a public warning advising investors against an unauthorized entity identified as EZInvest. The entity is allegedly engaged in illegal activities related to the equity market.
The Nature of the Unauthorized Activities
The BSE circular highlights that EZInvest is reportedly involved in several activities that violate regulatory norms and pose a significant risk to the public:
Unauthorized Recommendations: Circulating investment and trading recommendations without the necessary registration from SEBI or the Exchange. Providing investment advice requires specific regulatory registration (as a research analyst or investment adviser).research analyst
Soliciting Funds: Collecting funds directly from citizens for the purpose of trading in various securities, including Indian listed equity shares.investment adviser).listed equity shares. This activity bypasses regulated channels and exposes investors to high counterparty risk and fraud.
Investor Action Required
The BSE advises investors to exercise extreme caution and take the following steps:
Verify Registration: Always verify the credentials of any entity offering investment and trading recommendations by checking the official registration lists of SEBI (for Investment Advisers or Research Analysts) and the Stock Exchanges (for authorized brokers).
Use Regulated Channels: Funds for trading in the equity market must only be channeled through SEBI-registered stockbrokers, and settlement must occur securely through recognized clearing corporations. Investors should never transfer funds directly to an advisory platform or an unauthorized third party for trading purposes.
The warning underscores the ongoing regulatory vigilance required to protect the public from unauthorized schemes operating under the guise of financial services.
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