NSE asks trading members to safeguard investor data amid rise in frauds

Amid instances of fraudsters collecting investors' information, the NSE has asked trading members to take steps to safeguard data of the clients registered with them and not to share such data with unauthorised persons.

The move comes after Sebi communicated to the NSE that certain fraudsters are collecting data of clients who are already into trading in exchanges and send them bulk messages on the pretext of providing investment tips and lure them to invest in their bogus firms by promising huge profits.

Sebi, further, said there is a need to create awareness among investors about such incidents.

Consequently, the National Stock Exchange (NSE) in a circular, asked all the members "to sensitise their clients and create awareness" on the issue.

"Further, members are advised to take necessary steps to safeguard data of the clients /investors registered with them and not to share or reveal such data to unauthorised persons," it added.