The National Stock Exchange has cautioned investors about a fraud entity known as Lazard Asset Management India. This entity operates through a WhatsApp group named ‘JO HAMBRO.’
Lazard Asset Management India, the fraud entity, allegedly offers shares at discounted prices and even lets investors buy shares after market hours.
“Exchange has received a complaint regarding a group on WhatsApp in the name "JO HAMBRO" luring retail investors to get discounted prices of shares, and this group has allegedly stated that the investors can buy such discounted shares after closure of market,” NSE said in a release on Friday.
This fraud entity allegedly collected money from retail investors under the garb of a "Seat Trading Account,” the statement said.
Lazard Asset Management India has misrepresented itself as a registered stockbroker with the Securities and Exchange Board of India (Sebi), the market regulator in the JO HAMBRO WhatsApp Group. It used a fake registration certificate by Sebi.
This fraudulent entity circulated the Sebi registration certificate to the WhatsApp group. However, the NSE said no entity named Lazard Asset Management India is registered with Sebi as a stock broker.
“We wish to clarify that no entity by the name of Lazard Asset Management India is registered with SEBI as a stock broker. The forged SEBI registration certificate circulated in the WhatsApp group is entirely fabricated and illegitimate,” NSE said.
Further, NSE warned users against Lazard Asset Management India and advised them not to engage with such entities without proper verification.
“Investors are cautioned and advised not to deal with such persons/entities in any manner. We urge investors to verify the credentials and regulatory status of any financial entity before engaging in any transactions or transferring funds,” it said.
NSE also informed investors that they cannot avail of any of the following recourses in case of disputes relating to such prohibited schemes.
1. Benefits of investor protection under the Exchange's jurisdiction
2. Exchange dispute resolution mechanism
3. Investor grievance redressal mechanism administered by Exchange.
