NSE wants investors' tip-off on stock market rigging

Taking an innovative route to catch rogue elements in the stock market, leading bourse NSE wants investors and general public to provide its surveillance department with any tip-offs they may have about cases of share price rigging, insider frauds and other violations.

Such tip-offs can be provided through phone using the toll-free number or via email and they will be kept confidential, while anonymous complaints can also be submitted for further probe by the relevant departments of the exchange.

The National Stock Exchange has created a special section on its website for this purpose, which the exchange said ‘intends to invite information and tips on violations/ manipulations that may adversely affect the market quality and integrity’.

"NSE treats all tips and information received under this section as confidential and does not disclose such information to anyone, unless required by statute, regulation, or court of law," the exchange added.

Investors can give tip-offs related to insider trading, fraud, price rigging, conspiracy, manipulation as well as violations of market integrity.

Besides, information could also be provided related to the exchange's ongoing probe and surveillance.

After receiving the tip-off, the exchange's market surveillance department looks into the information and takes it to a logical conclusion.

Further, the NSE said that information regarding grievances against brokers or companies listed on the exchange may be registered under the section 'Domestic Investors/Register an e-complaint'.

"Any investor complaint of specific nature given under this section may not receive attention of Investor Services Cell," it added.

When contacted an NSE official said the information collected through this mechanism first gets examined by the surveillance and investigation departments and necessary actions are taken subsequently.

The exchange has found such tip-offs very useful and they are being used appropriately, the official added.