Is NISM Certification equal to a SEBI license of an IA (Investment Advisor) or an RA (Research Analyst).
Of Course NOT.
Still, people fall prey to these techniques employed by Educated Scammers of Stock Market out there.
An NISM Certification, by not means, is anything close to what an IA or an RA does. And one must not confuse these two entites with each other.
Anyway, we came across a case where someone claimed to be an NISM Certified person was giving away tips and recommendations. The same person also performs LIVE trading on YouTube and provides levels to people.
Even this aspect is dicey from the regulatory perspective.
Anyway, here is a quick exceprt from the discussion our team had with the victim.
Victim: I came across a person who claims to be NISM certified, but I have no way to verify this. He sells courses for 5,999 INR after a promotional discount and does live trading sessions. I used to find him reliable, but after watching his live sessions, I noticed some red flags.
ADB Team: What kind of red flags?
Victim: During his live trading sessions, he often downplays or removes his stop-loss levels, saying they’re not needed anymore. He sounds very skeptical before every trade, but if a trade is successful, he boasts about it, saying things like “Didn’t I absolutely tell you it will work?”
ADB Team: That sounds concerning. What else did you notice?
Victim: He frequently advises actions like “short after this level” or “book profit and risky traders can trail stop loss.” He also claims his PGS strategy is perfect for low-capital traders and works in range-bound markets. But his behavior seems hypocritical to me.
ADB Team: How does he sell his courses?
Victim: He doesn’t use a website. Instead, he sells through UPI, which he sometimes changes. I bought one such course, and was offered some levels to trade on. I took some trades based on his advice, and they were not successful. I lost about 3-4% of my capital, which made me realize his behavior might be misleading.
ADB Team: That’s quite troubling. Thank you for sharing this information. It seems important to investigate this further.
Victim: Yes, I hope you can shed some light on this type of fraud. Also, can you help me with filing a complaint against this person.
ADB Team: Absolutely, we’ll look into it. And of course, we can assist with the regulatory proceedings and communications you may need to take ahead the issue with the regulator.
Victim: Thank You.
Guys, again, don’t be fooled by the NISM Certifications out there. If someone is educating or teaching you for Stock Market, it’s good to have an NISM certified trainer.
However, if someone is providing you with recommendations and tips, claiming that he has gotten an NISM Certification for that. Well, either the person is a fool himself or most likely, he or she is befooling you.
Stay Aware, Stay Safe.
