The Bombay High Court has stepped in to halt a growing wave of social media impersonation, directing platforms and domain registrars to act against accounts misusing the “NSE” mark to attract unsuspecting investors.
In an interim order, Justice Sharmila U Deshmukh restrained unknown entities from using the registered trademark of the National Stock Exchange of India to circulate stock tips, projections, and market advice. The Court noted that such activity created a tangible risk of deception, with at least one instance involving a senior citizen who reportedly lost substantial money after interacting with a domain bearing the “NSE” name.
The Court observed that the use of the “NSE” mark on social media handles and websites could easily mislead viewers into believing that the content originated from the exchange itself. This false aura of authenticity, it said, made investors vulnerable to fraudulent schemes disguised as official guidance.
According to submissions, multiple accounts across platforms like X Corp and YouTube were using the “NSE” name in usernames, handles, and videos. These posts frequently offered stock recommendations and forecasts, creating the impression of official endorsement.
The Court directed the platforms to remove or disable identified accounts, channels, and related content within 36 hours of receiving notice from NSE. The exchange has been asked to supply supporting material such as URLs, screenshots, and account details while flagging infringing content.
Emphasizing the broader public interest, the Court remarked that unsuspecting investors could be lured into committing significant funds based on misleading advice presented under the exchange’s trademark. Such conduct, it said, warranted immediate restraint.
At the same time, the order clarified that individuals remain free to share financial opinions. The restriction applies only to content that falsely suggests association with NSE or uses its registered mark.
Intermediaries were also given liberty to approach the Court if they believe certain takedown requests do not involve infringement or misrepresentation.
