The Philippine Stock Exchange (PSE) issued this warning amid reports that scammers who are not licensed to solicit funds have been targeting potential stock market investors.
"We are alarmed by reports that have reached us on unscrupulous practices that are perpetuated to scam potential stock market investors. These practices not only cheat the victims of their money but also unduly stains the reputation of the stock market among retail investors," PSE president and chief executive Hans Sicat said in a statement.
The PSE advised investors to open their own account with PSE-accredited brokerage firms and to transact only with employees of their chosen brokerage firm.
The investing public is also being urged to be wary of investment solicitations that offer share prices at discounted prices as some of these schemes may include offering supposed shares of employee stock option plans.
"While it is true that some employee stock option plans may be offered at discounted prices, the PSE approves these provided their distribution is confined to employees of companies offering the plan as part of their benefits. Also, always ask for a receipt when making investments in the stock market and the receipt must be issued by the licensed broker," Sicat said.
The public is also warned against solicitations for stock market investments that guarantee returns on investment.
PSE said that to attract investors, the scammers make it appear that opening an account with a broker is a complicated transaction and that the process can be made easier if the investment is made directly in the account of the perpetrators than with an accredited broker.
"All information about PSE-accredited brokerage firms are posted on the website of the Exchange. Inquiries on how to invest may be coursed through the PSE through telephone number 819-4100 or via email at pird@pse.com.ph. Complaints on stock market investment scams may also be raised through the contact information mentioned," the PSE said.
source: www.abs-cbnnews.com
