The Bombay High Court has restrained the unauthorised use of the “NSE” trademark by fake social media accounts, observing that such misuse poses a serious threat to investors and the integrity of the market.

By way of an ad-interim order, the Court directed social media platforms to remove accounts, pages, and content that falsely use the mark of the National Stock Exchange of India or create a misleading impression of affiliation. It also restrained unidentified persons from using the NSE mark or any deceptively similar variant.

The matter came before the Court after NSE flagged the existence of multiple fake accounts and advertisements circulating on platforms such as Facebook, Instagram, WhatsApp, and Telegram, which were misusing its trademark. Some of these posts featured AI-generated “deepfake” videos of its Managing Director and CEO, falsely depicting him as offering stock investment advice.

The Court noted that such material not only amounts to trademark infringement but is also capable of misleading the public and causing financial loss to unsuspecting investors.

It accordingly directed intermediaries to act promptly upon receiving complaints and remove such infringing content within a stipulated timeframe. The platforms were further directed to disclose details of the accounts and entities responsible for publishing the misleading content.

Highlighting the duties of intermediaries under the Information Technology Rules, the Court held that social media platforms are required to exercise due diligence and prevent the dissemination of fraudulent and deceptive material.

The Court also observed that the balance of convenience lies in favour of NSE, as the continued circulation of such fake content could cause irreparable harm to both the institution and the investing public.