Regulations
SEBI’s has miraculously discovered an ‘Organized Racket’of Mis-selling

SEBI recently issued a press release claiming to have busted an organised gang trying to cheat targeted individuals with the false promise of riches. Its claims leave a lot of questions unanswered

 
On 9th April, the Securities & Exchange Board of India (SEBI) issued a press release claiming to have busted an organised gang trying to cheat targeted individuals with the false promise of riches. In this case, SEBI apparently received a complaint that some ‘agents’ / ‘brokers’ had approached potential victims in Delhi telling them that their deceased son had invested in a mutual fund scheme that was due to mature shortly giving them Rs5 lakh. However, if they made a further investment of Rs2.5 lakh, they could hope to earn Rs12.5 lakh (presumably at a future date). Two things happened here—first, unlike the usual online complaints to SCORES that seem to end in a black hole, SEBI acted with extraordinary alacrity in this case. It even called in the economic offences wing (EOW) of the Delhi police, who also acted with great promptness to ‘confirm’ that there was an ‘organised’ attempt to ‘defraud and missell’. SEBI’s press release says that a first information report (FIR) has been lodged, but does not bother to tell us whether the tricksters were arrested and, if not, why not. 
 
SEBI’s says it ‘suspects’ that the number of “victims of such fraudulent attempts could be much higher” and cautions people to verify the credentials of anyone approaching them with such dubious schemes. This only raises several questions. First, what is a ‘victim of a fraudulent attempt’? Was anyone really defrauded? Wouldn’t any decent financial advisor, or even a distributor, have told the complainant that the scheme seemed dubious on the face of it? But wait, financial advisors and distributors have become scarce due to SEBI’s own policies of the past five years. While it is nice to know that one unnamed investor received such a prompt response from SEBI, we wonder how the regulator will protect those who fall for foolish inducements. On 11th April, the Times of India reported that a doctor—Usha Mehta—parted with a hefty Rs25 lakh to a gang of fraudsters who claimed the ability to multiple currency notes using a chemical. How can anybody protect people from such gullibility? What we need from SEBI is similar promptness in brazen cheating by registered intermediaries.
 

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COMMENTS

Vaibhav Dhoka

4 years ago

These gang of cheaters are obtaining e data from some source and call gullible people like old mutual fund investments or lapsed policies etc.One has to be over cautious while attending such calls.

SEBI cancels registration of Mudra Bullions

The registration has been cancelled for allegedly violating broker norms, including furnishing false details to obtain recognition as a market intermediary, SEBI said in a release

The Securities and Exchange Board of India (SEBI) has cancelled the registration of Mudra Bullions Pvt Ltd, a member of the MCX Stock Exchange, for allegedly violating broker norms, including furnishing false details to obtain recognition as a market intermediary.

 

A probe by the market regulator has found that it had prohibited Mudra directors—Karul P Shah and Anand B Hundia—from dealing in the securities market by an interim order dated April 23, 2009 for their alleged role in Pyramid Saimira Theatre case.

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SEBI constitutes High-Level Committee to review insider trading norms

The High Level Committee has decided to seek inputs and suggestions from the public, at the outset, on any aspect of the PIT Regulations, which in their opinion may merit a review

The Securities and Exchange Board of India (SEBI) has constituted a High Level Committee to review the SEBI (Prohibition of Insider trading) Regulations, 1992 (PIT Regulations) and to suggest suitable recommendations for amendments as it considers necessary.

 

The first meeting of the High Level Committee to review PIT Regulations was held on 12 April 2013. As part of a consultative process in the exercise of reviewing this significant piece of legislation, the High Level Committee has decided to seek inputs and suggestions from the public, at the outset, on any aspect of the PIT Regulations, which in their opinion may merit a review.

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COMMENTS

NSriramamurty

4 years ago

If SEBI puts on its WEB ,all their Investigative Reports done so Far on Manipulative Trading,and what changes SEBI Concludes / intends to effect to Plug such Manipulations , Public can suggest changes required .

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