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Is SM Trade, a New Ponzi Scheme, Spreading Wings in and around Powai in Mumbai?
Moneylife Digital Team 13 January 2021
Investor Interest
Investors baffled with dwindling interest rates on deposits, especially amidst the COVID pandemic, are desperately searching for better returns on investment. No wonder, there is a spurt in 'get rich quick' schemes and scams that are luring such investors. There is one such entity SM Trade (Shree Mahakali Trade), which is promising huge returns on investment. 
 
SM Trade is said to be a company operated by Ritesh Panchal aka Ritesh Sikligar. He claims to deal in stock market trading; trades in futures to make money, and uses options to hedge and insure.
 
According to our sources, SM Trade and Mr Panchal have already lured several retired people, mainly from the Indian Institute of Technology (IIT Bombay) and nearby area under the pretext of giving good returns on investing money with him. 
 
For example, if someone invests Rs1 lakh with SM Trade or with Mr Panchal and uses Rs25,000 for a trade, that investor would receive 5% return on the unused amount of Rs75,000. He also operates Kreaz Life, through which he offers Rs3.33 crore returns in three months on an investment of Rs1,000. "He guarantees this and is ready to put it on an agreement," our source says.
 
 
Mr Panchal claims to have his own brokerage and partnership with Samco and Upstox. He is involved in Paiselogy, a multi-level marketing (MLM) scheme. Moreover, he has Smart Trade and Ovule, which deal in cash futures & options (F&O) and everything happens here in cash, our source says.
 
SM Trade also offers a 10% commission for bringing a new client. 
 
Last month, Mr Panchal started Shree Mahakali Credit Co-operative Society (patpedhi) in Powai. The invitation card for the opening ceremony mentions the name of Manoj Kotak, the local member of Parliament (MP) as chief guest. However, the Twitter timeline of Mr Kotak has no mention of him attending the inauguration of the patpedhi on 20 December 2020. 
 
 
According to our sources, Mr Panchal claims to have a diversified business profile and numerous sources for making money and he has been doing this for at least eight years. "He (Mr Panchal) says he was associated with some college in Gujarat as can be seen from a video on his YouTube channel. He got contacts of some people from IITB and that is how he started his business in the campus," our source says.
 
One of the investors was told by his neighbour (who has invested his money in SM Trade) that he receives Rs2,000 via cheque every Tuesday as interest on his investment of Rs1 lakh. The investor-neighbour also told that the trader works with 'angadiyas' to justify such high returns. 
 
Mr Panchal of SM Trade also signs a standard agreement with investors. However, there is no mention of any interest rate or percentage of profit sharing mentioned in the agreement seen by Moneylife.
 
 
The investor was also told by Mr Panchal about assets under his management. "He was hesitant initially, but said Rs17 crore, on paper, excluding cash transaction and black money. Then, I asked how much I can invest to which he replied minimum Rs10,000 and no maximum limit. He said he is the sole owner of this business, SM Trade," the investor says. 
 
We sent emails to Mr Panchal seeking details of investments schemes or plans offered by SM Trade and its registration number or certificate obtained from Securities and Exchange Board of India (SEBI) or any other government authority. There is no response from SM Trade or Mr Panchal.
 
We also sent an email to SEBI to know if SM Trade or Mr Panchal is a registered entity for collecting money from investors for trading. We have not received any reply from SEBI. We will update this article as and when we receive any reply from Mr Panchal or SEBI.
 
Comments
swapnilmore400070
7 months ago
Any update on this? .... when we will get refund ?
Reply
madhuri.hr12
12 months ago
Guys, we need to come together. Let’s create a WhatsApp group and burst this racket out .. currently Shree Mahakali co-op credit people are underground and if we don’t hurry they will be out of our reach
Reply
shubhamanvekar02
1 year ago
We didn't received our money back .. when we will get refund
Reply
shirketejas8
3 years ago
What’s going on..?
Issue related this when we will get our money back ????
Reply
anilarke88637
3 years ago
Now Recently 1 person in Police Custody, after the court released.......
Reply
shirketejas8
Replied to anilarke88637 comment 3 years ago
Any new update…? About this issue..?
Reply
yashnamaste111
3 years ago
I know few people who are linked to this scheme and our operating if you want get connected with it please it let me known. Its a big they are running and it's gone come out soon i want to know the means how to expose them
Reply
ankitiv91
3 years ago
They are operating a Scrip call SM gold. Now they will dump it at this range or 550
Reply
suyogparkar222
4 years ago
How much time more this schemes may run ?? I mean How much time it takes for such schemes to fail ??
Reply
kumars.khot
4 years ago
Sources said more than 30 crores have been invested by iit retired folks. Till yet people getting money as per they offering . Current scheme is invest 1 lack weekly will get 4k and on investing 1 lack after 18 months will get 18 lacks. police, sebi will be silent on this now and when people get bankrupt then media will awake it happens in every scam.
Reply
aditya.chetan18
4 years ago
I heard about this company they are also providing shares of an unlisted company( SM INFRA) and also promising to provide 18X returns. Kindly comment, is this a scam or what?
Reply
kumars.khot
Replied to aditya.chetan18 comment 4 years ago
Just remember Hera pheri part 2 before investing.
Reply
sunitanaraini143
4 years ago
I want to invest
Reply
ryraj2
4 years ago
As per above article true and currect .........
Reply
saurabhmukh
5 years ago
Thank you MoneyLife for acting in investors interest. I have been approached dubiously by such other firms. Please Please spread this news amongst friends and family
Reply
aditya.chetan18
Replied to saurabhmukh comment 4 years ago
What do you think about this firm?
Is it a scam or what?
Reply
anilarke88637
Replied to aditya.chetan18 comment 3 years ago
Big Scam
Reply
yerramr
5 years ago
Greed rules and IIT-ians are no exception. Be weary of innovation in finance. Never did it come without duping the clientele. It is only the time that made the difference between one and the other scheme,
Reply
kumars.khot
Replied to yerramr comment 4 years ago
Pls make a difference in those who Learn at IITB and who only serves in IIT. Here investors are mostly security guards and non teaching staff.
Reply
kcganga2108
5 years ago
Surprising to know that retired IIT staff are clients of this obviously dubious operation.. Only shows greed has no boundaries or education is no guarantee to rational thinking.
Reply
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