Websites providing ‘stock-options tips’: By all looks, another huge scam in the making

A number of websites have cropped up, trying to lure investors with dubious claims of more than 100% returns—why are the regulators silent?

Speak Asia is not the only company luring thousands of people with dubious claims and the promise of extraordinary returns. The legitimate options & futures trading market of the National Stock Exchange (NSE) is a happy hunting ground for shoddy online tip-sheets, luring the gullible.

The Internet is flooded with websites claiming accurate tips, as high as 99% in trading in Nifty Futures & Options, etc. These portals are luring people to subscribe to their various planswhich is nothing but virtual gambling.

Most of the trades are usually in the Nifty and individual stock options where average trading volumes on the NSE are about Rs1,00,000 crore per day. Of these, index options account for 65% of total volume.

A Google search throws up dozens of websites promising huge returns through their tip-sheets, but market regulators seem to be unaware of these portals.

The modus operandi of all these tip-sheet portals is similar. They claim 99% accuracy, provide various stock options plans on (weekly or yearly) subscription. On an average, two-three 'tips' are delivered via mobile text messages. A few punters deliver tips using online chat rooms.
 

  • For instance, a website CallOptionPutOption provides such trading tips ranging from stock options to Nifty Futures tips and Nifty Options tips. It claims 200%-500% profit per month on its stock options tips. For this 'plan', capital of Rs15,000 is required and tips are provided with one target price and one stop-loss. Subscription to this scheme ranges from Rs2,500 (monthly) to Rs20,000 (yearly basis). For another plan, 'Nifty Future Tips', it claims that up to 85%-90% tips are "profitable". 
  • Similarly, DayGains claims more than 92% accuracy with profit of Rs2.07 lakh per month in equity and profit of Rs3.70 lakh per month in commodities. It suggests intraday trading 'tips' and provides complete follow-ups for both stop-loss and targets till a position is closed. 
  • Another website, SuperNSetips, claims to teach the "best day trading techniques" along with "money management". It actually provides tips to generate the desired volume in a market at a single point and time. It says, "We give Full LIVE Yahoo support during market hours to our Paid clients. We can give you 99% accurate live market calls according to your plans." (Reproduced verbatim).
  • A portal called CapitalVia provides stock tips, stock futures tips, Nifty tips, 'Premium Stock Tips', option calls & put tips, claiming 85%-90% accuracy. It also claims that it will provide complete support via Web messaging and also provides a mobile number. One such plan is called 'Viva Pick' where the portal suggests one call for Rs6,000 promising 4%-5% returns on every call within one-three trading sessions!
  • Here's another one: Indian-Share-Tips. It claims "guaranteed returns" on 'Jackpot' tips, day trading tips, etc., for subscription ranging from Rs2,000 to Rs32,000, on a weekly to monthly basis, depending on the plan. Interestingly, it has a "Recovery of Money Plan", which is a 30-day money-back guarantee. The site claims, "We even provide a 30 days money-back guarantee for the said plan. Moreover, within this duration of 6 months; one will graduate to higher level of trading as a trader as this plan is personally monitored by Analyst himself and one will be able to make money with each executed trade." (Again reproduced verbatim, not corrected for grammar).
  • BestStockAnalysis claims to charge only on positive calls and not on negative calls. It charges Rs10,000 monthly as advance fee, deducting Rs500 for every positive call. On each segment it provides one-two 'ideas', claiming an average of more than 80% success ratio in its suggested calls.
  • DailyStockTips claims accuracy of above 87% and even promises that one can earn Rs50,000 in a single day from intraday share tips! Here's what the website says, "Even in this Volatile Market, We have given excellent share tips to our clients. Let the Market be Bearish or Bullish, Our Clients have always benefited from our Share tips. We invite you to become our Member and get benefit from our Share tips." 
  • Optiontips says, "Get one Nifty Options intraday sure shot tips services (with) 98-99% accuracy." Its 'Nifty Option Golden Jackpot' claims to have maintained 93% (and above) accuracy all the time with low investment and huge 20%-50% returns on a daily basis. On this plan, it also guarantees minimum 400%-500% monthly returns. Its monthly subscription is Rs5,000 per month. For its options 'sure-shot' plans, it claims 98% accuracy with minimum 900-1,200% monthly returns! 
  • NiftyfutureNiftyoption claims to offer positional and intraday tips on futures, options, 'Jackpot Calls', etc., with 80%-90% success rate in futures trading. It says, "Profits in Index Futures and Options services comes to 30-70 points on consistent basis irrespective of market." It claims to offer minimum 25% return per month on Nifty Futures and Options.

There are many more websites making such claimsHere are a few:

Obviously, if generating such high market returns was so easy, investors all across India-and around the globe-will be flocking to Mumbai. The blatant dubiousness of these claims is obvious even with a cursory glance at these sites. But a few might just bite the bait. The moot point is, while a Google search can throw up so many sites, why are the regulators silent?

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    COMMENTS

    viny k.samual

    3 years ago

    Blogger’s brilliant Efforts are really appreciable. Anyone can easily understand the thoughts. Ripples Advisory

    Stephy Wilson

    5 years ago

    Very Good blog and awesome writing too , and great thanks to the writer

    http://supernsetips.com/best-niftyoption..." >Nifty Options Tips

    Stephy Wilson

    5 years ago

    Very Good blog and awesome writing too , and great thanks to the writer

    http://supernsetips.com/best-niftyoption..." >Nifty Options Tips

    BIGPROFITBUZZ

    7 years ago

    Bigprofitbuzz is a well known advisory of indian share marekt.We always believe in profit no matter whatever the market bear or bull.Our clients always make profit.we provide intraday equity,future,option,nifty & commodity calls with high accuracy.wehttp://www.bigprofitbuzz.com" title="Share market"> STOCK MARKET NSE BSE TRADING TIPStry to give less call but more accurate so that you can earn some money without tension.We also give jackpot calls on a daily basis according to the market condition.You can make high profit in this by taking huge position.But always consider our levels to taking the entry in the call.We are not GOD of share market But we try to gain you high return Because only your satisfaction can only make us satisfy.
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    http://www.bigprofitbuzz.com" title="BIGPROFITBUZZ TEAM"> BIGPROFITBUZZ TEAM

    Anand

    8 years ago

    If any one knows the secret of making money trading in options - why should'nt he /she do it himself or herself.
    No one can make money in Options - sometimes you make to lose the very next time or at a latter date

    sharetipsinfo

    8 years ago

    Wondering from where you can get best Nifty option trading tips for trading? Read on and find the way to find the right source

    maryam

    9 years ago

    Excillent work by moneylife team. i receieve a regular sms from one such tips proivder comapny called BSA (BestStockAnalysis) claiming that their so and so called made a profit of rs.xxxx, on 50thousand investment. absolutely stupid on their part, as that 50thousand investment according to them will be either for margin or fno segment (both being highly risky), further company gives 4-5calls per day, but sends sms only for positive call, practically speaking the remaining 3-4calls will give losses several times more than the profit of their profit making call. Absolutely cheating. i wonder despite these service providers are running their web porbals for over years now, why isnt SEBI or NSE/BSE initating any time of action against them, as they violate all basic guidlines by SEBI, either these service providers are smart to manage SEBI or SEBI will wake up after any of the innocent investors takes law into their own hands agains these fraud web protals

    nifty

    9 years ago

    Housing dreams of many middle class families is likely to be snapped, thanks to the Reserve Bank of India’s (RBI)’s announcement to hike interest rates by 50 basis points nifty ”nifty. All loans, incluing auto, home, personal and other corporate borrowings, are expected to cost more following the apex bank’s decision.

    nifty

    9 years ago

    Housing dreams of many middle class families is likely to be snapped, thanks to the Reserve Bank of India’s (RBI)’s announcement to hike interest rates by 50 basis points ”nifty. All loans, incluing auto, home, personal and other corporate borrowings, are expected to cost more following the apex bank’s decision.

    BEST STOCK TIPS INDIA

    9 years ago

    u r very true in that thing

    option tips

    9 years ago

    good information

    nserich

    9 years ago

    Your team is Bang on target
    Some are advertising returns of 200-300 percent per month

    this means that trader can convert Rs 1 lakh into 5314 crore in one year

    This is just absurd
    ref:http://nse2rich.com/98-accurate-intraday-sure-shot-nifty-tips-get-free-trial-of-stock-tips-are-they-real/

    Deepa

    9 years ago

    Another website offering paid calls is vfmdirect.com. The advt is right on the first page. Whether they are registered with SEBI is also doubtful. The owner is one Kamlesh Langote who claims to be a technical analyst.

    Policy

    9 years ago

    It's not the fault of the website owner, it's the fault of the person who wants double and triple returns in short period. If it is so simple, then why the so called nifty expert take money from bank on loan and double it themself.

    REPLY

    Gaurav

    In Reply to Policy 9 years ago

    Exactly... Thats my point as well.

    If the guy is so good, why not earn from the market itself.

    And if he/she is so good, share the calls for free (since money would already have been made from the markets

    Hope, the foolish followers understand this point

    Gaurav

    9 years ago

    Great Expose moneylife team!

    Probably 100s of such websites

    Another one I know of is http://www.moneymunch.com/our-service/

    is Income Tax department keeping a tab of these websites and the earnings? The account numbers where deposits have to be made are openly available

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  • SEBI directs Sun-Plant Agro to wind up collective schemes

    The latest order confirms an earlier interim ex-parte order on 21 October 2010 against Sun-Plant Agro directing it not to collect any money from investors, or to launch any scheme, and not to dispose off any of the properties or delineate assets of the scheme

    The Securities and Exchange Board of India (SEBI) passed an order on 3 May 2011 directing Sun-Plant Agro to wind up its existing collective scheme(s) and refund the money collected by it under the scheme(s) with returns to the investors within three months of the order.

    The latest order confirms an earlier interim ex-parte order on 21 October 2010 against Sun-Plant Agro directing it not to collect any money from investors or to launch any scheme or not to dispose off any of the properties or delineate assets of the scheme, or not to divert any fund raised from public at large kept in bank account and/or at the custody of the company, till further directions in this regard.

    The market regulator further stated that in the event of the company failing to act as per the order, SEBI will initiate prosecution under the Securities and Exchange Board of India Act, 1992, against the company, or persons in charge of the business of its scheme(s).

    Sun-Plant Agro was raising funds in the name of 'sale of plants'. It allegedly sold plants to purchasers, maintained the plants and thereafter provided returns on the amounts invested at the end of the scheme in the form of wood, even though no identity or marking of the particular plant which was sold, was provided to purchasers.

     SEBI said that such activities of the company carry the features of a Collective Investment Scheme (CIS), specified under Section 11AA of the SEBI Act read with Regulation 3 of the SEBI (CIS) Regulations.

     The company ought to have wound up the scheme in 2003 pursuant to rejection of the application for provisional registration by SEBI and the filing of the 'Winding Up and Repayment Report' by the company. However, the activities of Sun-Plant Agro and the details of amounts received by it against cost of trees during 2003 to 2010 prima facie indicate that even after submission of the Winding Up and Repayment Report in 2003, the company has been carrying out activities of a CIS without obtaining a Certificate of Registration from SEBI, the market regulator said.

     Interestingly, the company, which calls itself 'ISO:9001:2008 certified eco-friendly organisation', has partnered with the West Bengal Wasteland Development Corporation (WBWDC). Sun-Plant Agro, with WBWDC, plans to plant the jatropha crop over about 30,000 acres in the arid districts of Bankura, Birbhum, West Midnapore and Purulia over the next 15 years.

    The SEBI order dated 3 May 2011 has further stated that for the specific purposes of the repayment/refund of the moneys to the investors as directed above, those directions as mentioned in the ex-parte order dated 21 October 2010 in as much as it relates to disposal of properties of the scheme, the operation of the Order is modified to allow Sun-Plant to meet the liabilities of the refunds to the investors in accordance with these directions.

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