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In the last two years, there has been a rapid rise in scams in India and a lot of people have lost their hard-earned money after trusting strangers for financial advice. Be it a fraudulent app, being added to a shady WhatsApp group, or receiving phone calls from strangers that sound too good to be true, many cases have come to light. Now, in a new incident, a doctor from Thane, Maharashtra, was misled by three Karnataka-based suspects who promised earnings via a municipal contract to supply medical equipment, costing him ₹3.84 crore. Despite investing over a three-year period, he saw no returns and reported the crime to the Naupada police, who have registered a case but made no arrests. Thane doctor tricked by false municipal contract According to a PTI report, a 39-year-old doctor in Thane, Maharashtra was deceived by three men from Karnataka. These fraudsters offered him lucrative returns through a supposed municipal contract for supplying medical equipment. Convinced by the promise of reliable profits, the doctor began investing heavily in December 2020, making significant contributions until March this year. The doctor’s substantial investment – totalling ₹3.84 crore – was made over multiple transactions from December 2020 and March this year, in anticipation of high returns that never materialised. Suspicion finally arose after the doctor had seen no profits despite his repeated investments. Recognising he may have been defrauded, he reached out to the Naupada police station, who registered a case under charges of cheating. While no arrests have been made so far, authorities have launched an investigation to track down the perpetrators and recover the funds if possible. A police official told PTI, "The man approached police after he did not get profits or any return on investment. We have registered a case of cheating but have not arrested anyone." Ahmedabad gynaecologist duped in <keyword id="21361161" type="General" weightage="100" keywordseo="stock-market-scam" source="keywords">stock market scam</keyword> In a similar incident, a gynaecologist from Ahmedabad lost ₹1.1 crore to a scam that began with a social media advertisement. Attracted by the potential for substantial stock market returns, the doctor engaged with a group promising expert tips and was subsequently added to a WhatsApp group where members shared investment insights. Through this group, he was introduced to a web link for stock and IPO investments, along with an application that required his banking details and identification documents. A PTI report revealed that the doctor’s initial investment of ₹50,000 yielded a profit of ₹10,000, which he successfully withdrew. This initial success encouraged him to make larger investments, transferring ₹1.1 crore through multiple transactions in pursuit of higher gains. When he later attempted to withdraw his funds, he was unexpectedly asked to pay 20% of his total profits. After refusing this demand, he was removed from the WhatsApp group and realised the extent of the deception. He contacted Cybercrime police in February, and after months of waiting, a formal case was registered against unknown suspects under charges of breach of trust and cheating, alongside provisions of the <keyword id="20003647" type="General" weightage="20" keywordseo="information-technology-act" source="keywords">Information Technology Act</keyword>.

Thane doctor gets cheated of ₹3.84 crore, was promised high financial returns by 3 men

In Maharashtra’s Thane district, police have registered a case of alleged fraud involving two construction company owners accused of deceiving a family of ₹1.2 crore. The incident came to light after a 28-year-old woman from Thane’s Rabodi area lodged a complaint against the two accused, who are brothers. The accused allegedly persuaded the woman, her mother, and her sister to invest the substantial sum in their construction company based in Mumbai’s Bandra area. Promises were made of a significant payout within five years or, alternatively, the option of acquiring two or three apartments in the city’s prime real estate zone. According to the complaint, the woman’s family entered the deal on December 31, 2022, convinced by assurances of either a return of ₹3 crore over five years or property options in Bandra. To meet the required investment amount, the family borrowed funds from various sources, entrusting their money with the accused based on the lucrative promises. The police official handling the case noted that the family, enticed by the seemingly profitable terms, had not foreseen the outcome that would follow. In May 2023, however, when the family attempted to reclaim their funds and the anticipated profit, the accused allegedly declined the request. The complainant stated that the brothers not only refused to pay but also reportedly threatened the family, citing powerful connections that would shield them from legal repercussions. This behaviour alarmed the family, leading them to seek legal recourse. The Rabodi police have filed a case against the accused under various sections of the Indian Penal Code, including Section 420 for cheating, Section 406 for criminal breach of trust, and Section 506 for criminal intimidation. Additionally, charges were filed under Section 34, indicating common intention, along with relevant provisions of the Maharashtra Protection of Interest of Depositors Act. The case highlights the dangers that investors may face when lured by high-return promises in unregulated sectors. Fraudulent schemes in real estate and construction have been known to target individuals and families looking for profitable investments, often leaving them with financial losses and emotional distress. Authorities are continuing investigations, with the Rabodi police closely monitoring the case to gather further evidence. This incident is expected to bring more attention to regulatory practices within the real estate industry and underscore the need for stricter oversight to protect potential investors from falling prey to deceitful operators. (with PTI inputs)

Thane family loses Rs 1.2 crore as they get cheated by construction company, details here

In the last few months, there have been ample cases where innocent <keyword id="20452560" type="General" weightage="20" keywordseo="job-aspirants" source="keywords">job aspirants</keyword> were duped of their hard-earned money by <keyword id="20013464" type="General" weightage="20" keywordseo="fraudsters" source="keywords">fraudsters</keyword> on pretext of getting a new job. A recent case from <keyword id="19932272" type="General" weightage="20" keywordseo="Navi-Mumbai" source="keywords">Navi Mumbai</keyword> has now come to light where aspirants were robed off Rs 1.3 crore in total. The authorities in Navi Mumbai have registered a case against six people, accused of defrauding job seekers of Rs 1.31 crore, according to officials from Kharghar police station. The accused allegedly promised clerical positions in the <keyword id="19909154" type="General" weightage="20" keywordseo="Indian-Railways" source="keywords" meta.keywordsubtype="org" meta.entityname="Indian Railways" meta.hostid="261" meta.entityid="Indian Railways">Indian Railways</keyword> to 20 victims, collecting the funds through digital payments and cash between September 2022 and April 2023. <h2>The Scam: False promises of Railway jobs </h2> The six people, as per a PTI report, contacted the victims with guarantees of securing clerical roles in the Indian Railways. Over the course of several months, the accused collected a total of Rs 1.31 crore from the job aspirants, giving false assurances about placements. However, when the victims, all residents of the Kharghar area, began asking about their job status, the accused stopped responding and failed to return the money. One of the six accused people allegedly misappropriated the funds, using the collected money for personal purposes. It was reported that this person used the victims’ money to finance the construction of a house in Kolhapur, adding another layer of betrayal to the scam. <h2>Legal action and investigation </h2> Realising they had been duped, the victims filed a complaint with the Kharghar police. Following this, the police registered an FIR against the six accused under several sections of the Indian Penal Code (IPC), including 420 (cheating), 406 (criminal breach of trust), and 34 (acts done by several persons with common intention). The police are currently working to locate and apprehend the individuals involved. The case highlights the ongoing risk of job-related scams, where fraudsters prey on the aspirations of job seekers, especially in sectors like the Indian Railways, known for secure government jobs. (With PTI inputs)

Navi Mumbai job aspirants robbed of Rs 1.31 crore on pretext of Indian Railways job, 6 accused booked

When A (name kept anonymous) bought tickets for the 2025 <keyword id="22044624" type="General" weightage="20" keywordseo="Coldplay-concert" source="keywords">Coldplay concert</keyword> in Mumbai from a certain “concert organizer” account on <keyword id="19900288" type="General" weightage="20" keywordseo="instagram" source="keywords">Instagram</keyword>, they were over the moon. Yes, the tickets were exorbitantly expensive, way above the prices advertised on <keyword id="20215809" type="General" weightage="100" keywordseo="BookMyShow" source="keywords" meta.keywordsubtype="org" meta.entityname="BookMyShow" meta.hostid="261" meta.entityid="BookMyShow">BookMyShow</keyword> (BMS), the official ticketing partner. But so what? What mattered was that they could finally attend Coldplay's concert. At 12 noon on September 22, when bookings for Coldplay’s 2025 India leg of “Music of the Sphere” world tour had commenced, A was also in line, having logged in since 11:30 am, from 4 different screens and through 6 cousins. But God, and BMS were in no mood to reward her efforts and patience. The ticket sale lasted for a mere few seconds, before the site crashed and all tickets were sold out. Turns out, even the second time wasn’t the charm for them. The first time, too, A had not been able to get tickets for Diljit’s Dil-luminati India tour, which had gone live earlier last month. They had applied for an HDFC Pixel credit card to access the early-bird offer, but it was as if luck was taunting them “vibe teri meri na mildi aa”. could not get tickets for Diljit’s concert as well, which had also vanished within minutes of going live, much like Coldplay's. That’s why, when they saw that tickets for both Diljit and Coldplay were being sold by various Instagram accounts, despite showing as sold out on <keyword id="20496317" type="General" weightage="20" keywordseo="Zomato-Live" source="keywords" meta.keywordsubtype="org" meta.entityname="Zomato Live" meta.hostid="261" meta.entityid="Zomato Live">Zomato Live</keyword> and BookMyShow, it seemed magical to A. And per Coldplay, “If you were to ask me, after all that we've been through. Still believe in magic?”, the only acceptable response is “Yes I do, of course I do!” So, they went ahead, agreed to pay Rs 35,000, and bought Coldplay tickets which would’ve cost them Rs 6,450 via BMS. A steep price to pay, but at least they had their ticket to “an experience of a lifetime!”. As it is, the band had announced its retirement post its 12th album, and the band had just launched its 10th album, "Moon Music". <h2>BookMyShow to “fix” scalpers?</h2>But this morning, BMS startled many people like A by stating that unethically sourced tickets (read: tickets not directly booked via BMS) could be canceled. The platform had already filed an FIR to this effect with the <keyword id="19906039" type="General" weightage="20" keywordseo="Mumbai-police" source="keywords">Mumbai police</keyword> on October 2, 2024, against the rampant “ticket scalping and black marketing of tickets for Coldplay's <keyword id="22420646" type="General" weightage="20" keywordseo="Music-of-the-Spheres" source="keywords">Music Of The Spheres</keyword> World Tour 2025 in India”. The ticketing platform added that they had provided details of all resellers that had caught their sight, including independent individuals reselling tickets for Coldplay’s tour across social media platforms such as Instagram (where A had purchased their tickets from) and WhatsApp. Not just these small resellers, but multinational ticket exchange and <keyword id="23273060" type="General" weightage="20" keywordseo="ticket-resale" source="keywords">ticket resale</keyword> platform <keyword id="23278340" type="General" weightage="20" keywordseo="viagogo" source="keywords" meta.keywordsubtype="org" meta.entityname="viagogo" meta.hostid="261" meta.entityid="viagogo">Viagogo</keyword>, and its parent company StubHub Holdings have also been served legal notices by Zomato Live and BMS. While Zomato Live has not commented on if the tickets purchased via Viagogo or such scalpers would be canceled or not, it is no secret that hours after the tickets were shown as sold out on these official sites, tickets for both Diljit and Coldplay’s concert were available on Viagogo, albeit at sky-high prices. Even as of today, you can buy tickets for Coldplay’s concert in Mumbai’s DY Patil Stadium on January 19th, 2025 on Viagogo. The catch? You should be willing to empty your pockets. Consider this. Tickets for level 2 stand E were priced at Rs 9,000 on BMS. On Viagogo, the tickets for this specific category start at Rs 54,431, and go as high as Rs 1,89,512. The tickets A bought were also originally priced at Rs 6,450. But on Viagogo, the starting range is Rs 31,288, going up to Rs 1,13,207. Talk about earning 5x-6x returns! In comparison, the ticket prices offered by these Instagram reseller accounts, also termed as scalpers, might look benign, even generous. But at the end of the day, scalpers are also looking to rake in profits, which they earn by selling these tickets in bulk i.e. lots of 5-10 tickets at once. After all, who is attending concerts alone? The slim margins on individual tickets are well cushioned by the extra bucks brought in by the higher quantities of tickets sold at once. Consider this: <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Phase/Level (For Diljit’s Concert) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Original Price (As shown on Zomato Live) (In Rs) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Prices offered by an IG account reselling tickets for Delhi (26th October, 2024) (In Rs) </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Silver </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1,499 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2,399-3,999 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Gold Standing (Phase 1,2,3) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> 4,999-8,999 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7,999- 10,000 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Fan Pit (Standing) Phase 1 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">12,999 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">20,000 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Fan Pit (Standing) Phase 2 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">19,999 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">25,000 </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>Source: Zomato Live, IG accounts of resellers/scalpers <h2>Modus Operandi</h2>Most scalpers don't demand the entire money upfront. In A’s case, the scalper demanded a 20% advance for booking confirmation. Others ask for as much as 50% of the booking amount. Once that’s done, the customer would get an e-ticket on their registered email ID, which will mention their seat number and booking ID. Then, once this customer pays the remaining amount, the physical tickets will be dispatched to their registered address. Mind you, these physical tickets are important. Just e-tickets won't make the cut for both Coldplay and Diljit. You would not be able to enter the venue if you don't have this physical ticket or a wearable band. So, if the tickets are not delivered to your place before the concert, you’d be left stranded, even after paying all that money. Also, dont be surprised with a constant, relentless barrage of messages and calls, if you so much as just inquire about the tickets. Most scalpers, in a bid to quickly close on the opportunity, call incessantly, not giving buyers enough headspace to make rational, or for that matter, rationally priced decisions. But even after all the hassle, there is no guarantee of timely, or even delivery. While there were multiple screenshots on each of these pages, showing confirmation from various Instagram users saying that tickets had been delivered, but is that convincing proof enough? Or legal enough? <h2>Its legit, its not legit-No one knows! </h2>Well, it's a gray area, truth be told. But Germaine Pereira, Partner, Solomon &amp; Co. underlines that if the buyer is willing to pay a premium or higher price than the ticket’s original face value, it is valid, and perfectly legal under the Indian Contract Act, 1872 “Ticket resale or scalping, where individuals or entities buy tickets for specific events, and then resell such tickets at a higher price to make a profit, is valid if it meets the essential elements of a contract-offer, acceptance, consideration, and lawful object. Unless there is a clearly established motive of cheating or fraudulent inducement or exorbitant pricing of tickets in the secondary markets, there’s nothing wrong”, continues Pereira. State governments are also largely reluctant to establish regulations in these waters, since a resale would entail double entertainment tax, which only adds to their coffers. Says advocate Siddharth Chandrashekhar, Senior Panel Counsel at Bombay High Court, "Although some state police forces, like in Tamil Nadu, Karnataka and Punjab, have cracked down on illegal sales, arrests are rare, and the absence of cohesive legislation leaves enforcement inconsistent. Black marketing or reselling of live event tickets at escalated prices constitutes an offense under the Bharatiya Nyaya Sanhita 2023 for petty crimes, the Consumer Protection Act 2019 for unfair trade practices, and the Competition Act 2002 for abuse of dominant position”, Chandrashekhar highlights. “While Maharashtra’s Entertainment Duty Act, 1923, attempts to curb resale for some events, most states lack clear laws addressing scalping. Concert ticket scalping in India operates in a regulatory vacuum. With no specific national laws, opportunistic sellers can legally resell tickets for exorbitant sums, with no recourse for buyer”, he signs off.

'Will my tickets get canceled now?' people who purchased tickets from scalpers during the Diljit-Coldplay mania ask

When Delhi-based Shyam Sundar was hospitalised this year, his wife received several calls from the relationship manager of his <keyword id="45252" type="POSITION" weightage="40" keywordseo="stock-broker">stock broker</keyword>. He wasn’t calling to ask how her husband was doing, but for permission to transact in the futures and options (F&amp;O) segment on Sundar’s behalf. Though she told him to wait till her husband had recovered, the relationship manager went ahead and executed the transactions. When Sundar got home from hospital, he discovered that the unauthorised transactions had led to a loss for him. 
 This horror story has a somewhat happy ending. Sundar complained to the broking house, but they claimed he had authorised the transactions. An adamant Sundar demanded proof and threatened to complain to the Securities and Exchange Board of India (<keyword id="35210" type="ORGANIZATION" weightage="40" keywordseo="sebi">Sebi</keyword>). That’s when the broking house gave in and made good the loss he had incurred due to the rogue deals. 
 Sundar won because he had an airtight case. The <keyword id="49221" type="POSITION" weightage="80" keywordseo="Broker">broker</keyword> had no evidence that the deals had been authorised. Sebi rules make it mandatory for brokers to maintain records of telephone calls with clients. However, not all investors are so lucky. Brokers manage to get away by exploiting loopholes in the law. They are able to do so because few investors are aware of the rules or their rights. In our cover story this week, we look at the tricks that brokers deploy to take investors for a ride, and how you can avoid falling into these traps. 
 
DON’T SIGN AWAY YOUR RIGHTS 
 
The first pitfall comes at the time of opening a trading account with a broker. You are given a lengthy application form and a voluminous agreement booklet with clauses in small print. Very few investors have the patience to go through the fine print or the ability to decipher the legalese. The relationship manager helpfully puts crosses at the places you need to sign on the agreement. Do so without reading the clauses and you could be headed for disaster. 
 
What should you do? 
 Take time to go through the form and the agreement. In particular, pay attention to the power of <keyword id="46551" type="POSITION" weightage="40" keywordseo="attorney">attorney</keyword> (PoA) section. The PoA allows the broker to transact on your behalf. When you sign on the dotted line on the PoA pages, you basically sign your rights away. In 2010, Sebi issued new guidelines for PoA to intermediaries following large-scale complaints of misuse. 
 These new rules curtailed some of the actions that a broker could take on your behalf. Even so, a broker can transfer shares sold by you to the stock exchange, pledge <keyword id="6354298" type="ORGANIZATION" weightage="40" keywordseo="stocks">stocks</keyword> to meet your margin requirements, and apply for <keyword id="6357979" type="ORGANIZATION" weightage="40" keywordseo="mutual-funds">mutual funds</keyword>, IPOs, rights, and offer of shares based on your instructions. He can also transfer funds from your bank account for your settlement obligations and margin requirements, as well as recover dues of your trading activity or other charges. 
 Some investors blindly sign on the form with a brokerage firm and give PoA for moving funds from their bank accounts, whenever required. They do so because it is very convenient. When they place orders on phone, the money automatically moves from their <keyword id="25450" type="UNKNOWN" weightage="40" keywordseo="savings">savings</keyword> accounts to their trading accounts. However, this convenience can cost them dearly if their brokerage firm executes unauthorised trades from their accounts. Ideally, the investor should transfer money from his savings account to the brokerage account whenever needed. 
 
The broker cannot execute trades without the client’s consent or transfer funds from his bank account to conduct transactions with another broker. He cannot also transfer stocks for offmarket trades or merge the balance from other accounts to nullify debit in any other trading account. 
 
DON’T CHURN AND BURN 
 
Once you sign up as a customer, the stock broker will start bombarding you with phone calls, stock recommendations and SMSes, all of which will urge you to buy this stock or sell that one. The tempo rises when the markets are on the upswing. “If you don’t buy now, you could miss out on a multi-bagger opportunity,” your broker will tell you. 
 
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Before you fall for the bait, remember that the broker makes money every time you transact. His goal is to get you to buy and sell at a furious pace. When you do so too often, it’s certain that your costs will go up. What is not so certain is whether you will make profits. However, your broker may not care. Whether you make or lose money, he will earn his brokerage fee. 
 
What should you do? 
 When you buy a mutual fund, your money is invested across a basket of well-chosen stocks. You can be sure the <keyword id="109711" type="POSITION" weightage="40" keywordseo="Fund-manager">fund manager</keyword> and his team have researched the stocks threadbare before including them in the portfolio. Investing on the basis of tips from your broker is a different ball game. The risk is considerably higher and avoidable. Do not blindly accept the broker’s recommendations. Instead, for each suggestion, conduct your own checks. Are the company’s fundamentals sound? Is the valuation attractive? 
 
Similarly, when the broker recommends a sale, find out whether the company’s fundamentals have been irreparably damaged. Or has the stock become over-valued? Don’t let your broker force you to take buy and sell decisions. 
 It’s often said that if your stock portfolio can beat a mutual fund or the broader market, you are in the wrong profession. Check the returns from your stock investment. “If, after a year or so, you find that your direct investment portfolio has underperformed a broader index, such as the <keyword id="6484188" type="CITY" weightage="40" keywordseo="Sensex">Sensex</keyword> or the <keyword id="6354813" type="COMPANY" weightage="40" keywordseo="nifty">Nifty</keyword>, quit direct investing and put your money in actively managed funds or low-cost index funds,” suggests Vishal Dhawan, head of Mumbaibased <keyword id="25456" type="ORGANIZATION" weightage="40" keywordseo="financial-planning">financial planning</keyword> firm <keyword id="1978973" type="COMPANY" weightage="40" keywordseo="Plan-Ahead-Wealth">Plan Ahead Wealth</keyword> Advisors. 
 
DON’T BE LURED INTO THE F&amp;O TRAP 
 <keyword id="6358963" type="PERSON" weightage="40" keywordseo="Warren-Buffett">Warren Buffett</keyword> calls them the financial weapons of mass destruction. Though derivatives have their uses, these leveraged instruments can become very dangerous in the hands of retail investors. Still, the F&amp;O segment has a very high retail participation. This is also the area where the maximum cases of unauthorised trading take place. 
 
It’s easy to lure clients into this financial equivalent of a minefield. Relationship managers of brokerage houses tell stories of how they have made fabulous sums of money for clients by trading in F&amp;O. Customers often give consent to the relationship manager to trade on their behalf. More often than not, losses follow and the customer is left holding the can. 
 
What should you do? 
 
Derivatives are essentially meant for hedging and should have no place in the small investor’s portfolio. Nip the problem in the bud and don’t opt for trading in the derivative segment when you fill up the account opening form. Says Kunal Pawaskar, head of Capital Orbit, a Mumbai-based investor education firm: “Novice investors who don’t understand derivatives should not opt for this segment at all.” 
 
If you have already signed up for investing in the F&amp;O segment, avoid the temptation to trade in it. While you can indeed make lots of money in this space, you can also incur steep losses. Don’t get swayed by the relationship manager’s promises to earn big money. Under no circumstance should you give him the authorisation to trade in F&amp;Os on your behalf. Keep a close eye on all the SMSes and e-mails from your broker (alerts to customers after every transaction have become mandatory). 
 
Besides the brokerage commissions, another source from which brokers make money is by getting you to engage in margin trading. Under this arrangement, the broker lends you money to trade against the stocks lying in your account. Like F&amp;O, margin trading is also a leveraged position and should be avoided by retail investors. If the stock drops, you lose on two counts: on the value and the interest that you will have to pay. 
 
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DON’T BELIEVE ALL BROKERAGE REPORTS 
 Brokerage houses regularly come out with reports on stocks. Before you base your decision on these reports, keep in mind that the <keyword id="6354241" type="COMPANY" weightage="40" keywordseo="Financial-Services">financial services</keyword> industry is facing a crunch. With commission rates on the decline, most brokerage firms are not making much money from this source. The larger slice of their earnings comes from <keyword id="48051" type="ORGANIZATION" weightage="40" keywordseo="investment-banking">investment banking</keyword>: helping companies raise capital through public issues of shares and bonds. A firm that wants to get the investment banking mandate from a company would hardly issue a negative report on it. Not surprisingly, the number of ‘buy’ reports exceeds ‘sell’ reports. 
 
What should you do? 
 
Should you then rely on brokerage house reports? Yes, but with a few caveats. Gathering information on a company is difficult. You may read its annual reports and track reports on it in the business media. Nonetheless, you may miss out on crucial information because the management only reveals such information to analysts. 
 
Read brokerage reports, but not from just one brokerage house. See what different analysts have to say about a company’s fundamentals. When it comes to assessment of forward earnings, valuation and target price, make your own judgement. 
 
Dhawan says one should not consider only the firm’s growth prospects highlighted in the report. “Pay equal attention to the risk factors,” he adds. Many reports also carry a history of past recommendations. See how you would have fared if you had acted upon them. 
 
Do not blindly follow the broking house’s buy and sell calls. In fact, if you decide to be a buyand-hold investor, who holds stocks for at least three years, you will cut out much of the noise that emanates from brokerages. 
 <keyword id="109296" type="POSITION" weightage="40" keywordseo="Investment-Analyst">Investment analyst</keyword> R Balakrishnan says your only chance of getting unbiased reports is from independent research firms that make their money by selling their research reports and don’t have investment banking arms. 
 
“There are very few such firms because research is costly and most investors are reluctant to pay for it,” he adds. Canadabased Veritas is one example of an independent research firm. 
 
ENSURE TRADING AND BROKING ARE SEPARATE 
 
Brokerage houses employ traders, who use the firm’s capital to trade in the stock markets. This is called proprietary trading. Firms also trade on their clients’ behalf. Typically, brokerage firms are required to maintain separate books for their proprietary trades and the ones they conduct on their clients’ behalf. Sometimes, however, the firewall breaks down. Traders use clients’ money to trade. When they sustain losses, not only does their firm suffer, but the clients, who never authorised these trades, also take a hit. 
 
What should you do? 
 
You may make enquiries at the brokerage house. In all likelihood, the firm will fob you off with replies to the effect that the separation of proprietary trading and client trading is treated as sacrosanct at their firm. 
 
A better way of avoiding falling prey to this misuse is not to keep excess money in your brokerage account. Transfer money from your savings account to your brokerage account just before a purchase. If you have sold stocks and don’t intend to use the money to buy another set, don’t leave the money lying in the account. Have it transferred to your savings account. 
 
<div style="page-break-after: always;">
	&#xa0;</div>
Guarding against misuse of your trading account 
 
Step 1: You place order to buy or sell stocks. 
 
Step 2: Order executed. 
 
Step 3: Stocks or cash credited to trading account. (Could be misused by broker for unauthorised trading.) 
 
Step 4: Transfer from trading account to demat or bank account. 
 
How to seek redressal 
 Stock exchanges offer a grievance redressal mechanism. An Investment Protection Committee looks into complaints from investors, and if the charges are proved correct, investors are reimbursed from an <keyword id="1975059" type="UNKNOWN" weightage="40" keywordseo="Investment-Protection-Fund">Investment Protection Fund</keyword>. There may also be disgorging of profits. 
 
However, you need to be aware of a few things. “Investors often lose out because ignorance is not really protected under the law. If you have signed off your rights, and subsequently get cheated, you may not get protection. Only if you can establish that there has been a fraud or malpractice will you get protection,” says Uma Shashikant, managing director, Centre for Investment Education and Learning. 
 
Find out who the grievance redressal authority at the stock exchange is. Meet the person and explain your case. Submit all the documentary evidence you have. If he thinks that prima facie there is a case, he will admit it. 
 
On the flip side, the adjudication and grievance redressal process can be long drawn. If the stock exchange does not give you redressal, you can escalate the matter to Sebi. 
 
Do you have a complaint against a broker? 
 
Visit Sebi’s Scores (Sebi Complaints Redress System) website to file your complaint online. 
 
1) Apprise your broker of your grievance. 
 
2) If the response is not satisfactory, tell him you will complain to Sebi. 
 
3) The Sebi threat usually works. If he doesn’t agree, lodge a complaint online on the Scores at www. scores.gov.in. 
 
4) Scan the relevant documents and upload them on this website. 
 
5) Sebi forwards your complaint to the concerned brokerage firm. 
 
6) The firm must reply to your complaint within 30 days. 
 
7) You can track the progress on your complaint on the website (click on ‘View Complaint Status’ button on the main page). 
 8) If the brokerage firm does not reply to your complaint within 30 days, the matter gets passed on to a <keyword id="1978974" type="POSITION" weightage="40" keywordseo="dealing-officer">dealing officer</keyword> at Sebi. 
 
9) Scores also has a helpline: 18002667575.

Is your stock broker cheating you? Here's how you can avoid being duped

A complex web of 393 shell companies used for allegedly diverting funds unscrupulously to the tune of Rs 2900 crore has been unearthed by the CBI during its probe into such cases over the last three years, according to PTI. CBI sources said the shell companies were allegedly being used by the accused to divert loan funds meant for specified purposes, creating fake invoices, and "round-tripping" of funds to evade taxes and generate black money. Round-tripping is sending money abroad to tax havens in the guise of payments for fake imports through shell companies and bringing back that money showing it as foreign investment. The findings of the CBI are just a tip of the iceberg as these are only those cases where the agency has been able to find legally-tenable evidence of money trail, cheating and diversion of funds to cheat the banks, said the sources not willing to the named. The murky activities have been exposed during the CBI probe into various loan fraud cases involving 28 public sector banks and one private bank, the sources said. Besides this, the agency is probing about 200 cases involving funds of at least Rs 30,000 crore, the sources said. The CBI is prosecuting these companies for corruption and scheduled offences associated with it. In addition, it will also refer these cases to other investigating agencies for action under other laws like Companies Act, Prevention of <keyword id="6355008" type="UNKNOWN" weightage="20" keywordseo="money-laundering">Money Laundering</keyword> Act, Benami Transactions (Prohibition) Act and the <keyword id="6354751" type="COMPANY" weightage="20" keywordseo="Income-Tax">Income Tax</keyword> Act etc, the sources added. The agency has not only "exposed" these shell companies but also gathered enough material which would "plug" the possibility of them being used for any further operation, the sources claimed. The sources said it is likely that these shell companies have been used to abfinancial crimes by other offenders too which will be probed by other agencies. The companies are spread across the country as also the 'tax-haven' countries facilitating transfer of black money which makes the investigation even more difficult, they said. Some important cases which have been probed by the CBI include the one against <keyword id="4504226" type="UNKNOWN" weightage="20" keywordseo="century-communication-group">Century Communication Group</keyword> which used to run Mahua Channel. According to the figures mentioned in the agency's charge sheets and FIRs, the group allegedly committed fraud to the tune of Rs 3000 crore. It used over 98 shell companies to allegedly divert bank loans for setting up digital studios in Noida, Mumbai, <keyword id="6354925" type="COMPANY" weightage="100" keywordseo="Kolkata">Kolkata</keyword> and other locations, the CBI has said. These companies were allegedly used to divert funds showing fake equity infusion to the tune of Rs 802 crore. The Kolkata-based shell companies named in the case were allegedly controlled by one Muralidhar <keyword id="108547" type="PERSON" weightage="20" keywordseo="Lahoti">Lahoti</keyword>. Three chartered accountants have also been charge sheeted. Zoom Developers faces 14 cases for allegedly swindling bank funds worth Rs 2600 crore involving a consortium of 26 banks. It allegedly collateralised foreign bank guarantees issued by Indian banks in favour of foreign aggregators. The CBI had registered two cases against Jignesh Shah and Anjani Sinha of National Spot Exchange Limited, also known as "NSEL scam", in which funds of Rs 342 crore were allegedly swindled. Nine shell companies surfaced during the probe which were trading on the exchange platform allegedly without having actual possession of the commodities, they said. The company is accused of increasing its paid-up capital to Rs 500 crore by round-tripping and routing bank funds to the extent of Rs 460 crore through six shell companies. In a recent case, the agency has found that a dental college existed only on paper while a bank was told that the construction was completed and loan funds were diverted for purposes other than for which these were issued. In many cases, the CBI found that companies have peons, drivers, sanitation workers, personal staff, cooks etc as the directors of the shell companies created by the masterminds who divert funds using them, the sources said. Recently, the government expressed concern over the working of shell companies in the country. Revenue Secretary Hasmukh Adhia had said that out of 15 lakh companies registered in India, nine lakh are not filing any returns and some among them may be acting as shell companies.

Here’s how Rs 2900 crore was diverted through shell companies of Noida, Mumbai and Kolkata

A senior <keyword id="67881" type="General" weightage="80" keywordseo="idbi" source="Orion">IDBI</keyword> Bank official allegedly conspired with businessman <keyword id="14678" type="General" weightage="50" keywordseo="vijay-mallya" source="Orion">Vijay Mallya</keyword> for sanction and disbursement of a loan to the latter's <keyword id="6373962" type="General" weightage="80" keywordseo="kingfisher-airlines" source="Orion">Kingfisher Airlines</keyword>, the Central Bureau of Investigation said in its supplementary chargesheet filed in a Mumbai court. <keyword id="6373968" type="General" weightage="80" keywordseo="mallya" source="Orion">Mallya</keyword> is an accused in the alleged Rs 900-crore IDBI Bank-Kingfisher Airlines loan fraud case, which is being probed by the <keyword id="6354572" type="General" weightage="100" keywordseo="cbi" source="Orion">CBI</keyword>. The Central agency had recently filed a supplementary chargesheet before a special CBI court here. As per the chargesheet, former IDBI Bank general manager Buddhadev Dasgupta abused his position, conspired with colleagues and Mallya in the matter of sanction and disbursement of short-term loan (STL) of Rs 150 crore to Kingfisher Airlines in October 2009. Along with 11 accused named in the earlier chargesheets, the CBI has added the name of Dasgupta in the supplementary chargesheet filed recently. As per the CBI, the STL was requested for six months to meet certain critical obligations to overseas vendors, including aircraft lessors and other service providers. The said loan of Rs 150 crore, as envisaged originally by Dasgupta (by proposal circulated among credit committee members) was to be adjusted/repaid from the aggregate loan of Rs 750 crore originally sought by the airlines. However, after circulation, there was a change in the proposal to show as if the credit committee had treated this as a separate loan, which may (or may not) be adjusted/recovered from the aggregate loan, as per the CBI. While the exposure of IDBI Bank was to be restricted to the aggregate amount of Rs 750 crore, it rose to Rs 900 crore in December 2009 due to this STL being kept as a separate loan largely at the behest of Dasgupta, the charge sheet said. During the course of the investigation, Letter Rogatory (LRs) had been sent to the United Kingdom, Mauritius, USA and Switzerland as per the permission of the CBI court. Courts of one country seek the assistance of courts in another nation for the administration of justice there through LRs. The chargesheet also mentioned the evidence collected during a foreign investigation from these countries. "The properties at UK (Ladywalk in 2015-16 for GBP 12-13 million or Rs 80 crore) and France (Le Grand Jardin in 2008 for Euro 35 Million or Rs 250 crore approximately) were acquired by Mallya even as Kingfisher Airlines was facing severe cash crunch (2008)," the chargesheet said. Mallya was having adequate funds at his disposal between 2008 to 2016-17, but none of it was brought to support the airlines as equity infusion or to honour his obligations as a personal guarantor for the loans availed by KAL from IDBI and other banks in India, it added. The chargesheet, citing the evidence collected through LRs, said sizable amounts were transferred to Force India Formula 1 Team between 2008 to 2012. The chargesheet further said significant amounts were diverted between 2007 to 2012-13 to make payments towards the acquisition and repayment of the loan for a corporate jet used personally by Mallya. These acts on the part of Mallya clearly show he caused the diversion of funds for the corporate jet, Force India Formula One Racing Team, and other such extravagant expenses, and then wilfully defaulted on the loans availed by Kingfisher Airlines, the chargesheet stated. The aforesaid facts disclose the commission of offences like cheating and criminal conspiracy and others under Indian Penal Code and Prevention of Corruption Act provisions against Mallya, Dasgupta and other accused, as per the CBI. Apart from the CBI, the Enforcement Directorate is also probing a money laundering case against Mallya. On January 5, 2019, a special court here declared Mallya a 'fugitive' under the Fugitive Economic Offenders Act. Under the provisions of the Act, once a person is declared a fugitive economic offender, the prosecuting agency has the powers to confiscate his property. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/auto/news/maruti-suzuki-to-hike-prices-of-model-range-from-april/articleshow/98936536.cms">Maruti Suzuki to hike prices of model range from April</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/consumer-commission-orders-flipkart-retailer-to-pay-25000-compensation-for-sending-detergent-soap-instead-of-iphone/articleshow/98936522.cms">Consumer Commission orders Flipkart, retailer to pay ₹25,000 compensation for sending detergent soap instead of iPhone</a>

Former IDBI GM conspired with Vijay Mallya over short term loan to Kingfisher Airlines: CBI

<ul><li>Rating agency Moody downgraded its outlook from stable to negative.</li><li>OYO founder Ritesh Agarwal was recently booked in a cheating case by a hotel owner in Bengaluru.</li><li><keyword id="2404631" type="PERSON" weightage="20" keywordseo="Motu-Patlu">Motu Patlu</keyword>’s creators eye the big fat Chinese cartoon market with 5 new shows 
</li></ul>This week, rating agency Moody’s changed its outlook on India from stable to negative. Motu Patlu’s creator told Business Insider that they are going to launch five new shows in China. OYO founder Ritesh Agarwal was recently booked in a cheating case by a hotel owner in Bengaluru. The stalemate over <keyword id="13126" type="LOCATION" weightage="20" keywordseo="Maharashtra">Maharashtra</keyword> state government continues. Senior <keyword id="6358821" type="ORGANIZATION" weightage="20" keywordseo="shiv-sena">Shiv Sena</keyword> leader Sanjay Raut met NCP chief Sharad Pawar in Mumbai on Wednesday. <div type="Slideshow" msid="71972407" hostid="261" title="Here’s a rundown of what all happened this week" firstImageMsid="71972408" slideCount="4"></div>

You Searched For "cheating cases in Mumbai" and got 8 results

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Is your stock broker cheating you? Here's how you can avoid being duped

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Here’s how Rs 2900 crore was diverted through shell companies of Noida, Mumbai and Kolkata

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Here’s a rundown of what all happened this week

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