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Vadodara man loses over ₹94 lakh to stock market scam

How to know that your stock market broker is legit?

Updated: Apr 1st, 2024

With aspirations of hefty returns, many investors flock to the stock market, only to be trapped by fake companies and deceitful agents, risking their life savings.

In one such incident, a 56-year-old man from Vadodara lost ₹94.18 lakh lured by the returns of the stock market agent. 

Ramkrishna Beduduri, originally from Andhra Pradesh and a resident of Vendant Duplex in Vadodara’s Sun Pharma Road, has registered a complaint with the cybercrime police station regarding a stock market scam.

The scam

According to the complaint, on Jan 16, 2024, he saw an advertisement, lurking on a Facebook page that promised decent returns on share market investments.

Beduduri clicked on the link, which led to a WhatsApp group with 150 members already in the group.

A message in that group was sent by a member, who suggested Beduduri to personally message them in case any investor desires to invest in the stock market.

On messaging that contact, they replied, “My name is Melissa. I will send my Aadhar card and PAN number, mobile number, and invest ₹50,000 per day.” Beduduri said that he even received a message from Angel Security’s customer service, which confirmed his form’s completion.

The next step was the payment of funds. As instructed by the scammers, Beduduri transferred funds to various accounts, including Radhe Traders, Radhe Financial Services, Garhwal Enterprises, Ganpat Enterprises, Metal and Scrap Enterprises, Taj Trading, SS Technologies and Consulting Services, and The Park Properties Ltd.

Beduduri transferred a total of ₹94.18 lakh after downloading an application. Though the balance in his account showed ₹11.26 cr, but he was unable to withdraw funds.

He contacted Melissa on WhatsApp, and she told him to deposit another ₹33 lakh to withdraw his money. But he refrained from transferring that money on suspicion of being cheated.

How to know that your stock market broker is legit?

To invest your money safely, ensure that the broker is registered with the SEBI(Securities and Exchange Board of India)’s website. 

Check the spelling of the name of the registered broker on SEBI and the broker who approached you.

Research the broker’s reputation. Ask your friends, colleagues, and family before opting for a share market broker.

Ensure that the broker is a member of recognised stock exchanges such as the National Stock Exchange (NSE) or the Bombay Stock Exchange (BSE). This information can usually be found on the broker’s website or by contacting them directly.

Check if the broker’s website is authentic.

A share broking company will never ask you to transfer amounts on different accounts, or approach you through social media or instant messaging applications.

Also read:

Vadodara mother loses ₹1 lakh after scammers falsely threaten to frame son

MICA president duped of ₹1.15 cr in cyber fraud