Profit Sharing is a Big Scam that happens in all kinds of cities and towns across the country. This one happend with someone named Sushil Kumar Saini (name changed) from Rajkot, Gujarat.
One of our team mates got in touch with him. Here is a quick conversation.
ADB: Mr. Sushil, can you tell us what happened?
Sushil: I decided to invest in the stock market through a friend of mine who promised a 10% interest rate. This friend was not really a direct one but an acquaintance through someone I knew for a long time. I was like, sure, I can trust him. So i invested.
ADB: Oh. That does not sound good already. How much did you invest? I hope it wasn’t a big amount.
Sushil: I put in ₹13 lakhs in October 2019.
ADB: Wooo. What? Why? That’s quite a sum! And how did it go initially?
Sushil: Honestly, it was great initially! For the first four to five months, I received the promised interest regularly. I was feeling quite confident. I was excited and wanted to invest more. Thank God, i didn’t.
ADB: That’s good to hear. But then, something went wrong, right?
Sushil: Yes, unfortunately. In May, the interest payments stopped. I tried calling my friend, but he wouldn’t pick up the phone. I called up my acquaintance as well. He said the same thing, that guy wasn’t picking up his call either.
ADB: That’s frustrating. Did you check whether this friend was registered with SEBI in any form? Although, the way you are telling, he seemed like a scammer right from the start.
Sushil: No, he wasn’t. I did not even know there is something called SEBI, I had no experience of Stock Market.
ADB: Oh, that’s risky. So, what did you do next?
Sushil: I went to the district police station and filed a case. The police started calling the person, and eventually, he returned my principal amount along with some profit. But he didn’t give me the full amount of interest.
ADB: It’s good that you got your principal back, but not getting the full interest must have been disappointing. How much did you get back and did you report this any further to SEBI or cyber crime authorities?
Sushil: I got ₹10 Lakhs back i.e. Lost ₹3 Lakhs in this fraud. And no, I didn’t connect with anybody else. I just dealt with the police.
ADB: In such cases, it’s also a good idea to contact SEBI or file a complaint in cyber crime. They can help you further. Do you want me to send you the links that you can use.
Sushil: That would be great, thank you!
ADB: No problem, I’ll send them right away.
So folks, Sushil’s story is a valuable lesson for all of us. Here are the key takeaways:
- Verify Before You Invest: Always make sure the advisor, broker or firm is registered with SEBI (Securities and Exchange Board of India). This adds a layer of protection and legitimacy to your investments.
- Keep Detailed Records: Maintain all records of your investments, agreements, and communications. These documents can be crucial if any issues arise.
- Act Quickly: If you encounter problems, report them immediately to SEBI and the cyber crime authorities. Early action can help prevent further losses.
- Useful Links: SEBI Official Website Cyber Crime Portal Investing in the stock market can be very rewarding, but you’ve got to be smart about it. Here is the Cyber Police link, Broker verification link on SEBI’s website and this is where you can check whether the person is a registered IA or an RA. All the best.
