Sometimes we get so much attracted towards tips and recommendations that we avoid asking Why?
Stock market is subject to market risk and therefore there is a SEBI rule according to which even the registered SEBI Research Analysts has to give reasons for every tip and recommendation they share.
However, the lack of awareness, retail traders get easily trapped in such fraud and end up paying hefty fees and then losses in trade.
Here is one such instance where Shiv (name changed) shared his story how wrong guidance of SEBI registered analyst advisory leads to his losses in trade.
Shiv: Hi, I need assistance with a situation involving a SEBI-registered research analyst.
ADB: We’re here to help. Can you explain what happened?
Shiv: A research analyst from Virtual Research (name changed) reached out to me, providing information about the stock market. Initially, they helped me make some profits, sometimes ₹5000, sometimes ₹10000.
A woman called me on their behalf and said they were SEBI-registered research analysts, so I trusted them and started trading based on their advice.
ADB: What were the terms of their service?
Shiv: They charged a fee of ₹50000, paid in installments of ₹20000, ₹20000, and ₹10000. This fee was for registration and for providing tips and information.
ADB: How did the trading go after you started following their advice?
Shiv: Initially, they made some profit, but then I started making losses. All the decisions were made by the research analyst, not me. I invested based on whatever they told me, and eventually, I realized that I was only making losses. My total loss is up to ₹170000.
ADB: Thank you for providing the details. You can go to SEBI’s SCORES portal by documenting all details and proofs you have along with payment receipt.
Shiv: Thank you. I’ll proceed with these steps.
ADB: You’re welcome. If you need further assistance with the complaint process or gathering evidence, feel free to reach out to us. We’ll help ensure everything is properly documented and submitted to the relevant authorities.
What can you learn from Shiv’s story:
By learning from Shiv’s experience, you can take proactive steps to protect yourself from similar pitfalls in the trading world.
