A few weeks back, Rashi wrote to us.
She felt a bit dejected with the sequence of events that had happened with her.
A few days back, she had received a call from someone claiming to be a SEBI-registered advisor from a company offering trading calls. She informed them that she won’t be able to follow their calls because she doesn’t have the time and prefer to do her own trading.
They then suggested that they could handle her account, trading only in equity, and promised to provide good returns every day.
This seemed genuine and since, they were being upfront about it that the trade will only happen in the equtiy segment, was a sense of relief for her as she wanted to avoid options trading being handled by someone else/
Next day, they provided her with two free calls for her to keep in the watchlist, both of which turned out to be profitable. Subsequently, they asked her to deposit a minimum of 30,000 and let them manage her account.
They already had won her confidence.
In the first two days, they made a profit, all seemed pretty neat. But on the third day, things tooks a turn.
They traded in a small-cap company and wiped out her entire capital, resulting in a negative balance of -6,000, meaning she incurred a total loss of 36,000. When she questioned how it was possible to lose all my capital in one day trading only in equity, a manager from their side called and promised to return her money.
There was a condition though.
That was, she will have to open an account with their company. He mentioned that their broker offered leverage of more than 50 times. This was the time, she realized that they were engaging in Dabba trading.
Rashi had seen something like this on ‘A Digital Blogger’ YouTube channel a few months back.
She tried to gather some proof from them, and it turned out that the SEBI registration ID they provided was fake. It was too late, she thought.
What can you learn from such an incident:
– always validate the stockbroker details on SEBI or Exchange website
– When in doubt, go to the website of the broker and call on the given number to validate
– And most importantly, no stockbroker or any registered entity can offer any profit sharing scheme. All of this is illegal.
