Institutional investors who play a very important role in the stock market as their investment decision brings major impact on the prices of stocks. But they are big entities based in foreign or in India who collects fund from other companies to make investment.
None of the institutional investor approaches retail trader or investor to invest in their company. But people got attracted by the name of the company who claims to make bigger investments and high returns.
This make people fall in such scams who then end up losing their money.
Recently one such case was reported by Shaurya (name changed).
Shaurya who is new in stock market received a call from an individual who claim himself to be the part of US-based company. Further he told that their company is an institutional investor and and are planning to invest in Indian stock market.
He asked Shaurya to make investment and offered him a guaranteed return. Shaurya agreed and then he was added in a Whatsapp group GMC (name changed) where the scammer displayed profit screenshots. Later, the scammer shared a link to download their app.
After a few days, the app showed a return of ₹5 lakh on investment to Shaurya. But after a month when he tried to withdrew it the transaction failed. On contacting the team, they asked him to pay commission & other charges which were quite high.
When Shaurya denied to pay they blocked him and in this way one more person got scammed by fraudsters. Later, on investigation Shaurya found out that his capital was used for dabba trading. And ofcourse, they were not any US based institutional investors.
This raised his concern as he was aware that other members of that group had invested in crores and want to expose this group who could do worse.
These scammers are people among us who are intelligent but have no morality. They are danger to the society because they know how to use other people for their own benefits.
It creates a need to be even more aware because a loss of capital not only have impact on finances but also affects a person mental level.
