Institutional investors play a very important role in the stock market, as their investment decisions have a major impact on the prices of stocks. But they are big entities based in foreign countries or India that collect funds from other companies to invest.
None of the institutional investor approaches retail traders or investors to invest in their company. But people got attracted by the name of the company that claims to make bigger investments and high returns.
This makes people fall into such scams, and they then end up losing their money.
Recently, one such case was reported by Shaurya (name changed).
Shaurya, who is new to the stock market, received a call from an individual who claimed to be part of a US-based company. Further, he said that their company is an institutional investor and is planning to invest in the Indian stock market.
He asked Shaurya to make an investment and offered him a guaranteed return. Shaurya agreed, and then he was added to 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 withdraw it the transaction failed. On contacting the team, they asked him to pay commission & other charges, which were quite high.
When Shaurya refused 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, there were no US-based institutional investors.
This raised his concern as he was aware that other members of that group had invested in crores and wanted 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 society because they know how to use other people for their own benefit.
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.
