The stock market is completely regulated by SEBI, and any kind of investment, including IPOs, should be done using SEBI-registered brokers’ trading apps. If someone recommends any other app, it is the first sign of a scam.
However, incomplete information and the greed for high returns can lead you to fall for such frauds and scams.
Our team came across one such incident where Suraj (name changed) shared the story of his sister, who was scammed by a fraudster. She was deceived into investing ₹90 lakh in the name of an IPO.
Suraj: Hi, I need help with a situation involving IPO scams.
ADB: We’re here to help. Can you explain what happened?
Suraj: My sister was searching for a job on LinkedIn and connected with someone named CA Sudhir (name changed). Through this connection, she found several companies with similar profiles.
One company, named Million Asset Management Company (name changed) in Mumbai, contacted her directly and said they were selling an IPO. They told her to install an application available on the Play Store.
ADB: What did they ask her to do after installing the application?
Suraj: They asked her to make a payment to purchase the IPO, and once she made the payment, the IPO would be purchased in her demat account through their application, which was similar to Zerodha.
Initially, they had her make small payments like ₹10000 and ₹20000. Later, they told her to invest more, and I bought 300000 quantities of one IPO.
ADB: How did she make the payments for the larger investment?
Suraj: They made her pay into 25 different bank accounts. The total amount she invested in the application was ₹90 lakh.
ADB: What happened when you tried to withdraw the amount?
Suraj: When she tried to withdraw the amount, it showed an error and she was unable to withdraw. She asked them about it, and they told me she had to pay a capital gains tax of ₹50 lakh first.
When she denied paying, they blocked her on the application and stopped answering her calls and messages. Essentially, she lost her entire capital.
ADB: That’s very concerning. What steps have you taken so far?
Suraj: I complained to the police station, and they told me to file a complaint with cyber securities.
ADB: Thank you for sharing the details. Here’s what you should do next:
– Contact cyber securities: Follow up on your police complaint by providing detailed information to the cyber crime department to investigate the fraud.
– Document everything: Keep all proofs of payments, communications, and any other relevant information as evidence.
– Stay cautious: Avoid engaging with any unregistered or suspicious entities in the future.
Suraj: 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.
