SEBI registered Research Analyst (RA) provides call tips & advisory services under SEBI guidelines. This is to make sure that beginner traders get proper guidance to trade in the stock market.
Now, along with providing call tips & advice, they are also aware of the risk involved in every trade so that the trader takes the decision of position sizing accordingly. Further, RAs cannot show any past records or give any fake promises of high returns to their clients.
These are some of the guidelines for RA.
However, one of the Research Analysts violated all these regulations. He first showed some profits to his clients by charging them low fees, but later offered them another plan for which he charged fees of ₹3 lakhs.
Here is the complete incident of how the victim Deepak first got trapped in his fake promises and later fought for the recovery of his lost amount.
Deepak first paid ₹11,000 to a Research Analyst, where he earned a profit of ₹50k by trading using his call tips. Later, RA asked him to pay ₹1 lakh and also to increase the capital to trade.
Since RA was registered with SEBI, Deepak followed him without any doubt. He then paid another ₹1 lakh to RA. Also, to earn more profit, he increased his trading value to ₹5 lakh. Luckily, Deepak earned a profit again and now paid ₹2 lakh more for another plan.
Also, Deepak took his trading account to ₹7 lakhs.
Now RA provided him with call tips as usual, but this time asked him to use his 100% capital by saying that the market is trending and there are high chances of earning profit. Unfortunately, that time the RA tip didn’t work, and Deepak lost all his capital.
He contacted RA, who asked him to add funds to recover the lost amount. But due to a shortage of funds and after facing that big loss, Deepak lost all his confidence and trust in the RA.
Deepak approached our team to recover the lost amount.
Our team first reached out to the registered RA to settle this mutually, however he didn’t agree. This left no option but to register and file for SEBI SCORES complaint.
However, SEBI takes time to investigate, but on investigation, SEBI takes serious action against such registered entities. And there are cases where SEBI even rejected the license of an advisory or charged them heavy penalties.
Now, when Deepak raised a complaint to SCORES and other platforms, RA contacted Deepak and agreed to refund the amount. Till now, he had refunded ₹1,00,000 in 2 installments.
Here is the screenshot of one of those refund amounts.
Our team is still working on this and has not taken the complaint back. Further, the team is continuously coordinating with SEBI. We are actively responding to every email from SEBI regarding the recovery of the lost amount.
This gives another hope to Deepak that he will recover his lost amount.
One more case, which proves that proper documentation and follow-ups can help you in getting your lost amount back.
Hence, one must not lose hope and take the right steps at the right time. Also, it is important not to trust anyone blindly. Even when you are using the services of a registered entity, make sure you do a proper validation and get an alert whenever guaranteed returns are claimed.
