In the middle of August 2024, Rajesh Gupta (name changed), a hopeful retail trader, found himself dreaming of big returns.
Like many traders, he had seen some ups and downs, but when Matrix Research Pvt. Ltd. reached out to him, his world was about to change—though not in the way he expected.
The voice on the other end of the phone seemed confident. “We have a jackpot trade for you,” the caller said, explaining that their firm was connected to SEBI’s internal team.
According to them, they received exclusive tips that were 100% accurate, allowing their clients to make unimaginable returns. All Rajesh had to do was trust them and invest.
The caller on the other side further added-“If you invest ₹1 lakh, you can earn ₹5-6 lakh within weeks,”.
Rajesh was thrilled and could not resist himself. He had been waiting for that one opportunity that could change everything and finally, there was the one.
But what happened later shattered all his dreams. Here is the complete detail of how it all started and what you can learn from his experience.
A Taste of Success: The Demo Trade
To prove their credibility, the firm suggested a demo trade.
They guided Rajesh through an options trade, and sure enough, it worked. He earned ₹5,000 in just a few hours. This small win was enough to gain Rajesh’s trust.
Seeing the quick gain, Rajesh agreed to take their service without having an idea that by giving a demo call, RA had not only violated SEBI guidelines but laid a trap for him as well.
After the demo, Matrix Research Pvt. Ltd. told Rajesh that to fully unlock their services, he would need to pay various fees. Seeing the opportunity to earn higher profits, Rajesh began to transfer money in installments which amounted to ₹65,000 in total.
With each payment, Rajesh grew more confident that he was on the way to earning huge profits. After all, these were the necessary steps toward his ₹5-6 lakh jackpot, right?
Beginning of Losses-The Real Trap
Finally, Matrix Research Pvt. Ltd. instructed Rajesh to deposit ₹50,000 into his trading account. Full of excitement about getting rich, Rajesh added the amount to his trading balance.
But things quickly took a turn for the worse.
Each trade they guided him through seemed to go in the wrong direction. The promises of insider information and guaranteed profits were gone as Rajesh’s ₹50,000 investment began to drop.
In just a short period, he lost around ₹40,000 of his capital.
The jackpot trade was nothing more than an empty promise, a well-crafted lie designed to extract as much money as possible from him.
Unveiling of the Scam
In all this demo, availing services and further trading using their tips, Rajesh lost the capital as follows:
- ₹65,000 in fees to Matrix Research Pvt. Ltd.
- ₹40,000 in capital was lost due to their bad trading advice.
That was a total loss of ₹1,05,000. His dream of making a fortune had turned into a nightmare.
He quickly realized that Matrix Research Pvt. Ltd.’s actions violated several SEBI regulations, including:
- False and Misleading Claims: They had promised guaranteed returns and insider knowledge, which is strictly prohibited under SEBI’s regulations.
- Lack of Transparency: The fees they charged were unjustified, and their failure to explain the risks involved in options trading violated the SEBI Registered Research Analysts Code of Conduct.
- Unethical Conduct: Their claim of having insider information was not only unethical but potentially illegal.
Filing a Complaint with SEBI
Rajesh decided to file a formal complaint with SEBI, detailing every payment he made and the losses he incurred. He reached out to our team and provided evidence of their false promises, including the messages and calls where Matrix Research Pvt. Ltd. claimed to have insider access to SEBI.
In his complaint, Rajesh demanded a refund of the ₹65,000 he paid in fees and compensation for the ₹40,000 he lost in options trading.
He asked SEBI to investigate the fraudulent practices of Matrix Research Pvt. Ltd. and hold them accountable for the financial damage they caused him.
The fight for justice has just started our team is coordinating with Rajesh to help in recovering his losses.
The Lesson for Retail Traders
Rajesh’s story serves as a powerful warning to other retail traders. Promises of guaranteed returns and insider information are classic red flags.
No legitimate firm can offer guaranteed profits, especially in something as volatile as the stock market.
Retail traders must stay vigilant and verify the credibility of anyone offering trading advice. Even firms registered with SEBI can engage in unethical practices, and it’s essential to always question their claims.
Unfortunately, Rajesh’s experience isn’t unique. Many traders fall victim to these scams, lured in by the promise of quick wealth. However, by sharing his story, Rajesh hopes to shed light on these unethical practices and protect others from suffering the same fate.
If you’re a retail trader, always remember: if it sounds too good to be true, it probably is.
