Every other day, one or other registered or unregistered advisory or trading members leads to losses of the retail traders.
But what must a retail trader do?
Should they sit quietly, considering it to be their bad luck?
Although most people opt for this option, not completely aware of how their one step can help them recover losses and refund the amount they paid.
Rahul (name changed), however, didn’t sit back and fought for his rights with the help of our team.
As a result, he succeeded in getting the refund of the fee amount of ₹11,800 within a month.
Dive into the exciting trading scam recovery journey of Rahul and take lessons on how you can get back your lost amount too. All that is required is your little effort and the right approach.
Rahul reached out to our team on July 15, 2024, and told us about the fraud that a SEBI-registered Research Advisor did with him. Here is his whole story.
It was June 03, 2024, Rahul was searching for Research Advisory Services on Google. He found SEBI Registered, Nivesh Share Advisory Company. To know more about their services, he put his number on their page.
Soon, he received a callback from one of the executives of RA, who told him about his services as follows:
- Get call tips for futures & options trading daily.
- Get a guaranteed return of ₹1000-₹1500 daily.
- All this at just ₹11,000/-
₹1,000-₹1,500 return from a SEBI-registered advisor, tempting enough. Who won’t want to get it?
But in such a scenario, many people like Rahul forget to consider what the SEBI regulations state.
- Is it legal for a SEBI-registered advisor to give assurance of guaranteed returns?
- Can a SEBI-registered RA provide services without risk profiling?
There are many more parameters that one must look for, but in this case, Rahul missed considering these two points and paid the fees. But he had no FNO segment activated in his account and thus asked for a few days to begin services.
Later, by the end of the month, when he was ready to start trading, he checked reviews of the stockbroker on Google. Finding it bad, he called RA and asked for a refund.
However, RA refused, and later in July, he decided to take some trades following RA’s tips. The first day went amazingly, but from the second day, he continuously faced loss for a few days. Luckily, he had to add a large amount, and the overall loss was ₹7,000.
But he decided to get a refund of his amount and finally reached out to us.
Our team listened to his case and decided first to reach out to the RA itself. However, after not getting any response for a few days, our team filed their complaint in SCORES.
SCORES portal, where the RAs are registered, and any investigation by SEBI can lead to the cancellation of the licence. As expected, after reporting a case in SCORES, RA reached out to Rahul and agreed to refund the fee amount, putting a condition to take his SCORES complaint back.
Since the loss amount was not big, Rahul agreed and finally got a credit of fee amount in his account.
But the story didn’t end here.
There would be many more Rahuls who would have been trapped by that registered RA for their interest. Most likely, not all would report, and some might have suffered much bigger losses because of unfair practices of the registered entity.
Hence, it is a duty of a retail trader to focus more on being aware rather than learning the process of how to claim a refund.
This fraud won’t end until the trader’s community stops chasing quick gains and profits. So, stay alert and responsible towards your capital to protect it from the evil eye of scammers & fraudsters.
