Sebi busts phony investment syndicatehttps://indianexpress.com/article/news-archive/web/sebi-busts-phony-investment-syndicate/

Sebi busts phony investment syndicate

Acting on an individual complaint,Sebi probed a case of an investor getting phone calls promising impressive returns on investment made by his deceased son.

The Securities and Exchange Board of India (Sebi) today unearthed a phony investment syndicate in the national capital,wherein a large number of people could have been duped in the name of investments made by their deceased family members.

Acting on an individual complaint,Sebi probed a case of an investor getting phone calls promising impressive returns on investment made by his deceased son. The ‘agent’ told the complainant that his son had made investments in mutual funds which were about to mature and on maturity the complainant would get Rs 5 lakh. However,on further investment of Rs 2.5 lakh,the maturity amount would be Rs 12.5 lakh.

Preliminary investigation by Sebi,with assistance from the Economic Offences Wing of Delhi Police showed that it was an organised attempt to defraud gullible investors.

“It is suspected that the number of victims of such fraudulent attempts could be much higher,which would be revealed in due course after further investigations by Delhi Police and Sebi,” Sebi said.