Zerodha’s founder, Nithin Kamath, shared an important warning on social media about the dangers of stock market scams. He pointed out two recent cases that the market regulator, SEBI, took action against: Trafiksol ITS Technologies and a popular financial influencer known as “Baap of Chart.”
In the first case, Trafiksol raised ₹44 crores through an IPO (Initial Public Offering), claiming they would buy software. But the company providing this software was a fake, with made-up financial details and a fake client list. Instead of being careful, many investors eagerly bought shares in this IPO, oversubscribing it by 345 times!
SEBI investigated and found three key problems: the software vendor couldn’t actually deliver anything, the financials were fake, and the selection process of the vendor was suspicious. Because of this, SEBI canceled Trafiksol’s IPO and told the company to return the money to the investors.
The second case involved “Baap of Chart.” This person was a well-known financial influencer who promised his followers huge returns in the stock market. However, SEBI discovered that he was running an unauthorized investment advisory service and took money from many unsuspecting investors. As a result, SEBI has stopped him from being involved with the securities market and ordered him to refund the money he collected.
Kamath has been sharing warnings like this for some time. Recently, he mentioned how scammers are using AI technology to trick people, following reports of a tech worker who lost ₹91 lakh in an online scam.
Remember: If something sounds too good to be true, it probably is!
Leave a Reply