SEBI Bars 12 Websites, 3 Persons for Providing Fraudulent Stock Tips, Collecting Crores
Moneylife Digital Team 25 March 2019
Market regulator Securities and Exchange Board of India (SEBI) has barred 12 websites and three people behind these portals for luring investors with an assured monthly income and returns of 300% to 800% by sharing fraudulent market tips. 
 
 
According to the SEBI order, these people created unregistered investment advisory websites periodically and lured investors by promising assured monthly income with unbelievable returns of 300% to 800% on buying and selling of securities based on the tips provided by them. "Once the subscription is received, they either give stock tips for few days to the subscribers and then stop entertaining their calls, or avoid the calls of the subscribers entirely without giving any stock tips," it added.
 
 
Without obtaining any registration from SEBI as investment adviser, these websites were found taking subscription from investors. The subscription ranges between Rs7,500 for one month and Rs1 lakh for a 12-month package. They use terms such as ‘zero loss’, ‘jackpot’, ‘rumour based’, and ‘sureshot’, in the names of the packages offered on their websites and promise accuracy between 90% to 99%, SEBI says. 
 
A probe by the market regulator shows Mr Jain was the beneficiary of several websites, www.trade4target.com, www.niftysureshot.com, www.optiontips.in, and www.callput.in during August 2015 to April 2017 and collected subscriptions of over Rs1.5 crore through 1,343 subscriptions made through PayUmoney by acting as or holding out as an investment adviser offering stock recommendations.
 
Similarly, Mr Rahman was found to be the beneficiary of several websites like www.trade4target.com, www.niftysureshot.com, www.optiontips.in, www.callput.in, and www.callputoption.in from January 2017 till date and collected subscriptions exceeding Rs3.5 crore through 3,816 subscriptions made through PayUmoney by acting as or holding out as an investment adviser offering stock recommendations. 
 
The third accused, Kadar Hussain, was beneficiary of two websites www.optiontips.in and www.tfttips.com and collected subscriptions by holding himself to be an investment adviser offering stock recommendations. In his three bank accounts appearing on the said websites, there were credits in excess of Rs5 crore, SEBI says.
 
Interestingly, SEBI found these accused were running a portal tradingtipscomplaints.com, which was portrayed as the website to get refund on capital lost from trading tips and subscription money paid to trading tips-provider. 
 
It says, “It is however noted that the website is managed for the purpose of promoting websites owned by them. They themselves post positive reviews and testimonials of getting unbelievable returns from the unregistered investment advisory websites on www.tradingtipscomplaints.com to promote subscriptions.”
Comments
Raghavendra Kamath
3 years ago
Is SEBI has any link to post info regarding fraud tipster?
Meenal Mamdani
4 years ago
A return of 300% to 800%? Absolutely no loss investment?
A fool cannot be stopped from making bad decisions.
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