SEBI's probe found that an investor was receiving calls from agents and brokers of MF and insurance companies asking him to invest more money to get an impressive return on products bought by his deceased son
Market regulator Securities and Exchange Board of India (SEBI) has unearthed a fake investment syndicate in the national capital, wherein a large number of people could have been defrauded in the name of investments made by their deceased family members.
Acting on an individual complaint, the market regulator probed a case of an investor getting phone calls for impressive returns on the mutual fund products purchased by his deceased son, provided the person makes some further investments.
“The ‘agent’ informed the complainant that his son had made investments in mutual funds which are about to mature and on maturity the complainant will get only Rs5 lakh. However, the ‘agent’ further stated that if the complainant makes a further investment of Rs2.5 lakh, he would get maturity proceeds of Rs12.5 lakh,” SEBI said.
The investigations department of SEBI conducted preliminary investigations where it was found that the phone numbers from which the ‘agent’ had called were in some others’ name and the company was also in a different name. Sensing a clear attempt to defraud, cheat and misappropriate as well as mis-sell financial products, SEBI said it deputed an official to visit the ‘complainant’ at the time of the visit of the ‘agent’.
SEBI said it also sought assistance from the Economic Offences Wing (EOW) of the Delhi Police. “On perusal of the forms and after preliminary enquiries, the suspicions were confirmed that indeed there was an organised attempt by several people to defraud and mis-sell and accordingly a first information report (FIR) is being lodged with Delhi Police. 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,” the market regulator said in a statement.
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