Navi Mumbai: 24-yr-old investor loses lakhs through unregistered share trading firm

A 24-year-old man who is into pharma business had invested lakhs of rupees through an online shares trading company which he had come across while surfing on the internet. The company allegedly usurped all his money saying that the money has been utilised for trading purposes and cannot be returned back. The man then made inquiries with SEBI about the said trading company and learnt that they weren't registered with SEBI. Realising that the trading firm is into economic fraud, he got a police complaint registered on SEBI's directions.

According to the police, the complainant in the case is SV Jadhav, a resident of Kamothe in Navi Mumbai. In October, last year, the victim had taken a business loan of Rs 20 lakh. Since the victim wanted to invest money into shares, he surfed online and came across a share trading company. Jadhav then downloaded a mobile phone application of the said company, created his account, and over a period of time invested nearly Rs 11 lakh through net banking.

"As per the victim, initially he had monitored his account and saw that there was growth in his investment. However, in December last year when the victim checked his account, he realised that the invested money was transferred from his account. Jadhav then made inquiries with the customer care of the company and was informed that his money has been put for trading purposes and cannot be returned back. The victim then made inquiries with SEBI and learnt that the trading company was not registered with them and asked the victim to lodge a police complaint in the matter," said a police officer from Kamothe police station in Navi Mumbai.

The police have registered a complaint the matter on Friday under section 420 (Cheating and dishonestly inducing delivery of property) of the Indian Penal Code and section 66D (Punishment for cheating by personation by using computer resource) of the Information Technology Act.

"It is very important for investors to make some background check about the trading companies before investing their hard-earned money with them. We have just registered a complaint in the matter and would summon company officials for questioning in coming days," the officer said.

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Free Press Journal