Nitin Kamath, co-founder and CEO of online brokerage platform Zerodha, cautioned investors about the surest way to lose money in the market through a social media post on Platform X on Saturday, December 7. The post highlighted two recent scams in which the Securities and Exchange Board of India (SEBI) passed an order.
Kamath focused on investors’ preferences and said that if something is too good to be true, it usually is. He also said that the surest way to lose money in the financial sector is to take shortcuts. market,
“If something is too good to be true, it almost always is. Taking shortcuts to make quick money is the safest way to lose money in the market,” said Nitin Kamath, highlighting an old saying that cautions investors Against scams.
What were the two scams?
Along with sharing his views on the issue, Kamath also shared with his audience the link of Zerodha’s Daily Brief, which talked about the two scams on which SEBI had recently passed an order.
peppermint It was earlier reported that the securities market regulator had canceled the listing on December 3. trafficsol ITS Technologies Limited ordered to give refund to the company after investigation Investors lost Rs 45 crore within a week. SEBI also directed Bombay Stock Exchange (BSE) to monitor the refund process.
Concerns were raised against the third party vendor (TrafficSol) which was to supply integrated command control center software (IC) to the company. 17.7 crores, a significant technology To run smart cities which are generally imported from international vendors.
The investigation revealed that the third-party provider TrafficSole is a “shell company”. Fraudulent documents were submitted by ‘suspect TPV’ to justify this In its draft prospectus, Rs 17.7 crore has been kept for the purchase of software.
As per previous reports, the company failed to provide a single credible justification for including such an entity in the first place.
Another financial scam was perpetrated by a financially influential person or finfluencer given namefather of chart”, which promised investors exorbitant returns. According to SEBI investigation, the person was running an unauthorized investment advisory service and collecting huge sums of money from investors.
Offering investment advice disguised in “academic courses” on stock market trading, the Bap of the Charts and his team provided recommendations to buy or sell stocks directly to their clients in exchange for a fee. After some time the man and his companions gathered Fees Rs 17.2 crore.
After months of investigation into the issue, the securities market regulator banned him from the stock market for one year and ordered him to return the money Rs 17.2 crore was collected by way of charges from customers along with financial penalties.
“If someone promises “guaranteed” returns in the stock market, steer clear. As SEBI tightens its grip on these so-called financial influencers, it is a reminder to always verify credentials and think twice before following hype,” Zerodha said in its daily brief post on December 5. .
