SEBI find out the stock market scams in India

SEBI find out the stock market scams in India

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A lot of people in today’s era were working on share market and purchasing and selling a lot of shares, where few of them are doing the delivery based transaction, and few of them going with intraday, which means long term and short term position, here question are SEBI find out the stock market scams in India.

Furthermore, every transaction and everything people are doing with the help of broker in the stock market, and questions are rises that how all the brokers can do cheating with a client when everything’s is transparent and how SEBI find out the stock market scams in India?

Actually, before a few years ago stocks with commodities and share everything in the stock market go with physical purchasing and selling, now onwards there were a lot of brokers and a lot of online systems are there to performed selling and purchasing the stocks.

Similarly, in each and every transaction there will be a broker who is managing your portfolio.

even more, when we transact delivery based share for an extended period at that particular time, most of the brokers can do pledging of the stock in which they can do the cheat with your account and money.

There are a lot of others way there which is given below, from that brokers can do the cheating with the client. but also there will be a big giant called SEBI is there who is knowing everything now.

How Brokers Cheat With Client in Stock Market and SEBI find out the Stock Market Scams in India?

  • Fund Management

Brokers are doing cheat with the client when managing offline, and online fund of the clients.there are a lot of brokers there who is ultimately cheat with the client when client buying or selling stocks, also some brokers are selling clients stock before the deadline and then using for the personal commencement.

  • Portfolio Management

As we know that brokers are managing every client’s portfolio when you are opening an account on the market, so with the management, they also can do cheat with your money on entire periods selling and buying the stocks.

  • Unnecessary buying and selling

Brokers are also doing unnecessary buying and selling to earn brokerage from the client. There are a lot of brokers are there who are making a lot of money from brokerage itself, its a matter of money whether you get profit from the stocks or not, according to brokers policy you must have to pay brokerage as per the rules of brokerage firm and a lot of brokers having 50 to 100 rs per order and even more too.

  • Executions of orders

In the intraday, if your account is managed by your broker’s, then they must have to execute your

Order within a second otherwise price of the stocks will go higher or lower, too, so sometimes also the things have to happen when a broker executes your order. The price will differentiate than expected. As per the rules, you are supposed to pay brokerage for the same, and losses be in your favor too.

  • Wrong tips and information are in stock.
  • Of the broker’s aim is to earn brokerage nothings else whether you will get profit or not, so they all are giving you a tips of the stock to purchase and sell, but sometimes if you haven’t traded in a day or week then broker’s couldn’t earn brokerage, so they will give you a tips for making the brokerage, and that advice will be wrong. You get cheated from stockbrokers and lose your money.
  • Selfishness of brokers
  • be the things has to happen that you have the fullest trust in a broker, and they will do fraud in your portfolio to earn brokerage, e.g., They will execute your orders on irrelevant time to make brokerage only without losing your stock or portfolio money for his selfishness.
  • You are not having basic knowledge of investments.
  • You are a widow, or else the main person who is managing your portfolio from a family they are passed away; then, stockbrokers can do cheat with your collection to earn money from brokerage for selfless if you are not having basic knowledge of market and stocks. They will give you the wrong tips and ideas to sell and buy the shares.

Stock market business is also a fund management business where the end of the periods, and on time you can generate the money whenever required.

So, the SEBI find out the cheating when brokers do pledging of the share on delivery based as well as intraday based, brokers are buying and selling the stock of the client without asking his customer or clients.

Right now SEBI is given notice to all the stockbrokers who are doing this cheating thing and given a deadline to submit the report of the same, as soon as possible, even in this brokerage firm many of those are doing a transaction of stock with the client’s account.

In the new company, Karvy had transferred the client’s security of 1100 crore in his account without knowing her clients. another 100 crores of BMA and Vrise 37 Crore.

Even more, right now we are not having a total clear count of the amount, but the market is said to approximate 7000 crores

even stockbrokers are getting a loan from the bank and show off the client’s stock account because the bank doesn’t verify about at all, and that’s why also stock broker’s cheating with the clients.

Stock Broker’s cheating with client Summary.

There was a lot of fraud to be there in the stock market hence various types of fraud are doing by the broker’s, but as we know, somehow everything we did here is everything that needs to be filled here only.

for the reason above quotes stated that, in the current situations, a lot of fraud identified by SEBI and also taken action on those particular fraud stockbrokers who cheated with the clients.

Few things are there, which is given below to escape from stock market scams.

  • first of all, Do own research and then buy and sell the stocks
  • furthermore, don’t depend on third-party or stockbrokers when you are buying or selling the stocks
  • Don’t get tips from the brokers
  • To generate daily reports of your transactions
  • To verify every transaction brokerage charge, including GST, SEBI Charge, and everything.
  • Manage and earn money with your portfolio management.
  • Do not give all the permission of your transaction and portfolio management to your broker.
  • likewise, Go with the long term investments instead of short term or intraday
  • Inform SEBI directly if you find any hurdles or any foreign transaction in your account.
  • However, According to the client’s rights, you can inform your cheat to your brokerage firm and still in a few days if they cannot give you answers you can complain against them on SEBI, and SEBI will take action on that particular firm, so they need to make reply within 30 days.
  • Therefore, Do one thing in mind that first learn and then earn.

Also, questions are raised that how we can manage our stock portfolio to do completely safe stock market transactions and everything’s to overcome our losses and escape from the broker’s cheat.

That we will see in the next phase of this article.


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