Sebi busts phony investment syndicate in Delhi

The Securities and Exchange Board of India (Sebi) on Tuesday unearthed a phony 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, Sebi probed a case of an investor getting phone calls for impressive returns on the mutual fund products purchased by his son before his death, provided some further investments were made by the complainant. The preliminary investigation by Sebi, with the assistance of the Economic Offences Wing of the Delhi Police, showed that there was an organised attempt by several people to defraud investors.

The regulator also cautioned investors that they should verify the credentials of people approaching them as agents or employees of financial services companies before making any investment through such people.