Five persons were arrested on
Wednesday for allegedly defrauding investors after promising them huge profits in the stock market in Madhya Pradesh's Indore city, police said.
The accused were operating investment advisory firms that were not registered with the Securities and Exchange Board of India (SEBI), an official said.
The arrests were made based on a complaint filed by a BSF jawan from Ahmedabad in Gujarat, who alleged that he had been cheated of Rs 1.40 lakh by an advisory firm called, Trade Money Research, said superintendent of police (SP) of Special Task Force (STF), Padmavilochan Shukla.
The gang was operating several unregistered investment advisory firms, he said.
The accused allegedly asked investors to deposit money in the bank accounts of these firms and some other private accounts and later misappropriated the money, he said.
The STF is probing if the accused had defrauded many investors from different parts of the country, he added.
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