The Moneymunch Complaints category provides information and reports on various types of fraudulent activities in the financial markets, including securities scams, cheating, and stock and investment fraud. We aim to provide valuable insights and data to help our readers identify potential risks and avoid falling victim to these scams.
Just few hours back, Securities and Exchange Board of India announced unauthorized dairy investment scheme run by G N Dairies and has asked the company to refund investors’ money. Consequently, SEBI ordered 3-month time period from date of October 31 for return money to it investors because all investment schemes designed with wrong intention and company promise of high returns in the name of trading of cattle and ghee without obtaining requisite certificate from the market regulator.
If the company fails to comply with its directives, a reference would be made to the state government and local police to register a civil/criminal (consumer) case/complaints against them for fraud and cheating (cheater). – SEBI
By Moneymunch online investigation(review/feedback), the company claimed it has returned calves and ghee to as many as 45,000 investors.
What is Dabba trading (Definition): The investor’s trades [buy/sell orders] do not executed on stock exchanges system but in the dabba operators books only.
Top reason for dabba trading: mainly to save on tax and trading fees. But traders don’t know, dabba trading or trading in commodity (MCX / NCDEX) futures outside the FMC-regulated exchanges is illegal as per the Forward Contracts Regulation Act (FCRA), 1952.
Dabba trading is also risky as it does not provide protection against counterparty default risk as guaranteed by commodity futures exchanges for trades done on them.
Market controller Sebi may break down on dabba trading that is said to be out of control in cities like Rajkot, Ahmadabad, Mumbai and Indore, following (consumer) complaints from market participants.
Dabba trading activities is 70% more existing in equity trading rather than commodity market. Look below image:
(GIVEN by LOKESHWARRI SK BL RESEARCH BUREAU)
SEBI is asking, are Gujaratis losing interest in equity trading?
SEBI sources said: finding exact information from market participants about such illegal activities, has furthermore written to the state governments seeking information in this regard.
If you notice any illegal commodity futures market activity, please report to:
Forward Markets Commission, Everest, 3rd Floor, 100, Marine Drive, Mumbai 400 002, Tel: 022-227 953 00, Fax: 022-2281 2086, Email: [email protected]
IT (Income Tax Department) had raided the offices of MCX and FTIL on June 19, 2007. The CBI is looking into this matter five years after the permission was granted and Sebi chief C B Bhave said “MCX Stock Exchange case, CBI working with ‘crazy logic'”. Central Bureau of Investigation (CBI) said on Thursday that it had registered a preliminary inquiry against former Securities and Exchange Board of India (Sebi) chief C.B. Bhave, its former whole-time member K.M. Abraham, Multi Commodity Exchange of India Ltd (MCX) and Financial Technologies India Ltd (FTIL).
Our Finance Minister P Chidambaram last words were on this matter, “don’t think CBI has all the facts on Bhave case. I am sure the Sebi records give reasons for why it gave them the licence for currency futures”.
But two days back at evening, Jignesh Shah was taken to CBI headquarters in Mumbai for questioning. The enquiry, in this instance, has been registered in connection with the grant of a license to MCX Stock Exchange (MCX-SX), which first started operations in 2008 with its currency derivatives segment. Shah was later released by CBI.
Biggest fraud: news is still coming out on the surprising fraud committed by PFG Best. You know, about 200 million in customer funds is still missing and hopes of a full recovery are very slim. I would expect some rapid changes in regulations in the near future. For example, confirmation directly from the banks.
Everyone knows Crude oil is the term for ‘unprocessed’ oil, the stuff that comes out of the ground. Some peoples saying petroleum but I say Black Gold. If once black gold closes above 4831 then no-one can stop it. Non-stop targets: 4895-4947-4990+ Remember hurdle is 4831.
Lion Heart Traders for great opportunity in MCX Kapas. Today kapas will not stop then it’ll run non-stop. Targets: 1148 – 1172 – 1189
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In a verdict that has sent shock waves throughout Indian political landscape, the Supreme Court quashed all the 122 licenses awarded to 12 companies to run for 2G operations by then Telecom Minister A. Raja.
The SC said that the arbitrary allocation of the 2G spectrum was a scam and not the consequence of a government policy. The apex court indicted former telecom minister A. Raja for “virtually gifting away an important national asset at throwaway prices” while claiming that officers were “cowed” down fearing his “wrath”.
Writing in the Tehelka magazine, Paranjoy Guha Thakurta contends that, “the incredibly fast expansion of mobile telecommunications in India has been accompanied by a series of scandals that are a consequence of poor regulatory oversight and deliberate manipulation of policies to favour a select clutch of companies. The biggest and most brazen of these scandals relate to the undervaluation of a valuable national resource — electromagnetic spectrum or radio frequencies used by mobile phone service providers — by the Department of Tele – communications (DoT) under former Minister for Communications and Information Technology A Raja.
“According to a report of the Comptroller & Auditor General (CAG) of India tabled in Parliament on 16 November, the total “presumptive” or “notional” loss to the national exchequer on account of undervaluation of spectrum was in excess of Rs1.7 lakh crore or nearly $40 billion at current exchange rates, making it the biggest scandal of its kind in the country.
The enormity of the scandal was acknowledged only after the Supreme Court started asking pointed questions of government agencies and the CAG came out with a scathing indictment of DoT policies and practices. Raja was forced to resign his post and the Central Bureau of Investigation (CBI) made to expedite its investigations that had begun in October 2009 with the lodging of a First Information Report (FIR) against “unknown” persons.
“The CAG contended that (a) by underpricing second generation (2G) spectrum, (b) by allowing companies to use two competing technologies — the global system of mobile (GSM) communications and the Code Division Multiple Access (CDMA) technology — using the same license and (c) by allocating more spectrum to companies than what their licenses specified, the total loss to the country could be as much as Rs1,76,645 crore — more than Rs10,000 for each citizen or over four times the current annual budget of the “world’s largest social security scheme”, the programme under the Mahatma Gandhi National Rural Employment Guarantee Act.
“If the prime minister was indeed aware of what was going on, why did he not take any action against Raja? Why did he remain silent when Raja claimed that he had his approval while allotting licenses whereas the CAG categorically stated that he had blatantly flouted the prime minister’s advice? These are the questions that have raised a huge political storm, completely paralyzed the winter session of Parliament for three weeks and strained relations between the Indian National Congress and its partner in the United Progressive Alliance (UPA) coalition from Tamil Nadu, the Dravida Munnetra Kazhagam (DMK).”