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How not to get fooled by fake investment advisors

Remember this: If it’s too good to be true, it is in fact too good to be true

April 16, 2019 / 09:13 AM IST

On March 20, Securities and Exchange Board of India (SEBI) passed an interim order banning three individuals, Rishabh Jain, Ubaidur Rahman and G Kadar Hussain from offering any investment advice to anyone.

It also directed them to remove all advertisements, banners, brochures and other forms of communication that spoke about their so-called investment advisory business. And it barred them from securities market. Their crime?

Between the three of them, they defrauded several gullible investors. They offered investment advice for which they gobbled up fees totaling in excess of Rs 10 crore. Their investment advice was fake and many investors complained to SEBI that they didn’t work; the advisors did not bother to pick up their phone calls, but instead kept on advertising their fake success.

What’s worse, the fraudster troika also used genuine SEBI-registered investment advisors' (such as Mumbai-based Gaurav Mashruwala’s and Pune-based Capmetrics Investment Advisors) licence numbers to appear genuine.