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SEBI prevents attempt to mis-sell an investment product

By   /   September 22, 2013  /   No Comments


SEBI  prevented an attempt to mis-sell an investment product to an investor in Delhi by a person claiming as agent of mutual funds.



SEBI had received a complaint from an investor  that some unknown persons claiming to be ‘agents’ and ‘brokers’ of Mutual Funds and insurance companies have been contacting the complainant saying that the deceased son of the complainant had invested in Mutual Funds and they are maturing in a short while. In order to get the full amount, the complainant must issue a cheque in advance for a new mutual fund scheme or insurance policy failing which the complainant will lose a substantial portion of the maturity amount as broker commission. The ‘agent’ informed the complainant that the son had made investments in Mutual funds which are about to mature and on maturity the complainant will get only Rs. 5 lacs. However, the ‘agent’ further stated that if the complainant makes a further investment of Rs.2.5 lacs, the complainant will get maturity proceeds to the tune of Rs.12.5 lacs.



Thereafter, the Investigations Department of SEBI conducted preliminary investigations where it was found that the phone numbers from which the ‘agent’ had called were in some others’ name and the Company was also in a different name. Sensing a clear attempt to defraud, cheat and misappropriate as well as missell financial products, SEBI deputed an official to visit the ‘complainant’ at the time of the visit of the ‘agent’. The assistance of the Economic Offences Wing of the Delhi Police was also taken. On perusal of the forms and after preliminary enquiries, the suspicions were confirmed that indeed there was an organised attempt by several people to defraud and missell and accordingly an FIR to that effect is being lodged with Delhi Police. It is suspected that the number of victims of such fraudulent attempts could be much higher, which would be revealed in due course after further investigations by Delhi Police and SEBI.


SEBI cautions investors that investors should verify the credentials of people approaching them as agents / employees before making any investment through such agents / employees.






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Hi My name is Hari Om Tripathi. I am an engineer by chance & a Personal Financial Planner by choice. Currently residing in Kanpur & writing full time for Financial Kundali. In case you have any query about Personal Financial Planning such a buying a MF or ULIP, going for a life insurance plan or a term plan, to surrender your policy or not or any other questions related to your Personal Financial Planning, write to me at financialkundali@gmail.com

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