Beware of fake portfolio management companies in India
This covid-19 pandemic is considered a boon for the Indian stock market. New investors are entering the market. And spammers and fraudulent portfolio management service like the fake Wisdom Capital Group are also on the market.
Bhopal-based Wisdom Capital Group is running a fraud portfolio management service. They are cheating new investors. Your first target is the Whatsapp group. They will make a phishing call. And then they will message new investors and introduce them as a genuine PMS provider.
A friend of mine was also contacted by this Wisdom Capital Group group on Whatspp. He introduced himself as Adarsh. In the next few days, Adarsh continues to send screenshots of positions and profits. They will only show profit.
My friend needed money, so he invested around Rs 10,000 in the initial phase. This Wisdom Capital Group then opens an account which they claim as a Demat account.
Within two or three days they will show gains. For an investment of Rs 10,000, the daily profit was around Rs 2,000-3,000. My friend decided to withdraw the winnings from him. But he could not withdraw the money.
He then contacted Adarsh for the withdrawal process. Adarsh told him to deposit 20 percent of the profits with Wisdom Capital Group. My friend asked him to deduct the money from the profit. Adarsh disagreeed and my friend sends the winnings.
But after I sent them the profit share, they called my friend again to send him the GST rates. For any SEBI registered company in India, GST is not applicable. My friend asked why GST? Adarsh told him that it is a service charge.
My friend feels that money to Adarsh. So to withdraw Rs 10,000 my friend spent around Rs 4000. My friend waited three days to get the profit back from him.
What is the next step for this fraud portfolio management service?
My friend was waiting for his money but they called him to say that all his capital and profits were lost in the market. His account has no funds to withdraw.
Then they closed their account too. The key people involved in this fraud portfolio management service are Adarsh who represent the group. Then Rajesh Nath as the account holder. And Amit Raghuwancy as the owner of the Wisdom Capital group website.
They are not learning from their mistakes. instead, they openly call to serve new investors.
Therefore, new investors should be alert and stay away from such fraud portfolio management service provider. Stay safe and stay rich!