Treat “guaranteed” returns as a warning

Promises of guaranteed, risk-free, unusually high, or consistently positive returns are major fraud signals in a market-linked investment. SEBI describes Ponzi schemes as using newer participants’ money to pay earlier participants. Warning signs include high returns with little risk, unregistered investments, unlicensed sellers, opaque information, pressure to act quickly, and difficulty withdrawing money. SEBI advises researching the promoter, avoiding unsolicited offers and pressure tactics, checking whether the scheme and promoters are regulated, and reporting suspected fraud. [5] [6]

Check the legal name and registration number in SEBI’s official Recognised Intermediaries directory, selecting the relevant category such as Investment Adviser, stock broker, or Research Analyst. Match the result to the contact details you were given. SEBI’s fake-trading-app warning flags unverified APK links, payments to third-party accounts, social-media tips, blocked withdrawals, and requests to invest more or borrow. [7] [8]

Never share an OTP, password, PIN, or login credentials with an adviser, broker, caller, or “support” person. SEBI says never to share an online-account password, and the National Cybercrime Reporting Portal manual explains that sharing an OTP can enable account compromise. Use official apps and websites, strong unique passwords, and account alerts. Keep contracts, statements, payment records, and exchange or bank messages. [3] [9]

Official help: know which route applies

For a securities-service grievance, contact the concerned company or intermediary first through its official grievance or compliance channel, in writing, and keep the acknowledgement and documents. If unresolved and eligible, use the current SEBI SCORES portal at https://scores.sebi.gov.in/. SCORES covers complaints against listed companies, SEBI-registered intermediaries, and Market Infrastructure Institutions. It facilitates redressal; it does not promise recovery or decide every private dispute. The portal says the old scores.gov.in system closed for new complaints on 28 March 2024. [10] [11]

If money was lost through financial fraud, call India’s National Cybercrime Helpline 1930 and report through https://www.cybercrime.gov.in/. I4C says the call should be followed by completing the online complaint; its FAQ instructs callers to complete it within 24 hours using the acknowledgement number. Preserve original emails, chats, SMS messages, URLs, screenshots, transaction records, and other evidence; do not delete or alter originals. The portal manual says complaints are handled by the relevant State/UT law-enforcement authority and that a portal complaint is not itself an FIR. Reporting creates a route for investigation, not a guaranteed recovery. [9] [12]

Primary-source references

  1. SEBI Investor — Key Risks in Investing in Securities Market (opens in a new tab)
  2. SEBI Investor — Understanding Bonds (opens in a new tab)
  3. SEBI Investor — Do’s and Don’ts of Investing in Securities Market (opens in a new tab)
  4. SEBI Investor — Understanding Derivatives (opens in a new tab)
  5. SEBI Investor — Caution Against Ponzi Schemes (opens in a new tab)
  6. SEBI Investor — Staying Away from Investment Frauds and Get Rich Quick Schemes (opens in a new tab)
  7. SEBI — Recognised Intermediaries (opens in a new tab)
  8. SEBI Investor — Beware of Fake Trading App Scams (opens in a new tab)
  9. I4C/MHA — Citizen Manual for National Cybercrime Reporting Portal (opens in a new tab)
  10. SEBI Investor — Grievance Redressal in Securities Market (opens in a new tab)
  11. SEBI SCORES — Current Complaint Redressal System (opens in a new tab)
  12. I4C — Frequently Asked Questions (opens in a new tab)