Allegations of Fake P&L Statements and Manipulated Share Trading Surface Following Complaint by 72-Year-Old Investor
Mumbai: The Economic Offences Wing (EOW) of Mumbai Police has registered a case against the registered brokerage firm Globe Capital Market on allegations of fraud and submission of forged documents. The action follows a complaint lodged by 72-year-old investor Bharat Shah at Mumbai Police’s Vanrai Police Station.
EOW sources told CNBC-TV18, “Globe Capital Market is accused of submitting forged and fabricated profit-and-loss (P&L) annual statements, manipulating share trading activities, and executing continuous circular buying and selling with the same counterparty to deliberately create financial losses.”
Details of the Complaint and Events
Shah and his wife inherited a share market portfolio from Shah’s father in 1984. As they were not active traders, the couple did not engage in market activities for decades. In 2020, acting on a friend’s suggestion, they opened demat and trading accounts with Globe Capital Market.
According to the complaint, relationship managers Akshay Bariya and Kiran Siroya from Globe Capital Market contacted the couple daily to provide trading information, which they recorded. Later, other representatives allegedly instructed them to place trading orders. Shah claimed that he shared all emails, messages from the National Stock Exchange (NSE), and OTPs with the firm’s managers.
Alleged ₹35 Crore Scam
The FIR states that in July 2024, Globe Capital Market’s risk management team informed Shah that his and his wife’s demat accounts reflected a negative balance of ₹35 crore, warning that their shares would be liquidated if the amount was not paid.
Fearing loss of holdings, the couple sold shares and paid ₹35 crore to the brokerage. Subsequently, during an account audit, they discovered multiple notices sent by the NSE to Globe Capital Market concerning their accounts, along with responses from the firm, which neither Shah nor his wife had seen.
Manipulation in F&O Trading and Fabricated Statements
The FIR further alleges that large Futures & Options (F&O) trades were executed through their accounts, with call and future options being given and received by the same party. The couple also claimed that Globe Capital Market sent fake and fabricated transaction statements over the years, falsely indicating profits.
EOW sources told CNBC-TV18, “As the couple received calls from multiple teams and the account statements appeared fabricated, we have filed an FIR against the entire firm. We suspect similar practices may have affected other clients. Summons will be issued to the concerned personnel next week.”
SEBI’s Role and Regulatory Implications
The complainant also approached SEBI, but the regulator reportedly closed the matter. Experts note that the case raises concerns not only about investor protection but also about the conduct of brokerage firms and the rigor of regulatory oversight in the financial markets.
Conclusion
The EOW’s action underscores the importance of investor protection and maintaining transparency in financial markets. Analysts believe that timely intervention by regulators and law enforcement is crucial to prevent significant financial losses for investors and to uphold market integrity.
