update

 

In another campaign, Sebi has sought to bust one of the most commonly used tactics by those selling such fraudulent scheme, where they cite the example of someone very close having doubled the money in no time. Like a chain reaction, everyone gives the example of this person, who may not exist at all.

A large number of such fraudulent activities, many of which are in nature of Ponzi schemes wherein money is collected from a large number of investors, and new investors' money is used to give returns to some previous clients till the operator runs away, have come to light in recent years. 

While more than 500 such schemes have already faced Sebi's ire for defrauding investors, thousands others of significant sizes and scales are estimated to be functional in different parts of the country.