This post has been self-published on Youth Ki Awaaz by Youth Ki Awaaz. Just like them, anyone can publish on Youth Ki Awaaz.

Investing Through A Stock Broker? What if it is a Fraud?

More from Youth Ki Awaaz

By Oviya Govindan:

Would you like to have your favorite Margherita with chunks of it bitten off served to you, while you dole out the currency for the whole of it? Or would you enjoy your Dominoes experience half as much if you had to pay for the divine chocolava cake and find nothing inside when you open it?

What a waiter is to a restaurant is the stock broker to an investor. He is but the bridge between the management and the customer. The Customer pays for the Pizza offered on menu by the management. The waiter is aptly paid for his catalytic help. End of story.

The only reason you wish the services of a waiter in these joints is that you need not exert yourself; after all getting to savor your food without too much effort on your part is the point of dining out isn’t it? But it is when you trust the waiter with your dish, that he enters the picture as a person whose judgment is called upon to suggest the best fare for the customer and to bring it from the kitchens. For all this he is paid a salary, and given a liberal tip. But again, man being man will get greedy for more and wish for that which isn’t his own. And in due course, fare you pay for and sent from the kitchen gets ‘lost in transit’ as it slips down his throat and fills his stomach while you wonder at the meager amount of food you’re being served.

Okay, so the stock broker’s job is much more complicated than the waiter’s. Oh stop the metaphor already. Yeah, so he has to look at companies, their success and failure in the market; judge their policies and take calculated risks on the investor’s money; he could make a jackpot from business acumen and foresight; he should keep track of the supply and demand of the shares and buy and sell appropriately, be on the lookout for government policies and judge the events to come. Quite something there, you say?

In many cases the stock broker is given full freedom to invest the money in different stocks, under the pretext of allowing flexibility. Herein is established a relationship between the investor and the Broker, one built on trust that the Broker is acting with the best interests of the Investor in mind.

The most common form of fraud by a broker is called Churning. The stock broker sells and buys shares just so as to get commission. He makes huge sums of money as commission through excessive trading of the investor’s shares. There might be a very slight profit or the capital will be returned. But in either case, the broker acts not with the best interests of the investor in mind.

Another common form of such trickery is what is called the ‘pump and dump’ scheme. Thinly traded stock of a company is made to appear lucrative with promises of great profit, low risk. Once the buyers queue up for the stock, demand rises and the price of the stock rises. Now the scammer quickly dumps all the shares in the market. With increase in supply, value of the shares now plummets. And with it goes your money.

Most of the ingenious scams that have shocked the economy of country all have few contriving individuals behind them as the master mind. Take the case of Harshad Mehta; he was called the ‘Big Bull’ of the investment business. But he got bank receipts from banks that didn’t require government securities and exploited the other banks which assumed a government backing for the receipts. Money was used to catapult the price of stocks and he made huge profits while millions of investors and banks were conned.

Or consider the relatively recent case of Satyam’s Ramalinga Raju. Profits were inflated over the years with fictitious assets, leading people to believe that the company was doing better than it actually was. Investors lost heavily as they had no better option than to dump the shares soon as the scam was exposed. Many are the cases of scams with investors being led to believe that a company was doing extraordinarily well. Agents of the respective companies, who act as brokers are given lump sum commissions while only the investor stands to loose.

For an economy so young as ours, we have faced several heists in the stock exchange market. The question is will we ever learn the lessons each crash has to offer?

For a start, one must first keep in mind: No Overkill. Seemingly lucrative offers of cheap shares with prospects of high profits and low risk must be viewed with suspicion rather than happy calculations of a huge return on the investment. Careful as one is, the best of us may not realize that a scam is imminent. In such cases, it would be wise to diversify one’s portfolio than invest heavily on one stock and lose a fortune. That way one can be sure that come what may, scams of any magnitude remain as mere hurdles along one’s path. Some would say that the whole stock market is manipulated and everyone is cheated, but stock markets are financial institutions that aid the companies in their undertaking while profiting in the meantime. They are signs of the economic condition of a country. So, with adequate caution, one must make wise investments.

You wouldn’t even trust your sibling with your ice cream; while you do something else would you? Be wise in choosing where to invest your capital in. Invest where your investment will remain safe. Happy Stock Marketing!

image: http://pennystock101.blogspot.com/2009/10/trades-recap-for-10292009.html#

You must be to comment.
  1. Priyank Dutt

    The comments are indeed an eye opener. However, as long as you have your investment criteria planned and known to yourself, the fraudulent tricks don’t take a shelter in your investment shed. Professional online broker portals are the ones who manage several accounts and are honest in their services. Brokers, who are not registered and do not hold requisite licenses for the exchange markets, are the ones that investors need to be aware of. Portfolio management with brokers who are professionals is not much of a risk today. With online stock trading facilities, investors are given the recourse of monitoring their accounts and stocks closely. The other facility of stop loss can be exercised by investors who can safeguard their stock values. All investors are normally guided and advised, however the final choice always lies with the investor. Giving complete authority to the broker happens usually in case of portfolio management services or where investment deals in blue chip companies. At every stage the investor has several rights which he can exercise to preserve his investments. Check GEPL as a good broker portal – http://guptaequities.com/.

  2. Arun

    ok

More from Youth Ki Awaaz

Similar Posts

By Pradeep Maurya

By JYOTI SINGH

By Krithiga Narayanan

Wondering what to write about?

Here are some topics to get you started

Share your details to download the report.









We promise not to spam or send irrelevant information.

Share your details to download the report.









We promise not to spam or send irrelevant information.

An ambassador and trained facilitator under Eco Femme (a social enterprise working towards menstrual health in south India), Sanjina is also an active member of the MHM Collective- India and Menstrual Health Alliance- India. She has conducted Menstrual Health sessions in multiple government schools adopted by Rotary District 3240 as part of their WinS project in rural Bengal. She has also delivered training of trainers on SRHR, gender, sexuality and Menstruation for Tomorrow’s Foundation, Vikramshila Education Resource Society, Nirdhan trust and Micro Finance, Tollygunj Women In Need, Paint It Red in Kolkata.

Now as an MH Fellow with YKA, she’s expanding her impressive scope of work further by launching a campaign to facilitate the process of ensuring better menstrual health and SRH services for women residing in correctional homes in West Bengal. The campaign will entail an independent study to take stalk of the present conditions of MHM in correctional homes across the state and use its findings to build public support and political will to take the necessary action.

Saurabh has been associated with YKA as a user and has consistently been writing on the issue MHM and its intersectionality with other issues in the society. Now as an MHM Fellow with YKA, he’s launched the Right to Period campaign, which aims to ensure proper execution of MHM guidelines in Delhi’s schools.

The long-term aim of the campaign is to develop an open culture where menstruation is not treated as a taboo. The campaign also seeks to hold the schools accountable for their responsibilities as an important component in the implementation of MHM policies by making adequate sanitation infrastructure and knowledge of MHM available in school premises.

Read more about his campaign.

Harshita is a psychologist and works to support people with mental health issues, particularly adolescents who are survivors of violence. Associated with the Azadi Foundation in UP, Harshita became an MHM Fellow with YKA, with the aim of promoting better menstrual health.

Her campaign #MeriMarzi aims to promote menstrual health and wellness, hygiene and facilities for female sex workers in UP. She says, “Knowledge about natural body processes is a very basic human right. And for individuals whose occupation is providing sexual services, it becomes even more important.”

Meri Marzi aims to ensure sensitised, non-discriminatory health workers for the needs of female sex workers in the Suraksha Clinics under the UPSACS (Uttar Pradesh State AIDS Control Society) program by creating more dialogues and garnering public support for the cause of sex workers’ menstrual rights. The campaign will also ensure interventions with sex workers to clear misconceptions around overall hygiene management to ensure that results flow both ways.

Read more about her campaign.

MH Fellow Sabna comes with significant experience working with a range of development issues. A co-founder of Project Sakhi Saheli, which aims to combat period poverty and break menstrual taboos, Sabna has, in the past, worked on the issue of menstruation in urban slums of Delhi with women and adolescent girls. She and her team also released MenstraBook, with menstrastories and organised Menstra Tlk in the Delhi School of Social Work to create more conversations on menstruation.

With YKA MHM Fellow Vineet, Sabna launched Menstratalk, a campaign that aims to put an end to period poverty and smash menstrual taboos in society. As a start, the campaign aims to begin conversations on menstrual health with five hundred adolescents and youth in Delhi through offline platforms, and through this community mobilise support to create Period Friendly Institutions out of educational institutes in the city.

Read more about her campaign. 

A student from Delhi School of Social work, Vineet is a part of Project Sakhi Saheli, an initiative by the students of Delhi school of Social Work to create awareness on Menstrual Health and combat Period Poverty. Along with MHM Action Fellow Sabna, Vineet launched Menstratalk, a campaign that aims to put an end to period poverty and smash menstrual taboos in society.

As a start, the campaign aims to begin conversations on menstrual health with five hundred adolescents and youth in Delhi through offline platforms, and through this community mobilise support to create Period Friendly Institutions out of educational institutes in the city.

Find out more about the campaign here.

A native of Bhagalpur district – Bihar, Shalini Jha believes in equal rights for all genders and wants to work for a gender-equal and just society. In the past she’s had a year-long association as a community leader with Haiyya: Organise for Action’s Health Over Stigma campaign. She’s pursuing a Master’s in Literature with Ambedkar University, Delhi and as an MHM Fellow with YKA, recently launched ‘Project अल्हड़ (Alharh)’.

She says, “Bihar is ranked the lowest in India’s SDG Index 2019 for India. Hygienic and comfortable menstruation is a basic human right and sustainable development cannot be ensured if menstruators are deprived of their basic rights.” Project अल्हड़ (Alharh) aims to create a robust sensitised community in Bhagalpur to collectively spread awareness, break the taboo, debunk myths and initiate fearless conversations around menstruation. The campaign aims to reach at least 6000 adolescent girls from government and private schools in Baghalpur district in 2020.

Read more about the campaign here.

A psychologist and co-founder of a mental health NGO called Customize Cognition, Ritika forayed into the space of menstrual health and hygiene, sexual and reproductive healthcare and rights and gender equality as an MHM Fellow with YKA. She says, “The experience of working on MHM/SRHR and gender equality has been an enriching and eye-opening experience. I have learned what’s beneath the surface of the issue, be it awareness, lack of resources or disregard for trans men, who also menstruate.”

The Transmen-ses campaign aims to tackle the issue of silence and disregard for trans men’s menstruation needs, by mobilising gender sensitive health professionals and gender neutral restrooms in Lucknow.

Read more about the campaign here.

A Computer Science engineer by education, Nitisha started her career in the corporate sector, before realising she wanted to work in the development and social justice space. Since then, she has worked with Teach For India and Care India and is from the founding batch of Indian School of Development Management (ISDM), a one of its kind organisation creating leaders for the development sector through its experiential learning post graduate program.

As a Youth Ki Awaaz Menstrual Health Fellow, Nitisha has started Let’s Talk Period, a campaign to mobilise young people to switch to sustainable period products. She says, “80 lakh women in Delhi use non-biodegradable sanitary products, generate 3000 tonnes of menstrual waste, that takes 500-800 years to decompose; which in turn contributes to the health issues of all menstruators, increased burden of waste management on the city and harmful living environment for all citizens.

Let’s Talk Period aims to change this by

Find out more about her campaign here.

Share your details to download the report.









We promise not to spam or send irrelevant information.

A former Assistant Secretary with the Ministry of Women and Child Development in West Bengal for three months, Lakshmi Bhavya has been championing the cause of menstrual hygiene in her district. By associating herself with the Lalana Campaign, a holistic menstrual hygiene awareness campaign which is conducted by the Anahat NGO, Lakshmi has been slowly breaking taboos when it comes to periods and menstrual hygiene.

A Gender Rights Activist working with the tribal and marginalized communities in india, Srilekha is a PhD scholar working on understanding body and sexuality among tribal girls, to fill the gaps in research around indigenous women and their stories. Srilekha has worked extensively at the grassroots level with community based organisations, through several advocacy initiatives around Gender, Mental Health, Menstrual Hygiene and Sexual and Reproductive Health Rights (SRHR) for the indigenous in Jharkhand, over the last 6 years.

Srilekha has also contributed to sustainable livelihood projects and legal aid programs for survivors of sex trafficking. She has been conducting research based programs on maternal health, mental health, gender based violence, sex and sexuality. Her interest lies in conducting workshops for young people on life skills, feminism, gender and sexuality, trauma, resilience and interpersonal relationships.

A Guwahati-based college student pursuing her Masters in Tata Institute of Social Sciences, Bidisha started the #BleedwithDignity campaign on the technology platform Change.org, demanding that the Government of Assam install
biodegradable sanitary pad vending machines in all government schools across the state. Her petition on Change.org has already gathered support from over 90000 people and continues to grow.

Bidisha was selected in Change.org’s flagship program ‘She Creates Change’ having run successful online advocacy
campaigns, which were widely recognised. Through the #BleedwithDignity campaign; she organised and celebrated World Menstrual Hygiene Day, 2019 in Guwahati, Assam by hosting a wall mural by collaborating with local organisations. The initiative was widely covered by national and local media, and the mural was later inaugurated by the event’s chief guest Commissioner of Guwahati Municipal Corporation (GMC) Debeswar Malakar, IAS.

Sign up for the Youth Ki Awaaz Prime Ministerial Brief below