Big Take Asia As India’s Stock Market Surged, So Did Investment Scams
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Apr 1, 2025 Bloomberg's Alex Gabriel Simon, a stocks reporter based in Mumbai, dives into the dark side of India's stock market surge. As retail investing skyrockets, so do the investment scams, leaving countless individuals—like a doctor who lost everything—devastated. Simon discusses how social media and deceptive ads lure inexperienced investors and the troubling implications for public trust in India's financial landscape. He highlights the potential consequences for the government's push to attract global investment, raising urgent questions about investor security.
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Saraswatha's Story
- Saraswatha, a doctor, lost $700,000 in a sophisticated scam involving a fake Geojit Financial Services ad.
- The scammers used a fake app, mimicking Geojit's branding and requiring more money for withdrawals.
Scams Undermine Market
- India's stock market boom, while minting millionaires, has become a breeding ground for scams.
- This undermines Prime Minister Modi's efforts to promote the market to global investors.
India's Market Rally
- India's stock market saw a nine-year rally, outperforming even the S&P 500.
- This, combined with increased internet access and discount brokerages, led to a retail investing boom.