Big Take As India’s Stock Market Surged, So Did Investment Scams
Apr 2, 2025
Alex Gabriel Simon, a Bloomberg Stocks reporter based in Mumbai, discusses India’s stock market boom and the alarming rise of investment scams. He shares gripping stories of retail investors who lost their savings to fraudulent schemes, often presented as genuine opportunities. The conversation highlights how these scams threaten the financial security of countless individuals and could jeopardize the government's efforts to attract global investors. Simon also touches on the need for regulatory measures and increased financial literacy to combat this growing issue.
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Saraswatha's Story
- Saraswatha, a doctor, lost $700,000 in a sophisticated scam involving a fake Geojit Financial Services app.
- The app mimicked the real brokerage, even having a SEBI registration number, and showed incredible gains before disappearing with his money.
Scams Undermine Market
- India's stock market boom has led to a surge in financial scams, with 150,000 reported victims in 2023.
- This undermines Prime Minister Modi's efforts to attract global investment.
India's Market Boom
- The Nifty 50 Index saw nine years of gains, outperforming global markets and the S&P 500.
- This attracted millions of new retail investors, tripling trading accounts in five years.