Winning Bizness Desk
Mumbai.Mumbai businessman Bharat Harakhchand Shah, 72, lost 35 crore in a trading scam involving Glob Capital Market Limited. The brokerage firm allegedly carried out unauthorized trades and sent fake profit statements for four years. Shah filed an FIR after discovering the fraud, and the Economic Offences Wing of Mumbai Police is now investigating the matter.
Bharatbhai Shah’s entry into the scam
Shah inherited a substantial portfolio of shares from his father, bought during the 1970s and 1980s. Not very familiar with the stock market, he relied on yearly dividends. In 2020, an old friend suggested he place his shares as collateral with Glob Capital, promising annual returns of 15–18 percent without any active involvement. Trusting this advice, Shah and his wife opened demat accounts with the brokerage and transferred all their old shares.
Brokerage promises guided support
The company assigned two representatives, Akshay Baria and Karan Siroya, as Shah’s portfolio guides. Initially, they asked him to place orders over the phone, later visiting his home. They gradually requested OTPs, gaining full access to his accounts. Every year from March 2020 to June 2024, Shah received statements showing profits, keeping him unaware of the actual losses. The company assured him that no extra investments were required and that he would receive personal guidance for his portfolio.
Uncovering the fraud
In July 2024, Shah received a call from Glob Capital’s risk management department stating that his and his wife’s accounts had a debit balance of 35 crore. He was warned to deposit funds immediately, or the shares would be sold. Upon visiting the company, he discovered that large-scale “circular trades” had been conducted without his knowledge, leading to severe losses. He had to sell remaining shares to repay the debt entirely and later transferred the leftover shares to another company.
Evidence of falsified profits
- Shah compared original trading statements downloaded from the brokerage website with the emailed “profit” statements
- Discovered a significant mismatch between actual losses and reported profits
- Multiple notices from NSE were answered by the brokerage in Shah’s name without informing him
- The fraud remained hidden for four years while his account continued to lose value
Impact and lessons
Shah said, “For four years, we were shown a false picture while the real losses kept mounting.” This case highlights the vulnerability of elderly investors to unauthorized trading and emphasizes the need for vigilance. Experts suggest verifying all statements directly with exchanges and avoiding sharing account credentials with brokers.
Investigation underway
The Economic Offences Wing is investigating Glob Capital Market Limited and its employees, including Baria and Siroya. Authorities aim to trace the misused funds and hold the brokerage accountable for misleading clients and unauthorized trades. Investors are advised to regularly check official trading records and seek legal recourse immediately upon suspicion of fraud.
Summary pointers
- 72-year-old businessman loses 35 crore in trading fraud
- Broker falsified profit statements for four years
- Demit accounts of Shah and his wife manipulated
- Circular trades conducted without client knowledge
- Debt repaid after selling remaining shares
- NSE notices ignored by brokerage
- Economic Offences Wing investigating the scam
