Another revelation in the stock market scam: profits shown, but losses disappear! How did such a massive fraud happen?:

News Topical, Digital Desk : A stock market scam has come to light, with no agreements, no KYC, and no official records. Everything relied on trust, and as soon as that trust was broken, crores of rupees vanished. A Moneycontrol report revealed that traders in several cities were lured with promises of "high leverage and huge profits .

First, what is Prop Trading?
Answer: Prop Trading means a brokerage trading with its own money. SEBI rules clearly state this facility is not open to the general public. Trading should only be done with the brokerage's own capital, not with money from outside investors.

So how did the scam happen?
Answer: What was happening in real life was different. Brokers collected money from retail investors through agents and transferred it to prop accounts.
-No KYC
-No paperwork
-No agreements
-Everything was done via WhatsApp and phone calls.

-People were told, "Just give us your money, and we'll provide you with leverage. If there's a profit, you'll get a share." This entire model was a dark system built on trust.

How were the funds taken? Answer: Sometimes through UPI, sometimes through a transfer to a bank account in a different name, and sometimes in cash. Meaning, the money never reached the official broker account. Therefore, there's no paper trail.

How was such leverage obtained? Answer: The agent negotiates informal arrangements with brokers, such as, "You give me leverage at 4%, I'll pay you at 6%." The agent earns the middle money. An investor, for example, deposits 1 crore rupees. In return, they receive a trading limit of up to 7 crore rupees.

They think, "Wow! Great opportunity!" And that's it... they get stuck. Why is everyone happy as long as they make a profit? Answer: Because...brokers get brokerage + interest. The agent gets a commission. The trader gets a profit. But as soon as a trade with a significant loss is placed, everyone says, "We didn't know, it was your responsibility." At that time, no agreement or signed document is produced.

Who suffers the loss? Answer: The trader. Their money gets stuck. The broker claims the money wasn't deposited. The agent disappears. Because there are no papers, no KYC. So, there's no legal case.

Does SEBI have any action against this? Answer: SEBI's rules are very clear: Prop Account = broker's money only. Public money pooling = legal crime. Still this model was running in Delhi-NCR, Mumbai, Rajasthan, Gujarat, Bengaluru. How did people get trapped - Answer- -Telegram/WhatsApp groups -Fake P&L screenshots on Instagram/YouTube -Greed of “quick returns” -The biggest weapon of these agents is - Screenshot of Profit.

“Everyone is yours in profit, no one recognizes you in loss.” Prop Trading gives profit only till everything is going well. But as soon as loss occurs, the entire system leaves you alone.