Ponzi Scheme Promising 22% Returns Scams Indian Investors, Causing $100 Million Loss

Indian police arrested two individuals involved in the Falcon Invoice Discounting Ponzi scheme, which defrauded investors of nearly $100 million. The scheme promised returns upto 22% and used new investments to pay older ones, as per news reports.

Over 7,000 Indian Investors Duped in Ponzi Scheme

Thousands of investors in India are desperately trying to recover nearly $100 million after falling victim to a Ponzi scheme run by Falcon Invoice Discounting, which promised significant returns on short-term investments, as reported by police and victims interviewed by a news agency.

Indian authorities arrested two individuals on Saturday following a case filed against Falcon Invoice Discounting, which had claimed to offer returns as high as 22% by allegedly connecting investors with major companies like Amazon and Britannia, as per Reuters news report.

Since 2021, Falcon collected ₹1,700 crore (about $196 million) from nearly 7,000 investors. However, it has only refunded half of the invested amount, according to the Telangana police.

Ponzi Scheme Affected Investors Seek Legal Recourse 

Fifty affected investors are exploring legal options to recover a combined loss of ₹500 million. Many investors were introduced to the platform through social media.

The Ponzi scheme operated by using funds from new investors to pay returns to earlier investors, with the remaining money being funnelled into various shell companies, according to authorities. Investigations are ongoing, and law enforcement is actively searching for the founder of Falcon, who is the main suspect in the case.

Some of the victims remain uncertain about whether they will ever recover the money, which in some cases includes their entire life savings.

Conclusion

The Falcon Invoice Discounting Ponzi scheme has left thousands of investors grappling with significant financial losses, highlighting the growing risk of fraudulent investment schemes in India.

As authorities continue their investigation, the case serves as a reminder for investors to be cautious of high-return promises and to thoroughly vet investment opportunities. With many victims still uncertain about recovering their funds, it remains crucial for investors to stay informed and vigilant to avoid falling prey to such scams in the future.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Closing Bell: Sensex Down 29 Points, Nifty Drops to 22,945 on February 18, 2025

The BSE Sensex closed at 75,967.39, marking a slight decline of 29.47 points or 0.04%. Similarly, the Nifty 50 ended the day at 22,945.30, down by 14.20 points, reflecting a loss of 0.06%.

Indian benchmark indices ended nearly unchanged on Tuesday, bouncing back from early declines as gains in the IT sector helped counteract losses in consumer stocks. Caution remained due to concerns over weak earnings, foreign outflows, and global trade issues.

Top Gainers and Losers

Top gainers include NTPC, which rose by 3.19% to ₹312, and Tech Mahindra, which increased by 2.17% to ₹1,701.

Meanwhile, the top losers were IndusInd Bank, which dropped by 2.49% to ₹1,022.10, and Trent, which fell by 2.17% to ₹4,986.

Broader Market Indices Performance

The Nifty SmallCap 100 index closed lower by 1.59%, settling at 15,168.45, reflecting a decline in smaller companies’ stocks. In contrast, the Nifty MidCap 50 remained flat, holding steady at 13,996.75.

The Nifty IT index, however, saw a positive move, rising by 0.95% to 41,464.35, driven by gains in the information technology sector. On the other hand, the Nifty Consumer Durables index dropped by 1.36%, closing at 35,309.30, indicating a pullback in consumer durable stocks.

Oil Prices

As of February 18, 2025, at 04:00 PM, Brent Crude was trading at $75.54, up by 0.43%.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Check Which Bank Offers Aadhaar OTP Account Opening and API Banking

Indian Overseas Bank (IOB) has launched Aadhaar OTP-based online account opening, allowing customers to open a savings account with minimal paperwork. Additionally, API banking is introduced for businesses to process transactions smoothly.

Simplified Account Opening

The bank has rolled out Aadhaar OTP-based account opening and API banking, aimed at enhancing user experience and simplifying banking procedures. Customers can now open a basic savings account online with minimal documentation, following the RBI’s eKYC guidelines.

Initially, the account will have limited features and transaction limits, but customers can later upgrade to a fully functional savings account by completing in-person KYC verification.

API Banking for Seamless Corporate Transactions

In addition to this, the bank introduced API banking, designed to help corporate clients carry out seamless transactions like intrabank transfers, RTGS, and NEFT directly from their accounting or ERP systems.

Through the use of Straight-Through Processing (STP), transactions initiated in corporate accounting systems are automatically integrated with the bank’s Core Banking System (CBS), eliminating the need for manual intervention and reducing the risk of duplicate data entry.

Conclusion

Indian Overseas Bank’s introduction of Aadhaar OTP-based account opening and API banking marks a significant step towards enhancing convenience and efficiency for both individual customers and corporate clients.

With simplified account opening and seamless transaction processing, these services offer a user-friendly experience while adhering to regulatory guidelines. This move also strengthens the bank’s digital transformation, catering to the growing demand for faster and more secure financial services in an increasingly digital world.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Why Are FIIs Selling in India’s Stock Market? FM Sitharaman Attributes It to Profit Booking

India’s Finance Minister Nirmala Sitharaman attributes the recent selling of Indian equities by foreign institutional investors (FIIs) to profit booking. Despite market correction, India’s strong economy continues to offer attractive returns.

FII Profit Booking Amid Strong Returns in Indian Stock Market

As per news reports, Sitharaman highlighted that India’s economy is providing better returns for investors, which prompts them to book profits. “FIIs also exit when they are in a position to lock in profits. The Indian market and economy today offer a good environment where investments are yielding strong returns,” she stated.

It is important to note that FIIs have sold over ₹1.56 lakh crore worth of stocks since October of last year, with nearly ₹1 lakh crore being sold in 2025 alone. This massive sell-off has contributed to a significant correction in stock indices, leading to a reduction in investor wealth.

Finance Secretary Tuhin Kanta Pandey clarified that FIIs are not shifting their investments from one emerging market to another. Instead, in times of global uncertainty, they tend to repatriate funds to their home countries, primarily the US. Pandey suggested that these shifts could be temporary and stressed that India’s markets remain resilient.

Finance Secretary Explains FII Shifts as Temporary

As per news reports the Finance Secretary mentioned that in addition to supply-demand dynamics, growth prospects heavily influence investor behaviour. India continues to be the fastest-growing large economy, with a recently announced Budget focused on growth-oriented measures.

He reassured that while India faces global headwinds, the country is in a strong position to manage these challenges.

FM Highlights Ongoing Efforts to Boost Investment

On the topic of US tariff policies, Sitharaman assured that India is actively working to become more investor-friendly. She highlighted recent Budget announcements related to customs duty reforms, further emphasizing India’s ongoing commitment to creating a favourable investment climate.

India has already implemented several measures in the past two years aimed at protecting local industries and jobs, including periodic reviews of safeguard and anti-dumping duties.

FIIs and DIIs Show Diverging Trends in Market Activity for 2025

So far this year, Foreign Institutional Investors (FIIs) have been net sellers of shares worth ₹1.20 lakh crore, while Domestic Institutional Investors (DIIs) have net purchased ₹1.17 lakh crore of shares.

On February 17, during the trading session, DIIs bought shares worth ₹12,504.11 crore and sold shares worth ₹7,744.34 crore. Meanwhile, FIIs bought shares worth ₹6,826.98 crore and sold shares worth ₹10,764.81 crore.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mid-Day Top Gainers and Losers on Feb 18, 2025: Tech Mahindra Leads the Gains, Trent Among Top Losers

On February 18, 2025, as of 12:30 PM, the Sensex had declined 233.83 to 75,697.87, while the Nifty50 was down 93 points at 22,866.50.

Mid-Day Top Gainers

Symbol LTP % Change Volume
TECHM 1685.85 1.26 12,93,869
APOLLOHOSP 6375.15 1.19 1,25,352
WIPRO 308.15 0.92 55,57,152
BAJAJFINSV 1900 0.27 12,27,326
AXISBANK 995.45 0.25 14,31,795

 

  • Tech Mahindra

Tech Mahindra opened at ₹1,668 and reached a high of ₹1,693 and a low of ₹1,664.05. The previous close was ₹1,664.95, with a current increase of ₹21.40 or 1.29%.

 

  • Apollo Hospitals

Apollo Hospitals opened at ₹6,320, hitting a high of ₹6,389 and a low of ₹6,320. The previous close was ₹6,300.20, with a gain of ₹75.40 or 1.20%.

 

  • Wipro

Wipro opened at ₹305.35, touched a high of ₹311.30 and a low of ₹305.35. The previous close was ₹305.35, with an increase of ₹3.10 or 1.02%.

 

  • Bajaj Finserv

Bajaj Finserv opened at ₹1,892.00, reached a high of ₹1,913.80, and a low of ₹1,880.80. The previous close was ₹1,894.85, with a rise of ₹5.15 or 0.27%.

 

  • Axis Bank

Axis Bank opened at ₹992.95, hitting a high of ₹996 and a low of ₹986.55. The previous close was ₹992.95, showing a gain of ₹2.40 or 0.24%.

 

Mid-Day Top Losers

Symbol LTP % Change Volume
TRENT 4944.5 -2.98 3,40,628
BEL 243.05 -2.19 89,44,856
M&M 2769.95 -2.19 11,90,455
ADANIENT 2186.1 -1.69 5,83,109
ULTRACEMCO 11304.2 -1.62 82,064

 

  • Trent

Trent opened at ₹5,100, with a high of ₹5,119.45 and a low of ₹4,941. The previous close was ₹5,096.45, showing a drop of ₹150.75 or -2.96%.

 

  • Bharat Electronics

Bharat Electronics opened at ₹249, reached a high of ₹249.75 and a low of ₹242.70. The previous close was ₹248.50, with a decrease of ₹5.35 or -2.15%.

 

  • Mahindra & Mahindra

Mahindra & Mahindra opened at ₹2,844, peaked at ₹2,845, and touched a low of ₹2,755.90. The previous close was ₹2,831.95, reflecting a decline of ₹62.45 or -2.21%.

 

  • Adani Enterprises

Adani Enterprises opened at ₹2,240, hit a high of ₹2,240 and a low of ₹2,166.05. The previous close was ₹2,223.70, showing a fall of ₹34.45 or -1.55%.

 

  • UltraTech Cement

UltraTech Cement opened at ₹11,450, reached a high of ₹11,460.60, and a low of ₹11,291.85. The previous close was ₹11,490.10, with a decrease of ₹189.10 or -1.65%.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

 

LIC’s Share Price in Focus; Launches Smart Pension Plan

LIC’s share price traded at ₹766.35, reflecting a modest increase of ₹1.20 or 0.16% compared to its previous close. The stock opened at ₹765.15, reaching a high of ₹772.80 and a low of ₹760.60 during the session. The indicative close is reported at ₹765.99, with the Volume Weighted Average Price (VWAP) also at ₹765.99.

Smart Pension Plan to Strengthen Position in India’s Pension Market

Life Insurance Corporation of India (LIC) has officially revealed that it will launch its new pension product, ‘LIC’s Smart Pension,’ on February 18, 2025. The plan is designed specifically for the domestic market and is a ‘Non-Participating (Non-Par), Non-Linked, Individual/Group, Savings, Immediate Annuity Plan.’

This new plan is expected to enhance LIC’s leadership position in India’s expanding pension and retirement savings sector. As more people seek ways to secure their financial future, the ‘Smart Pension’ plan aims to meet this increasing demand.

LIC Reports Decline in Premium Income in Q3 FY25

For the third quarter of FY25, state-run LIC reported a 9% decline in its net premium income, which stood at ₹1.07 lakh crore. This decrease was driven by a 24% drop in single-premium collections and a 14% fall in first-year premium collections.

Despite the decline in premium income, LIC reported a 17% increase in profit after tax, reaching ₹11,056 crore. This was primarily due to a significant reduction in employee compensation and welfare expenses, which dropped by nearly a third in the December quarter.

However, LIC’s Value of New Business (VNB), which measures the expected profit from new premiums, fell by 27% year-over-year, amounting to ₹1,926 crore for the reported quarter.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Power Grid Share Price in Focus; Wins Bid for Major Transmission Projects in Karnataka, Rajasthan

Power Grid Corporation of India Limited’s stock is trading at ₹262.65 at 11:30 AM on the NSE, reflecting a slight decrease of ₹0.55 or 0.21% from its previous closing of ₹263.20.

The stock opened at ₹263.85 and reached a high of ₹265.00, while its lowest point during the trading session was ₹260.20. The indicative close price stands at ₹261.83, with a volume-weighted average price (VWAP) of ₹261.83.

Transmission Scheme for Davanagere, Chitradurga and Bellary REZ in Karnataka

This project includes setting up a new 765kV / 400kV / 220kV Pooling Sub-Station near Davangere / Chitradurga, and a new 400kV / 220kV Pooling Sub-Station near Bellary.

It also involves the construction of 765kV & 400kV D/C Transmission Lines and the upgrade of existing sub-stations and transmission lines. The entire work will be carried out in Karnataka, the company said in a press release on the stock exchanges.

Augmentation at Fatehgarh-II PS, Rajasthan

This project involves the augmentation of ICT works at both existing and under-construction sub-stations located in Rajasthan.

About Power Grid

The Power Grid Corporation of India was established by the Government of India (GoI) as the central transmission utility. It is a ‘Maharatna’ company under the Ministry of Power, GoI. As of 31 December 2024, the Government of India held a 51.34% stake in the company.

For the third quarter of FY25, the company’s consolidated net profit decreased by 4.1%, reaching ₹3,861.63 crore compared to ₹4,028.25 crore in Q3 FY24. Revenue from operations also saw a decline of 2.7% year-on-year, totalling ₹11,233.03 crore for the quarter ending 31 December 2024.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Gujarat Toolroom Share Price Down for 2nd Straight Day Ahead of the Bonus Share Allotment

Gujarat Toolroom’s share price traded at ₹2.24 at 10:23 AM on February 18, 2025, up from the previous close of ₹2.04. The stock opened at ₹2.24 and peaked at the same level, while the low for the day was ₹2.20.

The Volume-Weighted Average Price (VWAP) stood at ₹2.23. Over the past year, Gujarat Toolroom’s stock has fluctuated between a 52-week high of ₹45.97 and a 52-week low of ₹2.20, reflecting significant volatility. The stock price remains well below its 52-week high.

Gujarat Toolroom Set to Allot Bonus Shares on February 19, 2025

Gujarat Toolroom has announced a 5:1 bonus issue, where shareholders will receive five new equity shares of ₹1 each for every existing share of ₹1 each.

A total of 1,16,03,28,150 shares will be distributed to shareholders on February 19, 2025, just two days away. This was officially disclosed in the company’s letter on February 14, 2025.

Gujarat Toolroom Delays Release of Key Financial Results

The company stated in a press release on the stock exchanges that it could not submit its financial results for the quarter ended December 31, 2024, within the stipulated timeline under SEBI (LODR) Regulations, 2018.

Despite their best efforts, the delay was primarily caused by challenges in gathering accurate data from subsidiaries and the complexities involved in consolidating the financials. Additionally, a temporary vacancy in a key managerial position further impacted internal operations and reporting.

The company assured that it is making all efforts to finalize the results and will submit them as soon as they are approved by the Board. It also requested that no adverse action be taken, emphasising its commitment to addressing the challenges promptly and maintaining transparency with stakeholders.

On February 11, 2025, Gujarat Toolroom Ltd notified the BSE that a meeting of the Board of Directors is scheduled for February 14, 2025. “The meeting will primarily focus on considering and approving the unaudited financial results for the quarter ended December 31, 2024, along with the limited review report,” it said in a press release on the stock exchanges.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Bank Holiday 2025: Are Banks, Stock Market Open or Closed on Feb 19, for Shivaji Maharaj Jayanti?

As per the Reserve Bank of India’s holiday calendar for 2025, February 19 will be observed as a public holiday in Maharashtra for Shivaji Maharaj Jayanti. Consequently, customers intending to complete any essential banking tasks on that day will need to adjust their schedules and visit the branch at a later time.

Details on Bank Holiday in Maharashtra

Banks in Maharashtra will be closed on Wednesday, February 19, 2025, in observance of Chhatrapati Shivaji Maharaj Jayanti.

This public holiday, marking the birth anniversary of the revered figure, is celebrated statewide. However, digital banking services such as internet banking and UPI will remain operational as usual.

However, National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), trading will follow the usual schedule from 9:15 AM to 3:30 PM.

Confirm Bank Holiday Details For Shivaji Maharaj Jayanti

Since bank holidays differ across states, customers are encouraged to check with their local banks or consult the official RBI website for a complete list of region-specific holidays.

In states where the holiday is observed, banks will be closed, and services such as cash withdrawals, deposits, and account-related transactions will not be accessible.

Upcoming Bank Holiday on February 20, 2025

Following the Chhatrapati Shivaji Maharaj Jayanti holiday, banks in Mizoram and Arunachal Pradesh will be closed on February 20 to mark their statehood anniversaries.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

SEBI Orders PMS Firm DGS Capital Management to Stop Onboarding New Clients Over Net Worth Issue

SEBI has halted new client onboarding by PMS firm DGS Capital Management for failing to meet the ₹5 crore net worth requirement. The firm, with ₹201 crore AUM, must comply within 15 days to avoid further action.

Impact on Investors as SEBI Bars DGS Capital Management

Market regulator Securities and Exchange Board of India (SEBI) on Monday barred DGS Capital Management Pvt Ltd from onboarding new clients and from accepting additional funds or securities from its existing clients after the Portfolio Management Service (PMS) company failed to maintain the minimum net worth requirement of ₹5 crore.

The regulator has also given the company 15 days to comply with the regulatory requirements regarding the maintenance of the minimum net worth.

If DGS Capital fails to do so, SEBI may take action, including proceedings for the cancellation or suspension of its registration. As of December 2024, DGS Capital Management manages assets worth ₹201 crore from 19 clients.

SEBI’s Examination Reveals Non-Compliance

According to the 11-page order, DGS Capital failed to file its net worth certificate, certified by a qualified chartered accountant, for the financial years 2022-23 and 2023-24.

The filings from the Ministry of Corporate Affairs (MCA) revealed that DGS Capital’s net worth as of March 31, 2023, and March 31, 2024, was only ₹1.64 crore and ₹1.6 crore, respectively.

The decision came after SEBI conducted an examination of the company’s operations between January 1, 2023, and December 31, 2024. The Portfolio Managers Regulations, 2020, which came into effect on January 16, 2020, allowed PMS companies granted certification before the regulation’s commencement to comply with the net worth requirement within 36 months.

DGS Capital was registered as a portfolio manager by SEBI on October 5, 2015, meaning the company was required to raise its net worth to ₹5 crore by January 15, 2023.

Conclusion

The action taken by SEBI against DGS Capital Management highlights the importance of regulatory compliance in the PMS industry.

By failing to meet the required net worth threshold, DGS Capital now faces potential consequences that could affect its operations. For investors, the move underscores the need for vigilance regarding the financial health and regulatory adherence of the firms managing their assets.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.