Mumbai Police Uncover Major Investment Fraud by Illegal Trading Platform
Mumbai police investigate 'Close Friends Traders' for operating an illegal trading platform that allegedly defrauded over 500 investors through unauthorized margin trading schemes.
Mumbai Police headquarters where the BKC division is investigating the Close Friends Traders investment fraud case
Mumbai's BKC police have launched an investigation into 'Close Friends Traders', an unregistered trading platform accused of orchestrating a sophisticated investment scam that targeted over 500 investors through illegal margin trading practices.
Investigation Details
The case, similar to recent financial manipulation schemes uncovered globally, came to light after the National Stock Exchange (NSE) discovered suspicious advertisements in Hindi newspapers on July 13. The platform falsely claimed to be India's largest margin trading service provider.
Key Findings
- Platform offered unauthorized Demat accounts without documentation
- Promised unrealistic high-margin returns to investors
- Operated illegal "dabba trading" operations
- No valid registration with regulatory authorities
Legal Action
Following patterns of systematic criminal activity seen in other cases, authorities have identified two primary suspects: Raju Mataprasad and Hariprakash, both Delhi residents. The case highlights growing concerns about digital fraud and regulatory challenges in India's financial sector.
Regulatory Response
The police have registered an FIR under multiple sections:
- Banning of Unregulated Deposit Schemes Act, 2019
- Bharatiya Nyaya Sanhita sections for cheating
- Common intention provisions
The NSE issued an official notice on July 15 declaring Close Friends Traders an illegal trading platform, warning potential investors against engagement with unauthorized financial services providers.
Jasmine Demraoui
Journalist in governance and climate reform, based in Windhoek.