Avoid Stock Market Scams: Proven Strategies for Profitable Investments!

 The number of people interested in investing in the stock market is constantly increasing. While people's interest in the stock market has increased, on the other hand, doubts and questions about the stock market have also increased.

Sundararaman Ramamoorthy, Managing Director of the Bombay Stock Exchange, answers various doubts and questions about stock investment. Questions raised by stock market consultant and investment expert V. Nagappan and answers given by Sundararaman...


Avoid Stock Market Scams in india


Tell me about the efforts you have taken in the company after taking over as the Managing Director of the Mumbai Stock Exchange?

''Before I took over, the Bombay Stock Exchange was an institution in Operational Loss. This institution includes many parties such as shareholders, board of directors, employees, our clients, stock brokers and their clients. We thought about what we can do for each of them to revive this stock market. First, we decided to fill the necessary and vacant positions in the company.

We cut unnecessary expenses and hired employees with the money we got. Next, we introduced new technologies. We visited almost 350 stock brokers in their offices. Our actions like this created trust with the customers. The company also grew.’’


We have been discussing the stock market operating all day for a long time. Is there a possibility of that..?

‘’The working hours of the stock market are something that have been changing for many years. Until 1980, the stock market operated only from 12.00 to 2.00, today it operates from 9.15-3.30. Time has always been a controversial issue. If the stock market and the customers in the stock market want more time, the stock exchangers have the ability to give more time. Only if everyone is united and works 24 hours a day can it be possible!’’


The Mumbai Stock Exchange has provided a way for many companies in the MSME (Micro, Small & Medium Enterprises) sector to raise capital. While this is a good thing, on the other hand, there is also a possibility of misuse. What efforts have you taken to prevent this?

‘‘There are nearly 6 crore SME companies in India. Out of these, only 578 companies are listed on the Mumbai Stock Exchange. These 578 companies have raised around Rs 9,500 crore capital from the market. The current value of this raised capital is around Rs 1.75 lakh crore. These SME companies are the backbone of the country’s economic growth. Meeting their capital requirements is good for the economy as well. That is the main objective.

Only a few hundred SME companies are listed on the stock exchange in India. There are still over 5 crore SME companies that are not listed. Among those companies, there may be some bad companies. So we have to be careful. When such companies apply to us for listing on the stock market, we have developed a new software incorporating technologies like Generative AI and LLM to verify their credibility. Through this, we can easily verify the data of the companies. This is just the first step. Also, there are ideas for many initiatives. We will do them over time.’’


There are a lot of online frauds related to the stock market. What efforts have you taken to prevent such frauds? What advice do you give to investors to avoid this?

‘’Most people have the desire to earn money. There is nothing wrong in thinking that we should increase the money we earn throughout our lives. But we should invest it in the right place. If we know, analyze, measure and understand what, where and with whom we are investing, investors will never face losses.

You can invest in mutual funds. You can invest in the right company stocks. Growth in proper investments, although slow, will be complete. But, greed blinds many people. They get caught up in scams. Both SEBI and stock exchange platforms like us are constantly making efforts to create awareness among investors. Every year, we allocate funds for this and conduct awareness programs. We are also creating awareness through social media and media. Considering the welfare of investors, SEBI has recently announced that it is implementing a new facility called Verified UPI Facility.

Currently, approximately 8 lakh people attend awareness programs every year. This should be increased to 8 crore. People should not only attend these programs, but also adhere to them. We are trying to translate investment-related information manuals into regional languages. This will be very useful for most people.’’


Beyond this, what should those who get into problems do, how to complain?

‘‘It is better to go to the Scores (SEBI Complaints Redressal System) platform at the very beginning to complain about stock market frauds. Investors will get a solution by complaining there. There is something called the Investor Protection Fund. Through this, investors can be provided with compensation subject to conditions.’’


ipo in india


IPO issuances take a long time, is there any way to reduce it?

‘‘There are three types, Pre-IPO, IPO, Post IPO. Apart from Pre-IPO, in the remaining two, a client can participate through his broker. However, this is not possible in Pre-IPO. This may change in the future. It is possible to reduce the time with today's technologies. We are taking efforts for that. We are confident that we will complete it soon.''


It seems that investments in Tamil Nadu are slowly increasing. What should investors in Tamil Nadu do?

''Tamil Nadu is in second place in contributing to India's economic growth. One crore investors from Tamil Nadu invest in the stock market. If we compare the population and economy of Tamil Nadu, the people of Tamil Nadu can invest even more. The people of Tamil Nadu invest a lot in two assets, gold and real estate.''


Is it good to invest in gold ETFs and silver ETFs?

''It is better to invest in gold ETFs and silver ETFs than to buy gold and then sell it to lose all the money and stand at a loss.''

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invest in gold ETF and silver ETF


What do you think are the qualifications for a good investor?

“First, the search for knowledge that I will read and learn about investments myself, second, risk awareness that I can bear the risk in this investment, and third, continuous learning is required. We should not leave it as if we have invested and everything will be fine. We should also continue to learn investment-related things according to the investment period, goal, and risk.”

good investor in india


What are your plans for the next phase of development of the Mumbai Stock Exchange?

“30% of the country’s population is in the age group of 30-35. It is our duty to provide them with a good platform to invest. The role of youth is always essential for the development of the country. Not only men should invest, women should also be more involved in investment. For all this, necessary facilities and awareness should be created.

Similarly, many foreigners and Indians living abroad are thinking of investing in India. The most important thing in this is how to bring money into the country. 4.32 million Indians are in Dubai. They send 15% of their income to their families. Of the remaining 85%, they invest the rest abroad to cover their expenses. We should make them invest in our country.

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