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High returns in less time may lead to big troubles says SEBI

Capital markets regulator Sebi has launched an all-out mass media campaign to make the public aware about troubles of investing on hearsay and in pursuit of high returns in less time.

Using various media including TV, radio and print, the Securities and Exchange Board of India is specially targeting the collective investment schemes (CIS) wherein investors are promised doubling of their investments within a few months, or guaranteed fixed returns for their entire life after investing some thousands or lakhs of rupees.

For the maximum impact, Sebi has roped in professional agencies for these campaigns and have made them in as many as 13 languages.

“High returns in less time is trouble,” the regulator said, while asking the investors to check the investment scheme details carefully before investing.

Besides, Sebi has also been cautioning investors through its investor education meetings across the country.

A large number of such fraudulent activities, many of which are in nature of Ponzi schemes wherein money is collected from a large number of investors, and new investors’ money is used to give returns to some previous clients till the operator runs away, have come to light in recent years.

Therefore, SEBI has been diligent while performing the task of preventing such fraudulent activities and have in place proper mechanism for uprooting these obstacles.

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