Delhi Police Bust Investment Scam Network Posing as SEBI Brokers, Arrest Three

Delhi Police have arrested three men accused of running a nationwide cyber fraud racket by impersonating representatives of the Securities and Exchange Board of India (SEBI)‑registered stockbrokers. The syndicate allegedly duped investors of nearly ₹5 million.

The accused, all residents of Odisha, are linked to at least 165 cybercrime complaints across India, with financial trails pointing to transactions worth ₹63.3 million across India.

The arrests stemmed from a complaint in Dwarka, where a victim was induced to invest in secondary stocks, pre‑IPO shares, and off‑market trades using forged SEBI certificates and manipulated trading dashboards. Believing the claims, the victim transferred ₹4.973 million into multiple mule accounts controlled by the group.

One account, operated under M/s Shriji Apparels, was identified as a primary channel for laundering funds. Investigators found no legitimate business activity associated with the entity.

Shell entities and mule accounts were used to layer transactions. Rapid ATM withdrawals and structured transfers aimed to disguise fund flows. Front‑end operators posed as investment consultants, while cash handlers managed withdrawals and dispersal.

Searches at the accused’s premises yielded 17 mobile phones, 21 SIM cards, 124 debit/credit cards, 56 bank passbooks, 25 cheque books, registers with financial entries, two passports, QR codes, and a cash counting machine. 

Delhi Police have recently cracked multiple investment fraud cases, including a massive crypto‑laundering syndicate linked to shell firms, as well as the arrest of two men accused of supplying bank accounts to cybercriminals involved in a forex scam.

BrokersView urges investors to verify a broker’s registration status directly with the SEBI.