So, after a brief lull, we have another Ponzi scheme - a scheme that duped two lakh investors and aggregated about Rs 1100 crores. The scale of people duped would put even Harshad Mehta to shame considering that the "Big Bull" as he was popularly known, could manage to bully only a few banks.
In the latest instance, a couple barely in their 30s managed to con two lakh investors, after floating a company Stock Guru India.
How could somebody coerce as many as two lakh investors to part with their money, especially in a little known company with no track record?
The reason to be worried is that the investing fraternity is beginning to be overwhelmed by greed. It's only because of greed and making easy money on false promises, would you subscribe to a fraud scheme like that floated by Stock Guru India.
It's only because of greed and gullible investors, Ponzi schemes and fraudsters are encouraged.
Today, we are inundated with mails, promising astronomical returns through stock markets. In fact, there is one such mail from a renowned company that keeps harping on the returns its email subscribers had generated, but, never talks of its track record on losses.
Not only bogus schemes, but companies sending out emails offering superlative returns through stock tips should be barred. Gullible investors who have shown very little prudence have lost money in plantation schemes, ponzi schemes, chit funds and through stocks tips from analysts with dubious track record.
In fact, each time the market rallies, such tipsters, offering tips through newsletters increases. There should be a crackdown by the competent authorities, even as investors stop being naïve and stupid to subscribe to these schemes.
It's just that we have to remember the phrase "caveat emptor", which means buyer beware in Latin, which many students of Economics would remember, but fail to pay heed to. But greed to make quick money, overwhelms us.
The Bible is so right in pointing out that the "Love of money is the root cause of all evil".