NSE Unlisted Shares Scam: ED Raids Investment Firms, Freezes Bank & Demat Accounts; Individuals Under Probe

The Enforcement Directorate (ED) has intensified its probe into an alleged investment scam involving the sale of so-called unlisted shares of the National Stock Exchange of India (NSE). As part of the investigation, the agency conducted search operations at eight locations across Mumbai and Chennai on February 27.

NSE Unlisted Share Investment Case: ED Targets Firms and Directors

According to an official statement, the searches were carried out by the ED's Headquarters Investigation Unit under provisions of the Prevention of Money Laundering Act (PMLA). The action is linked to a suspected money laundering case arising from alleged fraudulent investments in unlisted shares of the stock exchange.

Names of the Firms and Individuals Under Investigation

During the operation, the ED searched premises associated with several companies and individuals suspected of playing a role in the scheme. Among the firms that came under scrutiny were Atum Capital Pvt Ltd, Optimus Financial Solutions Pvt Ltd, Babli Investment Pvt Ltd, and Supremus Angel, along with their directors.

The investigation has also named several individuals, including Satish Kumar, Sanjay Damani, Neeraj Nisar, Krish Vohra, Manish Soni, and Nisha Kumari. Investigators believe the group functioned as a coordinated network that allegedly misled investors by offering allocations in NSE's unlisted shares.

Know About NSE Unlisted Shares Scam: How the Alleged Fraud Worked

Officials said the accused approached investors claiming they could provide shares of the NSE through private share purchase agreements. Investors were reportedly promised the opportunity to buy these shares at attractive valuations before the exchange's potential public listing.

However, investigators claim that the accused did not actually possess the NSE shares they were offering. Since the exchange is not listed on any stock exchange, such shares are traded privately and do not go through regular exchange settlement systems like those used on the NSE of India or the BSE Ltd.

Authorities believe the group exploited this informal trading environment to convince investors to make large advance payments.

Assets and Documents Seized

During the raids, ED officials recovered property papers, digital devices, financial records and other documents that the agency believes may help establish the financial trail in the case.

Investigators also traced funds collected from investors to multiple bank accounts, alleging that part of the money was diverted toward the purchase of movable and immovable assets.

As part of the ongoing probe, the ED has frozen several bank and demat accounts linked to Satish Kumar, Sanjay Damani, and related entities under Section 17(1A) of the Prevention of Money Laundering Act, citing suspected proceeds of crime.

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