Edelweiss Mutual Fund CEO and MD, Radhika Gupta, advised investors to stick to “dal-chawal” investing without hoping to turn their fortunes around overnight. Gupta was referring to a Rs 2,200 crore trading scam that was unearthed in Assam.
Assam Police arrested two people – Vishal Phukan and Swapnil Das – from Guwahati in connection with a Rs 2,200 crore financial scam over fraudulent online stock market investment. The duo enticed gullible investors with guarantees of 30 per cent returns on their investment within 60 days.
“(Rs) 2200 crore of fraud is heartbreaking stuff. How many reminders do we need that there is no fast route to riches… and usually if such a route is advertised with fancy cars in tow… it leads to fatal crashes. Stay safe. And stick to dal-chawal investing. It works. Without indigestion,” said Gupta on social media.
'Dal-chawal' funds, as referred to by Gupta, are all-weather funds, encompassing a wide range of sectors. These funds are designed to make steady returns even amid volatile conditions. As the name suggests, the 'dal-chawal' funds are much like the Indian staple – they are reliable and go easy on the investor.
Meanwhile, Assam Chief Minister Himanta Biswa Sarma said that the police have launched a crackdown on illegal online trading. He also urged the public to remain cautious and not to invest through brokers who do not follow due legal procedures.
Multiple reports have also stated that several online trading firms were doing business in the state without following SEBI or RBI guidelines. There is a law, banning unregulated deposit schemes and aggrieved individuals can take help of its provisions for redressal, he said.
Phukan and Das, the accused in the scam, used their luxurious lifestyle to lure investors. They established four fake companies, also invested in Assamese cinema, and acquired several properties as part of the scheme.
A raid in Phukan’s residence in Dibrugarh uncovered documents linked to the alleged scam. Assamese choreographer Sumi Borah is also allegedly connected to Phukan’s network.