'SME Company Raised Rs 44 Crore Via IPO': Zerodha's Nithin Kamath Refers To Scam; Warns - Post

Zerodha's Nithin Kamath issued a warning on X regarding online frauds, citing examples of two recent scams that were struck down by SEBI . He also added a post which detailed the two scams in Zerodha's daily brief.

What Did Nithin Kamath Write?

"SEBI recently passed two orders related to two different scams. In the first scam, an SME company raised Rs 44 crores through an SME- IPO to buy software, among other things. But the company that it was buying software from was a shell company complete with fake financials and a fake list of clients." he wrote.

"The second order was against a popular finfluencer who collected Rs 17 crores by selling courses, seminars, etc. This just proves that old saying: if something is too good to be true, it almost always is. Taking shortcuts to make a quick buck is the surest way to lose money in the markets. We wrote about both scams on the @zerodhamarkets Daily Brief—link in the comments." he wrote

What Are The Two Scams Kamath Is Talking About?

The first one is where SEBI canceled the SME IPO of Trafiksol ITS Technologies, and asked them to refund the money of the investors. The second scam is of Nasiruddin Ansari, who was banned by SEBI and fined Rs 17 crore for misleading investors to deal in stocks.

Kamath linked the video on X wherein they discussed these scams in detail