Hyderabad Trader Loses ₹27 Lakh in Fake Brokerage Scheme Using Forged SEBI Documents

A Hyderabad-based investor has reportedly lost ₹27 lakh in a sophisticated trading fraud that leveraged forged documents and the reputation of established financial institutions. The case highlights the growing vulnerability of retail investors to schemes that utilize fake Securities and Exchange Board of India (SEBI) credentials to solicit funds on social media platforms.

Background and Context

The alleged fraud involved operators impersonating major share broking firms, specifically Tata Capital Ltd and Fyers Broking Ltd, to lend credibility to their operations. According to the complaint filed on March 10, 2026, the fraudsters promoted a scheme promising high returns through short-term stock trading, claiming they could purchase shares at discounted prices and sell them for profit within days. To assure potential victims of their legitimacy, the perpetrators allegedly produced membership certificates falsely claiming registration with SEBI.

Key Figures and Entities

The complaint was lodged by Raju Thangellapalle, a resident of Madhapur, Hyderabad, who alleges he was deceived by individuals posing as executives of the aforementioned firms. The suspects reportedly communicated via WhatsApp and group chats, inducing investors to transfer funds to various bank accounts rather than official corporate accounts. The complaint identifies individuals such as Sudha Bhushan as points of contact and lists accounts at Punjab National Bank, Karur Vysya Bank, Kotak Mahindra Bank, and The Nainital Bank as repositories for the illicit funds.

Legal and Financial Mechanisms

The scheme utilized a complex "QIB" (Qualified Institutional Buyer) narrative, ostensibly running in three-month cycles. Victims were directed to download a mobile application to track their trades and profits. According to the complaint, the app displayed fictitious returns, showing Mr. Thangellapalle a balance of over ₹87 lakh. However, the mechanism relied on a classic diversion tactic: investors were instructed to deposit money into "partner" accounts allegedly authorized by SEBI, rather than regulated escrow or corporate accounts. When the cycle ended, the organizers ceased communication, and the application ceased functioning, preventing any withdrawal of funds.

International Implications and Policy Response

This incident underscores the regulatory challenges posed by decentralized financial advice on encrypted messaging platforms. It reflects a broader pattern where fraudsters exploit the lack of strict verification on social media to impersonate regulated entities. The case adds to the urgency for stricter enforcement of digital advertising standards and real-time verification mechanisms for financial apps, ensuring that registration claims can be instantly cross-referenced with official regulator databases.

Sources

This report draws on the complaint filed by Raju Thangellapalle on March 10, 2026, and reporting by Hyderabad Mail. Information regarding the corporate status of the impersonated firms was verified through their official registrations.