An Analysis of the Financial Schemes to Defraud People in the Garb of Sound Investment

An Analysis of the Financial Schemes to Defraud People in the Garb of Sound Investment

Sujoy Kumar Dhar Sr. Icfai Business School (IBS)

June 15, 2013

Different conventional financial schemes are prevalent in the market such as bank deposits, post office schemes. Life Insurance products, Public Provident Fund, Government and Corporate Bond, equity share, mutual fund schemes, real estate, gold, bullion, derivative products, paintings and antiques which offers a certain rate of return depending on the riskiness of the scheme. Apart from these traditional players, , there are Nidhi companies, Chit fund players, Non Banking Financial Companies as well as Financial intermediaries which are alluring the layman retail investors by making a promise of offer a super normal rate of return. Due to the lack of adequate financial literacy and the greed of appropriating above average return, a major section of the retail investors are being trapped by those unscrupulous lenders. As a result, they have to lose their hard earned money and this creates a keen jerking effect to the all stakeholders of the nation. The RBI and SEBI has already conducted different financial awareness program to protect the depositors as well as investors from these ponzi schemes. The objectives of the research paper is to focus on the major threats imposed by the shadow bankers, to analyze the unholy nexus of the media business and chit fund players, to interpret the interdependence between the banks, micro finance institutions, chit fund payers. The methodology of the paper is collecting the secondary data from the different research articles of various national and international reputed journals which are available in Ebscho and Emerald. Simultaneously analysis and collection of secondary data is performed from the Annual Reports of Reserve Bank of India, Security Exchange Board of India, website of the Ministry of Finance, Government of India etc. This paper will give a new dimension in the literature of investment strategies of the Individual Investors

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (, the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: