Exclusive | Mumbai police EOW files FIR against Globe Capital Market for forgery and cheating

The Mumbai Police’s Economic Offences Wing (EOW) has registered a case against registered brokerage firm Globe Capital Market.

EOW sources have exclusively told CNBC-TV18 that, "We have booked Globe Capital Market for allegedly submitting forged and fabricated profit-loss annual statements, manipulation of share trading activities, and executing continuous circular buying and selling transactions with the same party in order to deliberately create losses."

The EOW’s action is based on an FIR initially registered at Mumbai Police’s Vanrai Police Station following a complaint by 72-year-old Bharat Shah.

According to the EOW, Shah and his wife inherited a share market portfolio belonging to Shah’s father in 1984. However, as the couple was not market savvy, they did not actively trade for several decades. In 2020, on the suggestion of a friend, they opened demat and trading accounts with Globe Capital Market.

In his complaint, Shah stated that their relationship managers from Globe Capital Market, Akshay Bariya and Kiran Siroya began calling the couple daily and provided them with trading details, which they would note down. Later in the day, other representatives of Globe Capital Market allegedly contacted the couple and asked them to place trading orders.

The complainant has claimed that he shared all emails, messages received from the National Stock Exchange (NSE), as well as OTPs, with the relationship managers.

As per the FIR, in July 2024, Shah received a call from Globe Capital Market’s risk management department informing him that he owed ₹

35 crore to the firm. He was allegedly told that his and his wife’s demat accounts showed a negative balance of ₹35 crore and that their shares would be sold if the amount was not paid.

Fearing liquidation of their holdings, the couple sold their shares and paid

₹35 crore to Globe Capital Market, the complaint states.

Subsequently, the couple decided to get their accounts audited. During the process, they allegedly discovered multiple notices issued by the NSE to Globe Capital Market regarding their accounts, along with replies sent by the firm. The complainant claims neither he nor his wife was aware of these notices or the responses.

The FIR further states that upon reviewing NSE communications, the couple realised that large futures and options (F&O) trades had been executed through their accounts, with call and future options being given and received by the same party.

The complainant also alleged that Globe Capital Market had been sending them fake and fabricated transaction statements over the years, falsely showing profits.

EOW sources told CNBC-TV18, “As the couple was receiving calls from multiple teams of Globe Capital Market and the account statements are alleged to be fabricated, we have filed an FIR against the entire firm. We suspect similar acts may have been committed with other customers as well. Summons will be issued to the concerned persons from next week.”

Sources told CNBC-TV18 that the complainant approached SEBI with their complaint but it was disposed of by the regulator.