Globe Capital Market Faces ₹35 Crore Fraud FIR by Mumbai EOW

The Economic Offences Wing (EOW) of Mumbai Police has filed a First Information Report (FIR) against brokerage firm Globe Capital Market, accusing it of orchestrating a major financial fraud — involving trade manipulation, fake profit-and-loss statements and unauthorised trading that reportedly caused losses of around ₹35 crore to a senior citizen couple. :contentReference[oaicite:2]{index=2}

How the Scam Allegedly Worked

The scam dates back to 2020 when the victims — a 72-year-old businessman and his wife — opened Demat and trading accounts with Globe Capital Market, transferring a long-held inherited share portfolio under the firm’s management. :contentReference[oaicite:3]{index=3}

They were assured there would be no additional investments; their shares would serve as collateral. The firm purportedly assigned “personal guides” to manage their portfolio and gradually took full control over their account — including OTPs, SMS/email confirmations and full trading permissions. :contentReference[oaicite:4]{index=4}

Between March 2020 and June 2024, the couple received regular account statements showing profits — but behind the scenes, extensive trading, leveraged positions and circular trades allegedly drove massive losses. The fraud came to light in July 2024 when the firm demanded immediate repayment of a ₹35 crore debit balance or threatened to sell their remaining shares. :contentReference[oaicite:5]{index=5}

Legal Action & Implications

As per the FIR, the alleged wrongdoing includes fabrication of account statements, unauthorised trades, and misuse of client accounts — flagged under relevant IPC provisions like cheating and criminal breach of trust. The matter now rests with Mumbai Police’s EOW for further investigation. :contentReference[oaicite:6]{index=6}

The case exposes disturbing practices in some brokerage operations — including manipulation of trades, misuse of client’s login credentials and the issuing of misleading profit-and-loss statements. It serves as a stern warning for investors to remain vigilant, demand regular verified statements and avoid handing over full access to their Demat/trading accounts. :contentReference[oaicite:7]{index=7}

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