Are there scams or fraud cases related to IPO GMP?

Vikram singh
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IPO GMP Scams: Common Fraud Cases & Prevention

IPO GMP Scams: How Fraudsters Manipulate Grey Market Premiums

1. Common GMP-Related Scams

Scam Type	How It Works	Real Example
Pump-and-Dump	Artificially inflate GMP to lure retail investors, then sell at listing	2023: SME IPO showed ₹120 GMP via fake trades, listed at -15%
Fake GMP Numbers	Circulate inflated GMP on WhatsApp/Telegram to create hype	2022: 3 brokers fined ₹5 crore for spreading false GMP data
Kostak Rate Fraud	Promise allotment guarantees at high premiums but disappear	2021: Delhi group scammed ₹3.8 crore in pre-IPO “deals”
Payment Scams	Take money for grey market trades but never deliver shares	2023: Mumbai operator vanished with ₹2.1 crore investor funds

2. How to Spot GMP Scams

Red Flag 1: GMP rising but subscriptions remain low
Red Flag 2: Dealers refusing UPI/bank transfers (only cash)
Red Flag 3: “Guaranteed” high returns claims
Red Flag 4: No verifiable trade volumes behind GMP

3. SEBI Actions Against GMP Fraud

2023: Banned 14 entities for artificial GMP inflation
2022: Started monitoring WhatsApp groups spreading fake GMP
2021: ₹6 crore penalty on Karvy for grey market manipulation

4. How to Protect Yourself

Verify GMP across 3+ reliable sources (Chittorgarh, IPO Watch)
Check volumes – Real GMP needs 5000+ shares traded
Avoid cash deals – Only use traceable payment methods
Compare with fundamentals – High GMP without profits is suspicious

5. Recent Major Cases

Year	Case	Amount Involved
2023	Fake GMP WhatsApp groups	₹120 crore investor losses
2022	Pre-IPO financing scam	₹85 crore
2021	Fake Kostak rate fraud	₹18 crore

6. Safe Alternatives

SEBI-approved pre-IPO funds
Anchor investment through mutual funds
Wait for listing – Avoid grey market risks

Remember: SEBI doesn’t regulate grey markets – you have no legal protection in GMP trades.

Disclosure: The information provided on ipogmptracker.in is for informational and educational purposes only. All IPO-related data, including Grey Market Premiums (GMP), subscription figures, financials, and expected listing gains, are collected from publicly available sources and market speculation. These figures are unofficial, dynamic, and may not reflect actual market trends.

We do not guarantee the accuracy, completeness, or reliability of any data published on this website. IPO investments are subject to market risks, and readers are advised to perform their own due diligence or consult with a SEBI-registered financial advisor before making any investment decisions.

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