BluSmart Saga: 10 Redflags Of Scam, According To Vijay Kedia

The Securities and Exchange Board of India (SEBI) has barred Gensol’s BluSmart from market access amid scrutiny over fund diversion. Market expert Mr Vijay Kedia has shared the top 10 red flags to identify potential scams. 

Companies making exaggerated statements about their future achievements and potential points, which are unlikely and unrealistic, point out a company’s status.  

News coverage, hyperactive social media posts and endless interviews can be favourable, but an unsupported substantial achievement can be a tactic to create a false sense of progress.  

Presenting minor updates on daily occurrences as a breakthrough to create positive news flow artificially, and can be a spotter for scams.  

Seeking capital regularly without transparency on previous funds can indicate financial instability, poor planning or even misuse of funds. 

Entering a new sector based on hype without planning or core strategic alignment leads to mismanagement and poor funding. 

Employing trending jargon can be a superficial attempt to appear cutting-edge and mask a lack of genuine progress.  

Extravagant spending by promoters during a company's financial instability can raise concerns over shareholder value and the potential siphoning of funds.  

A significant promoter's shares as collateral for loans can lead to increased volatility and risk for other shareholders.  

High turnover in critical leadership can indicate internal instability and disagreements on strategy or ethics regarding the company's financial health and governance.  

A high volume of transactions connected to promoters or management without a clear business rationale can create conflicts of interest for minority shareholders.