The list of pump & dump penny stocks

I just wrote this post about a stock market fraud you need to be aware of - the pump & dump scheme on penny stocks. If you come across SMS/Social media tips peddling penny stocks, do share it below, we will alert all our customers.

Do read this post.

In a pump and dump scheme, the operators (people who hold the majority of the shares of the company) of these penny stocks move the price of the stocks up and down at will. To move the price up, the operators start placing small amounts of buy orders at higher prices incrementally, and since they own all the stock, the price starts moving up. Once it has moved up enough to make retail investors greedy - a buzz is created through SMS, social media, and online forums to push the price up even further. This is when typically most people get sucked into by the stock and also when the operator starts selling the stocks. As soon as the selling is done at these high prices, the buzz stops and the stock falls back to the price where the upward journey started without giving anyone an opportunity to exit.

Some examples of stock tips and the movement in price post the tip. Also, check out the sent person on the SMS, trying to fake that it is a reputed brokerage firm.

  1. Ejecta marketing


  1. Jtaparia project


  1. Bail leasing and finance Co

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  1. Agrophos


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  2. 7NR


  3. Mauria Udyog


If you come across SMS/Social media tips peddling penny stocks, do share it below, we will alert all our customers

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@nithin, This is a kind of eyewash activity you are doing post major scam. When Mr Singh was repeatedly sending and notifying you and your compliance teams who are supposed to save your customers, did not react. But after repeated SEBI complaints, notices, social media communications you are doing eyewash activity. Isn’t this an insane activity. For an Young investor who lost in major stocks like Reliance Capital, YES Bank, they might be looking for better options to recover. I infact called you guys if you can do anything, but never helped me. But for this SCAM there were repeated notifications and you never notified and now coming up with cover up stories to cover your mistake. You could have done a proper justification for this issue, by PAYING ALL CUSTOMER LOSSES. That could have put Nithin and Zerodha’s reputation in Sky High, rather doing that you are doing eyewash and coverup stories. Since you are in hights you may not remember your past history of things. But it is circular in life theory. There were great Legends who were destroyed and hiding in other countries and living a worst life. Customers curse will definately reach you if you fail to safe gaurd your customer. Treat your company like your mother and your customers like your family, if you ever think in that way you will never let your customers fail. If you do so, it is rather better to shut the business and do something else. I am writing this as i lost my life time hard earned savings of 1 Crore. It might be easy money for you now, but once upon a time, when you are at call center remember what is the kind of pain you had. I am having million times of the same that you had those days. The worst thing is till now neither you nor your company did anything to act for these midcapgains victims rather doing cover stories. Shame on You Nithin"Zero"dha.

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Looks like you’ve lost money. It’s natural to blame everyone, but here’s the bottomline.

You invested in it, Zerodha didn’t force you to. If you had made money, would you be coming to this forum and offering to give money to Nithin?

The simple truth this, you hit the buy button and you alone are responsible for it. By the way, the exchanges publish a list of suspicious stocks, you should’ve checked before investing on a random stock tip.

Sounds harsh, but it’s the truth

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@nithin How can I get such messages?
Could have probably saved some money if I had received this message, know what to do when the party gets overcrowded.

@RahulKhanna, Thanks for your response. I am giving to Nithin by the way in the form of DP charges and other taxes that deduct. I am not talking about Give and Take here my friend. Don’t be too supportive without knowing the context. This company whom i truested and opened my account didn’t maintain that trust. They were aware of the fraud on 19th and 22nd December and Scam happened on 26th December. If they could have alerted which they did on 8-Jan-2020 post all over, NOT me there were 1000s of victims could have escaped from this trap. Just don’t reply if you do not know the facts saying will you give if you get profit etc… in this post did i ask for my 10 lakh losses in YES Bank and Rel Capital. I know what i am questioning and i am not fool to question for my losses. After the SCAM happened, so far what did Zerodha did for it’s client information leak. Did they even question any other teams how the info got leaked. Simply sending generic answer it could have happened anywhere in KYC etc… You will understand when you are in situation and company responding with no responsibility. Refer the attached for what I am claiming and then comment what Best service provided to 5 month NEW investor who lost 1 C…

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@Bsuribabu05

I am extremely sorry for your loss, I can feel the pain you might be in. But let us be honest, if you put Rs 1 crore in a bunch of stocks that you don’t understand based on some SMS stock tips, you were being extremely greedy & reckless. I know it sounds harsh, but if you sit back and think about it, that is the truth.

If we as a brokerage business had to pay up for client mistakes, we will have to close our business in a month’s time. There are over 2000 families who directly or indirectly rely on Zerodha for employment. We are an execution platform. Our job is to allow people to buy and sell stocks at the lowest cost and with the best experience possible. We can’t be responsible for the decisions taken by our customers, that is not how this business works. I don’t think it is fair on your part to be trying to make us into some sort of criminal for your mistake.

But I know that even with this new penny stock check in place, greedy and reckless people will still go ahead and buy such stocks upon reading an SMS or listening to an adviser.

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@nithin completely agree with you , it’s not your duty or you in any way associated with this loss. Moreover making this initiative should be considered as your goodwill enhancer and should be welcomed.

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Share%20Investing%20Mantra%20Peter%20Lynch

Peter Lynch

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Sry fr your loss my friend bt it is only you who is responsible, hw cn you expect your brokerage firm to save you or pay you back … the enemy is always inside in your case it was your greed

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@nithin , I have seen BSE maintains the list of such stocks in the category “Unsolicited messages”.

Can’t you block trades in those stocks? Given that the exchange themselves have classified those as danger.

I heard on Twitter other brokers have blocked these stocks (not sure before or after the crash). So how they had flagged these stocks?

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Thanks, sure will check on this.

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I don’t think blocking will solve the problem because there will be lot of people who would complain, I had some stocks and the same was blocked in HDFC, I had to call the Customer care and go through hell to finally be able to sell my shares.

The best possible course of action would be to show message about the risks of getting into such stocks. Nifty shows “Event” just beside it and a similar red warning would suffice in these stocks with explanation once user decides to check the problem with the stock and the fundamental page showing the details.

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YES BANK, RELIANCE CAPITAL is not called scams … Please read the updates / news about companies to know where the company is heading which can help you in taking decisions . But you buy / sell and blaming others is wrong

We like to know where the message is coming from ? Directly from promoter end or any of the traders / investors . Your answer will be helpful to us

Please keep faith in God, HE will give u money through other means

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Yes alert is better than block. I think @nithin has already posted one article where there is Nudge option like an alert.

That being said, as i mentioned, its better to take official list from BSE/NSE.

Because if you consider any stock as bad based on forum replies, and later it goes up, then the client may even sue Zerodha saying you stopped them from profiting of that stock. So as long as BSE/NSE classify a stock as danger, the broker is right in alerting the client.

If you come across SMS/Social media tips peddling penny stocks, do share it below, we will alert all our customers.

“TWL (NSE) is a risky penny stock. Be cautious.” This is the nudge I see when I click Buy on “Titagarh Wagons”

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Who’s right here? Nothing against the TV analyst, just wanted to know who’s more correct! :slight_smile: Exchange, Media, or Broker???

BTW I am very new to this. Pardon my lack of know-how.

@Bsuribabu05
With that 1 crore, rather than buying that company stock,
U should have called to them,they may sell the entire company to u…

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I would suggest people to be wary of unknown stocks, (Any stock, it’s products or services which you couldn’t associate with anything in real life) and if you have done the mistake of getting in unknown stocks which are doing back to back Upper circuit then be even more cautious and don’t wait till you become a trillionare and outrank even Bill Gates, take 5-10-15% on your investment and get out (don’t wait for another UC, for it might never come) look for other opportunities instead, don’t wait and let the stock turn to LC and then cry in forums about being cheated and why the stock is not moving or Scam and other thousand of miserly excuses…

Share market is the Money market, be smart about it or others will be always there to help you get rid of it…

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  1. Continental Seeds (They pushed the stock price from Rs 16 to Rs 102 in a month’s duration)

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