Market regulator SEBI on Tuesday unearthed a phoney investment syndicate in the national capital wherein a large number of people could have been defrauded in the name of investments made by their deceased family members.

Acting on a complaint, the Securities and Exchange Board of India probed a case of an investor getting phone calls for impressive returns on mutual fund products purchased by his deceased son, provided further investments were made by the person.

The preliminary investigation by the SEBI, with the assistance of the Economic Offences Wing of the Delhi Police, however showed that there was an organised attempt by several people to defraud the gullible investors.

“It is suspected that the number of victims could be much higher, which would be revealed in due course after further investigations,” the regulator said in a statement.

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