Prop Trading Scam Uncovered: No KYC, No Paper Trail; Misuse of Leverage Runs on Victim’s Trust

A ₹150 crore worth scam, where investors and agents casually handed over funds to an entity not registered with SEBI. A new scam in the name of prop trading — with no KYC, no agreement, and no paper trail. This is the story of one of the wildest prop-trading scams pulled off on a fake terminal.

How the Scam Surfaced

As per a Moneycontrol report, the scam first surfaced in Surat, where traders and investors believed they were trading through a reputable broker. The promised returns were unbelievable — a trader depositing ₹1 crore could get exposure up to ₹7 crore, with only 4% interest. Money began flowing smoothly until the terminal suddenly stopped working. Two individuals associated with Green Wall — Nimit Shah and Hiren Jadav — went missing.

What is Prop Trading?

Prop trading (proprietary trading) happens when a brokerage or firm trades using its own money instead of clients' funds. The firm earns the full profit (or loss) instead of just commissions. In simple terms: your money, your risk, your profit. Strict rules govern prop trading, and it is not meant for outsiders seeking leverage.

What Happened in Green Wall Enterprises?

According to reports, Green Wall Enterprises offered attractive leverage arrangements to brokers in Surat. Darshan Joshi, linked closely to the scam, had clients across Delhi NCR, Jaipur, Ranchi, Kolhapur, and more. His firm iTrade Associates also collapsed.

Green Wall allegedly let outsiders trade through prop accounts — offering leverage with no paperwork. Unregistered agents arranged limits and margins, earning commissions while traders got easy leverage. The system was extremely risky — a default by one trader could collapse the entire chain.

Joshi later claimed he too was a victim. Green Wall was said to be acting as an agent for Jainam Stock Broking, but Jainam denied this. Reports suggest Jainam may still be settling some losses quietly.

Scale of the Scam

The scam was initially estimated at ₹40 crore, but the amount is now believed to be around ₹150 crore. Some investors are scared, while others are waiting for compensation.

Action Taken

One of the key accused, Hiren Jadav, has been arrested. The Economic Offences Wing (EOW) of Surat Police is investigating the case. SEBI has also ordered exchanges to look into misuse of prop-trading accounts.

Key Lessons

• Always verify broker registration with SEBI.
• Never invest without KYC and proper agreements.
• Be cautious of unrealistic returns or high leverage offers.
• Avoid dealing with unregistered intermediaries.