Motilal Oswal Under Fire
• Investors Cry Foul Over Alleged Mismanagement
• Sprouts News SIT Exposes Investor Grievances
Motilal Oswal Financial Services (MOFSL) is facing serious allegations of misleading investors and poor fund management. The Sprouts News Special Investigation Team has uncovered a troubling case where an investor, Udayan V Shah, suffered significant losses after being persuaded to invest ₹1 crore in the Motilal Oswal Focused Multicap Opportunities Fund (Category III AIF).
MOFSL representatives assured Shah that the fund was personally overseen by Ramdeo Agarwal and showed impressive past returns. However, after subscribing, Shah found the stock selections questionable. His concerns were repeatedly ignored, and the NAV of the fund dropped to ₹66 lakhs at one point. After multiple requests for portfolio adjustments were dismissed, MOFSL finally reshuffled the portfolio—too late to prevent a substantial financial setback. When Shah exited the fund after three years, he received ₹96.78 lakhs, incurring a major loss. He also paid additional charges, including a setup fee and GST, resulting in a total loss of ₹17 lakhs.
• History of Allegations: Not the First Time for MOFSL
This is not the first time MOFSL has faced controversy. The firm was previously implicated in the National Spot Exchange Limited (NSEL) scam, where brokers were accused of mis-selling contracts and manipulating client accounts. In 2019, SEBI declared Motilal Oswal Commodities Broker “not fit and proper” for trading in commodity derivatives. These repeated accusations suggest a pattern of financial malpractice that demands stricter regulatory intervention.
• Sprouts News Special Investigation Team Calls for Accountability
Despite Shah’s repeated appeals to MOFSL management, including Vice President Rishi Bobra, his grievances were ignored. He has now called for MOFSL to reimburse his losses, emphasizing that the firm must take responsibility for its actions. The Sprouts News Special Investigation Team urges SEBI and financial regulators to take immediate action against such practices to protect investors from similar exploitation.
This case raises serious concerns about investor protection in India. Will regulators step in to prevent further financial mismanagement, or will more investors fall victim to questionable investment strategies?
Also Read: Multi-Crore Realty Scam in Ambernath.
1. NSEL Scam and SEBI’s “Not Fit and Proper” Order (2019)
Motilal Oswal was among the brokers accused in the National Spot Exchange Limited (NSEL) scam, a ₹5,600 crore fraud that surfaced in 2013. SEBI found that several brokers, including Motilal Oswal Commodities Broker, engaged in mis-selling, client code modifications, and KYC manipulation. In 2019, SEBI declared Motilal Oswal and other brokers “not fit and proper” to operate in the commodities segment.
2. Allegations of Mis-Selling and High-Risk Products
Multiple investors have accused Motilal Oswal of aggressively marketing high-risk investment products without proper risk assessment. Cases similar to the one exposed by Sprouts News Special Investigation Team have been reported, where clients were allegedly misled into subscribing to Alternative Investment Funds (AIFs) and structured products that didn’t align with their risk profiles.
3. Client Grievances Over Poor Portfolio Management
Several investors have filed complaints against Motilal Oswal for poor stock selection and portfolio mismanagement, leading to heavy financial losses. Many claimed that despite repeated warnings about underperforming investments, the company failed to act in time, resulting in erosion of capital.
4. Insider Trading Allegations
There have been speculations regarding insider trading and preferential stock recommendations, where certain investors were allegedly given early access to crucial market information. While no formal conviction has been made, regulatory bodies have reportedly investigated such concerns in the past.
Appeal to Readers:
At Sprouts News, our readers are our true strength. If you feel you are not getting justice or are in trouble, don’t hesitate to reach out. Our Special Investigation Team is here to help. We stand against chit fund scammers, fraudulent builders, and corrupt politicians. We are committed to providing 100% support to our readers.
TRUE. THEY HAVE A TEAM OF EXECUTIVES WHO PHONE AND SOLICIT CUSTOMERS BY MAKING FALSE PROMISES. ULTIMATELY THE CUSTOMER ENDS UP LOSING A LOT OF MONEY. SEBI SHOULD BAN MOTILAL OSWAL. FRAUDS. FRAUDS. FRAUDS.
Thank u so much
I too own an account with MOFS , I too faced similar case and lost some money, but suddenly pulled back myself from them , one has to be very very careful with them.
Dear Sir,
I wish to bring the injustice being delivered to rail passengers on RAC tickets especially the senior citizens. We three senior citizens two of us are women with serious ailments are forced to travel whole night just sitting with much difficulty and discomfort but paying full fare to the railways like other passengers. Is it justified. Railways just earning double fare at the cost of the nightmarish experiences of the passengers especially if they are old and ailing. I have wrote a mail
to the railway minister and a letter to editor of TOI but to no avail. My point is if railways could not allot a reserved berth to a passenger, it has no right collect full fare from him/her. I can furnish all my details including the RAC ticket we travelled if required.
Regards,
Saroj Kumar Das
Pondicherry
9994436881
RAC ticket holders especially sr. Citizens suffer when they are not alloted confirmed berth by the railways. Railways make profit at the cost of the difficulties and discomforts to the passengers. This just injustice. If railways can not allot berths they do not have right to collect fare for full berth.
Saroj Kumar Das
Pondicherry
9994436881
Authenticity of your news needed.
Hi can you send your mobile no. I want to talk about technical gltich in exchanges and stock brokers. This is a big scam for investors. They makes foolish to investors. Investors huge losses due to technical glitches but there is no protection for investors. No one liable, responsible aur accountability for technical glitches. My Mob no is 8936995671 and u can reach me
It’s true, the am also one of the victim.
Well done sir.
Well done sir
How much money you demand from motilal Oswal to not print this article ??
Horrible fund house, very poor customer service,,it’s risky to invest in the schemes of motilal Oswal fund,, for peace of mind stay away from this house
I have suffered from this fraud ,who all time told me ,this is technical errors,I tried and reimbursed in your account,but cannot do till now date.(12.7.24) option 81100 ce 150 ,Many many time’s request ,but no reimbursed tillnow
Knowledge updation is very poor within the organization. That has to be looked into. Many of your staff even email are not properly attended nor telephonic messages or clarification sought. I am still not aware Research 360 app is yours or not but I am getting reminders to join or subscribe.
Even ur staff is not confirming. This is the state of affairs.
I have lost huge money from motilal..mismanaged company. Frauds
Shame on Moti lal Oswal is a fraud AMC with a sleeping sebi i have also huge % in their Defence fund , where is big mouthed sermon giving ram dev agarwal they all lallas out to make money at investor cost shame ramdev
Excellent dark side of Motilal Oswal is revealed. Even I have few holdings of equity & MF of them which presently running in a loss. You are really eye opener for all the investors by this article. Thanks for everything.
Thank you for your word of caution. What I always thought has come true.
Motilal Oswal is worst company i did not pick phone calls of representatives of company because they continuously work for customers loss
Ramdev agrawal is the biggest fraudster that is reflected on his face itself. Past records of mofl also unclean
Thanks for raising important issues of mis-leading investment advise by inefficient and unknowledge team members. Forcing investors to invest in poorly managed AIF / IAP products.
I need help with motilal oswal finance please help me