A recent financial crash has left many leveraged traders in the NCR, Jaipur, Ranchi and Kolhapur regions facing a severe crisis, with many becoming insolvent and fears of a spillover to other cities.
Prop trading scam from Surat spreads nationwide
The proprietary trading scandal that began in Surat earlier this year is spreading rapidly across other parts of India, drawing widespread attention from the financial world. Green Wall Enterprises (also known as Greenvol Enterprises), suspected to be linked to Jainam Stock Broking, has collapsed, causing heavy losses to investors and leveraged traders in several cities. This is being viewed as one of the biggest unregulated financial scams in recent times.
According to financial sources, iTrade Associates – a Greater Noida-based company run by Darshan Joshi (aka DJ) – which is said to have close links with Green Wall, has suddenly collapsed. The incident has left around 40 crore rupees of investment capital stranded, however Moneycontrol has not been able to independently verify the figure.
The victims filed a formal complaint with the Surat police, claiming that iTrade Associates, a company managed by DJ, was liable to pay compensation of 22.06 crore rupees for the losses they suffered. Notably, industry experts say many of the cash transactions were conducted through informal channels. These transactions, which rely heavily on trust between the parties, are not recorded or included in formal complaints.
The information gathered revealed that DJ had established a clientele spread across multiple locations, including Delhi NCR, Jaipur, Ranchi, Kolhapur, and other nearby areas. Green Wall Enterprises allegedly acted as an agent of Jainam Stock Broking, which provided limits for proprietary trading. However, the existing regulatory framework prohibits any intermediary brokerage structure, except for authorized persons (APs) or individuals who have previously held the title of sub-broker.
The sudden disappearance of Green Wall executives in August came as a huge shock. Business partners had been under the impression that Green Wall was a legitimate subsidiary of Jainam Stock Broking. This belief stemmed from the fact that Green Wall had openly used Jainam’s name and advertising signs in its operations.
In an official response sent to Moneycontrol via email, Jainam has completely denied any connection with Green Wall Enterprises. The company categorically stated, “Green Wall Enterprises does not act as our agent. They have absolutely no association with Jainam, and we have never entered into any transaction with them.”
Therefore, Jainam Broking Ltd disclaims all liability for the activities or transactions carried out by Green Wall, iTrade Associates or Darshan Joshi, on the basis that there is no relationship between the two parties.
In an interview with Moneycontrol, Darshan Joshi of iTrade Associates and iTrade Capital candidly stated that he too had suffered losses. “I completely sympathize with all the investors who lost their money. I am constantly in touch, doing everything possible to recover the funds and have appealed to everyone to stand together.” On the legal front, DJ has filed a complaint with the Surat police, which has been accepted. He is also in the process of filing an FIR with the Noida police, showing his determination to resolve the matter.
Krishan Yadav, a former merchant ship captain and one of the victims of the proprietary trading incident, agreed to share the information with Moneycontrol. He described the entire system as operating in an unusual and unorthodox pattern.
iTrade Associates provided F&O trading equipment and collected margin money for Green Wall. iTrade claimed that the money was transferred to Jainam Stock Broking through DB Wealth and Ashapura Commodities. However, Jainam has officially denied any connection, stating that it has no relationship with Green Wall Enterprises.
According to Krishan, iTrade Associates initially tried to address the crisis by setting trading limits from other partners. They also pledged to cover costs by selling assets in their portfolio. Unfortunately, all of these remedies only lasted a few weeks before they stopped.
Krishan Yadav said he had invested all his life savings. As a result, not only was his entire capital gone, but so was his income from stock trading, his main source of livelihood.
Jainam Broking fallout: From Rs 5 crore to hundreds of crores
The initial loss from the scam was pegged at around 5 crore rupees, but new information from industry insiders suggests the real figure could be closer to 150 crore rupees. This is because much of the money was transferred through informal channels such as cash, personal transfers or in kind, as investors feared litigation or expected Jainam Broking to handle the matter quietly.
Some sources said that some victims had received compensation from the brokerage company without any official confirmation, although Jainam Broking has not officially confirmed it. They said this is a common practice in many cities, giving people peace of mind until the unexpected happens.
Following the collapse of Green Wall Enterprises on August 14, the company’s trading systems were immediately disabled, preventing traders from executing orders. Two key executives, Nimit Shah and Hiren Jadav, disappeared from their residences. After several victims filed complaints, the Surat police filed an FIR. Hiren Jadav was arrested, the case is now under investigation by the EOW, while Nimit Shah remains absconding, causing great concern among the trading community.
The question is whether these business models stem from regulatory loopholes or from a lack of respect for securities laws. While SEBI and the exchanges occasionally inspect and fine brokers, recent incidents have shown that there are loopholes that firms can exploit, increasing the risk of losses for investors and posing challenges to regulators.
For more information about Prop Firm, visit our website regularly!
