How did the Saradha scam affect the investors?

The Saradha scam was a major financial fraud in India. Saradha Group collected money from the public through various schemes promising high returns. They used this money for their own misappropriation instead of legitimate investment. Many small investors, especially from rural areas, were duped as they were attracted by the false assurances of high profits.

Well, the 'scam 1992' was like a huge earthquake in the Indian financial market. The stock market, which had been artificially pumped up by Harshad Mehta's illegal activities, crashed hard. Banks that had been duped into providing funds without proper checks were in trouble. This led to a lack of trust among the public in the financial institutions. Small investors, who had been lured into the market by the false boom, were left with nothing. It was a long and difficult road for the Indian financial market to recover from this major setback.

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A good story attracts investors as it provides context. It shows where the investment fits in the bigger economic or social picture. Let's say a story about a renewable energy project not only talks about the technology but also about how it contributes to combating climate change. This broader context makes the investment more appealing as it aligns with global trends. Moreover, a story can create a sense of community. If an investment story involves a local community getting benefits, it can attract investors who care about social impact.

Investors may find hot stories through various means. They often follow financial news platforms like Bloomberg or CNBC. These platforms report on emerging trends, new technologies, and companies with high growth potential, which are often the sources of hot stories. Also, they might attend industry conferences where they can directly hear about the latest and most exciting developments in different sectors.

The victim might have initially been trusting. They could have believed the scammer's false story without question at first.

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