Mumbai: Fake Online Share Trading Racket Busted in Kandivali; Rs 615 Crore in Illegal Transactions Traced

Mumbai Crime Branch Unit 11 has unearthed a massive illegal share trading racket operating without any regulatory approval. The operation was carried out in the presence of officials from the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

Investigations revealed that trading worth over ₹615 crore was being conducted through a fake online platform without any official licence from the Securities and Exchange Board of India (SEBI), resulting in significant tax revenue loss to the government.

On 6 October 2025, Unit 11 of the Crime Branch received a tip-off about individuals conducting unauthorised trading on NSE/MCX platforms from a room in a building located in Kandivali (West). Acting on this information, a raid was conducted under the supervision of senior officials, in the presence of two independent witnesses, a computer expert, and representatives from NSE/MCX.

During the raid, three persons were arrested. They have been identified as Viral Pravin Parekh (48), a resident of Kandivali (West); Sohanlal Banwarilal Kumawat (38), a resident of Borivali (East); and Jigar Prakash Sanghvi (39), a resident of Kandivali (West).

A police officer stated that during questioning, Sohanlal and Jigar confessed to trading on a platform named Vertexexch.net under the instructions of Viral Parekh. The NSE representatives present during the raid. 

Further investigation revealed that the trading was being conducted through the illegal website Vertexexch.net, which was subscribed by a person named Jack alias Raju. Viral Parekh acted as a sub-broker and provided login credentials to 22 clients who traded on the platform. He allegedly charged a brokerage of 0.03% in cash for each transaction.

An examination of Viral Parekh’s computer by NSE and BSE officials revealed that between 30 June 2025 and 6 October 2025, trades amounting to over ₹615 crore were executed outside the recognised stock exchanges. This illegal activity caused a loss of ₹8,05,985 to the government in the form of Securities Transaction Tax (STT), state stamp duty, and SEBI turnover fees.

During interrogation, Viral Parekh admitted that he did not possess any official licence from NSE or BSE to operate as a broker.

The police seized three mobile phones, two computer systems (including CPUs, monitors, keyboards, and mice), a cash counting machine, one register, and a Jio fibre router from the premises. Additionally, ₹43,900 in cash was recovered from Sohanlal Kumawat’s desk. Cyber expert Rahul Rai created forensic images of both computers and sealed the digital evidence for further examination.

Based on a complaint lodged by NSE officer, an FIR has been registered at Kandivali Police Station under Sections 318(4), 316(2), and 61(2) of the Bhartiya Nyaya Sanhita.

The Mumbai Crime Branch Unit 11 is conducting further investigation into the case.