Legal information notice: this article provides general information and isn't a substitute for advice from a qualified lawyer.
“Guaranteed IPO allotment — 100% assured, invest through our institutional account.” Offers like this appear in WhatsApp groups and on fake trading apps whenever an IPO is in the news. IPO allotment in India follows a fixed process; no broker, “operator” or group can guarantee it. Anyone who takes money to “ensure” an allotment is either lying or operating a scam.
SEBI, in advisories issued in 2024 and again in August 2025, has warned investors about fraudulent trading schemes that falsely claim to be offered by foreign portfolio investors (FPIs) to Indian residents. The tactics it describes include fake trading or advisory apps with preferential services such as institutional trading accounts, IPOs at discounted prices, guaranteed allotments, and access to anchor book and block trades at discounted rates — often promoted through WhatsApp and Telegram groups and by impersonating SEBI-registered entities.
Any new “allotment charge”, “tax” or “activation fee” is part of the scam.
Check the actual IPO details and, if you applied through a legitimate broker, your allotment status on the registrar’s site. Money paid to a group or app does not appear there.
Give the bank the payment details and ask it to block further debits and flag the receiving account.
Use cybercrime.gov.in or call 1930 with the group details, app link, chats and payment proof.
Screenshot the offer, the “subscription” screens, and the admins’ contact details before leaving the group.
Never pay someone to “arrange” an IPO allotment, and never hand over your demat or trading login. If you want to apply, do it yourself through a registered broker or bank.
| Genuine | Scam |
|---|---|
| You apply through a registered broker or bank via ASBA or UPI | You pay a group, individual or link-only app |
| Retail applications up to ₹2 lakh | Demands for very large 'minimum' amounts |
| Allotment is not guaranteed | '100% assured allotment' or 'VIP quota' |
| Status visible on the registrar and exchange sites | 'Allotment' shown only inside their app |
No. Reporting to your bank and the cyber crime portal is free.
Yes. A lawyer can help if you lost a large amount or if several people were cheated through the same group.
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No. Allotment depends on the issue’s subscription and the allotment process. A guarantee is a scam signal.
Retail individual investors can apply for up to ₹2 lakh.
SEBI has warned that claims of institutional trading accounts, discounted IPOs and guaranteed allotments are common fraud tactics.
Use the registrar’s website or the BSE or NSE allotment pages, and check your demat account for credited shares.
Stop paying, call your bank, and file on cybercrime.gov.in or 1930 with the evidence.
No. Offers of discounted or assured shares through chat groups are unregulated and frequently fraudulent.
This article is for general information only and does not constitute legal or financial advice. Apply for IPOs only through registered intermediaries and verify details independently.
