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The proprietary (prop) trading scam that first emerged in Surat earlier this year has now spread beyond Gujarat, rapidly morphing into one of the largest unregulated prop funding collapses in recent memory, Moneycontrol reported. The downfall of Green Wall Enterprises, also known as Greenvol Enterprises, which allegedly acted as an agent of Jainam Stock Broking, is now affecting leveraged traders and investors across multiple cities. According to market sources, a Greater Noida-based firm, iTrade Associates, run by Darshan Joshi (DJ) and linked to Green Wall, has also folded, leaving an estimated Rs 40 crore of investor funds stranded. News18.com could not independently verify this amount. However, a complaint filed by iTrade Associates with the Surat Police cited losses of Rs 22.06 crore. Market sources suggest the total exposure may be higher, as many investments were made informally, often without documentation. DJ reportedly had clients across Delhi NCR, Jaipur, Ranchi, Kolhapur, and other regions. Green Wall was allegedly operating like an agent for Jainam Stock Broking, offering trading limits for prop trading — a structure not permitted under current regulations, which recognize only authorized persons (APs), formerly sub-brokers. In August, the sudden disappearance of Green Wall’s key operators shocked market participants. Many traders believed Green Wall was an official branch of Jainam, as it prominently displayed the broker’s name and branding. However, Jainam Stock Broking, in an email response to Moneycontrol, firmly denied any association with Green Wall Enterprises. The company stated, “Green Wall Enterprises was not our agent. Green Wall is not associated with us in any manner, and no transaction is done with Green Wall Enterprises. Since there is no relationship between Green Wall and Jainam Broking Ltd, Jainam Broking Ltd is not responsible for any transaction done with Green Wall, iTrade Associates, or Darshan Joshi.” When Moneycontrol contacted Darshan Joshi, he claimed that he, too, had suffered losses. “I am completely with everyone whose money is stuck. I am communicating with them regularly and making every effort to recover the money. I have filed a complaint with Surat Police, and a case has been registered. I am also filing a complaint with Noida Police,” Joshi said. One of the victims, Krishan Yadav, a former merchant navy captain, told Moneycontrol that iTrade Associates arranged F&O trading terminals and collected margin money on behalf of Green Wall. He said Green Wall claimed to route these funds to Jainam Stock Broking via DB Wealth and Ashapura Commodities — a claim Jainam has denied. “I invested all my life savings there, but now not only has my capital evaporated, my trading-dependent income is also gone,” Yadav said. Initially, the scam was believed to involve around Rs 5 crore. However, industry insiders now estimate total losses could be closer to Rs 150 crore, as many investors who handed over funds through informal channels have not come forward. Some market participants told Moneycontrol that a few victims may have already received quiet compensation from the broking firm, though this has not been officially confirmed. Following the collapse of Green Wall on August 14, traders suddenly found their terminals disabled and were unable to square off positions. The firm’s key operators — Nimit Shah and Hiren Jadav — went missing soon after. Multiple FIRs have been filed, and Hiren Jadav has since been arrested, while Nimit Shah remains absconding. The Economic Offences Wing (EOW) of Surat Police is currently investigating the matter. The case has reignited questions over how such unregulated business models continue to flourish despite SEBI’s periodic inspections and penalties. Industry experts told Moneycontrol that traders often exploit loopholes and regulatory grey areas to run quasi-broking operations under the guise of prop trading.
