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sachin (GM)     18 August 2010

Illegal Trading and forgery by the Stock Broker

Dear All,

I have reported a matter to SEBI, NSE, Economic offence wing and the DCP West regarding a case where i have been cheated by the Broker by means of  fraud committed by - illegal trading, cheating, forgery and creation and suppling of false documents causing loss of entire stocks in my account.

I want to take my case of NSE arbiteration but i am shocked to see the awards by the pannel of the arbitrators in NSE.  I have seen all the  arbitrators awards on website in 2007, 2008, 2009 and 2010. It appears that the the arbitration pannel is sitting to award the judgements in favour of the Brokers. In all the judgements it is seen that majority of the investors are complaining of the illegal trading but i have never came across a single matter in which the amount is awarded to the investor. Investors once bitten by the award has never reverted back to NSE Arbitration. On the contrary the brokers have repeatedly complaint against the investors in the arbitration as they always  get the award in their favour. Very rare instance are there where investors win. It is also observed that the award is also given on the basis of asumptions and not concrete proof and that too in favour of  Broker. I know despite of having many solid concrete proofs i am sure that it would be difficult to win a case here and due to arbitration clause i can not avoid arbitration also. Now i understand why every broker puts the arbitration clause in the agreement. My case strengthens only when it is established that i was given fradulent documents in order to hide the facts from me and arbitration is not empowered to see the criminal offence involved in it.

Despite of the fraud and forgery i have not been able to lodge a criminal FIR in police or EOW till date and they say it is to be investigated by SEBI and SEBI has marked it to NSE who say that we can only see the following of the guidelines and not the Fraud or cheating that has to be addressed to Police. I have not got a proper reply even by the RTI.  I am being thrown into a vicious circle where no one feels themself accountable.

Can anyone Guide / help me in this context. 

Sachin

9810933322



Learning

 2 Replies

Daksh (Student)     18 August 2010

Dear Sachin,

You have not mentioned how the illegal trading has been done by the Depository Participant/broker on your behalf.  Basically there are two foremost arguments forwarded on behalf of the DP's are  that they have recieved the telephonic instruction for trading for which reason they are under obligation to produce the recording proof and secondly in case of shortfall of money the exercise of squaring off is resorted to.  This fact has to be communicated to the customer by way of contract notes.

In your case on the basis of the facts enumerated the illegallity so committed is not clear.  More so if in case this modality by way of evidence is proved against the Depository Participant/Broker I do not see any reason why you should not get a favourable award.

I would call upon you to kindly go through in detail the Agreement you have signed before embarking upon any further action in this regard.

Please feel free to revert you are most welcome.

God bless

Best Regards

Daksh

1 Like

DEFENSE ADVOCATE.-firmaction@g (POWER OF DEFENSE IS IMMENSE )     19 August 2010

On this site somebody posted a thread that he got compansation throug NSE.

Well if your papers and story is alright there will not be any problem.


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