Is sub broker be liable for the loss incurred by the client in mcx or ncdex ?
ARK
(Querist) 03 August 2012
This query is : Resolved
My friend was a sub broker of a very well reputated company of MCX. But Last 6 months back his clients made a debit of 5 lacs in the accounts and unable to pay the loss. Now the company has sent my friend(sub broker) notice to pay the loss incurred by the client in a week.If he wont pay the debit in 7 days from the day of letter receieved he will be additionally charged 18 % per annum interest. My friend is saying that its the duty of the Company's Risk management to take care of the debits and credits. Now what to do??? Please suggest. . .
Raj Kumar Makkad
(Expert) 03 August 2012
Your friend cannot shift the responsibility of his clients over the company. The client belongs to your friend so he cannot take shelter of such silly argument. It was the duty of your friend to discontinue with his client if he was crossing the limit of his margin money.
DR.VEDULA GOPINATH
(Expert) 04 August 2012
I WISH TO KNOW THE TERMS AND CONDITIONS OF CONTRACT BETWEEN THE INVESTOR AND SHARE BROKER.
SUBJECT TO ABOVE LIABILITY CAN BE FIXED.
DR VEDULA GOPINATH LAWYER HYDERABAD
prabhakar singh
(Expert) 04 August 2012
Mostly they are in on standard printed book form and that terms incorporated therein can be down loaded from NSE or BSE website.They are based on SEBI guide lines.
ajay sethi
(Expert) 04 August 2012
generally a triparte agreement is executed between the broker , sub broker and client .
it lays down detailed terms and condions . responsibilty of sub borker in case client defaults in making payment , the exposure limits are set by main broker for each client .
read the said terms and conditions of the contract