Stock markets- my a/c misused as dummy a/c
Tina
(Querist) 06 August 2013
This query is : Resolved
Sir,
I need advice.
My a/c opened on 1/2/13 with a stock broker. I recd. a/c opening details on 4/2/13 but unauthorized trades were done in my a/c from 1/2/13 itself when i didnt even know my a/c no.Trades are of high value in 7 figures & all trades are done in one single stock which is of trade-to-trade category illiquid stock even when there was no money in my a/c .After realising this,i objected verbally but trades were still continued in my a/c.Even after written objections, buying & selling were done.Broker has manipulated Introducer's name in a/c opening form. Also forged documents trying to change dt. of generation of a/c opening details & submitted that to stock exchanges whom i had approached. Threathened me verbally to pay up the debit balance of high 5 figures.Exchange's investor grievances resolution panel is over with their meeting & directed me to approach for Arbitration process.In the meeting, Broker has accepted that he has no proof of instructions by me & i didnot authorize anyone to trade on my behalf.But he is still trying to extract money from me.
Can anyone pls guide me as to how much should i claim in Arbitration considering that the case is of misusing my a/c as dummy, manipualtions & forgery done by broker & trying to extract money from me through all possible ways-legal & illegal & mentally harrasing me.Also what kind of justice will i get.
V R SHROFF
(Expert) 06 August 2013
take up with stock exchange regulatory board.
This being Economiucal Offence, and if traded above 40 L, u r personally liable for audit under IT Act.
Tina
(Querist) 07 August 2013
Thanks for the replies..
Traded amt is less than 40 lakhs. I have already completely investor grievances panel meeting & going for arbitration of exchanges.
Just wanted to know how much should i claim as compensation for the wrongdoings of broker ,mental harrassment caused to me. Should i claim compensation as 5times or 10 times of the ledger debit amt.What should be claimed as per the law??
Dr Anil Kumar Singh
(Expert) 10 August 2013
The misuse of your account is a serious offence and attracts criminal as well as civil proceedings . However since you are at arbitration you can claim the following :-
(a) Loss of business if any
(b) Loss for inconvenience caused
(c) Amount of money spent in litigation and other processes.
(d) Penalty for not instituting criminal proceeding against him.
The quantum of claim can only be decided is the real figs are projected
Tina
(Querist) 14 August 2013
Total Traded Turnover= 25lakh
Total buying done=13 Lakhs
Total Loss(ledger balance)=87000
Broker claims=87000 + int. @18%
Kindly tell me how much can I claim as compensation & what should be my explanation for it as per the Law.
mahendrakumar
(Expert) 15 August 2013
1)have you read the account opening form and its annexures before signing?
2) have you executed any other trade on your behalf?if so how? by way of written orders or by telephone?
3) you can claim any amount,but should have some reasonable justification.
Note:I am note a lawyer.as such take my advise accordingly.
Tina
(Querist) 15 August 2013
Total Traded Turnover= 25lakh
Total buying done=13 Lakhs
Total Loss(ledger balance)=87000
Broker claims=87000 + int. @18%
Kindly tell me how much can I claim as compensation & what should be my explanation for it as per the Law.
