Unauthorised trade in my share trading account
Ambani
(Querist) 25 January 2013
This query is : Resolved
Dear Sir,
Recently my stock dealer bought stocks on margin without my confirming the quantity, price or exchange on which to buy the shares. Subsequently the share price came down substantially and hence I am being asked to bear the loss. I had asked the dealer over phone to buy whatever was possible on the funds available but he interpreted it to be whatever was possible on margin also. He also did not ask me the quantity to be bought. In this context can you please guide what remedy do I have. Does sebi give any code of conduct for method of taking orders.
I am in deep trouble. Kindly help
Thanks in advance
Ambani
Guest
(Expert) 25 January 2013
File your complaint with SEBI.
Ambani
(Querist) 25 January 2013
Thanks Sir, Can you cite any case where this has helped
ajay sethi
(Expert) 25 January 2013
if your broker had bought stcoks contract note would have been issued to you . did you immediatedly dispute the transaction . have you addressed any letter immediatedly mentioning that no such authroisation was given to purchase said shares
Ambani
(Querist) 25 January 2013
Yes, when the dealer called to confirm the trade I denied having given the authorisation. This happened on 9th January 2013. I have also sent a mail to customer services / grievances section of reliance money disputing the transaction on 14th January 2014.
ajay sethi
(Expert) 25 January 2013
issue legal notice to shar broker . invoke arbitration clause in your contract with broker . lodge complain with SEBI against broker
Ambani
(Querist) 25 January 2013
Sir,
Will complaining to sebi through scores help
ajay sethi
(Expert) 25 January 2013
it would put pressure on the broker . but you will have to issue legal notice too invoke arbitration clause
prabhakar singh
(Expert) 25 January 2013
TRADE you say unauthorized executed on 9th JAN but complaint on 14th JAN ,too late.I think order was executed by franchise counter.
Ambani
(Querist) 25 January 2013
I had denied acceptance of the trade on 9th itself. However, formal complaint through email was sent on 14th
prabhakar singh
(Expert) 25 January 2013
In what mode? telephone? or in writing?
Ambani
(Querist) 25 January 2013
On 14th complaint was made through email. It was sent to customer care and grievances section of reliance money
prabhakar singh
(Expert) 25 January 2013
I think you must be aware that all transaction are made on line and pass words are secured and get automatically changed every time. What would be supposed in your case that either you or some one on your behalf with your pass word executed orders.Where is legally or technically fault with reliance money? Your Issue is with it's local counter where have left your pass word key and they are using it on your behalf.
Ambani
(Querist) 25 January 2013
No I had called up the dealer and asked him to execute the order. He misinterpreted what I wanted to say and hence bought shares on margin though I had not intended the same when i had made the request
prabhakar singh
(Expert) 25 January 2013
What kind of account you own? Cash or Future?
Was your order sound as you say you ordered to buy.But what?which share or script?And how much?When did prices fell? same day?
Ambani
(Querist) 25 January 2013
Shares were bought on margin. And the dispute is with respect to the soundness of the order. I did not specify the quantity or the price or the exchange. I only specified the share and told the dealer to buy whatever quantity was possible based on the funds available. The dealer interpreted it to be whatever quantity was possible based on the margin available. That is the point of dispute
Raj Kumar Makkad
(Expert) 26 January 2013
Better to bring the matter to a mutually agreed arbitrator.
R Trivedi
(Expert) 26 January 2013
So it seems to be some mistake in hearing your order on phone ? It is not the intentional or fraudulent action by the broker, value must have fallen from 9th to 14th and hence possibly you took this stand, if your stock had risen then you would not have. Please resolve amicably, transaction over phone is a valid and legal facility given to clients, it was at the worst mis-hearing, nothing else.
Ambani
(Querist) 27 January 2013
Thats not the case. Immediately after the broker called to confirm the trade I had disputed the transaction on 9th itself. That time there was no change in value. I did not wait for the value to fall. Infact, when I had disputed the transaction the dealer said that it was a blunder on his part. However, formal complaint was made on 14th.
Ambani
(Querist) 27 January 2013
My query was also that whether the dealers have any code of conduct. Is he not supposed to confirm the quantity and price to me before buying
R Trivedi
(Expert) 27 January 2013
File complaint with SEBI or even NSE/BSE atleast.
prabhakar singh
(Expert) 27 January 2013
Even stock exchange informs about execution of your orders and it's turn over value on daily basis under sebi guide lines.
You can not deny you did not know on date of execution.
You are denying for losses has come to you unexpectedly beyond your capital.It does happen out of greed playing on margins beyond capital adequacy.
After all this market is SURSA whose lower jaw is PATAL and upper jaw is AAKASH,and only those survive who knows the art of LORD HANUMAN.
A. A. JOSE
(Expert) 27 January 2013
As have been rightly advised by Mr.R.Trivedi, it is better to go for amicable resolution of the issue with the broker rather than pursuing legal options which are not only time consuming incurring costs but also uncertain of the outcome.
Advocate Ramesh
(Expert) 28 January 2013
In general, all the transanctions done in nse, they send a sms to the client on the end of the day itself. If you have any dispute, the next day itself you file a complaint to broker cum sebi and nse. Surely they will take action. If the communication mistake, then it is difficult to make complaint.
Raj Kumar Makkad
(Expert) 28 January 2013
Nothing to add more as all aspects have already stand discussed.
M V Gupta
(Expert) 30 January 2013
Experts have thoroughly analysed the issues raised by you. There appears to be no fault on the part of the broker. If u did not accept the deal u should have taken corrective step within the time allowed for it. What kind of settlement can be there with the Broker? He will not agree to bear any loss sustained by you due to fall of the market for the shares in question.
