POSTED BY October 4, 2010 7:28 am ONE COMMENTON
Responding to an ad in internet, I contacted the MD of a MCX broker to become a sub-broker. The terms explained by the MD, Mr. T. Murukappan, seemed very alluring to me, though it is possible to earn Rs.2 lac a month as sub-brokerage if there are at least 5 to 6 investors trading for Gold, Silver and other commodities @ Rs.3 crores daily, on which the customer is charged @ Re.0.05paise%. With the help of one of my friend as partner, I arranged 5 customers who invested Rs.1 lac each depositing the margin money into the account of the broker through the local branch of ICICI bank and trading started from 12th October 2009. Everything was alright and we could trade for 16 days only and there was a total turnover of Rs.20 crores. But all of a sudden from the first week of November problems started. Whatever order we were placing, all were rejected by MCX on the pretext that there was not sufficient margin money in the account of the investors, though from the mail report from the broker’s office it was found that approximately there were Rs.80k in each accounts which was sufficient for our orders to be put through. When we contacted the MD, he told that there was a problem in the server and that would be sorted out within a day or two.
But the problem persisted. On repeated demand, the MD came to our place in Orissa from his office in Chennai and pacified our customers and promised that everything will be all right. On his words, another 3 new investors joined our trading circle paying Rs.1 lac each to the broker’s account at Chennai. The same thing repeated. We could trade for another 2 to 3 days. Again we found the snags in the trading. Now we found in the terminal the truth that the membership of the broker had been suspended. The MD could not be contacted over telephone. He played hide and seek game. Ultimately he stopped to respond our calls. Now, after a lapse of one year also, the broker is silent in refunding the margin money to our investors and the deposit money I had paid to become a sub-broker.
Can any one suggest, what can be done in this case?
The details of the broker is given here.
The MD is Mr. T. Murukappan. His contact no. is 09444405899. The company name is M/s Aurum Commodities and Services(India) Ltd. at 5B, Doshi Towers, 205, Poonamallee High Road, Kilpauk, Chennai-600010. office telephone no. is 044- 42662250.
The MCX membership id was 35060.