REMEDIES AVAILABLE FOR EQUITY SHARES SOLD OFFMARKET BY A SUB-BROKER

POSTED BY bharat shah ON May 15, 2012 10:06 pm COMMENTS (10)

my relative is cheated by her sub-broker. the sub-broker through whom she is dealing offline and through whom her dp account is operative, got a new slip book from the dp( which is also main broker company) under excuse of old slip book lost , and also changed the mobile no.of the account holder,where the normally sms is being sent to her at time of transaction from the account. then he sold the equity shares of the account offline to his father (and afterwards presumably sold through stock exchange to encash them ).he did the same with my relative’s forged signature in slip book as well as in request letter to the dp for new book and change of mobile no. my relative came to know when she checked the holding statement. the a/m involve is about rs.1 lk. she has lodged the complaint with SEBI. WHAT ARE OTHER REMEDIES TO RECOVER THE LOST MONEY? what can she hope from SEBI and how much time will it take?

10 replies on this article “REMEDIES AVAILABLE FOR EQUITY SHARES SOLD OFFMARKET BY A SUB-BROKER”

  1. bharat shah says:

    @ashal jauhari

    updating

    as understood, SEBI just advised the investor, my married daughter to lodge police complaint for forgery, but did not help practically. however she got all shares credited back in her demate a/c. with personal help/intervention of a police officer.

  2. bharat shah says:

    @ashal jauhari
    yes. definitely i will do it.

  3. bharat shah says:

    @ashah jauhari

    thank you for your practical solution for safety issue of demat holdings. it reminds me that i also used that facility from hdfc bank, when my trading account with them (online) , of course , i don’t remember exactly, but probably for the need., and surely no having this safety idea! but i think, it works for the people having the planning (something that the share are to be held for certain long time).. unfortunately for most investors it is otherwise.personally i am having online trading account with demat with Reliance Money since long time, but i changed my route from direct equity to diversified equity mfs since last 3 years and not practically using trading and demat a/c.

    1. Dear Bharat, please update us with the sub broker issue as & when any development takes place.

      Thanks

      Ashal

  4. bharat shah says:

    @ashal jauhari

    thank you very much for your guiding advice and kind words. she is my daughter, just for information. for police case , for a layman , you may understand, in our country, unfortunately , dealing with, is very difficult task , and it is also understood, once you lodge the complaint with police, SEBI , is raising its hands.(of course, they also advised for the same orally., but the intention could be the same!) to lodge the complaint in consumer court could be the middle path, i think. however i think, what is the role of SEBI for investor’s protection? eventually i googled for consumer complaint against the parent company and found lot of since long period!i was thinking that the online accounts are more prone to danger of frauds , but now i think, off line accounts are equal! again thank you for taking pain and valuable advice.

    1. Dear Bharat, I have a practical solution for this safety issue of demat holdings is one intends to hold for long term. I have availed a Loan Against Share facility in the form of over draft from my bank. In this case, the shares are not in my demat account but are pledged with the bank against that OD facility. occasionally, I ‘m using that OD facility also.

      Thanks

      Ashal

  5. bharat shah says:

    @ashal jauhari,
    sorry for wrong information. as such,she also wrote to the parent company about disappearing of the holding from her demat account through email and through courier. they reported on phone that the shares were transferred off market through new slip book page, and before that , new slip book was requisitioned on lost of old slip book and the mobile no. was also changed. she outright denied and informed also that the old slip is still intact with her and no slip is used from the old slip book.

    1. Dear Bharat, please ask your sister to lodge a formal police complaint for cheating & forgery. Make that sub broker as well as parent co. a party in that application. Please take help of an advocate. If this is not a suitable option, another option is to file a complaint in the consumer court.

      Your sister’s case is very strong & she ‘ll get justice that’s for sure.

      In the mean time, keep following up with SEBI after filing a complaint there also.

      Thanks

      Ashal

  6. Dear Bharat, has she lodged the complaint with the parent company also for the same? If yes what was the response?

    Thanks

    Ashal

    1. bharat shah says:

      @ashal jauhari

      though she did not lodge the complaint with the parent company, however , it seems, SEBI, CONTACTED THEM, as now, the parent company (broker company)’s local office contacted frequently her on phone , and asked , whether the matter is settled with the concerned broker and whether she is withdrawing the complaint from SEBI. for your kind information my relative is living in your city, Ahmedabad.. thank you for your kind response.

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