Broker Cheating me by quoting SEBI rule

#1
My broker A**** is saying that "the offline transactions done through the day are considered as good if informed by the dealer (the person who is dealing with you from the broking company) to the client at the end of day, even if the instructions given to the dealer are contrary to the transactions done". Can any boy please clarify on this. if this is right a dealer can make the recihest person of India to loose his wealth in a day and can escape by conveying the same to the client in the evening. i request any body to explain under what circumstances can we ask the broker to repay the money lost in such a transaction.
Thansk in advance
 

comm4300

Well-Known Member
#4
ok. i answered with the assumption that the conversation between you and the concerned dealer was over the phone.

Now, if that is the case : the conversation needs to be recorded by the broker. Ask your broker to play that recorded conversation.

Recording of trade confirmation has been a very common practice by most brokers [angel, rkglobal are the ones i know]....so that the same can be played later to prove allegations.

If broker refuses, ask him to direct you to the specific link of SEBI rule that he is referring to....

And last but not the least, it is time for you to change your broker....Zerodha is one that is absolutely transparent in these matters.

All the best.
 
#5
Thanks for your views.
Yes the conversations are done over phone only.
We have never permitted our dealer either orally or in writing to buy and hold options contracts. In fact it was clearly told to our dealer to exit a trade on making a profit of around Rs.1,000/-. but she has purchased and held 4900PE contracts (25.10.11 expiry). A two days later she purchased the same options again to average the price which was objected by us. Now our broker is saying that since she has informed about the trades in the evening (though prior approval is not obtained for the trades) they are relived off their liability. Can their words be acceptable. in such a case I have to forego my money which was lost in that trades. kindly help me in understanding the trade practices. i am planning to take up the issue through local newspapers ( about their unfair trade practices) and to go for arbitration.
 
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Rish

Well-Known Member
#6
Thanks for your views.
Yes the conversations are done over phone only.
We have never permitted our dealer either orally or in writing to buy and hold options contracts. In fact it was clearly told to our dealer to exit a trade on making a profit of around Rs.1,000/-. but she has purchased and held 4900PE contracts (25.10.11 expiry). A two days later she purchased the same options again to average the price which was objected by us. Now our broker is saying that since she has informed about the trades in the evening (though prior approval is not obtained for the trades) they are relived off their liability. Can their words be acceptable. in such a case I have to forego my money which was lost in that trades. kindly help me in understanding the trade practices. i am planning to take up the issue through local newspapers ( about their unfair trade practices) and to go for arbitration.
The mistake is with you also, you have told the dealer take care of your position (make a profit of around Rs.1000/-). This is the problem with us, never ever give instruction to dealer to take decision on your holding.

Always be aware, don't have personal relationship with any broker or dealer, be specific on your business.

Future, be careful.

If any telephonic conversation, you can go for arbitrage, time consuming exercise.
 
#7
The mistake is with you also, you have told the dealer take care of your position (make a profit of around Rs.1000/-). This is the problem with us, never ever give instruction to dealer to take decision on your holding.

Always be aware, don't have personal relationship with any broker or dealer, be specific on your business.

Future, be careful.

If any telephonic conversation, you can go for arbitrage, time consuming exercise.
simple and good advice....yes.
 

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