Unauthorized Trade Transaction(F&O) in Religare SecuritiesLtd.

I wish to bring in notice unauthorized trade transactions (F&O) in Religare securities ltd. Branch Nagpal tower, SCO.44 Distt.shoping complex Ranjit Avenue Amritsar which caused a loss of Rs.170159/- to me and also in three other accounts of my relatives and friends and the total accumulated loss exceeds Rs.10.Lac. All these unauthorized transactions and their modus operandi needs thorough probe to safeguard interest of innocent small investors.
Officials from their branch approached me for opening of account with them. I was told that Religare securities is having very efficient research team at their head office to help and guide their clients to take wise investment decisions. I was also told that during the IPO period of Fortis Ltd.(their sister concern), accounts with religare securities are being opened free of any charges and concessional brokerage will be charged in the account much below the usual brokerage rates.
Accordingly I opened my account with religare securities and transferred all my stocks amounting to Rs.1.50 Lac. from kotak securities and later deposited a cheque for Rs.50000/- for fresh investment. On 21-05-2007 , I sold some of my stocks valuing Rs.31000/-. On 26-05-2007 I visited the branch to enquire the sale proceeds of sold stocks.
I was shocked to know that my account was showing debit balance of Rs.97186/- which otherwise should be in credit of Rs.81000/- and I was told that some trade transactions were made in the account which has caused a loss of Rs.1.77Lac. In the account and all the transactions were made in future and option segment within days of transfer of stocks and deposit of Rs.50000/-in the account.
I immediately called the Branch Manager and also called others who had opened their account. It further came to notice that similar transactions were also made in their accounts and the total accumulated losses were exceeding Rs.10 Lac.in all four accounts.
Sensing hue and cry in the branch, the branch manager after initial enquiries reported the details to his higher authorities and after detailed discussions and with their approval assured us in writing to compensate and bear our entire losses in full by the company.
On 28-05-2007 a team of officials from their head office/zone visited the branch and in the evening we were called. We informed the enquiry officer that all the transactions in future and option segment were made without our consent and knowledge and also confirmed that we are not having any knowledge of this subject They were satisfied with our explanation to their queries as regards transactions in our account without our consent and informed us that they will send the detailed report to their higher authorities to compensate our entire losses as committed earlier by the branch manager letter dated 26-05-2007.
On 31-05-2007 again a team from their HO/ZO visited the branch for further detailed enquires and on 01-06-2007 we were called and informed 0f their head office decesion to compensate us to the extent of 75% of accumulated loss. When we asserted for full compensation as assured earlier, we were told that as policy matter the company compensates only to the extent of 75%in such cases as decided earlier also. And we were made to sign and give our acceptance in this regard.

On 09-07-2007 Rs. 127619/- Were credited in my account being 75% of the loss amount of Rs.170159/-

During enquiry/discussions with the team from their HO/ZO the following points came into light which needs further probe at your level.
1 I/We have not given any instructions for trading in the account.
2 The branch is usually sending confirmation call to the client at the end of the day as regards trade transaction of the day, but in our case the system was not followed.
3 The branch has not taken due diligence of unusual transactions in the account. During enquiry by the HO officials, the branch manager informed that transaction of such huge amount were never made in any account in the branch earlier and the branch authorities have not taken timely notice of the same to safeguard interest of the client.
4 The same person was assigned to communicate and assist us for queries/explanation and was also reported assigned as dealer in the branch.
5 That person was reported appointed a month ago and was assigned only five accounts as reported by the branch manager, out of which unauthorized transactions were made by him in four accounts causing huge loss of Rs.10.Lac to the clients, and the branch authorities had failed to track the conduct of fresh appointed employee.
6 The person who is reported to have made unauthorized transactions was allotted target for brokerage income to the company to justify his employment and cost to company package and he was not having sufficient no. of clients to meet even a part of his target which induced him to do such business to meet a part of his target.

We have separately and individually requested the religare securities ltd to credit the remaining 25% of the accomolated loss so as to compensate us in full as promised by them earlier vide their branch letter dated 26-05-07.
The response is awaited.


(KULWANT SINGH BHATIA)
110-Kabir Park,PO. Khalsa College.
AMRITSAR-(PUNJAB)
PIN:143002

Whats happening? Did you not checked your account daily ? I am scared since i am planning to open a religare account.

Never trade in India...Brokers Earn Money only through Cheating other!!!..Cheating brokers and operators Generations will be ******** for ever and starve to DEATH!!! and their female childs are born to be prostitutes. Still if you wish to Trade........Never sign Power of Attorney...

Selection of broker is the Key. Usually online trading is risky if not taken care of

that is not the question, even if you were a computer professional with internet , many times you might check once in 30 days or 15 days when you are busy or out of station, when there is a problem on their end, they should correct it 100%, after all you are not asking for money which you lost trading yourself.

I make all my deals through Sharekhan using Speedtrade and Dial n trade. Never faced such problem. Any body had this kind of experience with Sharekhan?

I think online trading is the safest as comapred to the dealing with a local broker. How many times these small brokers ran away with all their clients' hard earned money.

the remarks looks racist, please dont use such words.

Ritu,

If you have the proof that Religare did the transaction without your authorization, follow the following steps and I can assure you that Religare will refund your entire money and not just 75%. They should give back the entire 100% loss + compensation that you incurred due to their acting without your authorization. The one thing these brokers wont like is negative remarks about themselves in newspapers.

First write to as many newspapers and tv channels as you can, there are more than 100 in India, particularly those that relate to share market like economic times, financial times, CNBC, etc. The point here is to write to all those email ids explaining your situation with proof with copy to Religare Securities(all email ids of religare securites) with a copy to even BSE/NSE complaint cell. Then wait and watch the situation. I am 100% sure that Religare will give back 100% back.

Inspite of this no reply, then take more email ids of newspapers all over India and always forward copies to bse/nse(if they dont reply to you) again with copies to email ids of top bosses of Religare.

If you give me your email id, I can send many email ids of newspapers.

And then see the reaction.

Regards,

Brokerages will return money 200% sure.....IF SUN RISES IN THE WEST!!!