Reliance Money's latest blunder ...

purplehaze · #1 30th August 2007, 11:26 AM

Hey Folks,

I am a reliance money user. I am a long term investor and don't log into the site too often. Today when I log into the system, I was really surprised to see lot of transactions has happened during the time when I didn't even login into the system. Lot of shares were sold and re-purchased.

Upon contacting the customer service, I was told that country wide failure has happened due to which many r-money users' shares were sold automatically. He then told that r-money has helped us by re-purchasing the same number of share very next day. (Duh, what kind of reasoning is this? )

Funny thing is, this all happened during the time when market was it lowest in August i.e. 20th and 21st of August. So did r-money in a way helped market to reach the bottom?

Has any reliance user here checked his/her transaction details and noticed same thing? So next, what can we do about this?
Is there any email id/ place where we can report such wrong doings?

This is indeed frustrating!

purplehaze · #2 5th September 2007, 01:33 PM

Written reply I received from Reliance Customer Support

--->

Due to certain unexpected technical issues, delivery positions of August 20, 2007 were squared off as part of the intraday margin positions. The unintended squared off positions were reversed on August 21, 2007 morning on the Exchange.

Losses, if any, in the above trades will be compensated by the company. Please accept our apology for the inconvenience.

You may quote your reference number (removed) in relation to this query.

For any further assistance please call us on 3988 6000 or write to us at customer.support@reliancemoney.co.in

Yours sincerely,

Customer Support

<---

So is this something normal with other dmat accounts as well? I haven't used anything other than Reliance DMAT.

biyasc · #3 5th September 2007, 03:18 PM

uppps, all brokers are going down. shame.

purplehaze · #4 5th September 2007, 03:28 PM

Quote:

Originally Posted by ydpm

YES<
it happened to me too
They sold my ispatindustries shares at Rs. 15.20
and re purchased them next day at Rs.16.80
Approximately 11% high
what should i do

The customer support told me that they will refund the amount you lost due to this negligence. Please contact them as soon as possible. Here's the exact reply I got from them

Due to certain unexpected technical issues, delivery positions of August 20, 2007 were squared off as part of the intraday margin positions. The unintended squared off positions were reversed on August 21, 2007 morning on the Exchange.

Losses, if any, in the above trades will be compensated by the company. Please accept our apology for the inconvenience.

You may quote your reference number - (edited) in relation to this query.

For any further assistance please call us on 3988 6000 or write to us at customer.support@reliancemoney.co.in

Yours sincerely,

Customer Support

rajaram.dilipkumar · #5 5th September 2007, 03:57 PM

Quote:

Originally Posted by ydpm

YES<
it happened to me too
They sold my ispatindustries shares at Rs. 15.20
and re purchased them next day at Rs.16.80
Approximately 11% high
what should i do

they cant do this ...ask them not only for the refund but also make them pay for thier negligence

SHASHIRAVI · #6 5th September 2007, 07:18 PM

How Computer Can Automaticaly Sold Share ?? What Type Of Technical System They Use . I Think They Made Huge Money From Their Custermer

jdm · #7 5th September 2007, 07:29 PM

well i am not a rm customer but what comes to my mind is the tax aspect.

suppose a person bought a share 9 months back, three month hence his investment would be eligible for long term capital gains (thus no tax would be levied on the profit). but this error on part of the broker completely nullified the 9 months incubation period.

will the taxman accept his "brokers error" as a valid point and still consder his investment eligible for long term capital gains.

the loss for the customer surely seems much more that rm can compensate.

cheers,
jdm.

swagat86 · #8 5th September 2007, 08:03 PM

Quote:

Originally Posted by jdm

well i am not a rm customer but what comes to my mind is the tax aspect.

suppose a person bought a share 9 months back, three month hence his investment would be eligible for long term capital gains (thus no tax would be levied on the profit). but this error on part of the broker completely nullified the 9 months incubation period.

will the taxman accept his "brokers error" as a valid point and still consder his investment eligible for long term capital gains.

the loss for the customer surely seems much more that rm can compensate.

cheers,
jdm.

true,

this is realy sab and bad on the part of Rmoney

emoney2 · #9 21st September 2007, 12:00 AM

Hello

All you were saying that your shares were sold on 20/08/07 and bought back on 21/08/07. And company in a written reply ready to pay you the difference.

Guys, be alert, someone at RMoney wants to make money on your shares and money. Understand the only condition in which shares must be sold from a clients account in the online trading environment is if and only if there is some debit in the clients ledger, otherwise no-body can touch your shares.

Also understand as this is a delivery based transaction all of you must re-calculate or adjust your capial gain account as by what ever means your shares were sold capital gain tax applies whether short term or longterm. Also demand the tax component which needs to be paid and brokerage and statutory levies paid from your money, and further this must be reported to the NSDL and SEBI as this exercise might be done by Reliance Mutual Fund, as both companies i.e. R MOney and Reliance Mutual Fund comes under Reliance Capital. This is a serious offence made by the company.

Be alert in future and transfer your excessive holding in your other demat account where no Power of Attorney is given.

bye

purplehaze · #10 23rd March 2008, 04:02 PM

Another interesting update:- My limit card was going to expire and Reliance Money on it's own renewed my limit card by Rs 2500/- amount. Mind you reliance money provides limit card starting from Rs 500/- denomination and Rs 2500/- is the highest amount available. You can pick a card depending upon your trading volume. I'm a small time investor and Reliance Money without even asking me renewed the card! Customer service hasn't yet replied me back over my problem. RMoney local dealer, upon contacting, advised me to complain to SEBI about this. He looked more pi$$ed with RMoney than me :-)

Somebody said it right, be a share holder in Anil Ambani's companies, but never be a consumer.

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