fraudulent trades seen in my account--solution pls.

mojac · #1 31st March 2006, 11:31 PM

dear traderji,
I have a diet odin terminal at home.
I am an active trader in futures till Dec5,2005.
After Dec5,2006 I could not login to my terminal because of password problems. on Dec7,2006 evening it got solved & when I logged in,i saw
huge qty of Tisco 460PA sold in my account(Pls note that the spot price of tisco at that time was rs350/-)
These 460 PA were sold for mere 10ps,55ps & Rs 33.10.
Total put options sold were 49 lots.
I had a margin of Rs288424/-
i got the Ip addresses from my broker's server.
My IP starts from 220.226 & the IP logged in at the time of these trades were different,ie starting from 220.224.
This IP is found out to be from Mumbai.
Even though my broker know this ,they simply dont give back my ledger balance of Rs288424.They have blocked my money & account.
For the last 4 months I havent able to trade.
I have given complaint to NSE,SEBI etc but nobody responded positively.
I dont know what to do now. Pls advise me so that I can get my margin money back.
I also want to know how many options can be sold with a margin of 288424.
Pls guide me .I want a solution .Urgent.

aca_trader · #2 31st March 2006, 11:42 PM

Quote:

Originally Posted by mojac

dear traderji,
I have a diet odin terminal at home.
I am an active trader in futures till Dec5,2005.
After Dec5,2006 I could not login to my terminal because of password problems. on Dec7,2006 evening it got solved & when I logged in,i saw
huge qty of Tisco 460PA sold in my account(Pls note that the spot price of tisco at that time was rs350/-)
These 460 PA were sold for mere 10ps,55ps & Rs 33.10.
Total put options sold were 49 lots.
I had a margin of Rs288424/-
i got the Ip addresses from my broker's server.
My IP starts from 220.226 & the IP logged in at the time of these trades were different,ie starting from 220.224.
This IP is found out to be from Mumbai.
Even though my broker know this ,they simply dont my ledger balance of Rs288424.They have blocked my money & account.
For the last 4 months I havent able to trade.
I m have given complaint to NSE,SEBI etc but nobody responded positively.
I dont know what to do now. Pls advise me so that I can get my margin money back.
I also want to know how many options can be sold with a margin of 288424.
Pls guide me .I want a solution .Urgent.

You are already too late.

First collect all the relevant data like the source who gave u IP address and all. Then lodge a police complain for forgery under CrPC and also under IT act for breach of security. Besides, make sure that ur case is investigated by the Economic Offences wing of the police. In any case, under IT act it will be investigated by a DSP.

MOve fastly and swiftly.

Best Regards,

mojac · #3 1st April 2006, 12:11 AM

dear ACA trader,
thanks for ur quick reply. I am from south.This broker is from north. I have been to north india(2times) for giving statement to Police there.Now its more than 45days after giving statement,no action taken.Police got the Ip of that person & he said that,he is not at all doing share business.My broker is saying they could release the amt only after confirmation from either NSE or Police.
But how was it possible to write 49lots of put option when I had a margin of only 288424.That too for 10ps,55ps,33.10etc instead of atleast Rs110 per lot.So what wasthe surveillance dept of the broker doing?
Should i file an FIR here?or go to consumer court? Pls reply. I can arrange all documents. Will i get compensation? Pls reply..thanks

aca_trader · #4 1st April 2006, 12:18 AM

Quote:

Originally Posted by mojac

dear ACA trader,
thanks for ur quick reply. I am from south.This broker is from north. I have been to north india(2times) for giving statement to Police there.Now its more than 45days after giving statement,no action taken.Police got the Ip of that person & he said that,he is not at all doing share business.My broker is saying they could release the amt only after confirmation from either NSE or Police.
But how was it possible to write 49lots of put option when I had a margin of only 288424.That too for 10ps,55ps,33.10etc instead of atleast Rs110 per lot.So what wasthe surveillance dept of the broker doing?
Should i file an FIR here?or go to consumer court? Pls reply. I can arrange all documents. Will i get compensation? Pls reply..thanks

You can file an FIR at the place u are living or your business is. The person doing the wrong will have to pay you.

You can simultaneously sue the broker in consumer forum for negligence in providing services. And there u can demand compensation for lost opportunities, mental stress, harassment etc.

Best Regards,

pkjha30 · #5 1st April 2006, 10:02 AM

Hi mojac

How did you give statement to the police? Did you file FIR or they were investigating on their own? If you have not filed FIR do so immediately under IPC 420 and under IT act.

One thing I would like to know is whether odin terminals are tied to a specific userid/password and ip address as you have got the ip address of the person who might have placed order. If so broker is the main culprit else his services are deficient and he is liable. IP address of the person , who says he does not del with shares etc was in the broker's log book then the computers of that person must also be checked and his hard drive should be seized for analysis. The ISP provider's record will also show his activities for the day in question. You can request them to provide you the information or ask police to collect it under IT act. If police does not listen file petition to the President of India with a copy to the DGP of the state and Home Secretary of the State where you have given statement.Follow up on that .

Consult a reasonably good lawyer.Immediately serve a notice to your broker making claims for the points mentioned by asish and asking them to release the account and the money. Give time fo one week or 15 days to respond. Then file claims in Consumer Court. If claim is higher you can straight away go to State Consumer Forum or National Consumer Forum. Here hearings are speedy. If you are from south file in the state forum of your state.

You will get justice. I also suggest that once your notice period is over make his name public in this forum or such other forum which may permit. After all we are discussing Indiabulls, ICICI, etc This can also be discussed.

Dont stop your business/trading. Open account with reputed corporate broking house and do your job. Such monies will take time to recover but work you should not stop. Start with small amount.

Regards
pankaj

pkjha30 · #6 1st April 2006, 10:07 AM

ps: On second thought , you should also approach voluntary groups dealing with investor grievances or Trader's grievances in your state or any all india organisation simultaneously. If no forum exixts for traders then it is high time they form one. just an advice.groups have more strength then an individual while dealing with difficult situations like this.

Pankaj

mojac · #7 1st April 2006, 12:03 PM

Dear Pankaj,
On dec7th,2005 evening, when I was finally able to login to my terminal after solving the password problems,I saw these trades.I immediately informed the broker through email & phone.Next day I send a registered letter.
The broker in turn registered an FIR with Mumbai Police,Economic offenses wing.So I went to Mumbai to give statement.The broker gave explaination to me in writing only after 1month,which says that they r internally investigating the matter&that they have filed an FIR & the margin money could be released only after confirmation from either NSE or police.The FIR says that sombody has stolen the password of the client & did this mischief.
When I asked the broker,If somebody has stolen the password then how could he trade such huge qty of some very inactive PUT options worth more than 30lakhs when I had a margin of only Rs288424.So the surveillance dept should answer this.When I asked the chief tech officer of the broker,he told me that it was due to a bug in the FT software Odin.Those trades were done in just 5seconds.
49 lots(33075) of tatasteel 460PA at 10ps,55ps & 1 lot @33.1.
The most notable fact is that this is an utter loss to somebody who sells at these prices.Another thing is that no strike prices were active in between 370PA & 460PA.
The broker wants NSE to cancel those trades & refund the money.Then only he would release the amount to me.
I dont know why the broker,NSE & Police are not acting positively even after they knew that the client is innocent.

regards

pkjha30 · #8 1st April 2006, 02:57 PM

Hi mojac

I understood your case. I think you will get your money back once trade is cancelled. The bug theory may be a probability. But it comes under all the points mentioned earlier. I think you should also file FIR and write to Mumbai Police commissioner. In another thread you have noted that NSE replied to you. So things must be moving. It takes some time to move the system. So keep following up and ask broker in writing what reply he has given to NSE. Also ask him what action he has take to prevent this in future and how long it took him to do that once it came to his notice.See if reply is in any way damaging to you then you can think that broker is to be blamed squarely.

How broker will manage rest of the margin money ( i.e. about 28 lakhs)
AS Asish has told you Right to Information act can be used on all authorities to get information and to spur them into action.Meanwhile keep sending letters so that someone has to answerafter a while. Don't leave it.
Forum members will support you. If you come to conclusion that Broker is involved in some ways do share with us. Forum members may also send messages to the and to other places calling attention to this type of problems.

Wish you well
Pankaj

mojac · #9 29th January 2007, 12:22 AM

investor dont have any support what so ever

mojac · #10 29th January 2007, 12:25 AM

this forum is of no use , to be frank.....dont waste time pls

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