need legal guidance

S

sonalikk.27

New Member
#1
#1
Hi to all...

1.Does anybody know that can a reliancemoney sub-broker buy or purchase the share without consent of client?( if u fill & submit only Dmat account opening form& transfer to sub broker)
2.can sub-broker do the transactions without security key(that is alloted to client only)?
3.What about power of attorny procedure?

this is all becoz my father's share holding have been sold out by reliancemoney sub broker without knowing to us and we got loss of Rs 5 lakh.
Now sub-broker says that by default he had rights to do so.

I dont know very much about share market & regulation towards sub broker, I request you all ,please help me.
 
Last edited:
V

VijayDT

Active Member
#2
#2
sonalikk.27 said:
Hi to all...

1.Does anybody know that can a reliancemoney sub-broker buy or purchase the share without consent of client?( if u fill & submit only Dmat account opening form& transfer to sub broker)
2.can sub-broker do the transactions without security key(that is alloted to client only)?
3.What about power of attorny procedure?

this is all becoz my father's share holding have been sold out by reliancemoney sub broker without knowing to us and we got loss of Rs 5 lakh.
Now sub-broker says that by default he had rights to do so.

I dont know very much about share market & regulation towards sub broker, I request you all ,please help me.
Click to expand...
Dear Sonali,
Your father has been misguided by his sub-broker. For your information no sub-broker or a principal broker have a right to sell the holding of an account holder. The power of attorney is only to facilitate transfer of shares from your beneficiary account to broker's settlement account. This is done once you have sold the shares lying in your pool account. Please bear in mind that a Sub-broker does not have any right to transfer your shares for any other purpose.

I would suggest you to write a letter to exchange(investors grievance cell) where your share were sold and also mark a copy to SEBI. if your matter does not get resolved in 15 days than file an arbitration against reliance money. I am sure you will get 100% of your money(shares) back. The arbitration procedure at the exchanges is simple, fast and effective. Do not worry your share are not going anywhere. You will get justice.
Regards,
VDT
 
S

sonalikk.27

New Member
#3
#3
Thanks Vijay
I got a lot confidence only becoz of you.
I have decided to do as per ur guidance.
Before launching a complain should I retrieve all signed agreements/documents from Reliancemoney, is it necessary? or doesn't matter?

On more thing I want to share that the said unauthorized transactions have been done one year back but we came to know to it 15 days before when we asked him about account status. Actually we didnt want to do any transactions until the market grow up thats why Dad was not monitoring his account since long time.So I wanted to know that can we launch a complain now? Is there any such time duration limit from last said transactions upto which we can launch complain?

your guidance matters me a lot..thanks
 
V

VijayDT

Active Member
#4
#4
sonalikk.27 said:
Thanks Vijay
I got a lot confidence only becoz of you.
I have decided to do as per ur guidance.
Before launching a complain should I retrieve all signed agreements/documents from Reliancemoney, is it necessary? or doesn't matter?

.....



Dear Sonali,

If you can get your documents it is fine, otherwise too I do not think it makes much difference, as Reliance Money's agreement for all the clients is standard. Currently documents should be with Reliance Money, and a sub-broker cannot temper with it now. Hence ask for duplicate of documents, write directly to Reliance Money; if possible visit Reliance Money's Customer care centre (I do not know where it is, but you can search on their website).

On the second issue, there use to be time limitation of six months from the date of dispute. But SEbi vides its circular No. CIR/MRD/DSA/24/2010 of 11/08/2010 & CIR/MRD/DSA /29/2010 of 31/08/2010 have extended this time limit from six months to three years. Here is the excerpt for your ready reference "The arbitrator should be appointed within 30 days after receiving the arbitration reference by the exchange. Arbitration claims can also be filed after six months under the new framework since the limitation period for arbitration has now been modified to three years as prescribed under the Limitation Act, 1963. An award should be passed within four months after appointment of the arbitrator."

In your case, I do not know from which date it will be counted (but definitely it is not from the date of the last transaction). However, recently SEBI had come out with more qualitative changes too, apart from change in the time period. They have made it more stringent based on the nature of a case. Hence time limitation will not apply in your case as it is a matter of breach of trust. I am confident you will get your shares back. Please let me and this forum know when you get it back. Markets are good and I feel you will get better value, by the time they are back with you. And one more thing if you want you can claim the highest price of the stocks during the period when shares were lying with your broker until you get your verdict ( I am not sure, but you may get the verdict in your favour).

Cheers!!!
VDT
Click to expand...
 
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VJAY

VJAY

Well-Known Member
#5
#5
Dear vijay,
Can you please eloberate procedure to file arbitration....for just to get knowledge about it...
 
S

sonalikk.27

New Member
#6
#6
Dear Vijay Thanks

Today, when I called to Reliancemoney nearest branch office and talked to concern executive about fraud case of its sub-broker and request him for assist then he simply said that before six months the said sub-broker has officially (Sub-Brok published such advertisement in local Newspaper)cancelled his broker ship from Reliancemoney & SEBI also, so they cant help me . He also said that my case will not stand in Arbitrator and Reliancemoney has no role to play rather they suggest me for compromise with sub-broker or lodge non criminal complain against Sub Broker only. After that I read all received mail but didn’t get such cancellation notice mail from Reliancemoney or Sub-Brok but I am not sure about any post letter becoz 1 yr back we shifted to another location in same city(old address was on document).

I have applied for photocopies of submitted document,They are going to provide it in 15 days.
1..I am going to write a complain letter to Customer grievance cell of Reliance marking SEBI in cc and will take reply in written. What you say about this?

2..I also wanted to know that where can I see the Name, Franch Name, profile, status of Sub Brok. I have his broker code.

Every day a new hard thing comes in light…which makes matter little tough
Thanking You…
 
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S S

S S

Well-Known Member
#7
#7
Sonali,

You seem to be on the right track. So, there are few more things you must consider :

Since the account was opened with Reliancemoney [RM] were you/you dad getting various mails from time to time, such as the change in trading time, clubbing of settlements, holiday for NSE/BSE. In short, emails other than those with the details of the trading/investing related mails ?

If YES, then RM also needs to send you a mail to inform you that the sub-broker’s sub–brokership has been cancelled. If RM has NOT sent any such mails, it means that the trading / demat account with RM is RM’s responsibility, and the sub-broker was only a commission agent to bring in business on commission basis.

One can argue that your interest to open a trading/demat account was with RM and NOT the sub-broker, and therefore RM cannot deny it’s ultimate responsibility, especially in case of incorrect acts done by it’s sub-broker.

You must be having a copy of the contract signed while opening this account. This contract must be with RM alone, without specifying anything about the sub-broker. Get it checked legally.

Therefore, you surely can sue RM along with it’s sub-broker under IPC 420. In turn, RM may be required to take up similar case against it’s ex-sub-broker as of date.

RM also would have mentioned that anything against it has to be sorted out under the jurisdiction of the Mumbai High Court. But in my opinion, it is NOT applicable for cases under IPC 420.

That is my interpretation, and I could be wrong because I am NOT a lawyer. Best way is to discuss the matter with a reliable advocate who has handled similar cases.

Good Luck!
SS
 
V

VijayDT

Active Member
#8
#8
sonalikk.27 said:
Dear Vijay Thanks

Today, when I called to Reliancemoney nearest branch office and talked to concern executive about fraud case of its sub-broker and request him for assist then he simply said that before six months the said sub-broker has officially (Sub-Brok published such advertisement in local Newspaper)cancelled his broker ship from Reliancemoney & SEBI also, so they cant help me . He also said that my case will not stand in Arbitrator and Reliancemoney has no role to play rather they suggest me for compromise with sub-broker or lodge non criminal complain against Sub Broker only. After that I read all received mail but didn’t get such cancellation notice mail from Reliancemoney or Sub-Brok but I am not sure about any post letter becoz 1 yr back we shifted to another location in same city(old address was on document).

I have applied for photocopies of submitted document,They are going to provide it in 15 days.
1..I am going to write a complain letter to Customer grievance cell of Reliance marking SEBI in cc and will take reply in written. What you say about this?

2..I also wanted to know that where can I see the Name, Franch Name, profile, status of Sub Brok. I have his broker code.

Every day a new hard thing comes in light…which makes matter little tough
Thanking You…
Click to expand...
Dear Sonali,

Let's first get the sequence of the events right. You(your father) had an account with Reliance Money (through a sub-broker). You opened a trading and demat account with Reliance Money. You gave the power of attorney to sub broker to transfer shares sold by you for settlement for your sales (that's the power of attorney which Reliance Money should have taken). Sub broker sold your shares(without your instructions) and delivered it for settlement, Here most important is that these are the trades which are not done by you OR instructed by you. He trades further(the same way) and makes losses, which is adjusted against your credits due to deliver of the shares. Is this the right sequences.

In this sequence loses due to trading can be before the delivery orders executed or after, it does not matter. What is important for you to win the sase is, all trades (or loss making trades) were not done on your instructions, and all the trades were done with Reliance Money as a principal broker(you must be having a ledger showing all trades in Relaince Monay acount). If this is the chain of events, then you will win the case immaterial of currently sub broker is there with Reliance Monay or not. They (Reliance Money) executive is misguiding you. Please go ahead and file an arbitration.

You can see the procedure for arbitration on NSE website. Please go to nseindia.com then go to investors tab followed by arbitration. http://www.nseindia.com then go to "investors" tab, then go to "investor service cell", then within that you will see tabs related to arbitration. I hope this helps.

My advice is, not to waste time and go ahead with arbitration directly. I reiterate you will win the case.

Regards,
VDT
 
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alroyraj

alroyraj

Well-Known Member
#10
#10
sonalikk.27 said:
Hi to all...

1.Does anybody know that can a reliancemoney sub-broker buy or purchase the share without consent of client?( if u fill & submit only Dmat account opening form& transfer to sub broker)
2.can sub-broker do the transactions without security key(that is alloted to client only)?
3.What about power of attorny procedure?

this is all becoz my father's share holding have been sold out by reliancemoney sub broker without knowing to us and we got loss of Rs 5 lakh.
Now sub-broker says that by default he had rights to do so.

I dont know very much about share market & regulation towards sub broker, I request you all ,please help me.
Click to expand...
Write a complaint letter to Reliance Money marking a copy to NSE arbitration id.
Since this is a large amount,it is better to escalate the issue by phoning in to CNBC Beware Investor program. This program aims to highlight excesses done by financial intermediaries . I have seen that it usually scares companies to settle the suit for fear of bad publicity. try it,nothing to lose from this option.
 
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