Fraudulent transaction in my Kotak account

vishbhat1 · Dec 19, 2006

Hi,

I hold an account with Kotak Securities. On 26th June 2006, they bought some 1000 Nifty put options in my account without my knowledge. The same were automatically squared off on expiry thus setting me back by 2.35 lakhs. The transaction does not appear anywhere on my order or trade book and they never ever issued me even a contract note towards that transaction.

Repeated mails/calls to Kotak Customerservice have not elicited any response.
I have also written e-mails to NSE ([email protected]) and the Chairman of Kotak securities but again with no response.
I have also lodged a compalint on SEBI's website. No response from there either.
I have also recently written to [email protected]

Now, I am at my wits end now not knowing how to recover the money. Can anybody please help?

systemtrader · Dec 19, 2006

You in any case have already gone to SEBI and they will give you a chance to appear before them or hold an arbitration hearing to take care of such a problem.

The broker in such cases will have to produce proof that the trades have been placed by you as a client and they will have to produce a log file proving the same. Similarly, since you are an internet client they will have to produce proof of having delivered an e-contract to the mail id that you would have given at the time of account opening.

I would suggest that you go and ask Kotak to give these proofs to you if you dont want to wait for the arbitration date wih SEBI, which could take as long as 5-6 months. (have had to fight a couple of such cases with 5paisa and a regional broker in Kerala. Won both the cases

) As a corporate broker they will be forced to take your complaint seriously.

milind857 · Dec 19, 2006

systemtrader said:

You in any case have already gone to SEBI and they will give you a chance to appear before them or hold an arbitration hearing to take care of such a problem.

The broker in such cases will have to produce proof that the trades have been placed by you as a client and they will have to produce a log file proving the same. Similarly, since you are an internet client they will have to produce proof of having delivered an e-contract to the mail id that you would have given at the time of account opening.

I would suggest that you go and ask Kotak to give these proofs to you if you dont want to wait for the arbitration date wih SEBI, which could take as long as 5-6 months. (have had to fight a couple of such cases with 5paisa and a regional broker in Kerala. Won both the cases

) As a corporate broker they will be forced to take your complaint seriously.

Stop writting mails & do some action...
Catch your RM or go to the manager & fire himmmmmmmm.
Just do it....

mojac · Jan 29, 2007

did u get any compensation for the cases which u won???

systemtrader · Feb 2, 2007

Won the 2 arbitration cases and the brokers di pay up based on the arbitration award. Though i did not get my full claim, i did get the amount for the actual losses that occured

suba_stocks · Feb 3, 2007

well,i wrote that this has happend to me too with kotak securities,i have already posted that in this investors grieviences section.They didn't even deliverd any contract note,once they billed me twice and other time they included a trasaction which i have not done and same was not indicated in contract note.

kotak securities staff are of bunch of idiots because they simply sing same song with out understanding what the problem is.

The problem lies in kotak securities software,i say it with full confidence because i know what has happed on that week on kotak securities website,it kept on showing all errors in balance and also trade value error and margin utilized.all calculations shown are errors.

please note who ever trading with kotak securities has to look into trade details,and balace every day.if you see any errors means,some one going to get hammerd this way.

Unless SEBI punish them with hefty fine,they will not come out clean.

Guide lines to protect yourself :
1)check your balance every day
2)save all the trades orders
3)keep safe all contract notes deliverd to you.
4)check billing carefully...(extra billing has done to me irrespective of my contract value)
5)check your quatity of shares and scrips with out fail in your dp

never lose hopes,Fight with them till you get back your money ...not just money...one should make them pay same interest as they charge for margin utilised for absorbind money illegally. and trauma caused by there mistake.
i am still fighting the same .

suba

neo · Feb 6, 2007

Suba,
I am using kotak for over a year and faced many problems with them. Though I have not faced any financial fraud as you have, But I have not seen people who don't want to improve their service.

Whenever I used their customer service, I always get totally vague response. Even a small child can write better response and explain their situation. For example When I asked them about reducing Option brokerage rate as per NSE Rules, Their response was "we wish to inform you that brokerage calculation in options currently is {(premium + strike price) x quantity} x brokerage.". I am asking them to comply with NSE rules, and they are responding with what is brokerage rate.

The delays in the customer service response easily takes between 3-10 days and at the end you get such foolish responses.

I think these guys are still having a mindset of 1986. I had stopped working using their service at all. Think investment lost, think kotak.

oxusmorouz · Feb 6, 2007

This should serve as a warning to other online traders to use a good spyware. I am posting some definitions which I came accross in the Paretologic website:

Keylogger
Records keystrokes into a log file and may transmit or e-mail the file to an intruder. Keyloggers can record passwords and logins, allowing intruders to access passworded programs and web sites, including online banking accounts. Most keyloggers log ALL keystrokes.

Spyware/Surveillance
Designed to collect data for a variety of purposes, true Spyware (or surveillance) applications record personal or private information and transmit it to a third party. Often this data is used for market research and advertising, but more malicious Spyware programs attempt to steal passwords, logins, banking details and credit card information.

Dialer
Programs that access a user's phone line via a phone-connected modem. Dialers can make unauthorized calls to pay-per-minute phone services, costing the user hundreds of dollars in phone charges.

Chartecteristic:
Records Personal Data / Keystrokes
Spyware programs specialize in recording personal data about the user or the user's computer. Spyware programs called keyloggers record all keystrokes to a log file, which can often be automatically e-mailed to a third-party or third-party Web server. Surveillance programs can record data about a user's Internet activity, program usage, and security settings. Some surveillance programs can even capture images of the user's desktop and send them to a third-party, allowing him or her to see what the user is doing. Password Capture programs focus on stealing passwords and logins from the user's computer. By definition, Spyware collects information about a user's web activity, which may include personal or sensitive information, for the benefit of a third party. A program that covertly records data that should be kept private is likely a threat to the user's privacy and security.

It is possible to place these spywares into your computer when you download .exe files from unknown websites.
NOTE: MOST VIRUS SCANNERS DO NOT RECOGNIZE THEM.

The best anti-spywares I've known are:
1) Webroots spysweeper
2) Ad-Adware
3) Xoftspy
4) Counterspy

jignesh_chitalia · Apr 27, 2007

I understand you all..I have also faced the same problem during 200 tech boom. Before market crashed I have placed order on phone with my broker to sell HCL infosys at 600. He confirmed me on phone that it is sold. Then the market crashed & withing 1 minth HCL was trading at @ 180. After another month my broker said he didn't sell my stock & its til lying. Heavy loss on my account. I told him to pay for his mistake but he didn't. A month later by mistake his acountant added 500 shares of Himachal Futuristic in my account. When I saw additional shares, I immediately sold them thru some other broker. Month after that previous broker told me that by mistake they added some stocks in my demat account & asked for it. I told him to get lost & do whatever he can do. He wen to courst & send me notice which I never accepted from post man. I gave him 500 Rs to make it lost. And things worked. He got tired of asking me for those share. Finally as nice person I paid him the difference (that too after lot of thinking). I was really lucky to get my money back & tech him lesson.
Lesson Learned: All brockers are chor. We have to be always careful. Keep checking out accounts. Ask for trade confirmation everytime. B/c of all these I like icicidirect a lot. I know when there will be issue, it will be very tough to deal with them. But till date I have no issue.

Jignesh

suba_stocks · Apr 28, 2007

mohitgupta_2001 said:

I can understand your pain and trauma which you might be undergoing...but don't lose heart my friend.....

as they have crossed margin of available fund ...you can fight on that point at least you can save your self to that level.

i am not sure of whether there will be any proof of recovery done by the broking house on behalf of you....that is, which prove instead of you it was broking house which carried it,if any such exist then you can fight for the whole amount of error trasaction done by them.

when ever any problem arises one should write it down and submit compalint ..to the broking house first..and also take proof of compalint submitted copy from them......never talk... do it on paper paper paper..

atleast now you should write a request to your broking house where you hold trading account asking them to explain how and why the margin limits are crossed,insist them to reply it on paper not by words.

There words and way of explanation can save you may make you sit on safe side when you file complaint with SEBI....patiently ask them to give reply on paper only.

and please find out ...will there be any specific proof that it was them who carried out transaction on behalf of you.

http://www.sebi.gov.in/investor/investadd.pdf
please check this weblink find out which one is near to your house..and go in person and explain your problem to them they may guide you very well ...

don't worry of what broking houses have ...do your best ...atleast you will be able to recover something if not full amount ...i am 100% sure of some amount of recovery can be done...although it may take time.

please remember ....Go in person and try things by putting everything on paper.

i hope people who has faced this kind of problem will help you and guide you ...more in this forum

The more seriously you purse and create pressure on this broking house the fast and better result you will see.

so try try try ...don't lose heart.

suba

Thread starter	Similar threads	Forum	Replies	Date
H	please help to understand my upper circuit trade transaction	General Trading & Investing Chat	7	May 11, 2021
I	Query about 10 lakh high value stock transaction	Taxation Matters	1	Feb 23, 2021
L	Whom do I approach to complain about Edelweiss's fraudulent selling of their NCDs?	Brokers & Trading Platforms	5	Dec 14, 2019
L	Whom do I complain to if I want to complain about Edelweiss's fraudulent mis selling of their NCD's?	Investors Grievances	2	Dec 14, 2019
M	fraudulent trades seen in my account--solution pls.	Brokers & Trading Platforms	12	Mar 31, 2006

Fraudulent transaction in my Kotak account

vishbhat1

New Member

systemtrader

New Member

milind857

Active Member

mojac

Member

systemtrader

New Member

suba_stocks

Member

neo

Member

oxusmorouz

Well-Known Member

jignesh_chitalia

New Member

suba_stocks

Member

Similar threads