Margin funding Warning----ALERT!!!

#1
Kindly make sure you are checking on an everyday basis the interest rates being charged on your margin funding. This is done on a daily basis. Disturbing evidence coming to light has shown that some RMs, associates and regional managers, in order to meet their targets---are changing the setup-exe files in their offices, so that the interest rates are increased from say 15% to 19% and even 21%.

My suggestion to all is please get out of MARGIN FUNDING, since many of us do not understand that this daily compounded interest ends up to 2-3% a month and 30% a year, - all done without your knowledge.


Remember the markets direction has changed, notwithstanding the 1000 pts up we have seen in 3 days, but certainly the "tantric sex" all of us were having with stock futures are no longer going to be the same.

This is putting huge pressure on RMs and they have once again started playing around with clients' accounts. In the early days, it was "trading without customer's knowledge". It has now become even more sinister.

cheers,
nkpanjiyar

courtesy: Bob
 
#2
Check your margin funding. Even trades can be faked by brokers. There is something called client-to-client shorts, which allow brokers to show bad/short deliveries even if they are not done through NSE.

NSE also has no clear rule on this.

The whole broking business does this. A complete scam!

Be informed,
nkpanjiyar
 

pkjha30

Well-Known Member
#3
nkpanjiyar said:
Kindly make sure you are checking on an everyday basis the interest rates being charged on your margin funding. This is done on a daily basis. Disturbing evidence coming to light has shown that some RMs, associates and regional managers, in order to meet their targets---are changing the setup-exe files in their offices, so that the interest rates are increased from say 15% to 19% and even 21%.

This is putting huge pressure on RMs and they have once again started playing around with clients' accounts. In the early days, it was "trading without customer's knowledge". It has now become even more sinister.

cheers,
nkpanjiyar

courtesy: Bob
Hi All
This is certainly something which warrants your serious attention and request wriiten clarification from your broker.

read your agreement with the broker carefully to check if such a thing is disclosed or agreed upon earlier.

Tempering with electronic files without authorisation is certainly a crime and your RM or broker should be informed that legal action could also be taken.

Sometimes they might take advantage of your urge to maintain friendly relations. Beware that it is only a business relation with your money feeding your broker and RM. At first sign of difficulties and/ or malpractices chuck your broker without hesitation as you are there for money and not for friendship in the first place.

pankaj:)
 

shrinivas

Well-Known Member
#4
pkjha30 said:
Hi All
This is certainly something which warrants your serious attention and request wriiten clarification from your broker.

read your agreement with the broker carefully to check if such a thing is disclosed or agreed upon earlier.

Tempering with electronic files without authorisation is certainly a crime and your RM or broker should be informed that legal action could also be taken.

Sometimes they might take advantage of your urge to maintain friendly relations. Beware that it is only a business relation with your money feeding your broker and RM. At first sign of difficulties and/ or malpractices chuck your broker without hesitation as you are there for money and not for friendship in the first place.

pankaj:)
Thanks pankaj...
I have noticed this earlier.......Thanks a lot for your updates and creating awareness..

ganeshhity
 
#5
Friends:

Once in a while I attempt to write something so that it reminds us of the dangers of using your cash in these markets.

I had earlier sent some messages about disturbing evidence coming to light at one "bull" broker whose staff have been for the last 2 years manipulating the accounts of their clients to increase and meet their targets.

I have confirmed this to be true today, again, and I am sending out this serious warning to please calculate your interest element on your margin funding EVERY DAY.

If you can get out of margin funding which is at 14-16% per annum and trade your own cash, this is best, but if you choose to do margin, make sure you are not bled slowly by your broker.

Some person from Bangalore had written a mail stating that I complain too much about losing small brokerage money, while not about losing lakhs in the market.

To him I say: I dont lose. Even if I did, I do so because of my mistake, not because of some broker who is sucking blood like a bed bug little by little. Rightly so, he turned out to be a small broker, obviously hurt by that mail.

Friends, today, I have clearly confirmed the following happens regularly with your accounts:

1. Your RM changes the interest rate in the setup file of your account. You could on some days be charged 21 or 31% and when you complain, a typical answer would be "Sorry for this error, I will make changes".

2. Vice presidents and RMs are often listed as sub-brokers to your accounts and this is a clear conflict of interest. One VP in Mumbai (living in Walkeshwar) is a remisier - in the name of his wife - and brokerage from a few large accounts get routed to her. As a shareholder in this company, what I would ask, is why are employees taking my brokerage and giving it to their wives?

Please be very careful because brokers are looking to sell their companies to foreign brokerage houses. One particular CEO is desperate - and will do anything - to make sure this quarter's numbers are met, since his company is trying to palm it off to a US based brokerage house. The demerger of the real estate company is a clear indication they are NOT serious about continuing with the broking business.

So ensure that you are not funding the wild dreams of cowboy brokers.

cheers,
nkpanjiyar

courtesy: Bob
 

jdm

Well-Known Member
#6
hi nkp,
during downtrends like this volumes tends to dry up, afterall broking is a seasonal business. and this is a primetimes not only for the bears but also for the errant brokers, who plays every dirty tricks to jack up his income.

folks, just beware of, as nkp said,"Sorry for this error, I will make changes". do not take it lightly.

cheers,
jdm.
 

Similar threads