Destruction of commodity a/c by Karvy Comtrade Ltd.

#1
Hello Sir/Madam,
This mail is in relation to my A/C No.:37068 (Name: Mr.Arun Malvankar) handled by the Bakehouse branch (MUMBK3) in Mumbai.This a/c has been in operation for the past four months (Trading commenced from 14/10/2008).

However, from the beginning of Jan 2009, this a/c is been systematically destroyed by a bunch of employees at the Bakehouse branch, whom I shall be naming in the latter course of this mail.The a/c had an intra-day balance of Rs.4,05,000 during the beginning of Jan 2009 & now, it has been brought down to Rs.2,05,000.The interesting bit of information is that the employees at Bakehouse branch have been resorting to over-trading in my a/c which, is against my liking & which, has resulted in generating a brokerage in excess of Rs.2,00,000 within 3 months inspite of the fact that the capital brought into this a/c was only Rs.2,46,600 & the brokerage is 0.04% only.

This is a classic case of volume trading with the sole intention of generating more brokerage by the employees of Karvy Comtrade, so as to incentivise themselves & in that process, destroying the hard-earned money of the client who has reposed his faith in Karvy Comtrade.

Further more, I am being pressurised to sign the ledger balance (LB) inspite of myself not been comfortable with the manner in which my a/c is being destroyed by senior employees of the Bakehouse branch.They have stopped trading in my a/c at Rs.2,05,000 levels, telling me that if the LB is not signed by the client; all trading in my a/c shall be stopped.The senior employees of Bakehouse are arm-twisting me into signing the ledger balance, failing which, no trade shall be initiated in my a/c.I have not been provided any Diet ODIN by the company & hence, I am not able to trade in my own a/c because all my trades are lodged through the Bakehouse branch.I am being made to incur further losses by trade stoppage in my a/c.The employees of Bakehouse branch shall have their own way & the client who brings his hard-earned money is made to suffer losses so as to satisfy their short-term objective of generating huge brokerage so as to incentivise themselves at the expense of the client.I have been demanding for the past three weeks that they send me a consolidated statement of brokerage generated in my a/c till date, but, they are dishing out one excuse after the other for not providing me a copy of the consolidated brokerage statement.Now,as an existing client of Karvy Comtrade, I demand that this matter be taken up by the head-office at Hyderabad as I am not getting any co-operation from the employees of the Bakehouse branch.

The Complaint:
Complainant No. 1: Mr.Ritesh Tulsyan - Asst.Manger (Bakehouse branch):

Mr.Riteh Tulsyan has lied to me from the beginning for getting this a/c at Karvy Comtrade.During the months of August & September of 2008, Mr.Tulsyan used to literally call me thrice a day, cajoling me to open an a/c at Karvy Comtrade promising me the stars & bragging about the high past success rate of Karvy Comtrade at generating good returns for the clients.Finally, after 2 months of constant prodding, I decided to open an a/c at the Bakehouse branch which was - by his own admission; to be managed by Mr.Ritesh Tulsyan. He had said the following:
a) The dealers of Bakehouse branch manage the Rs.2,00,000 ka a/c after taking prior consent of the clients.

b) He(Mr.Ritesh Tulsyan) handles the client accounts ranging between Rs.2 lakhs to Rs.5 lakhs & since, my a/c was worth Rs.2,46,600, he himself would be trading in the a/c.This, inspite of the fact that he is the marketing guy in the set-up & as such, he is hardly to be found in the office.More than 7 out of 10 times, the standard reply from the dealers at Bakehouse is that Mr.Riteh Tulsyan is not there in the office as he has gone for a client meeting.He never divulged the information that he is the marketing guy in the set-up & foxed me into believing that my a/c is in his safe hands.This was a blatant white lie from Mr.Ritesh Tulsyan for getting me to open an a/c at Bakehouse branch.

c) Mr.Anil Jain_Asst. Manager handles the client a/c's between Rs.5 Lakhs to Rs.10 lakhs &

d) Mr.Amol Thorat- Senior Manager handles the a/c's above Rs.10 lakhs.

In this manner, Mr.Ritesh Tulsyan lied pretty blatantly saying he shall be handling the a/c when the truth of the matter was that the a/c was left at the mercy of dealers who used to punch-in the trades.I had brought this a/c to Karvy Comtrade in the belief that the a/c would be looked after well by Mr.Ritesh Tulsyan; who now claims that he is the marketing guy in the set-up & hence, is not responsible for the destruction of my a/c by his seniors & who has literally put his hands to his ears feigning complete ignorance regarding my a/c.I had specifically told Mr.Tulsyan that I shall not be comfortable with my a/c going below the capital value of Rs.2,46,600 & therefore, there should not be any over-trading & over-exposure in my a/c at any point in time.This point had been accepted by Mr.Tulsyan who had a word with his boss (Mr.Amol Thorat) on this matter & I had made it clear in no uncertain terms that I shall not be signing the ledger balance if it were to fall below the capital value of Rs.2,46,600.As such, the LB was not send to me in the last week of Dec 2008 & the beginning of Jan 2009.However, now that the balance is Rs.2,05,000; Mr.Ritesh Tulsyan is desperate to get the LB signed by me at any cost threatening me the non-operation of my a/c by his dealers at Bakehouse branch.As such, my a/c is lying idle at the branch for the past one week.

Complainant No. 2: Mr. Amol Thorat:
Every single person at Bakehouse branch, including Mr.Ritesh Tulsyan, was going gaga about Mr.Amol Thorat claiming that he is one of the best traders at Bakehouse & he has made millions for his clients at Karvy & other places & as such, he would generate above-average returns in my a/c.I believed in their sweet talk & from the last week of Dec 2008 the calls in the a/c were being taken by Mr.Amol Thorat.The a/c balance at that moment was Rs.3,72,000.However, Mr.Thorat had he his own merry way of trading wherein, he longed 3 lots of Gold MCX @ 13,737 levels.I was not comfortable with this trade from the beginning & I had pointed out that the 13,737 level was too high for my a/c & I am not comfortable with the trade.But, obviously he had his own perpetually bullish views on the market & as such, was not willing to come out of trade at cost-to-cost even though the market had given an opportunity to do so.He had no stop-loss in place for this trade inspite of longing 3 lots of Gold MCX at the highest level of the market at that point in time.He did not even appreciate the fact that the a/c size at that point in time was only Rs.3,72,000 & a 500-point dip in the markets could result in halving the client's a/c.He was outrightly bullish on Gold inspite of the negative view that I had on gold at that point in time.I had even asked him why he is never short on the market.Finally, I had to beg him to cut off the long @ 13,540 when my a/c balance shrunk to Rs.2,91,000 levels.At that very moment, I had made it amply clear that I shall not sign the ledger balance(LB) until the Lb comes to Rs.3,00,000 levels.This had been made known to the following 3 gentlemen:

a) Mr.Amol Thorat- Senior Manager
b) Mr. Daxesh - Principal Dealer &
C) Mr.Ritesh Tulsyan - The Honorary Relationship Manger to my a/c.

Inspite of this, Mr.Amol Thorat continued his perpetually bullish trades by longing 3 lots each of base metals (Copper,Zinc & Nickel) @ Rs.166.50; 62.40 & 544.50 levels respectively in an a/c which was worth only Rs.2,74,000 at that point in time. Any sane person (trader) in the commodity markets would appreciate the fact that this is blatant over-trading in a hapless client's a/c who is not willing to take over-exposure in the commodity futures market.But,Mr.Amol Thorat has his own precious views on the market & he brings his past records to the fore while defending his perpetually bullish views on the market.

Furthermore, this trades were informed to be me after they were executed & not before executing them.As such, I am been made to undertake trades which are rather destroying my a/c just because Mr.Amol Thorat is the hot-shot trader at Karvy Comtrade whose views are extremely bullish & who is destined to completely destroy my a/c.I was not at all comfortable with the base metals trades & was running from pillar to post to cut these trades off from my a/c.Finally, I exerted all the pressure that I could garner & squared off the longs@ 157.5;57 & 537.50 levels respectively.In this process, my a/c was completely destroyed by the most able trader at Bakehouse branch & it was brought down to Rs.2,05,000 levels.This trades were completely unacceptable to me as they originated from an inflated ego which was riding high on it's past glory.

I had earlier pointed out in this mail that I was unwilling to sign the LB below Rs.3,00,000 levels as the trades done by Mr.Amol Thorat were completely unjustified because they were carried out without taking me into confidence regarding the trades.I was only informed about this trades after they were executed; there were no stop-losses in place in any of the trades & I was finally compelled to cut the trades fearing further damage to my already fragile a/c & yet, there was no remorse on the part of Mr.Amol Thorat & his bunch of dealers& asst.managers at Bakehouse branch.

Now that I have refused to sign the ledger balance, I am being held to ransom by the Bakehouse employees claiming that company policy compels me to sign the LB, otherwise no trade shall be allowed in the a/c.I am challenging this proposition by claiming that Mr.Amol Thorat & Mr.Ritesh Tulsyan have destroyed my a/c by resorting to unjustified trading in my a/c contrary to my views on the market by forcing those trades onto me & by shrugging off all responsibility regarding the well-being of my a/c at Bakehouse branch.This was done with the malafied intention of creating volume in my fragile a/c & thereby, generating more brokerage for earning more incentives for themselves.

As an existing client of Karvy Comtrade, I am demanding that this matter should be immediately taken up by the head-office at Karvy Comtrade in Hyderabad as I am not been allowed to trade at Bakehouse branch thereby, increasing my losses to unbearable proportions.Further, I demand a copy of the consolidated brokerage statement from 14/10/2008 till date which will enable me to prove beyond doubt the recklessness of the Bakehouse employees in handling my a/c with the malafied intention of only generating brokerage for themselves & destroying the hard-earned money of gullible clients like me who blindly repose faith in hard-core marketers like Mr.Ritesh Tulsyan & the ' I-know-it-all' egotistic attitude of Mr.Amol Thorat who are now completely shying away from accepting the responsibility towards my a/c.

I had come to Karvy Comtrade with the desire to make reasonable returns & build a long-standing relationship with a premium commodity brokerage house but your employees at Bakehouse branch are hell-bent in disowning my a/c & compelling me to close my a/c with the company.I have already made it known to the Bakehouse staff that I have Rs.10 lakhs in my kitty which I am going to deploy in the commodity markets for the coming 5 continuous years.Now, the ball is in the company's court to work out a solution to A/C No.: 37068 & allow me to continue my a/c at Karvy Comtrade or take up this matter in front of the mass media so as to bring this matter into the public domain.

I would appreciate a speedy resolution to the current impasse & a quick acknowledgment to this mail.

Warm Regards,
Arun Malvankar

This mail was sent on 26/1/2009 to the head-office at Hyderabad.But, till date no inquiry has been initiated into this matter.The a/c has been frozen at the Bakehouse branch & no trades are been allowed by the dealers at the branch.
I would like to invite troubled investors of Karvy Comtrade Ltd. to post their grievances on this thread & educate gullible investors to stay away from unscrupulous brokers like Karvy.
 
#2
Why you didn't approach MCX. I had actually the similar grievance and went to MCX and got some relief. What you have mentioned is in fact the business practice of the karvy group. My suggestion - get the entire balance in ur ledger account transferred back to your linked saving a/c. Take the matter to the MCX. Prove that the trades were done in your account without your prior consent/ order and claim for the entire damage you have suffered + legal expenses and mental torture. If any help is required, I am here.
 
#3
Reply to the Complaint of Mr. Arun Malvanker
Commodity trading account no:37068

Dear Mr. Arun Malvankar

In response to the complaint lodged in the month of Jan.2009 by you and our feedback & clarification to your good self about the same, you had duly admitted and confirmed that your queries have been duly resolved to your fullest satisfaction. We have duly resolved your queries which had been confirmed by you by again starting trading with us in the month of Feb.2009. You will also appreciate the fact that you have been trading since then regularly and taken full pay-out of your credit amount in the month of Mar.2009 which also shows that you have duly admitted the trading happened in your commodity trading account no.37068. It has been confirmed by you that there has been no destruction of your commodity trading account by Karvy Comtade Limited.

In view of the above, we state that we have duly resolved the grievances you had and it has been duly confirmed and admitted by you. Kindly take the same on record.

The complaint lodged by you stands resolved and is closed accordingly.

Thanking You,

For, Karvy Comtrade Limited


Authorised Signatory
 

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