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Illegal Business Practises!!

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View Poll Results: Have you reported the fraud to SEBI?
Yes but SEBI didn't took any action against the company 0 0%
Yes and SEBI took action against the company 1 100.00%
No but I have reported this to others (consumer court, newspapers etc) 0 0%
Not to anyone 0 0%
Multiple Choice Poll. Voters: 1. You may not vote on this poll

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  #1  
Old 7th July 2011, 04:15 PM
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Angry Illegal Business Practises!!

Hi,

My Name is Vijay Gupta and I am new to this forum. I am writing my case here in hope that I will get a positive help here.

I opened Demat account in both Jyoti Commodities Pvt. Ltd. and Jyoti Portfolio Ltd. and give agent the cheque for 5000/- in favor of each account. Cheques got encashed on 11th May 2011. Now, I was not able to trade in any of the accounts as limit was not opened in any of my accounts. This was inturn due to the issue that they wanted bank's stamp on account statement and I only provided them statement after taking print-out from net. I was not getting any time for this as bank was far away from the place where I live and I was busy with my office work. I thought that my 10,000/- are secure atleast.

But last week, I came to know that agent who opened my account has resigned and concerned person in that company is telling me that agent has traded in my account due to which I have incurred a loss due to which your account balance is reduced to 9600/-. When I retaliated to this that I don't know about this, he said that you authorised him to do so by signing the agreement and many other things.
To this, I said, there are 2 things:

1) My limit was not opened
2) how can anyone trade in my account without me knowing atleast

After listening to this, he changed his stand that these are AMC charges that I have incurred on my account. When I opened the account, agent told me that your AMC charges have been waived off.

I want to teach this company a lesson so that they think twice before doing such things with customers. I know that I can report this to SEBI but don't know how to do this and will they take any action for such meagre amount in my case?

Please let me know if anything else that I can do..file a complaint in consumer court or something else.

Thanks.



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  #2  
Old 7th July 2011, 08:54 PM
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Default Re: Illegal Business Practises!!

A few things that I need to know....
a) What was the reason for opening two accounts in different companies
b) Did you check SEBI & Exchange Registration of both the companies
c) Jyoti Portfolio Ltd doesn't sound like a brokerage company...don't know about the other name
Anyways...which city are these companies located


SG

Quote:
Originally Posted by vijay.gupta View Post
Hi,

My Name is Vijay Gupta and I am new to this forum. I am writing my case here in hope that I will get a positive help here.

I opened Demat account in both Jyoti Commodities Pvt. Ltd. and Jyoti Portfolio Ltd. and give agent the cheque for 5000/- in favor of each account. Cheques got encashed on 11th May 2011. Now, I was not able to trade in any of the accounts as limit was not opened in any of my accounts. This was inturn due to the issue that they wanted bank's stamp on account statement and I only provided them statement after taking print-out from net. I was not getting any time for this as bank was far away from the place where I live and I was busy with my office work. I thought that my 10,000/- are secure atleast.

But last week, I came to know that agent who opened my account has resigned and concerned person in that company is telling me that agent has traded in my account due to which I have incurred a loss due to which your account balance is reduced to 9600/-. When I retaliated to this that I don't know about this, he said that you authorised him to do so by signing the agreement and many other things.
To this, I said, there are 2 things:

1) My limit was not opened
2) how can anyone trade in my account without me knowing atleast

After listening to this, he changed his stand that these are AMC charges that I have incurred on my account. When I opened the account, agent told me that your AMC charges have been waived off.

I want to teach this company a lesson so that they think twice before doing such things with customers. I know that I can report this to SEBI but don't know how to do this and will they take any action for such meagre amount in my case?

Please let me know if anything else that I can do..file a complaint in consumer court or something else.

Thanks.
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  #3  
Old 7th July 2011, 10:04 PM
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Default Re: Illegal Business Practises!!

Hey SavantGarde,

a) one account was for shares and one for commodity trading
b) No, I did not check registration..how do i check that? Is there any way to check this online?
c) I will let you know the websites of the company..I was told these are the TT group companies (of TT Undergarments fame)
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Old 7th July 2011, 10:26 PM
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Default Re: Illegal Business Practises!!

hi SG

looks like Jyoti Jain & co. (original name) to me.. head office @ r.k. puram, New Delhi..they have been brokers fr quite a few yrs...probably Vijay cd clarify if he has the head office address with him

regards
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Old 7th July 2011, 10:38 PM
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Default Re: Illegal Business Practises!!

Yes anurag,

I will check the docs today and let you know. Please guide me in teaching them a lesson.
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Old 7th July 2011, 11:11 PM
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Default Re: Illegal Business Practises!!

Here you can find the info about this company:

customercareinfo.in/jyoti-portfolio-new-delhi-address-phone-number-website-details-india.html
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  #7  
Old 8th July 2011, 12:07 AM
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Default Re: Illegal Business Practises!!

Quote:
Originally Posted by vijay.gupta View Post
Here you can find the info about this company:

customercareinfo.in/jyoti-portfolio-new-delhi-address-phone-number-website-details-india.html
this is original web site
www (dot) jyotinettrading (dot) com
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Old 8th July 2011, 03:37 AM
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Default Re: Illegal Business Practises!!

Hi Vijay,

Checked up on the site address provided by PP... as a company it seems quite ok...they have all the registrations.

Here is what I would advise you to do....
a) Forget about teaching a lesson or getting vengeful...
b) It is a common practice among brokers and their RMs & Dealers to Trade a Client's account and incur losses...your client agreement doesn't give them any right to carry on any such activity even with a POA (Power Of Attorney)
c) If you choose to maintain your account with them...Send them an email with clear cut instruction that they are not to trade in your account on their own.
For Future....whether you maintain your account with them or anybody else...
1) Check your contract notes regularly to see if the brokerage levied is as per what you have agreed.
2) Check your ledgers regularly to see if everything tallies with your contract notes, payins & payout
3) If there is any debit/credit in the ledger that you don't understand .... get to the bottom of it as to what it is...
In short....one must have a look & understand what is happening in the Backoffice Regularly.


Happy & Safer Trading

SG
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  #9  
Old 8th July 2011, 08:29 AM
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Default Re: Illegal Business Practises!!

Thanks SG for replying but i want to.let you know that i did not started trading yet as limit was not open that is why; i did not bother to check amount in ledger. Moreover, there was no way for me to check my ledger. I did not received any contract notes or anything on.mail also. They are properly registered. Is that means that they can trade in my account without me knowing this. Is this correct legally?
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Old 8th July 2011, 08:46 AM
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Default Re: Illegal Business Practises!!

Hi Vijay,

Being properly registered doesn't give any Broker a right to trade in a client's account...reason for asking about registration was .... because I wasn't aware of the company.

Neither does your account opening agreement give a broker right to trade.

For a broker to trade in a clients account.....Broker will need a letter authorising him/her to carry out trades on your behalf.

One other way they do is through PMS (Portfolio Management Service) where there is a minimum requirement of 5 Lacs as laid down by SEBI....besides that they need to have separate PMS Registration and certificate from SEBI.

Anyways you should receive your user ID and password whereby you can access your account in the Backoffice.... to keep tabs on your contract notes and Ledgers.

Your Trading password will be different for Trading through internet.


SG



Quote:
Originally Posted by vijay.gupta View Post
Thanks SG for replying but i want to.let you know that i did not started trading yet as limit was not open that is why; i did not bother to check amount in ledger. Moreover, there was no way for me to check my ledger. I did not received any contract notes or anything on.mail also. They are properly registered. Is that means that they can trade in my account without me knowing this. Is this correct legally?


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