Broker made HUGE buy/sell transactions from my account by "mistake"

#1
I just noticed that there was a huge buy order from my account for 1 FnO contract. I had not placed this order, so I called my broker about this, who told me that the order had been placed by mistake. He squared off the position immediately, and luckily I did not lose much money (just about Rs.1000).

My question is what I can do now. Mine is a very small account, of less than 1lac rupees. I am a student with no income and do not file tax returns hence. How is this huge transaction (worth about Rs.10lacs, since this FnO contract was a large with with big margin/leverage) going to affect me? How should I take up this issue with the broker?

ANY other advice will be very much appreciated. I am very new to trading. Thank you !
 

Rish

Well-Known Member
#2
I just noticed that there was a huge buy order from my account for 1 FnO contract. I had not placed this order, so I called my broker about this, who told me that the order had been placed by mistake. He squared off the position immediately, and luckily I did not lose much money (just about Rs.1000).

My question is what I can do now. Mine is a very small account, of less than 1lac rupees. I am a student with no income and do not file tax returns hence. How is this huge transaction (worth about Rs.10lacs, since this FnO contract was a large with with big margin/leverage) going to affect me? How should I take up this issue with the broker?

ANY other advice will be very much appreciated. I am very new to trading. Thank you !
First..apart from other issues...

You should make your objection about this transaction to your broker and make a compliant to your broker....get it acknowledged...

Otherwise...it may repeat...and ask them to return the money..since,,this is not your trade...they bound to pay the money back....

Make a protest in writing....
 

vijkris

Learner and Follower
#3
Yes, even if they acknowledged the mistake verbally, you should insist on written apology alongwith full reversal of loss/profit amount, brokerage and governmet charges.

If they ask u to settle matter without anything in writing, threaten them about complaining to Sebi regarding unauthorised trading.
They will surely loose the case.

1 FnO transaction is not enough to attract tax authorities,as according to IT turnover in this case is 1000 .
 

pannet1

Well-Known Member
#5
Yes, even if they acknowledged the mistake verbally, you should insist on written apology alongwith full reversal of loss/profit amount, brokerage and governmet charges.

If they ask u to settle matter without anything in writing, threaten them about complaining to Sebi regarding unauthorised trading.
They will surely loose the case.

1 FnO transaction is not enough to attract tax authorities,as according to IT turnover in this case is 1000 .
just sue the suckers like there is no tomorrow. black mail them and get regular income.


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#6
I just noticed that there was a huge buy order from my account for 1 FnO contract. I had not placed this order, so I called my broker about this, who told me that the order had been placed by mistake. He squared off the position immediately, and luckily I did not lose much money (just about Rs.1000).

My question is what I can do now. Mine is a very small account, of less than 1lac rupees. I am a student with no income and do not file tax returns hence. How is this huge transaction (worth about Rs.10lacs, since this FnO contract was a large with with big margin/leverage) going to affect me? How should I take up this issue with the broker?

ANY other advice will be very much appreciated. I am very new to trading. Thank you !

Its absolutely rubbish, you didn't place the order either thro terminal or thro phone,

In my 5 years trading career, I never faced this,

If the loss would have gone to multiples of thousands, then who will bare it-
 

mohan.sic

Well-Known Member
#7
Its absolutely rubbish, you didn't place the order either thro terminal or thro phone,

In my 5 years trading career, I never faced this,

If the loss would have gone to multiples of thousands, then who will bare it-
Sometimes it can happen, like Broker- dealers may enter the orders in wrong account. Loss- Broker should give a reversal entry of credit in clients ledger.

I think even Trade can be cancelled/ if client insists. But then it has to be reported to exchange. So brokers generally tend to settle if off with client internally.
 

mohan.sic

Well-Known Member
#8
I just noticed that there was a huge buy order from my account for 1 FnO contract. I had not placed this order, so I called my broker about this, who told me that the order had been placed by mistake. He squared off the position immediately, and luckily I did not lose much money (just about Rs.1000).

My question is what I can do now. Mine is a very small account, of less than 1lac rupees. I am a student with no income and do not file tax returns hence. How is this huge transaction (worth about Rs.10lacs, since this FnO contract was a large with with big margin/leverage) going to affect me? How should I take up this issue with the broker?

ANY other advice will be very much appreciated. I am very new to trading. Thank you !
My suggestion - Speak to the person who did this by mistake. If he sound's genuine -give him benefit of doubt and ask the broker to reverse the loss amount.

Nothing will happen in terms on turnover for this one transaction.
But please do write a mail to concerned team. Explain them that it is execution error from their end and that you cant accept any Profit or Loss incurred due to this.

Do not complain against the person at this point. Such Errors can happen.
 
#9
Thanks a lot everyone. I had a detailed conversation with a manager on Friday. He assured me that I will not have to bear any loss. They also explained the cause of the mistake. It was a manual error, so I am not sure how they will make sure that this will not be repeated in the future (with me or someone else). I guess I just have to accept it as part of the process and move on. Fortunately, I was not that busy on Fri, and caught it as soon as the transaction happened. If not, I shudder to think what might have happened.
 

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