Hi,
My uncle used to do comodity trading by opening client account with MCX-NCDEX registred member.
He started account with 1.5 Lakhes. During high speculation time, member squared off his account and said he need to pay 11.5 Lakhes. Then he told them that he can't pay this much amount. So, member said pay around 2 lakhes and start trading again.
So, my uncle paid 2 lakhes to start trading again.
His member asked him to give an empty cheque, an empty pro note and empty paper with his signature for future trading in a new client membership.
That member used these empty documents, used pro note and wrote some body's name on it said he is i ndebt to him and stopped his bank account. Later he used signed blank check for amount 9.5 Lakhes and when check bounced he kept criminal frud case on him.
So, now he is fighting the case in court. It was purely mistake on my uncle part ot give blank documents. But, what he can do now to come out of this mess.
My question was, when my uncle has balance of 1.5 lakhes, whether member can allow him to trade till his debt reaches 11.5 lakhes. Is there some rule written some where saying member should not allow to trade client once his balance becomes some percentatge of -ve.
Any advice in this regard will be great help.
Regards
My uncle used to do comodity trading by opening client account with MCX-NCDEX registred member.
He started account with 1.5 Lakhes. During high speculation time, member squared off his account and said he need to pay 11.5 Lakhes. Then he told them that he can't pay this much amount. So, member said pay around 2 lakhes and start trading again.
So, my uncle paid 2 lakhes to start trading again.
His member asked him to give an empty cheque, an empty pro note and empty paper with his signature for future trading in a new client membership.
That member used these empty documents, used pro note and wrote some body's name on it said he is i ndebt to him and stopped his bank account. Later he used signed blank check for amount 9.5 Lakhes and when check bounced he kept criminal frud case on him.
So, now he is fighting the case in court. It was purely mistake on my uncle part ot give blank documents. But, what he can do now to come out of this mess.
My question was, when my uncle has balance of 1.5 lakhes, whether member can allow him to trade till his debt reaches 11.5 lakhes. Is there some rule written some where saying member should not allow to trade client once his balance becomes some percentatge of -ve.
Any advice in this regard will be great help.
Regards