ICICI Securities Ats Service — Unauthorized trading incurring heavy losses through my ATS account

ICICI Securities Ats Service — Unauthorized trading incurring heavy losses through my ATS account

A Anudath from Irinjalakuda, Kerala

14 Jan 2013, From Ms. Archana Mohanraj,, 5A, Avenue crest Apartment, Avenue road, Kuriachira PO, Thrissur, Kerala - 680006. tel: [protected] , [protected] ; [protected]@gmail.com Sub: Unauthorized trading by ICICI securities ATS Service Company through my account incurring heavy losses Ref: ICICI securities ATS trading A/c number:[protected] ; Offline Client Id no: [protected] Dear Sir, I had an ICICI direct.com Online trading account (Account no: [protected]) from which I was advised to shift over to Active Trader Service (ATS) account in November 2011. At that time it was promised that ATS would be trading on my behalf for effective management of my portfolio. In November 2011, I shifted over to ATS, with a stock margin of Rs. 1919565/- and a cheque of Rs. 150000/- was given to start the account (Total Rs. 2069565/-) The last communication we had after I requested to stop all trading activities through my account to know the status of my portfolio was in 5 September 2012 showing a net value of Rs. 1536550/- and Cost net value of Rs. 1786954/- Following this when I requested for a payout of Rs. 500000/- on 15 November 2012, I was told by my Equity Advisor, Mr Naveen Thomas that the amount would be credited to my account within 3 to 4 days. When the amount was not credited, multiple technical excuses were given repeatedly over a period of 2 weeks and never was I appraised on my portfolio status as of then. On 5 December 2012, I received an SMS from the advisor that my current portfolio value was only Rs. 400000/- and that’s why the payout was not given. It was only then that I was informed of the heavy losses in my portfolio which occurred in October 2012. Please note the detail as was informed on 18 Dec 2012 by my Equity Advisor Mr Naveen Thomas Rs.20,69,565 : Stock Margin 19,19565 + cheque margin given by client Rs. 1,50,000/- . Rs. 4,15,060 : Total Payout given before 05 March 2012. Rs.16,45,505 : Balance Margin. Net Stock Value as on 18 Dec 2012 251000 Net Loss -1282015 Rs.12,82,015 : Trading loss and Portfolio erosion. Brokerage and Other charges Rs.8,46,398 : Brokerge Rs.1,03,356 : Service Tax Rs. 11,272 : Transaction charges Rs. 329 : Sebi fees Rs.1,96,103 : STT ________________ Rs. 11,76,280/- : Total brokerage and Other charges. On my behalf, my husband Dr.Anudath Brahmadathan, spoke to Mr. Kannan K Mohandas, Manager, ATS and to Mr. Jeevan Raman, Regional Head – ATS, ICICI Securities Limited, Kochi, Kerala. We were told that they were not aware of the situation till we raised this issue. Following this Mr. Rajesh Pandey, Zonal head-South, ICICI securities (tel: [protected] , pandey.[protected]@icicisecurities.com ) visited us at our home to inquire and was assured of a positive response from the company after he would discuss with his seniors in Mumbai. One week later on 7 Jan 2013, Mr. Rakesh Seth, Vice President, Customer Grievance, ICICI securities called my husband Dr. Anudath Brahmadathan and was promised of an appropriate response from the company within a week. We have had no response since then. An email was sent to him on this as well to rakesh.[protected]@icicisecutities.com I would request you to enquire into the details and inform me on how to proceed so that ICICI securities takes responsibility towards what happened and appropriate action would be taken towards compensating my losses. I thank you in anticipation. Yours sincerely, Archana Mohanraj & Anudath Brahmadathan Was this information helpful? No (0) Yes (0)

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Comments

j_kishor

from Bengaluru, Karnataka

MY GOD. This is terrible. Is there no recourse to this. Someone should stop these white collar crimes being made by ICICI DIRECT ATS. I too have lost nearly 1 lac out of Rs.1.50 lacs cash given to them plus Rs.4.50 lacs shares already in account.

I am struggling to know, how do I get back my money.

Have these people received back their money ?

ribhukaul

from Mumbai, Maharashtra

I was an icici direct employee (left the company in 3 months after seeing what they do to their customers) and i tell you that the only way you are going to get your money back is by filing police complaint against the RM and the ATS account operator. The company will wash off its hands. The ATS form explicitly states that you authorise their RMs to trade on your behalf (this is the clause they'll use against you in court) but it is also their obligation to trade only when they have a window of opportunity. Make them explain each and every trade/transaction as to what strategy were they using (this is where you can catch them and easily prove that haphazard trading was done for generating huge brokerage). Your chances of getting a full refund are thin if you fight as an individual plaintiff but great if all the grieved parties move together. And remember, not only icici but each and every bank/brokerage firm is trying to cheat its customers. Indian banking and "INSURANCE" industry is a charade, run by incompitent people who know no other way of making money other than chicanery. Last pieces of advice, don't fall for their insurance linked investment plans, and please take the assistance of a financial expert if you plan to recover your money.