[Resolved]  India Infoline Limited — FIR against Indiainfoline senior staff members

Dear All,

1.I am Rashmi Singh holding an Online trading account with India Infoline Securities Pvt Ltd Raipur Branch since 2006. On 23rd Jan 2008, I came to know about several unauthorized, illegal & fraudulent share transactions done by India Infoline Raipur Staffs in my said account without my information, authorization and intimation due to which I have suffered a financial loss of Rs.6, 68, 000/-.

2.I never had any idea about the kind and nature of these illegal transactions as I never received any telephone calls from Indiainfoline branch office before executing these transactions and even after doing these transactions, moreover I was out of town & out of country in that particular period. I never received any confirmation call at the end of each trading day also.

3. Ratio of said illegal transactions are much high in the tenure when I was out of station and out of country about which I before hand intimated Indiainfoline RM Rajesh Gupta over telephone stating that no transactions should take place in my absence but it happened exactly the opposite.

4.On 26/01/2008, Mr. Rajesh Gupta (RM) verbally accepted in front of his BM that he did transactions without my knowledge & he himself purchased & sold scripts along with Santosh Singh (RM) without intimating me and he gave me a self chq from his personal account amounting Rs.6, 68000/- to re pay the losses occurred to me but that chq too got bounced.

5.I also gave a written application on 28Th Jan’08 to freeze all types of transactions in my said account till my further correspondence which was accepted by Branch Manager itself. But to my surprise, even after giving written letter to freeze my account, again Indiainfoline made transactions in my said account on 01st Feb’08 and added loss of Rs.88, 000/- more.

6.I kept on writing mail to Mr.Nirmal & Mr.Venkat (Board of directors) about the fraud and asking them to repay my money, but I have not received any revert from them till date. So helplessly I registered FIR against all 4 staff members of Indiainfoline Raipur branch i.e. Mr.Rakesh Gupta (BM), Mr. Shiban Das (Territory Manager), Mr.Santosh Singh (Officer) & Mr.Rajesh Gupta (Office) including the Board of Directors in local Thana due to which 3 staffs of their local office were arrested (Branch Manager, Territory Manager and Relationship manager) as Police found my complain correct. They were sent to Jail for 5 days but later on, were released on Bail and are still on Bail.

7.I have even sent newspaper clipping of this arresting to Board of Directors and corporate office by mail but nobody is ready to respond. Moreover this fraudulent activity of Indiainfoline staff was also covered by CNBC local news reporter and was telecasted on National level on 30th Aug’08. Still Board of director is not ready to pay attention on this.

8.I have dragged Indiainfoline Securities Pvt Ltd for arbitration by registering a complain against them with SEBI whose 1st hearing has already been conducted at NSE Kolkata office on 17 Mar’09.

9.Indiainfoline is over looking SEBI”s instruction completely so doing frauds with their customers...As per disclosers in account opening form of Indiainfoline Securities Pvt Ltd, it has been mentioned that Indiainfoline would be settling any dispute with the clients with the help of voice recording system which Indiainfoline maintain in each & every branch office but Raipur Branch is not maintaining any telephonic records of the calls made by them or received by them & are disobeying SEBI’s instruction. As per SEBI guideline, all DP’s are supposed to install voice recording system in their office. Even as per NSDL’s byelaws & Indiainfoline Securities, a DP is allowed to effect any debit or credit to an account only on the basis of valid instruction from the client WHICH IS NOT BEEN PRACTICED BY INDIAINFOLINE SECURITIES PVT LTD.

10.As per NSDL Bye-Law’s, a DP should maintain & preserve the records of all the delivery/receipt instructions given by the clients WHICH IS NOT AVAILABLE WITH INDIAINFOLINE SECURITIES PVT LTD RAIPUR BRANCH.

11.As per NSDL Bye-Law, securities should be transferred to or from a beneficial owner’s account only on the receipt of instructions from the beneficial owner. No entry in beneficial owner’s account should be made by any DP unless it is supported by instructions received from the beneficial owner as per the agreement made with him BUT IN INDIAINFOLINE RAIPUR BRANCH, SECURITIES ARE BEEN PURCHASED & SOLD WITHOUT CUSTOMER CONSTENTS.

12.Even DP’s are required to send a consolidated transaction statement, in physical form, for the entire financial year which I never received in my postal address.

13.As per NSDL Bye-law’s, clients should receive Contract notes of all the transaction duly signed by authorized signatory of DP within 24 hours of transaction taken place in clients’ account. Here I would like to inform that neither I even received contact notes for all the transactions took place in my account nor statement of my account.

14.As per SEBI’s guideline, a DP’s must inform the clients before squaring off scripts from his account in case of existing debit balance in his account. I was NEVER been contacted over phone or in personal before squaring off securities from my account

15.It is also very logical that if such a large transaction is been taking place in my account & such a high brokerage is been paid by me, Branch Manager must cross verify with the clients regularly. But Branch Manager never ever called me to verify the truth which clearly shows his own fraudulent motto.

16.I have even mailed several times on customer grievances of Indiainfoline securities Pvt ltd but they also never ever contacted me or reverted me.

17.All these fraudulent activities are happening in the branch office in the presence of Branch Manager and territory manager which shows their poor control over branch and staff.


Guys, keep the spirit high and fight for your hard earn money.
Best Regards,

Rashmi Singh
Raipur.