[Resolved] Sharekhan Commodities Ltd — Non-intimation of shortfall of margin & unauthorized trading
First of all extremely sorry for taking your valuable time.
I have already wrote to fmc (regulatory body for commodity market) but I have not got any reply yet
Myself AmbadasYemul, resident of Solapur (Maharashtra).
My Brother, Mr.Punesh Sudarshan Yemul, He had commodity trading account with Sharekhan Commodities Ltd. Now he has been filed suit by Sharekhan Commodities Ltd., under section of 138 for stop payment of chequre.
Brief details of the case :
On 20th April 2006, due to sudden fall in bullion price the exchange has increased the initial margin, the sub-broker of Sharekhan Commodities Ltd. should infrom us about the increase in margin, he did not.
On second day he took cheque for shortfall of margin and then he squared of all positions one by one without giving intimation to us. After squaring off all the positions he said that there is loss of Rs 193000/- and deposited cheque, In meanwhile we gave stop payment instruction to our Bank.
Currently the case is going on in the High Court, our lawyer asked to give any written proof, when we read the client member agreement for the reference, we came to know that there is no any single clause which can be used for the defence.
In the agreement, member has given all the rights to do anything with client account. Currently all regulatory bodies like SEBI focuses on investor & client protection. I would like to know as per which clause client can protect his interest towards trading.
As per the client member agreement, the member can trade, transfer, square off without giving any intimation to client. But ultimately whatever consequances of member action will be borne by client only.
In our case when MTM loss came below the minimum margin, member should have squared off our all positions so that there would not have been Debit balance to our Account.
I request you that please let me know is there any single clause in Member client agreement or FMC rules & Bye laws which can really protect the interest of client against such Unauthorized Trading of the member on clients account?
Waiting for your reply & justice
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Aug 13, 2020Complaint marked as Resolved
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