SMC Global Securities — Unauthorised transactions by SMC leading to Financial losses

Address:

11/6B, SHANTI CHAMBERS PUSA ROAD, NEW DELHI , NEW DELHI , DELHI - 110005, Regional customer care : 03366127000

1. I had registered for a share trading account with SMC global securities on 26th of Feb, 2020. My user id is ISM0063.

2. Mr Anirban Dutta (ph no [protected], email : Anirban.[protected]@gmail.com) was representing as an authorized sub agent of SMC. (Dealing Officer as mentioned in SMC e-contract notes)

3. I had deposited Rs 4 lakhs to SMC in two tranches, on 27th Feb and 9th March

4. There were daily trading done through the said sub-agent, which were confirmed by post trade confirmation from SMC by recorded voice call and email contract notes. However, there was no pre-trade confirmation taken by SMC to carry out the trades.

5. The daily trades were carried out during the period 27th Feb till 18th of March. The details of the trades, as per my authorization and confirmation received from SMC, are summarized herewith. (annexure 1).

6. The trades show a cumulative profit of aprx Rs 67000, accordingly a payout was received by me for a similar amount till May.

7. I received no intimation from SMC of share purchase that was done with my initial investment of Rs 400000. On repeated enquiries, I received a statement on 17th June which showed 4 stocks in my account, whose total purchase price was Rs 391500. (Annexure 2. )

8. In end of August, I instructed the sub agent Mr Anirban to sell off one of the stocks (Axis Bank) and transfer the Sales proceeds to me. He confirmed to me that the stocks have been sold, but despite following up for a month, no money was transferred to me.

9. Subsequently, on checking my DMAT account, I did not find any of the stocks mentioned in Annexure 2. On enquiry, the sub agent told me that SMC had “Pledged my shares” in their own account, hence they were not showing. (Annexure 3. whatsapp msg transcript)

10. On getting suspicious and concerned, I lodged a formal complaint to SMC to know the whereabouts of my money (Rs 4 lakhs) or the shares. (Annexure 4). But no explanation was given by SMC despite repeated reminders and phone calls.
11. Subsequently I lodged a complaint in the NSE portal, first on 5th Oct, then modified on 8th Oct, and finally updated on 19th Oct (Annexure 5 : complaint ref no NSEKRO/0026720/20-21/ISC)

12. A response was received from NSE through NSE on 14th Oct, where they claimed that my deposit of 4 lakhs had been lost in intra-day trading, but no documentary proof of such trades was furnished by them. (Annnexure 6). As already mentioned in point 6 and Annexure 1, the confirmed and authorized trades do not show any such loss.

13. NSE arranged a GRC hearing on 18th of Nov, along with SMC representative. However, I felt that the discussion was based entirely on verbal accounts from both sides, and no evaluation of documentary evidence was done from either side. The GRC Officer seemed to dismiss my complaint purely based on unsubstantiated verbal claims by SMC representative. (NSE contact Ms Trina Ghosh, phn [protected], email : [protected]@nse.co.in )

14. The GRC order, and my remarks against the observations and conclusions are enclosed in Annexure 7 and 8 respectively)

Desired resolution : I request a refund of my deposit of Rs 4 lakhs, and action against SMC Global for resorting to fraudulent transactions and failing to protect the customer’s interest.

Annexure 9 : Sample e contract note from SMC, showing the details of its authorised representative.

Plz advise how to upload the necessary documents and email copies.