Economic offence
Nitin
(Querist) 27 August 2013
This query is : Resolved
my stock broker misguided and made false promises n sold me the product and now my money is struck.
my broker(india infoline) contacted me to invest money in national spot exchange now that exchange is set for default but india infoline knew that there are problems but their representatives never told us rather they always stated that a have made so much % in profit. now people say we should check exchanges but how could we do it and they r members of exchange they shoul;d have checked exchange credentials before placing our money. they intentionally hid the facts and put our money at risk( which is one responsibilty of broker which they did not do). i have copy of sebi guidelines for brokers.
ajay sethi
(Expert) 27 August 2013
you ought to have done your own research . dont follow broker advise blindly . number of sites available which give you free advise for investments .
R.K Nanda
(Expert) 27 August 2013
state full facts.
Nitin
(Querist) 27 August 2013
my broker(india infoline) contacted me to invest money in national spot exchange now that exchange is set for default but india infoline knew that there are problems but their representatives never told us rather they always stated that a have made so much % in profit. now people say we should check exchanges but how could we do it and they r members of exchange they shoul;d have checked exchange credentials before placing our money. they intentionally hid the facts and put our money at risk( which is one responsibilty of broker which they did not do). i have copy of sebi guidelines for brokers.
ajay sethi
(Expert) 27 August 2013
no broker would advise his client to invest in exchange if he knew that it would default.
it was beyond the control of your broker . .
Nitin
(Querist) 27 August 2013
so u wants to say brokers never indulge in malpractice and sebi and others courts are wrong when they punish brokers.because if we check both ur advises we cant even file case against brokers. i did my research i sold my stuff at right price but broker choose the wrong exchange why didnt they check if they exchange is proper or not.
Nitin
(Querist) 27 August 2013
they advised some clients not take position but not to all. what would u call this,,,, is this not breach of trust ?
Rajendra K Goyal
(Expert) 27 August 2013
You should have been very much vigilant while doing business. The agents may tell what may sell the products handled by them. It is the purchaser or the person availing services to extract what is not told by them.
If you find enough grounds and proofs you may proceed legally.
Guest
(Expert) 27 August 2013
Mr. Nitin,
In business, you should not have expected sincere and honest advice from a broker, whose sole aim is to earn commission for him His concern is limited only to the extent of promoting his business and making profits out of the business. It is up to the customer/ client to watch his own interest. So. your own analysis was a must before entering in to the transaction.
You also need to know that stock trading is quite a sensitive business.
However, you cannot expect malpractice on the part of broker, if your transactions were made online through the terminal of the stock exchange.
SEBI has no role to play, except the policy matters or when the fraudulent activities on the part of the company or stock broker are reported to that.
However, if you have the proof that the stock broker knew about failure of the exchange or he compelled you to make transactions or made transactions without your consent for the specific stock only then you can hold him responsible.
But, you need to keep some patience, as the stock exchange is not going to close. If not restarted that would start functioning after merging with some other entity.
I have heard a good news which is in the interest of investors that the FMC (Forward Markets Commission, Government Of India, has already instructed Jignesh Shah of Financial Technologies (promoter of NSEL) to take responsibility of payout to the investors.
Nitin
(Querist) 27 August 2013
thank u mr. dhingra.i really appreciate ur advise. i do have some proof but i m really not sure whether it would stand up in court or not
Guest
(Expert) 27 August 2013
You are welcome.
