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Amit Oza (Querist) 19 February 2015 This query is : Resolved
hi.
One of the sub-broker registered with bse,his clients are mainly NRI cilents and they have given him power of attorney . on many incidence the sub-broker has withdrawn money from clients accounts to his personal account and also transfer shares from client account to his own demate account .

what are the legal consequnces if any client find out this and what action can be taken .if a nri client want to make a complain then under which section he should file complian and where .

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ajay sethi (Expert) 19 February 2015
he should complain to stock exchange against the sub broker . generally an arbitration clause is incorporated in contracts between broker and his clients . invoke arbitration clause and claim amounts wrongly siphoned by broker

Guest (Expert) 19 February 2015
It is Criminal Breach Of Trust and Police Complaint regarding this would be the Right Remedy.

Amit Oza (Querist) 19 February 2015
but can the client make a formal complain at the embassy because they are NRI clients

Adv. Sagar R. Jadhav (Expert) 19 February 2015
You have to approach SEBI by invoking arbitration clause also you can file breach of contract case

prabhakar singh (Expert) 19 February 2015
A BROKER OR SUB BROKER IS JUST AN AGENT OF HIS CLIENT AND POA DOES NOT MAKE HIM SUPPER HUMAN,HE IS ALWAYS ACCOUNTABLE TO PRINCIPAL.

Rajendra K Goyal (Expert) 20 February 2015
The POA should be cancelled immediately and sub broker should be changed. The terms of POA are need to be referred. If Broker / sub Broker has acted beyond the POA terms, notice be sent to him and case for compensation and loss should be filed. Criminal case for breach of trust may also be filed.

T. Kalaiselvan, Advocate (Expert) 21 February 2015
If he is a registered sub-broker, a complaint with SEBI about the alleged irregularities and misappropriation/embezzlement etc to be made in writing giving the details immediately apart from lodging a criminal complaint with the jurisdictional police us 420 among other provisions. The embassy will not entertain any complaint in this regard since it is out of heir purview.

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