Without permission closer of shares account

hitesh s savlani (Querist) 05 December 2013 This query is : Resolved
hello experts
my question is that i was having the question that i was holding the account in the kotak securities and without any permission they have closed the account and they are not remitting the balance which is lying in the account so my question is that can i file criminal case on the company if yes which section and if no what should i do in such a case

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Devajyoti Barman (Expert) 06 December 2013
Yes but case is consumer forum would help you get back the money.

Pooja Hegde R. (Expert) 06 December 2013
First try to have a legal notice sent to the broker stating that you intend to take legal action if the balance is not transferred. If the balance is in shares then you need another demat account for the balance shares to be transferred. NOTE- stocks can be liquidated or tarnsferred from one demat to another demat. Mentioning of a second demat for a transfer of demat share in legal notice will also ensure that the broker wont be able to defend himself stating he did not get such info from you although he was ready to transfer thr balance.

If the balance is in money then specify a bank ac for transfer or request for cheque or DD. So state the details of the new ac in the legal notice and ask them to transfer the balance within 15 days. If they do not cooperate then file criminal complaint for fraud or cheating as applicable. Side by side approach consumer court. This problem of missapropriation of shares and trade orders is very commonly experienced while one is into stock trading. I personally used to trade and have been through it. Only notices might work out but these rogues in finance are thick skinned and toughened so criminal complaint might be required. You cannot warn them on the phone because they record almost every call. Moreover harassment by these financial advisors gets severe at times and the missappropriation and cheating is very clear on papers. Consumer forum is a boon to traders to recover money.

prabhakar singh (Expert) 06 December 2013
By the way your question is ambiguous.

You must already be having a DMAT a/c as well as a bank a/c with a depository whose your broker firm kotak securities must be a participatory.When you buy shares your broker is under obligation to seek credit of shares in your DMAT a/c and when you sell sharers your broker is under obligation to credit your personal ledger a/c with him and remit cash generated by sale in the bank a.c attached to depository.

His failure to do so is deficiency in service as he charges brokerage hence his default can be complained in consumer forum after notice of demand served upon him.
The relation ship is purely civil.No criminal liability arises here.

Raj Kumar Makkad (Expert) 06 December 2013
I do endorse the wise advice of Ld. Singh Sir.

Rajendra K Goyal (Expert) 06 December 2013
Send legal notice and file consumer complaint in case the company is not responding after sending legal notice.

Guest (Expert) 06 December 2013
You could right now file the complaint ON LINE TO SEBI'S WEBSITE and they would initiate action on the broker immediately

malipeddi jaggarao (Expert) 07 December 2013
If there are shares, your D-mat account can not be closed. However broker account might have closed appropriating the credit balance towards charges. Demand for a statement of account of both the account.

Guest (Expert) 07 December 2013
The Broker is not entitled to sell your shares with out your consent.He cannot adjust the same for the debits in your accounts.If it is so he had committed an offence.Complain to Sebi.For any debit balancec Broker is left with no other but to keep sending the demand notices.Maximum what he could do is to keep your accounts inactive till the dues are settled for him.

T. Kalaiselvan, Advocate (Expert) 07 December 2013
In case of shortfall in margin amount or deficiency or default in payment towards the transactions, the trader on the basis of POA executed by you in his favor at the time of opening account, shall appropriate funds to adjust or make good the default amount,well if the balance amount is lying idle with him, you may ask him to payback the same and in case he declines the same, then you may send a legal notice and file a complaint before the concerned consumer forum.

Guest (Expert) 07 December 2013
Dear Author As you were aware that in Trading accounts Only the identification codes and consents of the Clients are only essential for Tradings and No Power of Attorney is involved.Complain to SEBI with all details

hitesh s savlani (Querist) 07 December 2013
thanks experts

Without permission closer of shares account

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