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mukesh (pro,)     18 October 2009

Fraud in online share trading

one of my friend opened a demat and trading account with SHAREKHAN. He did not have a PC. He did not have internet connection. He never use internet. His purpose was mere put his shares in DP and to buy or sell shares with the help of SHAREKHAN. But the guy at SHAREKHAN made fraud with him. He opened his online account. HE did not give him user ID or Passward to operate account. The guy kept it with him. After then the guy made some day trading and other transactions in the client's account without client's knowledge to earn brokrage. But unfortunately there was some big loss occured because of this. Sharekhan recover all the loss by selling the client's shares who is really innocent. What can the client do now?


 9 Replies



Suchitra. S (Advocate)     18 October 2009

Mukesh ji,

Your friend has learnt a lesson for his life time. I dont think anything can be done against Sharekhan.  Your friend has opened an account in his own name, and gvn mail ID and password to Sharekhan and kept quiet after investing in shares. How can he bring a case against Sharekhan whose name is not there in any of the transactions? I am sorry at his position.

R.R. KRISHNAA (Legal Manager)     18 October 2009

Launch a complaint with SEBI

A.P.Manoranjan (ADVOCATES & LEGAL ADVISORS)     18 October 2009

Send a legal notice tM/s Sharekhan for deficiency of their services and later file an application befor district Consumer court for deficiency of service.

1 Like

mukesh (pro,)     18 October 2009


it seems that you did not read my question carefully. My friend is not aware to computer. How did he give mail ID or passward to sharekhan.

Suchitra. S (Advocate)     18 October 2009

Mukesh ji, what i understood is, your friend did not know how to operate PC at all. It was Shekaran who was transacting on behalf of your friend,right?  So, I said, how your friend can take action against Shekaran whose name is not at all there in the transactions? Was there any written document which shows Shekaran has to carry business with your friend's consent? If not, then, there can be no remedy avilable to your friend.

Suchitra. S (Advocate)     18 October 2009

Mukesh ji, I am extremely sorry. Please excuse me.  I was totally confused about the facts. I was wrong. I totally agree with other advocate's views in this matter.  


Anil Agrawal (Retired)     19 October 2009

 You check the facts again. At the time of opening demat a/c normally email ID and password is asked for and given. 

If the demat account and trading account under power of attorney is with the same broker, a crook can always cheat you. In this case, the fellow was neither making any money nor losing it himself. Everything happened to your a/c. 

All the instructions given on phone for trading are recorded. Go to Sharekhan and check the phone recording. I donot understand what you mean by saying that your friend does not have a PC, does not to operate inernet, has no email and password. Then how online trading was done? Trading with Sharekhan is routed either through Axis Bank/ICICI bank/HDFC bank immediately a transaction is put through. Every transaction even in fraction of second is computerized. Go to your bank and get he statement of a/c and confront Sharekhan.

Meanwhile, make written complaint to police, SEBI, NDSL/CSDL, Stock Exchange (BSE/NSE), and your bank.

Close down your demat and trading a/cs with Sharekhan immediately.  Donot have demat and trading account with the same broker.

V R SHROFF (Sr. ADVOCATE Bombay High Court Mob: 9892432152)     01 January 2012

Complaint to Police for 420/Breach of Trust. 

Let them investigate.

Als move consumer forum . 

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