you need to wright to sebi regarding the transaction along with all the transaction details and any document you gave for the limit available to use.
Please attached all the relevant mail in this regard from the Angel Broking.
My name is gaurav and i am holding a demat account(G37404) with Angel Broking(Stock Broking company). On 25th Jan 2018, i had traded with an investment amount of Rs 13786, and angel broking firm provides 6 Times limit on your investment, so which should be around Rs 82716, and i bought 25 lots of Rpower having lot size of 13000 with a LTP of Rs 0.05, so the total price should be Rs 16250, but when the order was placed it was showing LTP as Rs 2.20 so the total price of lot reached to RS.715000, and when i sold them they got sold in around Rs0.05 and showing a loss of Rs. 326000 approx, I am not getting one thing here how come i was able to buy shares of Rs. 715000 which is actually 55Times of the limit, which is supposed to be only 6 times. Now they are pressuring me to pay the loss amount of Rs 325000 Approx. which is completely illegal. I should not be allowed to buy these many shares on the Price of Rs 2.20, with an investment amount of Rs 13786 only. They said they will take legal action against me. Please advise. Please let me know if you need more information.
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you need to wright to sebi regarding the transaction along with all the transaction details and any document you gave for the limit available to use.
Please attached all the relevant mail in this regard from the Angel Broking.
1) admittedly you had placed order
2) you have suffered loss when you sold the shares
3) if you fail to pay they would take legal proceedings to recover money due and payable by you
1) In option is always trading in the risk factor. So get the transcations details from angel broking timing, NSE or BSE trading timing.
2) We will check the transaction with SEBi.
For further details pls contact me via consultation call.
See if you have signed any terms and condition with angel broking regarding the limit and liability of your Demat account.
So in the case they can recover the amount you have been allowed to trade and also you can be made liable for the same amount you agreed to pay. Like if the limit was 6 times vide terms and condition has only liability to pay that amount is in respect to the 6 time limit only.
Also check your transition details and file complaint regarding same. Complain directly to the brokerage or investment advisory firm in writing and keep a copy for your own records. First communicate your concerns to your broker, then to the manager of your broker’s or advisor’s office. Keep a copy of the complaint in your records. Follow-up immediately if you do not receive a satisfactory response to your complaint. If you get no response to your letter or you feel like the firm is stalling you should complaint to the appropriate Exchange.
NSE Investor Service Centre (NICE) (if applicable in your case as not stock exchange mentioned by you) allows to file complaint online.
Thanks for your reply, From the answer, what i have understood is i am liable to pay Rs 82716, as i had Rs 13786 in my trading account at the time of trading, and they provide only 6 times limit which reaches to Rs 82716(correct me if i am wrong). and i do have there email clearly stating the limit details for future and options segment(6 times in options and 8 times in future), and i had traded in options only, and it was a NSE order. Please let me know, if i need to worry in this matter, and suggest me what i can do against them legally. I do have demat account fund details, contract details with me.
File a complaint in NSE for wrong amount of.trading by broker along with giving a notice to angel stating same with supporting emails that shows your limit and limit was wrongly.enhance against liability so that they are not legally entitled to make you liable.
Angel Broking would invoke arbitration clause and lodge claim against you to recover Rs 325000
2) you can take the defence that angel Broking ought not to have permitted you to trade beyond Rs 82716 ie 6 times limit of your investment
Dear Sir,
In recent times there are frequent issues related to trading business in stock. You have get issue a legal notice for having purchased more than agreed limitation. If you are in Bengaluru. We shall discuss and issue notice accordingly. Be assured.
If you think that you have bee cheated by your broker then you may lodge a complaint against him before SEBI
You may send a legal notice to Angel Broking and if they do not take back the penalty being imposed then go ahead and lodge a complaint before SEBI
Now they are pressuring me to pay the loss amount of Rs 325000 Approx. which is completely illegal. I should not be allowed to buy these many shares on the Price of Rs 2.20, with an investment amount of Rs 13786 only.
They said they will take legal action against me.
While the trading was going on it was well within your knowledge but you preferred not to interfere in that and had been enjoying the benefits till the time you started incurring the losses.
Now you claim innocence on the basis of technical issues and refuse to pay back the amount of loss incurred by you at this stage.
You should have instructed the broker to stop trading in that heavy volume when it came to your notice, but you remained silent then.
You may have to accept the liability.
However you may wait for the legal notice and then decide about the next course of action.
You can engage an experienced lawyer with good knowledge about trading activities of stock market and give a fitting reply denying the demands made by them and can shift the blame on the technical issues against them.
Please let me know, if i need to worry in this matter, and suggest me what i can do against them legally.
I do have demat account fund details, contract details with me.
You first receive their notice and see on what basis do they claim and if their claim has any legal validity after which you can give a suitable reply denying their allegations.