I am Registered Stock Sub brocker. Before 2 year ago one of client invested money with me (Its around 25 Lac) as per the experience i orally told them that we can get good profit from the future market (as every one in that industry are working for catching good profit from future market so i also did that but unfortunately not able to catch and loss that money) now after 2 years in daily trading its money become in loss now he asking that money from me as i can not give that much to them and its not my any fault. as market get negative and loss the money. since last 6-7 month he shouting and threat to me that i will mail to main brocker and complaint you and destroy your carrier i will complaint to police and file 420 case etc etc.. else you have to give me monthly interest on that and after that full money which is losed. as am small sub brocker i dont have that much of income i tried to give them interest for 5-6 month in lockdown also..but now i dont have that capacity to give them more money as interest and full 25 lac. so is there any option for me what should i do in that case.? he is too much irritating me and doing more tourcher that i can not suffered more as am having small family have to take care of them also. plz help me out and give me easy solution to taken out from this situation
Sir how can give you false promises to an investor based on speculation that you will make him earn money in futures market?
That is prohibited
And despite that you now seek help and that also 'urgently'!!!
You have already admitted your guilt by paying him interest
He has to take legal steps now against you to recover his money
Your defense as stated in your query is utterly bogus
You are at full fault and at any rate responsible for contributory negligence
You are not liable for losses suffered by client
2) I presume you received instructions by email or what’s app and contract notes were issued to client
3) no case of cheating is made out
While making business on futuristic profit loss its incumbent to make written agreement. When you fail this entails.
So settle amicably though no case cheating lies.
You have obviously made some mistake in promising your client a guaranteed return.
Anyhow now you note the following very carefully to save youself from any legal hassles.
1. Ensure that you have obtained proper skill for trading by experience and /or some theoretical knowledge /tranning . Keep some documentary proof in this regard.
2. You also must ensure and prove to the satisfaction of your client and (ofcourse to the court, in case of any litigation) that you have acted with reasonable diligence and used your skills in the entire trading activities on behalf of your client. You must have some analysis of share market and some home work done before any trading and you took moderate risk as per market practice. Keep such records for evidence purpose.
3. With all this communicate your client that you have taken all reasonable care before investing his money in any particular share or stocks. But markets turned negatively to your analysis and expectations . Submit a proper account to your client.
4. Inform this by registered post as soon as you can.
In case you need more clarification advice contact here for further advice.
- As per rule, Investments in securities market are subject to market risk , and i.e. why there is always instruction like , read all the related documents carefully before investing.
- Hence, if you have already informed to the said investor , then for the losses you are not accountable , and hence no case made out for the offence of cheating.
- You can lodge a complaint for threatening .
As a Registered Stock Sub brocker you have done your job. Sometimes trading is like a gambling. As a broker it is your duty to advice properly. Give a proper account details to your client. You are not responsible for giving money due to giving a wrong advice even otherwise it is agreed in terms. Cheating case does not attracted .If his threat going high file complaint in near police station.
In the absence of any agreement to give him profit for his investment he cannot legally demand the returns or even invested money back.
If it's a fact that he was aware of the investment and the losses suffered he cannot hold you responsible for the loss nor he can demand return of his invested money.
You issue a legal notice to him instructing him to refrain from indulging in such illegal activities last he may have to face the consequences and costs towards the lawsuit you may file against him in this regard.
