Violation by MCX,Judgement awarded by Arbitrator against Member-Orion Broking,Defaulter Commodity
Orion Broking, Commodity firm, Coimbatore, absconded from business since 19th Aug15 and after having appeared for Arbitration with the MCX Exchange, I got the arbitral award on 24th Oct15 for Rs 1,20,000 (full deposit amount) lying with the said Broker, but the broker (ex-parte) has not appeared for Arbitration.
Also in the arbitral award there is no mention of interest to be paid till payment of arbitral award and also time limit for paying the amount and the amounts will be paid as per rules, bye-laws of the Exchange. After waiting for more than one year, I took the matter with SEBI higher officials and MCX exchange after playing high level drama, took 16 months for repaying only Rs 60,000 (55%) of the arbitral award amount and informed investors that the amount is being paid through Investor Protection Fund Trust of MCX and there is no sufficient funds available with the Exchange to pay my full arbitral award amount of Rs 1,20,000. Also they mention that the investor can get their balance amount through Court settlement.
The total deposit amount as per arbitral award for 596 clients comes to Rs 4.18 Crores, but the IPF trust of MCX Exchange released compensation amount of Rs 2 Crores only to the Commodity clients of Orion Broking stating that Rs 2 Crores is the maximum amount of compensation for a Defaulter Broking Firm, as per Bye laws 12A.19 of the Exchange. Then where is the balance deposit amount of Rs 2.18 Crores of 596 clients, gone? Whether the said amount has been looted by Broking Firm (or) MCX Exchange (or) SEBI. Also CB-CID Crime Branch has ceased assets of MD of Orion Broking to the tune of Rs 1 Crore.
Till now, I had not claimed the compensation amount given by MCX.
Please advice whether the matter will be contested in Court through Petition (or) Execution Petition for getting my full arbitral award amount (or) If I go for Compensation amount, later on the balance amount of arbitral award can be settled in Court.
Also, if possible, please educate the general public in your “Kaanoon” about trading risks lying with the exchanges that approx 50% of deposit amount will be refunded to commodity clients, if the broking firm defaults and maximum Rs 2 Lacs will be refunded to Commodity Client, only reflects in paper and will not be given to clients. Even SEBI (deaf, dumb and blind dog) doesn’t have control of exchanges. Even all high-tech facilities available, nowadays are being used for looting the hard-earned money of investors!
Please reply to [deleted]