Full-service stock brokers often provide local services through their sub-brokers. But sometimes these sub-brokers charge hefty brokerage and other charges and misguide traders by violating certain SEBI guidelines and regulations.
One such incident happened with Mr. Aviraj (name changed). Aviraj was misled by one of the sub-brokers of the renowned brokers and lost ₹17,000.
Fortunately, Aviraj took the right step in the beginning only and got a 100% refund. However, Aviraj still wanted to raise his voice and file a complaint in SEBI.
Wondering Why?
Because he knew that he was not the only victim who lost his funds by getting trapped in such scams. There would be hundreds like him and some of them might not be able to recognize this or take the right actions.
Here is the complete narration of the incident.
How Aviraj Fell Victim to a Sub-Broker?
Aviraj was not active in the stock market but knew technical and other aspects. One day he received a call from a sub-broker of a renowned stock broker.
The person on the other side named Prachi told him about the benefits of opening a demat account with them and convinced him to open a demat account by offering him an additional benefit of personal training by the professionals.
Aviraj although aware of many things thought of improving his knowledge and shared his details to open a demat account.
On the next day, as per the promise made by Prachi, he received a call from a personal trainer, named Khushi.
Aviraj thought that he would be getting learning classes but instead, Khushi gave him call tips to trade in options trading. On the very first day, Aviraj lost ₹4000, and consecutively for the next 3 days, he lost money in trading and additionally on paying brokerage to the sub-broker.
In total, he lost ₹17000 in 3 days.
Along with the loss in amount, he lost his trust in the sub-brokers giving fake promises. He was worried about his losses.
He took immediate action and called the team continuously. However, every time he didn’t get any satisfactory response.
Finally, he got a chance to talk to a senior person. The person consoled him by saying that actions would be taken against the team members and a refund would be provided by deducting the salary of the team.
However, Aviraj was not at all convinced by this and reached out to our team via Instagram and by dropping his details on our website.
How Our Team Assisted Aviraj in Recovering ₹17,000?
Our team reached out to us and after understanding the flow of events, first drafted a mail on behalf of Aviraj for the compliance officer of the stockbroker. This is the very first step that one must take to file a complaint against the broker.
After sending the mail, our team asked Aviraj to wait for a day or two for a reply. Soon, Aviraj received a call from a team of stock brokers.
The stock broker on the call mentioned that since the sub-broker was involved hence they are not responsible for any losses and asked him to contact the sub-broker.
This raised the anger of Aviraj and he reached out to the broker again mentioning that although the sub-broker was responsible for the same, the brokerage he paid ended up in the broker’s account only.
But even after this, he didn’t get any response for 2-3 days. But he didn’t stop trying and sent all the proofs and documents he had against the sub-broker to a respective stock broker.
This action of Aviraj helped and finally stock broker took some actions which made the sub-broker refund the entire amount including the trading losses and brokerage to Aviraj in two installments of ₹10,000 and ₹7,000 each.
Conclusion
Mr. Aviraj’s persistence and strategic actions led to a full recovery of his losses. Despite being misled by a sub-broker and initially receiving inadequate responses, Aviraj’s determination to hold the right parties accountable paid off.
By effectively escalating his complaint and presenting clear evidence, he managed to secure a full refund of ₹17,000 covering both his trading losses and brokerage fees.
His story underscores the importance of standing firm and taking the necessary steps to seek justice, even when faced with challenges.
