As the number of demat accounts are increasing, so does the count of stockbrokers. Even the top notch stockbrokers sometimes fail to provide satisfactory services to their clients.
But thankfully, there is a provision to file a complaint against any issue that you face while trading with registered stockbroker.
Now, these issues could be of various types, some are mentioned and listed by SEBI but apart from those if the broker gets into some kind of unethical practice then there are other ways to file a complain and recover your losses.
So, here is the case of Raj (name changed) who is unable to withdraw his profit from his Kotak demat account. Read our conversation with him below and find out what actually happened.
Raj: Hello ADB, Recently I faced one issue while trading using Kotak Demat Account.
ADB: What happened, Raj?
Raj: I had margin in my Kotak demat account, which I used for trading. Initially, I was at a loss of around ₹2.5 crore. But when my loss came down to around ₹55 lakh, I booked it.
ADB: So, you managed to reduce your losses?
Raj: Yes, but I wanted to recover my loss and make a profit. I took another position in the market, which resulted in a profit of around ₹2.34 crore. After deducting the loss of ₹55 lakh and GST, SST, and other government taxes, my net profit was ₹1.75 crore.
ADB: That’s a significant recovery. What went wrong?
Raj: Kotak withheld the entire profit, claiming that my trades were unauthorized and therefore canceled. They said I had no profit at all.
ADB: That sounds very suspicious. Did you receive any official documentation about this?
Raj: Yes, I received a contract note from NSE via email, which confirmed that all my trades had been completed. However, the broker insists that the trades were canceled.
ADB: This is a serious issue, Rahul. You should definitely escalate this matter. Have you taken any steps to resolve it?
Raj: I’m planning to file a complaint in NSE. It’s frustrating because I have proof that my trades were valid.
ADB: You’re right to pursue this. Make sure to gather all your documentation and evidence. This sounds like a clear case of unethical practice by the broker.
You can also lodge a complaint in SCORES portal by drafting all the evidences & documents you have.
Raj: I will, Sir. Thank you for your advice and support.
ADB: Anytime, Raj. I hope you get this resolved and receive the profit you earned.
