While opening a demat account, what does one look for, brand name, reliability and authenticity. And to get that they generally open an account with the broker that has an identity in the market.
Ritesh also did the same and opened an account with one of the top-notch stock brokers.
After a few days of opening an account, he received a call from his broker’s office. It was Sheena (name changed) on the other side. She told him about the research tips and how following those tips could help him in earning profits.
Ritesh told him that he was a long term investor and had no idea of intraday and trading in options. But Sheena gave an assurance of risk management.
She then convinced him to add ₹2.5 lakhs in his trading account. However, Ritesh didn’t agree to this and started with ₹50,000.
Sheena made him buy 14 lots of Bank Nifty by sharing trading tips on WhatsApp. After a few minutes she was instructed to square off. On the same day, she asked to trade in Nifty with the capital of only ₹13,000. And again after a few minutes she sent a message to square off.
But in both the trades, Ritesh faced a loss.
At the end of the day when he checked his trading account he saw that the brokerage of ₹40,000 was charged. The rest of the money he lost in trading.
When he asked then he came to know that it was a Sub Broker who called him and he charged him the brokerage of ₹50 per lot.
He tried to reach out to the broker but got no response. Then he called his Relationship Manager with no clue that he too was involved in the scam.
The RM pretended to be supportive & asked him to say, “I did these trades myself due to lack of knowledge. It was my mistake and I will not take such trades in the future.”
After recording this statement, that sub-broker threatened him and said that if he files a complaint then they will share his voice recording.
Although he was thankful that he didn’t come under the influence of a sub broker and traded with a minimum amount. However, he wants his lost amount as the broker intentionally looted him and would be doing with many more traders like him.
Here Ritesh was a little cautious right from the beginning, but still missed some points. As per SEBI Regulation no broker or registered Research Advisors can provide tips on WhatsApp.
But he came to know about this after getting in touch with our team.
Our team then guided him to file a complaint against stock broker to compliance officer of the broker by drafting & documenting everything. In case, he doesn’t get a satisfactory response on this then he can go ahead and file a complaint in SEBI SCORES.
