This is a real story of a stockbroker’s greed and the atrocities the victim goes through.
In the interest of confidentiality, let’s call our victim Anant. This is what Anant narrated:
“I opened an account with SMC Global just a few days ago in July and my client Id is SFXXX51 , and I was informed that a person named, Rishi was allotted as relationship manager (RM) for me. While opening the account, they informed me hat the brokerage charges will be ₹35 per lot on future & option and ₹20 per lot on currency.
When my account got activated I deposited 1 lakh to start trading but my RM calls me and said “I require more fund to trade”.
I informed him that I will deposit ₹4 lakh more but that will be for equity only. Within a few days of opening my account, he started calling me and giving calls on nifty and bank nifty calls. After a lot of such calls and messages, I started trading in these segments but only with few lots as my risk appetite had always been less.
I told Rishi very clearly “The max loss that I can take in a day must not go beyond ₹10,000.
But all of a sudden on 1st august, he gave me calls on currency and made me buy 2000 quantity in PE and 2000 quantity in CE and next day he calls and asked me to put a stop loss.
While buying he didn’t tell me that its not 2000 quantity but its 2000 lots in PE and 2000 lots in CE. So, in total he made me buy 4000 lots. The total value of this trade was ₹40000 and there was a loss of ₹20000.
The next day when i opened my account, I was shocked to see that my balance was less and more then ₹2 lakh were missing. But when I tried calling Rishi he stopped answering my calls or messages and now I was allotted another RM saying that Rishi was sick.
I checked online and found an SMC Global office Near me. There when I inquired and got my account checked they informed that it was a sub broker who was giving me calls. Then i came to know that i was charged for 4000 lots not quantity and that too for both buying and selling. This was more then ₹2 lakh in brokerage.
This was shocking and nothing less.
Later, they started giving justification that i was informed about the brokerage and are sending me recordings of that.
I now realize that when Rishi used to call me, he did that through Whatsapp instead of a normal call. These calls were not getting recorded. He made me punch order for 4000 lots saying its 4000 quantity and didn’t inform me that the brokerage will be more then ₹2 lakh rupees.
I would have never punched that order for if i knew that for the trade of 40000 premium paid i will be charged ₹200000 as brokerage. He did this intentionally to get his commission as brokerage and after which he stopped answering my calls and new RM was assigned to me.
Rishi, I know, was still there. Happy. He must have made a huge incentive out of my capital that month. And he must be using the same strategy to loot many more Anants like me.
But I won’t stop here. I will file a complaint now. I will also ask for the interest on my capital.
Learning: Never say YES to anything or anyone when it comes to Stock Market.
