Legal Question in Consumer Law in India

Stock Broker square of the position of cliet

I was trading in share on line in derivetive market(Future and option).I was giving margin call regularly. My broker has squared my position/sell off my lots without asking me and without asking further margin call.Now the broker is asking for the debit balance appearing in my account.As the broker has square off the possition without my permition and without asking further margin call, i have incurred the loss which is appearing in my account as debit balance. the broker is planning to take legal action. i have received summons from civil court. What should i do?


Asked on 12/27/08, 7:46 am

3 Answers from Attorneys
Homi Maratha N.N. Maratha & Co.-Advocates

Re: Stock Broker square of the position of cliet

Hello.

I would advise you to engage a lawyer immediately.

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Answered on 12/29/08, 3:29 am
Mahesh Gupta Medico-legal Advocates and Consultants

Re: Stock Broker square of the position of cliet

You have posted your query under "Consumer law" and mentioned that you have received summons from civil court. There is discrepancy.

Best advice--Engage a lawyer.

M C Gupta

MD, LL.M.

Advocate

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Answered on 12/27/08, 8:51 am
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: Stock Broker square of the position of cliet

The fate of your case may depend upon the documents you have executed with the broker when the contract was entered into. You may better engage a counsel, file your reply and try for an out of court settlement.

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Answered on 12/27/08, 9:31 am


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