What’s the main concern when you invest in stock markets? You can lose all the money in a stock market crash. Stock markets can be risky and investors may suffer heavy losses.
Have you given thought that your stock broker may cheat you? What if stock broker is a fraudster? Let’s take a look at how a stock broker may cheat you.
- A stock broker may entice you to make the wrong investment decisions by hiding important facts.
- An elderly citizen may be cheated into investing in risky stocks.
- The stock broker may execute trades from your account without your consent.
- The stock broker may engage in churning. This is encouraging you to buy and sell shares in a short time to make a profit.
- Encourage you to borrow heavily (leverage) and invest in shares.
IndianMoney encourages you to take a close look at the stock broker. This is hard earned money. Make sure the stock broker doesn’t cheat you. IndianMoney encourages filing a complaint if the stock broker has cheated you.
Want to know more on investment planning? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.
SEE ALSO:IndianMoney Explains How You Can File Complaint Against a Credit Card Company
Post Your Complaints on IndianMoney If Stock Broker Cheats You
SEBI (Securities and Exchange Board of India), is the capital market regulator which regulates stocks and mutual funds in India. The job of SEBI is to make sure stock broker doesn’t cheat you. Has the stock broker cheated you? IndianMoney advises you to lodge complaint on SCORES.
What is SCORES?
SEBI complaint Redress System popularly called SCORES is a centralized online complaint resolution system and a complainant can seek grievance resolution against a stock broker.
SEE ALSO:Post Your Complaints on IndianMoney If You Are Cheated in car loan
Steps to file complaint on SCORES:
- Log on to the SCORES portal.
- You then click on the “Complaint Registration” Tab under the “Investor Corner”.
- Fill up name, address and contact details like mobile number.
- Give details of the stock broker in your complaint. Click on the respective tabs and select “Category of Complaint”. Give a brief description of the nature of complaint.
- Supply documents to support the complaint. You can upload pdf documents up to a size of 2 MB.
- After you register your complaint, on the screen, a unique registration number gets generated.
- Preserve this acknowledgement number for any future reference.
You can file complaints against stock brokers like Sharekhan, Angel Broking, Zerodha, ICICI Direct, HDFC securities, SBICAP Securities and so on at SCORES. SEBI will check if the complaint comes under its purview and forward the complaint to the concerned stock broker. The stock broker will have to file an action report under SCORES.
SEE ALSO:Post your complaints on indianmoney if your builder cheats you
How to check your stock broker?
- Check the license of stock broker: Make sure stock broker is registered with SEBI. You will see stock broker license/certificate hanging on the wall at the stock broker’s office. The broker’s registration number begins with “INS”. Cross-check at the SEBI’s website.
- Check terms of agreement: The stock broker will hand an agreement form for signatures. Check the agreement for PoA (Power of Attorney). This gives the stock broker the right to trade on your behalf. There’s no need for you to sign giving the stock broker the power to transfer funds to and from bank account.
- Opt for a reputed brokerage: There are some city specific brokerages which have shut down. Always opt for a reputed brokerage with many clients. IndianMoney reviews tell you to take a look at stock broker complaints before selecting a stock broker. If a stockbroker has 50,000 clients and less than 200 complaints he must be pretty good. Take a look at complaints against stock broker.
SEE ALSO:Post Complaint On IndianMoney If You Are Cheated In Home Loan
How are grievances and complaints resolved?
The stock exchanges like NSE and BSE collect money from stock brokers. This is a small percentage of gross turnover. All this money is pooled into an Investor Protection Fund looked after by trustees. This money is used to compensate customers with grievances.
Have a complaint against any company? IndianMoney.com complaints portal Iamcheated.com can help you resolve the issue. Just visit Iamcheated.com and lodge your complaint.
If you want to post a review on any company you can post it on Indianmoney.com review and complaint portal IamCheated.com.
You May Also Watch:
Keep your Financial Cognizance up to date with IndianMoney App. Download NOW for simple tips & solutions for your financial wellbeing.
Be Wise, Get Rich.