9911796707
TMI Blog2019 (2) TMI 2121X X X X Extracts X X X X X X X X Extracts X X X X ..... Exchange of India Ltd. Respondent No. 2-investor had made a complaint to the National Stock Exchange against the petitioner. The Grievance Committee of the Stock Exchange found merit in the complaint. Apprehending that further steps would be taken by the National Stock Exchange, the petitioner has moved this petition under Article 226 of the Constitution of India. 2. On 26 September 2013, Securities and Exchange Board of India issued a circular to streamline and to make the Investor Grievance mechanism more effective. It was decided to shorten the time taken for the proceedings as well as to give monetary relief to investor during the course of the proceedings. The Stock Exchanges were advised to ensure that all complaints are resolved at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d himself as a client of the petitioner. A client registration form was executed. The respondent no. 2 started buying and selling of the shares through petitioner's Authorised Person, one Raah Financials India Pvt. Ltd. The respondent no. 2 made a complaint to the National Stock Exchange against the petitioner on 8th January 2019. The respondent no. 2 stated that he has opened a trading account with the petitioner in December 2016 and had transferred shares worth Rs. 12 Crores in his DEMAT account. He has stated that he is retired executive and the entire portfolio was his retirement fund. According to him, the petitioner had sold the shares worth Rs. 10.67 Crores, generated a loss of Rs. 9.08 Crores and assured payment of 1% was not paid. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entuality as the present one. He contended that Committee has proceeded on the assumption in most summary manner. Mr. Jagtiani submitted that based on the observations, respondent Stock Exchange has appropriated the amount of Rs. 3.5 Crores. He submitted that, considering that there is a shortfall in the petitioner's account, the respondent Stock Exchange has orally informed the petitioner that it would close down the petitioner's trading terminal. Mr. Jagtiani submitted that the entire action is arbitrary and there being no forum for redressal, writ jurisdiction is invoked. 7. Dr. Saraf, the learned Counsel appearing for the Stock Exchange submitted that the action of the respondent Stock Exchange is in consonance with the Circular issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aware as to how day to day transactions are carried out on the Stock Exchange. 10. The petitioner being a member of the Stock Exchange is covered by the Circular of 2013. This methodology is operating for almost six years now. We find no special circumstances to make an exception from the procedure laid down, which is designed to secure confidence in the trading of the Stock Exchange. 11. The terminals of the petitioner would be shut down only if the petitioner does not furnish the requisite margin amount. The hearing was adjourned twice for the petitioner to inform about security for the blocked amount. The petitioner offered to give a security of a residential flat of his family members, without original title deeds. Thereafter, during ..... X X X X Extracts X X X X X X X X Extracts X X X X
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