Investor trading in shares is not a consumer: Forum
Dismissing a complaint by an investor using the services of a share broking company, the Thane District Consumer Disputes Redressal Forum has held that an investor cannot be treated as a consumer as he is indulging in trading for commercial purposes.
Thane: Dismissing a complaint by an investor using the services of a share broking company, the Thane District Consumer Disputes Redressal Forum has held that an investor cannot be treated as a consumer as he is indulging in trading for commercial purposes.
One Chayya V Madane from New Panvel had enrolled herself with the India Infoline Ltd, for availing their services in trading in shares. Accordingly, she had opened a demat account and was using the services of the firm for trading.
Thane Consumer Forum president Jyoti A Mandhle and member Smita L Desai passed the order on January 9 on a complaint by Madane against India Infoline.
In her complaint, Madane said that in March 2008, she had opened a demat account with IndiaInfoline for selling and purchase of shares.
She deposited Rs 60,555 with the company and Rs 0.05 paise was to be taken as brokerage for trading. It was noticed by the complainant that instead of charging Rs 0.05 paise, they charged Rs 0.10 paise as brokerage.
On June 6, 2008 an email was sent by the complainant to the company to stop the transaction going into the account but despite that, the latter continued the trading transaction and disposed amount from her account.
On August 2, 2008, she sent a letter to the company saying that the amount Rs 60,000 should be reversed back into her account with interest or else she will take legal action against them.
She submitted that as no response was given by the company, she sent a notive on September 20, 2008 to the manager of the company saying that the deposited amount in her account should be reversed into her account with interest.
The complainant informed the court that she suffered immense mental stress and agony due to the conduct of the company.