Mr. Narendra Singh Phalke vs Sebi
- CitationAppeal No.443 of 2023
Ratio decidendi
The rule this decision rests on
A dispute between an investor and his broker concerning the debit of securities from a demat account on the basis of an allegedly forged power of attorney is an internal dispute between the investor and the broker, for which the remedy lies outside the jurisdiction of the regulator; the SCORES grievance platform is not the forum for adjudicating such a dispute involving forged documents. Where no violation of the Securities and Exchange Board of India's statute or regulations is found in the grievance, the Board is not required to interfere, and an appeal against the disposal of such a complaint fails.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Mr. Narendra Singh Phalke 307/308, N.G. Grande, Collectorate Road, City Centre Gwalior, Madhya Pradesh-474011. ...Appellant
Versus
Securities and Exchange Board of India SEBI Bhavan, Plot No.C4-A, 'G' Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400051. ...Respondent
Mr. Bhavik Lalan, Advocate i/b. YNSS Law for the Appellant.
Mr. Vishal Kanade, Advocate with Mr. Ravishekhar Pandey, Ms. Shefali Shankar and Ms. Rasika Ghate, Advocates i/b. MDP & Partners for the Respondent.
CORAM: Justice Tarun Agarwala, Presiding Officer Ms. Meera Swarup, Technical Member
Per: Justice Tarun Agarwala, Presiding Officer (Oral) 2
1.
We have heard the learned counsel for the parties.
The exemption application is allowed.
2. The present appeal has been filed whereby the
appellant's complaint on the SCORES platform has
been disposed of. The appellant contends that he had
transferred his demat/trading account to company
named Sunness Capital India Pvt. Ltd. on 30th
September, 2020 in which he had held 79,500 shares of
ITC Ltd. In 2021, the appellant came to know that his
ITC shares have been debited from his demat account.
3. Accordingly a compliant was filed on the SCORES
platform in which it was alleged that the same was
done by the broker on the basis of a forged power of
attorney.
4. The complaint was disposed of stating that such
dispute relating to forged documents cannot be decided
on the SCORES platform.
3
5. In our opinion, the dispute raised in the compliant is
an internal dispute between the appellant and his
broker for which the remedy lies elsewhere. There is
nothing which requires SEBI to interfere with as we do
not find any violation of SEBI law and its regulations.
The appeal fails and is dismissed.
6. This order will be digitally signed by the Private
Secretary on behalf of the bench and all concerned
parties are directed to act on the digitally signed copy
of this order. Certified copy of this order is also
available from the Registry on payment of usual
charges.
Justice Tarun Agarwala Presiding Officer
Ms. Meera Swarup Technical Member RAJALAK Digitally signed by SHMI RAJALAKSHMI
12.5.2023 HARISH HARISH NAIR NAIR Date: 2023.05.18 12:01:14 +05'30' RHN
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