2025 (11) TMI 1036

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....June 30, 2023 rejecting her claim for refund of deposit made with Anugrah Stock Broking Pvt. Ltd. Anugrah Stock Broking 2. We have heard Mr. Zubin Sheth, learned advocate for the appellant and Mr. Jaikishan Lakhwani, learned advocate for the respondent. 3. Brief facts of the case are, appellant had opened his demat account with Anugrah Stock Broking on February 26, 2020. According to the learned advocate, appellant had placed the Mutual Funds worth Rs. 10,00,398.62 towards margin with the said broker. Thereafter, on July 7, 2020, appellant deposited a sum of Rs. 5 lakh as margin money. Subsequently, the broker was debarred from the market on August 3, 2020. Appellant lodged a complaint with NSE for refund and the same has been reje....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s opened on July 1, 2020 and the amount was deposited on the same day. In the instant case, the account was opened in February and Mutual Funds were given as margin. Thereafter, on July 7, 2020, further margin money of Rs. 5 lakh has been paid by the appellant. Admittedly, the broker has been debarred on August 3, 2020. Learned advocate for the respondent sought to distinguish the case of Anisha Kothari, on the ground that between February and August the appellant has not traded, though she had placed the Mutual Funds as margin money, and hence the appellant is not be eligible for refund from the Investor Protection Fund in view of the Clause 2D of the Circular dated February 23, 2017, which has been relied upon by this Tribunal in the c....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....led for Investor Protection Fund. There is no evidence suggesting that the appellant had made deposit for any other purpose than for executing trades on exchange platform. There is hardly any difference between appellant's case and that of Anisha Kothari except the fact that appellant's account was initially opened in February end and the mutual funds were placed as margin money/security. Learned advocate for the appellant also clarified that the mutual funds have been returned on August 14, 2020 after debarment. If that be so, there is no reason as to why appellant should not be entitled for refund of margin money. The broker having been debarred on August 3, 2020, there was no further chance for the appellant to trade. There is no other m....