Is binary options the same as forex exchange rate49 comments
European style stock index option trading
If you're new here, you may want to subscribe to my RSS feed. The innovation of new technology not only allow to devise the new means of working and after each new advent of technology, it brings advance and easy to use mechanism and tools which allows entities a better control, methods of operation, utilization of human and other resources. The main drawback is that by the time, the general public or investigation agencies becomes aware of these novel methods of committing fraud, the fraudster shift to further advance technology.
Another drawback with the investigation agency is the availability of technology and knowledge of diversified fields and by the time they try to acquire these skills , it becomes outdated.
In such trading, the broker either does not execute any trade or matches and execute trades on its own terminal. The anticipation is that the broker will be able to realize enough profit to offset the difference to the client at a future date, either due to executing the order at a later date or through profits generated on other transactions.
The broking house that engages in this activity are called bucket shops. A dabba operator acts as a principal to all the trades and not as an agent of the client. In order to encounter such situation and to deceive the educated investors, the fraudster persons have developed novel and sophisticated mechanism of online dabba trading which even take care of all exchange procedures and rules and difficult to detect.
The trades is executed on the exchange and reported to the client. Most of the brokers who had absconded in last three years are due to losses suffered due to such frauds. In one of the cased investigated by the Economic Offences Wing of Delhi Police, this modus operandi was used by the broker to defraud various innocent investors.
The broker used automated software whereby the reverse transactions were executed in the account of various transactions and subsequently the client code of the reverse transactions was changed within few seconds. Due to continuous rise in the share market over the period to , the broker suffers heavy losses due to dabba trading. In order to escape the liabilities, the broker has not only regenerated the contract notes whereby includes the reverse transaction in the client bills because if the reverse transactions are included in the client account, no profit would accrue to the client as both the transactions have been done at the same time.
The fraudulent broker has gone to the extent of registering complaint against the innocent clients to whom, the profit has accrued due to such transactions on the ground that such investors have colluded with the respective Relationship Manger and changed the client code of the reverse transactions.
The redressel mechanism of the exchange is governed by the arbitrators who hardly has any knowledge of the mechanism of the exchange and not in a position of redress the grievances of the small investors.
The exchange never provide the detail of the transactions executed in the client account by the broker on the server of the client. The exchange as well as SEBI will only ask the broker to provide the detail of the transactions to the client. Thus the client can never obtain or access the information regarding the change of client code or unauthorized transactions executed in his account and thus suffer from the capacity to present his case before any forum. The exchanges under the RTI act refused to provide the information to the client on the ground of inapplicability of RTI act to the exchanges.
Thus, the client has no choice in either way, neither it can proceed with civil remedy due to absence or access to the manipulations by the brokers not it can proceed with criminal as it being technical, the convincing to the police may be a Herculean task. Hi… very useful and informative article been written. Notification number and date. As you are expert in securities laws and publish many blogs in this field which are useful to investors against fraudulent stock brokers. Never do dabba trading, Dabba operators allow you to trade unlimited, till you lose money out of your capacity,.
The person who can not afford or do not want to pay margin money in futures is target of all Dabba traders. Dabba Traders are always afraid of short sellers. If any of dabba traders client make regular money in trading. Dabba traders stop doing business with such clients, They only want clients who lose money. Section 13 as well as 14 of the said Act thus deal with subject matter of prohibited or regulated contracts in securities in notified areas only.
At the time when the said Act was enacted, the relevant provisions of the said Act were brought into force in specified territories by issue of relevant notification in the official gazette. The concept of approval of exchanges with reference to specified territories is abolished. II, Sec 3 ii ]. I was influenced by my friend to bring in the entire amount of capital required to run sub broking firm in jharkhand and it was mutually agreed that he will handle the entire day to day activities.
My friend has misguided and gave misinformation to me from Jan to Feb During this period he has not only misappropriated the whole amount for personal use which I gave him to set up sub broking firm but he has also carried out fraudulent trade of my customers during the said period by misleading everyone which has resulted in a loss of 7.
To protect my goodwill and respect, I have given total 6,00, to my customers as of now in order to compensate their losses. Your email address will not be published. Please enter an answer in digits: August 26, at May 15, at 3: Awaiting your reply Thanks Sudesh Kumar. May 25, at 6: Never do dabba trading, Dabba operators allow you to trade unlimited, till you lose money out of your capacity, Dabba operators suck all your money till you sell your property, sell all jwellery in house.
Dabba operators have no ethics. Unlimited trading is very dangerous for heavy traders, always beware of these Dabba operators. Never Never do it, it may destroy all happiness in your life Rgds — Satish. June 16, at 4: October 5, at October 15, at 5: October 16, at October 25, at November 6, at 1: Please tell me what should I do now to get justice. November 6, at 5: February 21, at 4: Dear Sir, Give me the Dabba trading contact Nos.
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