Fraudulent Online Share Transactions By Hacking

NEERAJ AARORA, AICWA, LLB, PGD (Cyber Law & DLTA), ACFE (USA)

Certain unknown persons executed fraudulent trade by selling a call option of 5500 shares of BEL Ltd. in the trading code of CM01 allotted by the broker M/s CMA Securities Pvt. Ltd. in the name of Shri M. K. Chopra. This trading had been done by using User ID and password provided to their client M/s. Sanvyy Shares Traders Pvt. Ltd based in Dwarka. M/s CMA Securities Pvt. Ltd. is a registered broker of National Stock Exchange Ltd.

The director of M/s CMA Securities Pvt. Ltd. lodged a complaint with […] Continue Reading…

SECURITIES FRAUD- DABBA TRADING- Applicability of Criminal Statute

A “Dabba Trading” also known as “Bucketing” is the process used by brokers to route their client’s trades outside the Stock/Commodity exchange. In such trading, the broker either does not execute any trade or matches and execute trades on its own terminal. “Dabba” has its origin in the developed markets where a system called bucketing prevails. Bucketing is an illegal practice where a stockbroker executes a customer’s trade without taking it to a stock exchange with the hope of making some gains at a future date.
Essentially, bucketing involves the confirmation of an order from a client without actually executing […] Continue Reading…