Anugrah Stock and Broking: CDSL Asked To Restore Securities of Investor with All Benefits

Moneylife Digital Team 26 July 2024

The arbitration tribunal (AT) in Mumbai has directed Central Depository Services Ltd (CDSL) to restore within 15 days the securities along with all corporate benefits accrued of an investor-client of Anugrah Stock and Broking Pvt Ltd (ASBPL).

In an order last month, the AT bench of Rajesh L Shah (presiding arbitrator) and co-arbitrators Ashwin Ankhad and Anil Shah says, "Against receipt of the above (securities), the claimant (investor-client) is directed to issue a letter of subrogation in favour of CDSL for these securities. Thereafter, CDSL would be free to step into the shoes of the claimant to file its claim for the same shares with appropriate forums or Edelweiss Custodial Services Ltd."

Vile Parle-based Karuna Nandlishore Gupta, represented by Advocate Ravi Hegde, had filed the arbitration. Ms Gupta was holding securities worth Rs3.42 crore, as per the holding statement provided by Anugrah.

"After realising that Anugrah had misappropriated and illegally sold her securities, Ms Gupta filed a claim before National Stock Exchange (NSE), praying for a refund of her funds and shares. However, NSE rejected her claim, stating that the matter is sub-judice before the securities appellate tribunal (SAT). Ms Gupta then filed the arbitration application.

The AT observed that Ms Gupta has adequately discharged the burden of proof and submitted a reconciled statement of the list of 46 scrips of variable quantities. It says, "It is apt to note that CDSL has wrongly claimed that there is a shortfall in the value of the securities by Rs72.50 lakh. CDSL failed to consider the corporate actions in nine scrips, which it has claimed to be at variance with the claim. The AT finds no reason to agree with the contention of CDSL that the list of securities claimed (by Ms Gupta) is a new list and hence, should be considered as a new case. The AT does find in favour of the claimant."

After receipt of the shares from CDSL, the claimant (Ms Gupta) shall not be entitled to the same for its equivalent amount thereof or any benefit thereon from any other entity (Anugrah, Edelweiss, NSE, National Clearing Ltd-NCL or the Supreme Court) as it would otherwise amount to unjust enrichment and duplication of the same claim twice, " the AT clarified in its order issued on 18 May 2024.

Comments