In a startling allegation, Teji Mandi Analytics Pvt Ltd, an associate of crisis-hit Anugrah Stock & Broking Pvt Ltd, has alleged that its clearing member has made unnecessary and wrongful deductions from some accounts by selling their stocks. The amount of wrongful sales is in hundreds of crores, the firm alleges. In my column yesterday, I wrote about how over Rs,1000 crore of investors’ money is at risk, as Anugrah Stock & Broking Pvt Ltd appears to be teetering on the brink. https://www.moneylife.in/article/over-rs1000-crore-at-risk-at-anugrah-stockbrokers-and-associates/61330.html
Anugrah had been operating through two close associate firms – Om Shri Sai Investments and Teji Mandi Analytics Pvt Limited. The latter, in its presentations claims to be investing over Rs800 crore in derivatives trading that offered investors a monthly return of 1%-1.5%. Under pressure to respond to investors who have been demanding their money or their shares, the firm finally responded by sending an email to investors today.
The email says, "During multiple meetings between our broker with various investors over last 10 days to assess the reason for this mismatch, the broker (Anugrah) has informed that the clearing member has made unnecessary and wrongful deductions from some accounts by selling their stocks. We were told by the broker that such sales exceeded few hundred crores. However verbal statements do not have any significance without authentic data (quantum of the shares sold, the date and time of the sale, and the need for the sale i.e. was the client’s account in debit necessitating the sale). It is clear that this data between broker and clearing member will bring clarity on what’s the current state of holdings, what happened and who is accountable.
"In order to assess the extent of stock mismatch, we have over the last two weeks tried to collate data on a few accounts from various sources. Looking at this sample data, we have found that a) trading losses were not significant and b) stocks have been sold from client accounts far in excess of what is required to cover the trading losses over the entire period of operation."
It added that “The sample data for 49 accounts is shown in the attached excel sheet. The sheet indicates the sale of stocks in around 49 accounts which shows the dates on which stock were sold and the amount of sale. The last column shows profit and loss for the entire period of operation. Comparing the two it is obvious that that there was an excess sale of around INR 35 crores in just these 49 accounts which was completely unnecessary and wrongful. Access to authentic data from the broker will help establish the exact amount of such unnecessary and wrongful sale of client stocks.”
The email continues, “With some more data in hand we will be filing a complaint with SEBI to look into this matter completely. A copy of that complaint will be forwarded to you soon as it is submitted. Further we are seeking the help of eminent securities lawyers to fight this illegal and wrongful sale of client stocks on your behalf.”
In an earlier mail, it further says, it is in process of collecting client data from its broker, Anugrah Stock and Broking Pvt Ltd and initiating the reconciliation. "Unfortunately the accounting servers of Anugrah are still down and with no data forth coming we are as much handicapped as you are in terms of getting data on current positions and understanding what really happened. Access to authentic data from the broker will help establish the exact amount of such unnecessary and wrongful sale of client stocks," it says.
Teji Mandi Analytics further says, "Comparing the holding statement of some clients through their latest margin report issued by the broker in the first week of August with their current holding in respective Central Depository Services Ltd (CDSL) demat accounts, we have clearly observed that there is a discrepancy between the two."
We sent emails to Teji Mandi Analytics and will update this article as and when we receive any reply from them.