In the recent case of Hardik Manharlal Kotecha v. SEBI and Anr., a petition has been filed by a retail investor names Hardik Manharlal Kotecha, where he submitted that in December, 2020, he placed various trades through Motilal Oswal Financial Services but due to the challenged circulars, a huge penalty was imposed on the account of the shortfall of margin on certain occasions.<\/p>\n\n\n\n
Prior to issuance of the circulars, the cash margins were not demanded from the incestors\/clients and these were being borne by the Trading Members. However, after the issuance of these circulars, the investor\/client is required to mandatorily deposit margin being Value at Risk and the Extreme Loss Margin with the Trading Member before placing the trade.<\/p>\n\n\n\n
Further, the petitioner also submitted that the circulars impose arbitrary penalties for non-compliance, is impractical and excessive considering its purported motive to bring transparency and prevent misuse of client\/investor securities by the Trading Member or broker. Taking all the opinions and contentions into consideration, the Gujarat High Court has issued notice on this plea.<\/p>\n","protected":false},"excerpt":{"rendered":"
In the recent case of Hardik Manharlal Kotecha v. SEBI and Anr., a petition has been filed by a retail investor names Hardik Manharlal Kotecha, where he submitted that in December, 2020, he placed various trades through Motilal Oswal Financial Services but due to the challenged circulars, a huge penalty was imposed on the account […]<\/p>\n","protected":false},"author":177,"featured_media":8467,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1399],"tags":[],"yoast_head":"\n