Dear forum members, over the past few years I have thought long and hard if I should bring this topic up, and decided not to everytime because the source is moneylife - the eternal pessimist. But here it is, it’s a very old one - a story of a disgruntled investor Wing Commander (retd) CR Mohan Raj
I opened an account with Motilal Oswal Securities (MOSL) on 14 February
2006. Three months later, by 26 May 2006, I got wiped out. I had become a
victim of unauthorised trading. I signed NO
delivery instruction slips and yet my stocks were sold. I still wonder
how! The broker will not tell me how he managed to dispose off my stocks
without my authorisation/delivery instruction slip. My life savings
were liquidated. I was seriously considering suicide. It took me two
years to come out of the shock and the consequent severe setback to my
health. Even to this day I am unable to comprehend how a broker can do
it so audaciously and still get away. Unbelievable but true.
Truly horrific. This is the reason why I never invested in “Motilal Oswal Financial Services” or one of their superbly concentrated focussed funds. Everytime I hear their name a quiet shiver runs down my spine.
I really want your opinion on this. I feel a lot of unrest(even though it did not happen to me) and I want to make peace with this. MOFS is one of the main reasons why I double check my demat from Kotak Securities every now and then. I have developed distrust and maybe even some form of paranoia.