Be careful with Acuity Stockbrokers...

sumith9999 · 51 Re: Be careful with Acuity Stockbrokers... Sat Sep 03, 2011 1:53 pm

sumith9999

Stock Trader

Posts : 6
Join date : 2011-09-02

Hi there,

According to my knowledge, No one can force sell, without informing the client. That is that must inform the client 'we have to force sell share xxx at xxx price to regularise account." "What do you say?? Can you deposit the money or shall we sell ??" If you can not deposit they will sell, if you deposit the due cash then no issue for them. It is the logical and correct thing to do by the broker. I think here ur advisor/dealer forgot to inform u and now ur advisor is trying to cover up his error?

You report this matter to CSE it is a violation of your rights. No one can force sell? Reason: we buy on credit even if we have cash in hand in our bank accounts - thinking we can shape it by selling quickly.

They must tell us b4 force selling so that we can withdraw cash and deposit to regularise the account. As simple as that. Although this did not happen to me I am very angry.!! Advice : I don't buy on credit even if I have small amount as Rs 500 on red side I deposit cash immediately so that I am square with them. Time to change ur broker as well!
sumith9999

investor1984 · 52 Re: Be careful with Acuity Stockbrokers... Sat Sep 03, 2011 8:32 pm

investor1984

Manager - Equity Analytics

Posts : 213
Join date : 2011-01-29

sumith9999 wrote:
Hi there,

According to my knowledge, No one can force sell, without informing the client. That is that must inform the client 'we have to force sell share xxx at xxx price to regularise account." "What do you say?? Can you deposit the money or shall we sell ??" If you can not deposit they will sell, if you deposit the due cash then no issue for them. It is the logical and correct thing to do by the broker. I think here ur advisor/dealer forgot to inform u and now ur advisor is trying to cover up his error?

You report this matter to CSE it is a violation of your rights. No one can force sell? Reason: we buy on credit even if we have cash in hand in our bank accounts - thinking we can shape it by selling quickly.

They must tell us b4 force selling so that we can withdraw cash and deposit to regularise the account. As simple as that. Although this did not happen to me I am very angry.!! Advice : I don't buy on credit even if I have small amount as Rs 500 on red side I deposit cash immediately so that I am square with them. Time to change ur broker as well!
sumith9999

Well sumith9999 u seems to be very rare breed in CSE , no one will go for credit if they got cash in hand , person might go for a day trade and maximum up to t+5 not till their counters get forced sell. and how sure are u that brokers can't force sell???? informing the client doing that is of-course good business ethic, which is something we sees rarely in today's business world.

seyon · 53 Re: Be careful with Acuity Stockbrokers... Sun Sep 04, 2011 1:01 pm

seyon

Assistant Vice President - Equity Analytics

Posts : 783
Join date : 2011-02-01

dishii wrote:

Yes i agree with you on this "Do not pass your mistake to broker. any way i also do not recommend that thing if he force sell without informing investor. but dear friend you has tried earn money using Acuity Funds without using your money so how you are going to blame broker." The very same thing happened to me as well, last week my broker sold my shares without even informing me. But the thing is that he (name start with C) sold more than the credited value.

"A stockbroker is an individual who is especially trained and certified to participate in the securities market on behalf of clients. "
most of the time my broker (c) not answering the phone. actually he's seems very very busy person ... then i meet guy on the 5th floor name Dilanjan ... i ask him to buy some shares he sold my HVA shares instantly with 15000/- loss (i got 5000 shares 17.6) ..... but he sold 15.... then purchase CSD at 19.6..... but now HVA reach almost 60 .... .

As i earlier said brokers do not lend on free of charge, we paying interest on that. Now this all happened due to not proper understanding of the new rule, closer to the month end only top mgt realized that firm does not have a sufficient fund to lend to the retailers, that does not meant that they have rights to do the force selling of the innocent retail investors outstanding. I know well so called C, He does not care about the investors, Now the brokers are keen on achieving their target and tried to earn the commission as much as they can.

Same thing to happened to me also, After this incident My Adviser called me yesterday and briefed, He said after announcement of the new rule He was allocated to lend 10Mn for his clients and he also managed with in that limit. On closer to the month end, his manager instructed to reduce his consolidated exposure to 6Mn, the he was forced to sell of his all clients proportionately.

Now u can imagine the Acuity top management's responsibility. Even they don't know their net liquid position. I know some of them do not have any paper qualification. Still i am waiting CEO response to go for the Next step.

Last edited by seyon on Mon Sep 05, 2011 7:47 am; edited 1 time in total

Aamiable · 54 Re: Be careful with Acuity Stockbrokers... Sun Sep 04, 2011 3:47 pm

Aamiable

Vice President - Equity Analytics

Posts : 1284
Join date : 2011-02-21

Thanks for the open discussion on the issue of force selling. ....Now realize that, still there is a possibility of credit based stocks declining further due to this effect of force selling which takes place time to time at the CSE......

Investment oriented stocks which grow on corporate earnings and cash rich conglomerates remains the safest option. ...This scenario seems to have been proven repeatedly at the CSE.... monday onwards I buy only stocks with good results..... That is the reason why it is important to stick to financial results all the time.... Smile

seyon · 55 Re: Be careful with Acuity Stockbrokers... Wed Sep 07, 2011 9:32 am

seyon

Assistant Vice President - Equity Analytics

Posts : 783
Join date : 2011-02-01

Hi Friends,

Today CEO replied me that the compliance officer is carrying out inquiry and will replay the final outcome within day or two.

The way he replied me shows me He is very genuine and helpful. So if someone ( Our forum members) were affected due to the forced selling by the Acuity Stockbrokers, You could also contact CEO. He can help you.

If u need contact details, u can contact me through the PM.

rijayasooriya · 56 Re: Be careful with Acuity Stockbrokers... Wed Sep 07, 2011 11:45 pm

rijayasooriya

Senior Vice President - Equity Analytics

Posts : 1827
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Join date : 2011-05-25
Location : Matara

seyon wrote:Hi Friends,

Today CEO replied me that the compliance officer is carrying out inquiry and will replay the final outcome within day or two.

The way he replied me shows me He is very genuine and helpful. So if someone ( Our forum members) were affected due to the forced selling by the Acuity Stockbrokers, You could also contact CEO. He can help you.

If u need contact details, u can contact me through the PM.

That is really a good news.I thought u would loose more money and time.

Soundchips · 57 Re: Be careful with Acuity Stockbrokers... Wed Nov 23, 2011 9:36 am

Soundchips

Senior Manager - Equity Analytics

Posts : 576
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Join date : 2011-02-05

seyon wrote:Hi Friends

Just now, i was shocked, when i open sold note, Some stocks have been forced sale. Ok let me brief my scenario, I have been mainly dealing with capital trust.

I am with Acuity due to my friend who is one the broker. Generally I don"t buy on credit whit Acuity. After announcement of relaxing credit, i just asked from my broker How much u can allow credit. He said 50% of my portfolio and u can settle with in one month, then i bought some stocks ( exposure about 40% of my portfolio), then on last Thursday He called me and told, his mangers requested to either settle or sell some stocks to reduce the exposure by 10% due to the month end regulator reporting, balance to be settled he can manage it for one month. Then i sold some stock on break-even and some are on small loss.

On Friday I did not get any calls from my brokers or even any other staff, Now the sold note shows the entire balance to be settled has been forced sale with out informing me. Now i called to my broker He said, due to the month end reporting, his manger did forced sale to some of A/c who has out standing. Then i asked that, You should have informed me, He said brokers has a right to do the force sale.

I do not worry, if they sold it on profit or even at break even. But what has happened it they sold of some stock @ very lowest price ( Buyers quote) and this results the huge loss.

Friends pls help to this situation, Can i make a complaint to SEC. As per my understanding, I really do not know whether the broker has a right to forced sale or not, even if he has a right He must have to inform to the clients for the option before selling Am I right.

But nothing was happened to my case. So Friends whoever dealing with Acuity Pls be careful and check with ur Portfolio.

Friends Pls help on this.