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With reference to the news item captioned “Investors beware; Duping incidences on (the) rise”, published in the Business Line edition dated April 6, 2011, ICICI Securities has written to say:
The trading model of the company does not permit its sub-brokers or any third party to handle funds/securities of the client. ICICI Securities has the rights to give instructions to debit/credit investors' security or bank account, as the case may be, based on a Limited Purpose Standard Power of Attorney executed by investors in its favour. The late Rajeev Bansal, a sub-broker appointed by ICICI Securities too and as indeed other sub-brokers did not possess any authorisation to trade with clients monies/securities.
The company's investigation of transactions of illegal diversion which is the subject matter of investor complaints revealed that they pertain to a period prior to the year 2007.
Complainants have been receiving bank statements, ‘demat' statements, trading statements and have not raised any concern with ICICI Securities prior to March 2011. Complainants have categorically stated that they had at all times deposited cheques in their own accounts, given cash to the deceased sub- broker and also issued cheques in favour of the sub-broker.
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