Unlawful Demat Freezes - What Next?

This video delves into a major legal battle where the Bombay High Court imposed an Rs 80 lakh penalty on SEBI and major stock exchanges for arbitrarily freezing the demat accounts of Dr. Pradeep Mehta and his son. Though the Supreme Court has stayed the penalty, the case is far from over as it returns to the High Court for a fresh hearing. Sucheta Dalal discusses the broader implications of this case for investors and the regulatory overreach concerning demat and bank account freezes. Can regulators really freeze your assets without due process? Watch to find out.
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[@youpapai]

SEBI is no longer stands for investors. It stands with allowing people like Buch run as regulators, who themselves need regulated.

[@snoopdogg_007]

Chilling story, After hearing this I believe India 100% cannot be developed country ever.

[@Arita577]

Thanks for your reporting Madam. Pan Aadhaar not getting linked, Demat account freezes, in the meantime, shares get transferred to IEPF... Called investor protection fund, i feel it supplies the government free money. Harassing investors is this government's pleasure😮

[@SKSahoo]

I appreciate all your efforts in bringing such Classic Cases into mainstream. Thanks!

[@MoneylifeNewsBites]

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[@pichaimuthuramachandran9103]

The worst is for Super Senior Customers. They are classified for High Risk accounts and their Bank a/c are frozen and they have to update KYC every 2 years. These 90+ persons who has difficulty in physical movement due to spinal surgeries finding very difficult to go to bank and give KYC. Bank staff wont come and take KYC at home if they are in outstation with their dependants. They cannot withdraw the pension, cheques are bounced. One need to carry them to the nearest branch and give KYC every 2 years. These people are customers of SBI for more than 50 years.

[@morejanardhanarao4714]

You are right, the same thing happened to me by SBI.

[@pichaimuthuramachandran9103]

@@morejanardhanarao4714 As per RBI the high risk means who do money laundering and other doubtful accounts. What the poor very aged pensioners who are more than 50 years with the bank becoming high risk to the bank no idea. They cannot give KYC online. High rish customers has to submit KYC in person to the Bank only. Till 2022 they asked us to submit at the home branch. Now this year atleast they are accepting at the nearest branch. THe only consolation is they will send a intimate thru letter 2 months in advance.

[@estherchandy6292]

Thank you Ms. Dalal. You explain elegantly so that all can understand

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[@lalramchandrasinghdeo1483]

Such quality content, a lot of research, investigative reporting needs more n more appreciation. It deserves millions of viewership n subscribership.

[@arunaravind5967]

lost faith in SEBI.. very sad that Buch is shamelessly still the head, If it was a middle class man / woman getting salaries from two companies the case would have been totally diffrent.

[@ajayraaj5171]

Awesome Information. !!! You hit this content like a nail on the common retailers mind for to be aware and alert. Inspired article and thanks for bringing this up on the table. Come what may never give up!!!!. The regulators are always been uneducated, driven by politicians, and puppets in the hands of superiors. In every department in India such horrible mistakes do happen and many innocents have lost their life and money due to such so called irresponsible rogues holding their positions in the name of power take common people for ride. NSE, BSE and SEBI are corrupt and their integrity is always questionable....!!! Unfortunately GOVT knows this...Do not want to act.

[@venkatchitturi8564]

Yes these things are happening every day. Axis DMAT freezed my wife's DMAT account because she happens to same the same mobile number as my Daughter who also has a DMAT Account with AXIS. Is it wrong for family members to share the same mobile numbers. What non sense is this? Many such stupid things are happening, and they are getting sillier by the day

[@mohanraj.s728]

Same mobile number is used with 3 DEMAT accounts in my family, 2 accounts with same broker. No issue so far. Why not have one mobile for whole family?. Some idiots don't use their brain at all like in your case.

[@SanjayPMittalCIOMumbai]

Am also victim... GST authorities freezed all Demat accounts to recover just 27k pertaining to FY 2017-18... They are doing to thousands of people...

[@PhilipBaby-zl1nh]

😮

[@narenkini7088]

Hi Sucheta. This is what this government calls EASE OF DOING BUSINESS. My wife and I are senior citizens and did our KYC by sending the appropriate forms and documents by post. We refused to give our AADHAAR as it was optional. Now they change it to compulsory AADHAAR. So we fill the appropriate forms and go with documents to our Dmat office and submit it. Yet it gets rejected despite it being verified by the company staff. Reasons given is that the city name is not given. That is impossible! Further my two banks have done the KYC with AADHAAR. Where does that KYC go to? How many times do we have to do it? It was good of you to do the program but please tell us the solution. Our accounts are not yet frozen but could happen any day. Please help!

[@harshadpatil53]

SEBI shows it power to the gullible and bends - crawls in front of power...

[@shankar49677]

HDFC bank freezes bank accounts impacting normal operations in savings account. Any remedy for this? Reason non updation of KYC. Factual reason HDFC lost documents of KYC.

[@rinchenwangdi1920]

And what is worse, is trying to get your KYC issues sorted out with the share transfer agencies!! You might be KYC compliant with NSDL and /or CDSL, but if you hold some shares in physical form, they still insist on you going through the entire KYC process for the physical shares...why ??

[@navskygupta5311]

oh, the games that are played out in judiciary is astounding

[@bapnamukul1055]

Thanks to Money Life for taking the issues of helpless common people

[@MoneylifeNewsBites]

You're welcome!

[@annsree6972]

Bcos of digitisation of shares ,SEBI using extra constitutional powers not conferred on it

[@mg.f.9023]

Change will NOT happen unless people voice out the injustices! Thank you Mam for your tireless effort. Wish our Main Stream Media would wake up.

[@hetalgandhi2103]

Super, you are doing good to highlight, thank you

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[@sorcerer89]

Please do share further updates on the case, when they come. The case is quite scary.

[@antonydsilva4025]

The favourites of the BJP get away with anything! It's the common man who has to carry all these compliances burdens on their shoulders!! New India!!

[@ajaykm2]

True! This action is really has been absolutely unjust. SEBI must be penalised and asked to compensate the investors.

[@ukuk179]

What a NIGHTMARE? The banks & regulators should have simple processes to protect investors and citizens

[@sagarjambukar7137]

A good chunk of these so-called 'experienced' folks sitting in these offices of SEBI, NSE, BSE, etc have passed out of this Indian education system which was designed for 'clerical excellence' by Britishers. As a result, their brains are not equipped to adapt to special situations like in this case. Therefore people of the country tend to suffer significantly if and when 'out of the book' questions/situations arise in front of these officers. Unfortunately, this will continue till such agencies learn to adapt quickly. Hope digitization and the introduction of Generative AI does the trick of speeding up this transformation once and for all.

[@PagadalaVijayKumar]

Thank you, ma'am vividly explained every aspect of the case. Surprisngly, today markets baffled every trader without a reason. The markets are over Values. Sebi and Exchanges don't want small investers and traders to participate. Today, a single candle wiped out some - almost all in both legs. Why didn't the Exges and Sebi check out, they deliberately witnessed this to be Done I assume. Investers and traders are aware, a similar effect took place in April this year, I was told. So, Some Big players are igniting a spark, a Doomday blast? Perhaps, some eminent personalty is to exit or the other getting Elevated with this Index Effect . Also, ponder over the Unclamed funds in Banks, my late Father's 40k looked in for the past few years.

[@JaydeepMajumdar55]

Okay, SC is asking for 'principle of natural justice' i.e. hear the SEBI lawyer, NSE, BSE etc and then pass the order. If the agencies couldn't produce valid and compelling reasons of law & convince the HC then, they won't be able now.

[@prashantshah1396]

I hope you know about the rule that if no transaction in demat account for 6 months than it will freeze and we have to submit rekyc to broker only then we can do any transactions.

[@askm7649]

sebi is accountable for investor loss there complain matrix is pathetic, your investment is not safe in sebi

[@hallmark1969]

digitization of financial products ..curse on citizrens.while super rich enjoying their lavish life.

[@mohanishchitnis7680]

Thank You Madam for the video. My problem my family pulls me down every time I want to raise an issue.

[@MoneylifeNewsBites]

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[@vishaldave9177]

Eye wash. JUDICIAL reform is urgent. If you can do anything do Andolan to force GOVT to do judicial reform. Judges should be selected by people not family friends

[@mohanraj.s728]

The SC should have inceased the penalty on these three agressors rather quashing the penalty and sending the case back for reconsideration. These 3 think that they have supreme power to do anything related to share market. SEBI's atrocities in the name of consumer protection are ever increasing while it's not able to keep it's house clean...

[@sureshlalwani410]

Thank you ma'am

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[@ravijhaveri7890]

Yes mam you hit bulls eye , there are many changes made without consulting normal citizens of india who will face the consequences. Sebi should start safeguarding ordinary investors now atleast .

[@aastha222]

It seems like online investment is like giving up control of your money to institutions. 😢 AIF-III was dematerialised but at face value . Due to this the NSDL Statement shows value of investment much lesser if the original investment is done above face value. In email they just replied that unlisted shares can only be shown at face value! Is that a true representation of investment?

[@nicksonpinto2074]

Such actions brings distrust to SEBI as a regulatory body over stock markets, Investors domestic and foreign should demand reforms in SEBI to reinvigorate trust in them, else the markets may see a bust coming.

[@abrahamkurien543]

SBICAP Securities are refusing to convert our RI Demat account , opened while an Indian citizen to a NRI Demat since the citizen status as changed. Who can help please ?

[@indermohansinghmalhotra3730]

Thank you, Sucheta! 🙏

[@MoneylifeNewsBites]

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[@ajsujit]

My bank account was frozen because of kyc updation. I had to make 4 trips to bank to get it unfrozen.

[@prashanthb6521]

Thanks to court for giving justice with compensation. What will common people do who cant fight cases.

[@yoppindia]

Hope the order stands, SEBI, RBI, banks, brokers should not have arbitrary powers to freeze o seize the accounts. accounts can be frozen only after proper legal process is followed, a simple notice is not sufficient, it should be proper face to face hearing with lawyers and CA being allowed to assist their client.

[@suryanshchoudhury4063]

The country is only for the connected & powerful . You just hope that you dont have to deal with the govt in your life

[@M20-z4j]

what do you expect in a country were from a street vendor to a CJI voted same guy back in power who accused them of stealing with prejudice and they all stood in line to prove their innocence like ‘aache bache’. Private property being held on prejudice for six years and then when finally when there is some justice SC comes to rescue. Why should the matter be heard when it was not heard in 6 years? Is SC of India going to pay from its pocket the loss this gentleman incurred?

[@tusharpotdar5762]

Penalties should be in accordance to losses to a suffer individual, I mean supposed one has incurred a loss of 1000 but court order a penalties of just 100 than even after winning a case it's still remains an injustice

[@askm7649]

sucheta dalal is doing a great service to all investors we need more journalist like her in system, gud going

[@MoneylifeNewsBites]

Appreciate your kind words. Hope you would help in spreading the word about our channel and encourage others to subscribe as well!

[@askm7649]

@@MoneylifeNewsBites yes sure ,young ppl want productive journalism and i think money life is doing grt job, if u can have a quarterly magzine tht will b grt

[@chotaniraju]

At least someone thought of this issue.

[@parvatnenirajendra4287]

Outstanding presentation

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[@arshadsayed3337]

I am one of those, whose hdfcsec account is been freezed, where I was active since 2009! Frustrating !

[@chubs41]

This freezing of ANY account due to issues with KYC must be stopped. In my opinion, it is against the law. A govt licensed custodian of an individual's money or assets cannot take away custody of the money or assets from that individual without a court order. The custodian must share equal responsibility in case of improper KYC and make all effort to contact the individual to resolve the issue. This freezing approach smacks of license raj. After the Ms. Buch fiasco , it's time the finance ministry takes notice and brings in stringent rules to ensure that SEBI itself is properly regulated. I am not able to understand what they are waiting for. It's sending a wrong signal to the market and the rest of the world.

[@ukuk179]

Excellent analysis and delivery

[@MoneylifeNewsBites]

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[@rvr552]

Excellent episode!

[@MoneylifeNewsBites]

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[@JoelLionelFernandes]

Can't agree more...

[@MoneylifeNewsBites]

You're welcome!

[@jazzyb-pb5kn]

SEBI & NSE BSE Always works & supports share brokers, launch any appellate case on any share broker, you will get it.

[@samthomas4you]

Once you are a SEBI target, they will harass and extract money from you, legally or otherwise. Suit yourself.

[@gedelasasibhushanarao3863]

Circulars cant override the Act and larger objective of Act read with rules prevails ultimately

[@drmrahul]

Does KYC mean kill your customers?

[@mariof267]

An excellent video. Thankyou for highlighting such issues

[@MoneylifeNewsBites]

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[@5tyyu]

My demat frozen since 1 yr 😢 I'm handicap cannot go get aadhaar. They don't visit home. Also my IT refund on hold. Broker says more than 10K accounts frozen in share khan branch. This is WORSE than PMC Bank fiasco. Lakhs of ppl suffering

[@drhameedparappil1]

Can I start demat account for my minor daughter and son

[@sujaypatil7007]

Please make video on NSE colocation relief news

[@surenkhalsa]

But, maam, classification of promoter holding is done by company..updated every quarter..seems hard to believe that this gentleman was not aware of this, given family connections..

[@drmrahul]

Shame on sebi

[@swapnil003]

Insightful

[@MoneylifeNewsBites]

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[@swapnil003]

@@MoneylifeNewsBites already subscribed 😊

[@ukuk179]

Too many RED Tapes in India You would not see these idiotic processes in the west

[@gedelasasibhushanarao3863]

Thank you for the very informative video

[@MoneylifeNewsBites]

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[@sudhinbathija4833]

Can you take up the new rule of NRI who have invested in ppf? How many banks who have such ppf accounts are even aware of this new rule? There are a lot of issues we face on a day to day and these are petty things and they rob you of your time and health.

[@akashtilokani2000]

Baap re ! Bhayankar. Oligarchy

[@vsunder2011]

Thank you!

[@MoneylifeNewsBites]

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[@ranasharma9457]

Thank you madam for posting such informative video's which I can connect with.

[@MoneylifeNewsBites]

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[@munirathnam96]

And Buch goes around taking money from owners ESOPs insider trading outsider training and no action

[@felakawilam5747]

Only in India

[@khyatijain303]

I don't know about SEBI, but corporates are no less. I have heard crap like, if my kyc is not updated, I can sell my shares but can't buy. Ofcourse, the broker will want to make money even at your troubles.

[@mandartambe2696]

Excellent info Thanks

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[@pullanmenon1198]

Now, it's quite clear that, why Mr. Modi personally participated in the "गणपति पूजा " in his residence! Ms. Dalal, no one can save that country! Because Judiciary , Executive, and A1A2 is ruling that country! Very closely that country reaching towards the dictatorship, HinduRaj!!!

[@Kumar-cg9gv]

Dont mix issues. Dictatorship yes. But Dictatorship is not hinduraj

[@ashishjha385]

Accounts blocked ,even if demat accounts are linked with Aadhar and KYC done..active accounts... Seems some software bugs are there and to get it activated is a mammoth task... Where people don't take necessary action ...it's all gone..

[@civilpse5458]

High court judges err in their judgement, and Supreme court intervenes. Human is to err. Yes, but Doctor or Judge err, it creates a lot of damage and time is lost.

[@hemantshah1742]

The KYC issue & its circulars made on & off are also a shabby act of SEBI, wheerein Investors & brokers / MFD's are being tested for the same

[@climbeverest]

If Dr Mehtha was related to the owner, is it not classified as insider trading? Meaning Dr Mehtha would have known before anyone that Shrenuj was in noncompliance? So maybe in that case it was justified to not allow him to sell his shares.

[@SuchetaMoneylife]

seriously??? he is spending money on a court case for nothing? Why not go and read the detailed order if you wish to jump to a conclusion that suggests that the court was also daft enough to waste time?

[@climbeverest]

@@SuchetaMoneylife apologies I didn’t mean to challenge your reasoning, I am against Sebi chairman, and I love your program, I was playing the devil’s advocate, so your contention is even if he were guilty of insider trading, SEBI does not have authority to freeze his account, but SEBI can take measures that they typically do for insider trading? Especially SEBI cannot prevent him trading in other tickers? The above is a question.

[@mintusaren895]

Papers is contract nor digital . You cannot demat me.

[@darthnarak]

Oh. So that's why Modiji went to DY Chandrachud's house. He wanted to save Business Sir's investment.

[@priyojeetchowdhary]

SEBI has rotten from inside

[@pradipt8983]

please read bit as but and renaming as benami in my earlier post.

[@bharathiwadhwacp9825]

Saale hamare paise pe pal rahe hain ye government institutions no shame left sucking the blood of small retail investors

[@rajuiyer6753]

Sebi not there to protect the small invester only adani. The sc is no better.

[@darshannaik892]

SEBI should be desolved & get a better regulator

[@gregoriphilips]

For me SEBI looks like local Policewala who keeps on taking bribe ,chal 100 rupaya nikal ,chal 200 rupaya nikal no bharchook...the language I am speaking this SEBI'S LEVEL NOW DAYS SERIOUSLY YES.No limits for Corporates Politcians.. Government Agencies...Regulator ... Common man is Scape goat .

[@ukuk179]

Why not collect data & publish. Good to see league tables of no of complaints + closing of accounts. Name & shame organisation

[@arunpaul2587]

We should publish the names of authorities who do not help the common man. We should not allow them to hide behind the anonymity of their institution. Their Aadhar no. and PAN no. details should also be obtained and circulated. Then some common man sitting in some other office should delete his records and KYC data in the LPG office or the passport office. Only then he will understand the pain of completing ReKYC.

[@EarnmoneyA2Z]

Sebi corrupt sanstha ban gai hai

[@misrakaycee]

This is not the solitary case and that to only of SEBI all regulators things above law and a state in themselves whether it is Reserve Bank whether it is IRDA whether it is t r a i all behave like more than the king they think themselves at the nawabs and zamindars of their domain