I read that F6 Finserve sold shares of clients fraudulently and has shut down, is it true?
Anyone have more information on this?
This is another cautionary tale when it comes to trading with small brokers. F6 Finserve based out of Gurugram has fraudulently offloaded shares of Kwality held by its clients and looks like it has shut down. As of February the brokerage had 1675 active clients. The website of the company is also offline. Kwality submitted a letter of communication it received from one of the investors to the exchanges about his shares having been sold fraudulently.
The letter states that the broker isn’t traceable and the offices have been shut down. Here’s the link to the circular.
This is the second instance of a broking firm gone bad/shutdown in the last couple of months. In February this year, the exchanges had expelled a discount broker called Wealthmantra. Here is a post with more details about it
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Is this reason, kwality gone circuit?
Does the broker have access to the shares of his clients in dmat with the depository?
They have your DEMAT’s POA, so yeah they can move it and sell, just like Finserve did