Only for Serious Stock Market folks:
Angel One filed an Rs 18.41 lakh counter-claim with 18% interest against a small retail investor who traded with a capital of mere 36k.
We represented the investor in SEBI arbitration against Angel One.
Dismantled broker's defence with their own documents.
1. Angel One's entire legal defence cited NSE Circular 129/2022 claiming the order was executed within LPP limits.
That circular covers Index Options (OPTIDX). The trade was a Stock Option (OPTSTK). Stock options fall under a different circular - 07/2023.
And LPP doesn't even apply to market orders - confirmed by NSE's own FAQ.
Wrong circular. Wrong instrument. Wrong order type.
Defence collapsed at first check.
2. Angel One's own website advertises Market Price Protection - 40% cap for stock options below Rs 10 premium. In this case, LTP was 15 paise.
Max execution should've been 21 paise.
Actual execution went to Rs 20 - a 9,424% bypass of Angel One's own stated policy.
3. Angel One's OMS split one order into 10 exchange orders. After Batch 2, the client had Rs 3,145 left.
Batches 3 through 10 - Rs 17.68 lakhs - executed entirely on money the client never had.
Angel One's system watched prices climb from 17 paise to Rs 20 and never stopped.
4. For a Rs 22,000 shortfall - Angel One sent 3 SMS alerts with 30-minute gaps. For a Rs 17.65 lakh exposure - 2 hours of silence, then one SMS, and liquidation 54 seconds later.
The client got less than a minute to respond to a loss 80x larger. That's not notification. That's a formality.
Result:
Arbitrator held Angel One 60% responsible under fiduciary duty (SEBI Stock Brokers Regulations 1992, Schedule II).
Angel One's counter-claim of Rs 18.41 lakhs 18% interest - rejected.