Legal Help Needed: Issues with Share Redemption and Non-Transfer to Demat Account Involving Broker and Sub-Broker
Hello,
I am seeking legal advice regarding a complex issue I am facing involving the redemption of shares, the non-transfer of those shares to my Demat account, and the involvement of both a broker and a sub-broker.
Here’s the situation:
I made an investment through a broker, and the shares were supposed to be transferred to my Demat account. However, despite having made full payment for the shares, they were never transferred to my Demat account.
The payment was made to a sub-broker, who issued documents confirming the acceptance of the payment (such as receipts and confirmation letters). However, despite these documents, the shares have not been credited to my Demat account.
Further complicating the matter, I recently discovered that the company associated with the main broker is now listed as "Strike Off" for e-filing, raising concerns about its ability to process or manage these investments properly.
Additionally, I was informed that the broker is no longer able to facilitate the redemption of the shares and has instead proposed an unclear "settlement" without any formal documentation or proper explanation.
Given these developments, I am now left with several questions:
What legal recourse do I have in this situation, considering that the main broker is unable to facilitate the redemption due to its "strike-off" status?
What actions can be taken against the sub-broker, who accepted the payment but failed to transfer the shares to my Demat account, leaving me without the shares I paid for?
What responsibilities does the financial services company (which facilitated the investment through the broker) have in this case, especially since they were involved in the initial transaction but have not provided any resolution to the issue?
How should I proceed legally to either force the redemption of the shares, seek compensation for the non-transfer, or recover my funds?
Given that I have clear proof of payment and supporting documents, is it possible to take legal action to recover my money or compel the share transfer, even though the broker and sub-broker have failed to fulfill their obligations?
I am looking for advice on how to proceed legally to resolve this issue. Any guidance on the next steps or potential legal actions would be greatly appreciated.
Thank you for your help.