Motila Oswal- Why not to choose it !

They say, “When trouble comes, it comes not single, but in a battalion”….

This just seems to hold true, thanks to my experience with Motilal oswal Securities Ltd.

On Friday, 23rd of November 2012 I had placed an intraday trade for H******** C*****.

I had chosen broker square off mode and had left for the day, arranging for an early square off, if it reached a certain value on that day.

As per the normal procedure, the trade should have been squared off at end of day automatically if it didn’t reach the set price, but it wasn’t ….

Instead, the share was converted from intraday to delivery without any intimation.

I had my doubts when I viewed the contract notes for the day’s transactions and had called the customer service executives,to confirm the trade details.

I was told by the customer service executive that the trade was only intraday and had not been converted. When I asked that the new contract notes with updated details be sent, I was told that it would be sent, but it wasn’t . 
The firm can confirm this particular conversation if it uses the recording system.

I had let it at that, satisfied with the confirmation that it was dealt as an intraday stock.

 

However, 6 days later, I received a mail from Communications that I had to cover a debt of 18*** and the money that was due  to me after selling my other shares was taken to cover a part of my so called debts !!!




 
 
 
 
 
 
 
 
 
 
 
 
 
I contacted the Customer service, again and was put through an ordeal of contacting various other departments. I was finally directed to the number of Motilal Oswal Order placement Cell and was asked for my adviser’s name. I was told that I could expect a call back from the person on the same day, but, I did not receive any call.

I then sent a mail to the grievances team explaining my concern and got a ticket ID and a redressal time of 12 working hours. I had also asked that no action be taken from the Risk Management side till the issue be clarified/resolved.

The mail from the communications team came to my inbox on Friday (Nov 30th, 2012) and I had immediately contacted customer care for more information. 

Not only did I receive No information, I also received a message in my mobile stating that some of the shares had been sold from my account to cover my debts on Monday (They had sold a part of the shares which were converted from intraday to delivery at a much lower price!!!).

Here I was, trying to understand what those debts were, and Motilal Oswal, without any intimations was selling my shares without my approval.
I was told that it was a standard RM procedure. Selling shares of clients without their approval is standard?

Okay, let us assume that the procedure is normal.
But, the customer is not even aware of the debts in this case. It occurs due to failure to square off at the end of day; the customer is not notified about the non-selling of shares. In fact, the customer is told that the trade was indeed intraday and not delivery! After a long process, it is known that the shares were converted to delivery as the scrip was in lower circuit and there were no potential buyers. (If a scrip enters lower circuit, most trading firms have a cut off of 20% as per SEBI rules, after which it gets locked for trade for that day. I’m sure Motilal oswal follows similar norms too (see pic below). The next trading day too, the share price fell by 20% due to which I had raised concern regarding my trade to the Motilal oswal executives.)(ICICI direct, in order to protect the customer, automatically squares off, if it falls 16%. Motilal oswal does not seem to have such rules to safeguard its customers. When it fell atleast to 19%, its auto square off server should have worked and squared it off .Instead we are faced with excuses that it touched the lower circuit!!! )

 
 
 
 
 
 
 
 
 
 
 
 
Why was the scrip not squared off when it reached a downfall of 19%? 
Why was it allowed to get locked for the day as a lower circuit scrip?

Why was I given wrong information when I had called? Had I known earlier, I would have curbed the losses from my side at least before it fell too far and cost me 10 times more !!!Why did it have to be converted to delivery WITHOUT ANY INTIMATION?

How does Motilal Oswal work with such outdated and neolithic systems of customer care and broker square off ?!!! (Their online trading is a pain, but let’s not focus on that, here!)


Sending a warning mail on Friday, not responding to customer queries on the mail details and taking money out of the account first thing on Monday morning is the “procedure” ?

(Below is the screen shot of the stock’s movement)



I tried contacting the customer service again and sent a mail to the grievances team, too stating that I needed clarity on the transaction. The customer service executive to whom I spoke (name shall be revealed on request) assured me of a call back along with clarifications on the same*. I did not receive a call back, as expected and when I tried contacting them, there was no response. The grievances team has assured me of a solution in 3 working days!!! In this fast paced world, 3 days to clarify something could mean loads of loss to the customer.

Also, most of the customer service executives lack courtesy and treat the customers rudely. They raise their voices against the customers and are probably of the opinion that force can settle issues. Wrong!
I never expected this kind of service from Motilal Oswal. I should have done better research before opening an account with this firm. Not only is their trading software below standards, their customer service is far inferior. Googling shows me that there are several clients facing similar issues. I just hope that anybody planning to open an account with this firm stumbles upon this post and many other similar concerns (raised by Motilal Oswal customers) and refrains from doing the same.
 
Will action be taken to solve the issue at least after reading this post? Given the lethargic system at Motilal Oswal, I doubt it ! 😛 I’m trying, nevertheless…

I request people to comment on this situation and let me know the procedures followed. This would really help me understand the situation better.
Thanks.
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