share market

Futures and Options (F&O) trading is generally considered very risky, but a recent case has raised serious questions on the responsibility of the trading system and the broker. In this case, due to technical glitch of the broker suddenly a margin limit of around Rs 40 crore started appearing in the trading account of a trader named Rajguru. This amount was not his real capital, but due to this flaw in the system he was able to trade F&O with such a huge limit.

The market was not in his favor at the beginning of trading. Amidst the turmoil in the market, he had to suffer a loss of about Rs 54 lakh in the first 20 minutes. After this the direction of the market changed and the trader changed his strategy rapidly. In a short time he made a profit of about Rs 2.38 crore. In this way, its overall net profit was Rs 1.75 crore.

Why did the broker stop profit?

When the broker company came to know about the technical error in the system, it immediately corrected the margin limit. After this, after deducting brokerage and other charges, the entire profit was transferred to his account and no amount was left in the trader's account. The trader lodged a complaint first with the broker and then with the Investor Grievance Cell of NSE, but he did not get any relief. The arbitration tribunal also rejected his claim. After this he appealed to the NSE Appellate Forum, where the decision came in his favor. The forum ordered that the profit of Rs 1.75 crore should be returned to the trader and 12 percent interest should also be given on it. After this, NSE deducted an amount of about Rs 2.01 crore from the broker's account.

Important decision of Bombay High Court

The broker company reached the Bombay High Court against this order, but the court clearly said on December 3, 2025 that the technical mistake was on the part of the broker. The court also clarified that the trader neither committed fraud nor violated the rules in any way. According to the court, if there was a loss in trading, it would have been the responsibility of the trader. In such a situation, when profit is made, the broker has no right on it.