The BKC (Bandra Kurla Complex) police have registered an FIR against Kashmiri Lal Rana, 65, for allegedly failing to inform the National stock exchange (NSE) that, by mistake, 5,000 unlisted shares had been credited to his Demat account. He then sold 3,685 of these shares for Rs1.32 crore without informing the NSE. The NSE filed a complaint against Rana, following which the police registered a case of cheating on July 21.
About The Case
According to the FIR, the accused, Rana, resides in New Delhi. The National stock exchange’s Mumbai office is located in BKC, Bandra East. Nuvama Wealth Finance Limited holds shares of the NSE. If anyone wants to purchase these shares, they must complete the necessary documentation process with Nuvama Wealth Finance Limited. After that, the investor seeks permission from the NSE. Once approved, the NSE instructs the National Securities Depository Limited (NSDL) to transfer the shares to the concerned investor. The NSDL acts as the depository for the NSE and transfers the shares to the investor’s Demat account.
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On March 31, 2023, Rana applied to purchase 5,000 shares. On June 26, 2023, he received permission from the NSE to purchase the shares, and the NSDL was instructed to transfer the shares to his Demat account, which they did.
However, an NSE employee, Rohit Gupte, 54, mistakenly transferred an additional 5,000 shares to Rana’s Demat account. As a result, Rana’s account reflected a total of 16,315 shares — comprising his original 6,315 shares, the 5,000 shares he purchased, and the extra 5,000 shares mistakenly sent.
According to the complaint, Rana realised that the NSE had mistakenly credited an extra 5,000 shares to his Demat account but did not inform the NSE, allegedly intending to profit from it. In May 2024, Rana applied to the NSE to sell his shares but did not disclose the extra shares. Unaware of the accidental transfer, the NSE allowed him to sell 15,000 shares from his account. Subsequently, Rana sold 3,685 of the extra shares for Rs 1.32 crore.
On June 28, 2024, the secretarial department of the NSE sent an email to Rana, informing him of the error and requesting the return of the 5,000 shares. Rana replied, stating that he had sold the shares and asked for a compromise. The NSE then sent him another email instructing him to pay for the 3,685 shares already sold and return the remaining 1,315 shares. Rana reluctantly replied that he would pay only the price at which he had purchased the shares.
Consequently, the NSE issued a notice demanding the return of the shares. However, Rana has not returned any shares to the NSE so far.
Eventually, on behalf of the NSE, Vaibhav Parvat, 26, deputy manager in the legal department, filed a complaint against Rana. The police registered a case under sections 316(2) (criminal breach of trust) and 318(4) (cheating) of the Bharatiya Nyaya Sanhita.
