► Hi, I’ve received a legal notice alleging that I operated/traded in the complainant’s demat account without proper authorization and caused approximately ₹2.5 lakh loss, mainly through F&O. The notice invokes/mentions: (1) Section 12 of the SEBI Act, 1992 read with Regulation 3(1) of the SEBI (Investment Advisers) Regulations, 2013, (2) Section 316 of the Bharatiya Nyaya Sanhita (criminal breach of trust), and (3) Section 318 of the BNS (cheating).
My position is that she voluntarily gave me account access and permitted me to operate/trade; there was no separate written F&O consent, but I was not specifically told that F&O was prohibited. The ₹2.5L was a cumulative loss over multiple trades. I later expressed regret and said I would try to recover it, but I did not intend this as an admission of legal liability.
My questions: How strong is my defence? Does lack of written F&O consent make the trades unauthorized? Can my WhatsApp statements be treated as an admission/debt? Do Sections 316/318 actually apply? Does the SEBI allegation apply when I received no fee/commission? What is my realistic civil/criminal/SEBI exposure, and what should I do immediately?
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