Quick Summary: Trustline Securities Limited and Hanish Singla have been in a legal fight over unauthorized trades and the necessary money to cover trading risks. The Delhi High Court sided with Singla, ruling against Trustline's appeal.
Back in December 2007, Hanish Singla opened a trading account with Trustline Securities in New Delhi. Things went wrong when Trustline claimed Singla owed them nearly ₹20 lakhs for trades they made on his behalf. Singla argued he never agreed to these trades.
In 2010, Trustline filed a case to recover the money in Saket Courts, New Delhi. At first, they won a decision without Singla being present on May 16, 2011. But Singla fought back, and by September 6, 2013, the decision was overturned, bringing the case back to life.
The case then moved to arbitration. On September 25, 2018, a Single Arbitrator ruled against Trustline, saying they couldn't prove the trades were authorized by Singla. The arbitrator also pointed out problems with trade confirmations and required trading funds.
"Trustline could not prove that they were executing trade on the advices of Hanish Singla..."
Trustline appealed this decision and got a favorable ruling from the higher arbitration panel on February 8, 2019. They argued that Singla knew about the trades and had issued checks, some of which bounced.
Singla wasn't satisfied and took the matter to the District Judge, who overturned the higher panel's decision on June 6, 2024. The judge noted Trustline's failure to keep proper records and follow NSE rules about trading funds.
"The requirement of margin money is a mandatory requirement..."
On December 18, 2025, the Delhi High Court agreed with the District Judge's decision. Justices Anil Kshetrapal and Harish Vaidyanathan Shankar emphasized Trustline's failure to follow rules and unauthorized trading actions.
"Trustline is clearly guilty of sharp practices and carrying out unauthorized trades..."
Trustline Securities now has to pay a ₹1,00,000 cost to Singla. This case shows the importance of following rules and keeping good records in trading activities.
