Trading In Shares Profit-Making Activity, Falls Outside Consumer Act's Scope: NCDRC Dismisses Complaint Against M/S Unique Brokers

The National Consumer Disputes Redressal Commission (NCDRC) has dismissed a complaint against a brokerage firm, MS Unique Brokers, ruling that trading in shares is a commercial activity undertaken for making a profit and therefore falls outside the scope of the Consumer Protection Act. The complainant had alleged a deficiency in service by the broker. However, the NCDRC held that the complainant was not a "consumer" as defined under the Act because they were engaging in share trading for a commercial purpose, i.e., to earn profits. The commission clarified that the services of a stockbroker are availed for a commercial purpose when used for active trading. This judgment draws a clear line, indicating that disputes arising from commercial share trading activities are not maintainable before consumer forums and must be pursued through other legal avenues, such as arbitration or the civil courts.