Rs 1.75 Crore Profit In 20 Minutes: Bombay High Court Allows Trader To Retain Accidental Gains

Court Ruling  
The Bombay High Court has upheld its interim order allowing the trader to keep the profit generated from trades executed using mistakenly credited margin funds. The court clarified that profits earned through valid trades cannot be reclaimed by the broker, even if the margin was credited in error.  

Incident Details  
The case arose when Kotak Securities’ system accidentally credited Rs 40 crore margin money to the trader’s account. Within 20 minutes, the trader executed trades that resulted in Rs 1.75 crore profit. Kotak Securities challenged the gains, arguing they amounted to unjust enrichment, but the court disagreed.  

Legal Proceedings  
The interim order was first passed on December 3, 2025, and reaffirmed on December 24, 2025. The next hearing is scheduled for February 4, 2026, where Kotak Securities’ appeal will be further examined.  

Key Highlights  

• Trader earned Rs 1.75 crore profit in 20 minutes using accidental margin credit  
• Rs 40 crore margin mistakenly credited due to Kotak Securities’ technical glitch  
• Bombay High Court ruled profits cannot be treated as unjust enrichment  
• Interim order passed on December 3, 2025, upheld on December 24, 2025  
• Next hearing scheduled for February 4, 2026 following Kotak Securities’ appeal  

Conclusion  
The case highlights the complexities of trading systems and legal accountability in financial markets. While the trader retains the profit for now, the final outcome will depend on further hearings, making this a closely watched case in India’s financial and legal circles.  

Sources: Economic Times, NDTV Profit, Moneycontrol, MSN