India, Dec. 2 -- The Bombay High Court on Monday upheld an order directing Central Depository Services (India) Ltd (CDSL) to compensate a Mumbai investor whose shares worth Rs.86 lakh were illegally siphoned off and fraudulently pledged by stockbroking firm BRH Wealth Kreators.

Justice Sandeep Marne dismissed CDSL's challenge, ruling that the depository is legally responsible for negligent acts committed by its registered agents, known as Depository Participants (DPs).

The case concerns investor Daksha Narendra Bhavsar, who opened a demat account with BRH in 2018. Acting on a power of attorney signed by Bhavsar and her late husband, BRH transferred her shares from her demat account to its own clearing/trading member accounts, even thoug...