Can margin trading losses on equity investments be recovered from spouse’s demat account? SC rules yes, it can be in this case

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The Supreme Court of India, in a recent ruling, held that a husband can be held jointly liable for stock market losses incurred by his wife if both were actively involved in making financial transactions, even if this was based on an oral agreement. The court may uphold a similar view in other related cases as well if it is established that the husband and wife have joint liability or have made shared use of the profits earned.