Investors lose ₹100 cr in Stockal Securities scam; how to file a complain and can you recover the money?
Nearly 30 Indian retail investors have suffered losses exceeding ₹100 crore in a suspected trading scam involving Bengaluru-headquartered fintech platform Stockal Securities, Moneycontrol reported.
The accounts of users were allegedly accessed without authorisation, following which their US stock portfolios were liquidated.
Stockal Securities is registered with the Securities and Exchange Board of India (SEBI). It enables Indian investors to invest in US-listed stocks, exchange-traded funds (ETFs) and other foreign securities.
The incident took place on October 15, with investors claiming that their holdings in prominent US companies such as Apple, Tesla, Nvidia and Amazon were liquidated and the proceeds were used to purchase shares of Zhibao Technology Inc., a relatively thinly traded Chinese company listed in the US.
The preliminary loss estimate of over ₹100 crore is based on information shared by investors. However, the final extent of the financial losses is yet to be ascertained, the news organisation stated.
Legal responsibility may rest with the Indian fintech platform, its US brokerage partner, or both, depending on the party that controlled the security and transaction, Alay Razvi, Managing Partner at Accord Juris, told Livemint.
Stockal’s parent, Borderless, said in a statement that DriveWealth notified it of unauthorised trading activity in 13 customer accounts and that an unauthorised third party appears to have accessed 26 accounts using valid login credentials.
Though unauthorised trades occurred in 13 accounts, replacing large-cap holdings with thinly traded microcaps, no funds were withdrawn, it added. Stockal has also denied evidence of a platform breach and has attributed the incident to possible credential compromise or social engineering.
“Liability will ultimately depend upon the investor agreement, the Stockal and DriveWealth clearing agreement, security and monitoring obligations, indemnity provisions, choice of law and arbitration clauses, and forensic evidence establishing which party controlled or could reasonably have prevented the transactions,” the expert explained.
Claims against the Indian intermediary can likely be pursued before Indian courts and regulatory authorities where the services were marketed, provided and consumed in India, said Apurva Kanvinde, Partner at Juris Corp.
“Investors may argue that failures in account security, fraud detection or transaction monitoring constitute a deficiency in service and seek compensation,” Kanvinde added. The amount investors may recover will depend on the findings of the investigation and the parties found responsible.
Those affected by the Stockal Securities scam, or any future trading scam involving a SEBI-registered platform, should first raise a complaint with the intermediary. If the grievance remains unresolved, they can escalate it to SEBI through its SCORES portal, Razvi advised.
They may also use SEBI’s SMART ODR mechanism for conciliation or arbitration. SEBI is the principal Indian securities regulator for complaints against Stockal, which is reported to be SEBI registered, he added.
Investors may also approach the relevant stock exchange grievance mechanism, lodge police or cybercrime complaints, and pursue civil remedies.
“The US SEC may examine DriveWealth’s conduct but does not ordinarily provide direct compensation to Indian investors,” he noted.
Eshita Gain is a digital journalist at Mint, where she joined in May 2025. She writes on corporate developments, personal finance, markets, and business trends, with a focus on delivering timely and relevant stories to a broad audience. <br><br> While her core beat lies in business and finance, she is not confined to a single niche and frequently explores stories across domains, including international relations and policy developments. <br><br> She holds a postgraduate diploma in business and financial journalism by Bloomberg from the Asian College of Journalism (ACJ), Chennai. During her time there, she received rigorous training in tracking financial data, interpreting corporate filings, and reporting on business developments. She has pursued her graduation from St. Joseph’s University, Bengaluru in a multi-disciplinary course. Her majors included Journalism, International Relations, peace and conflict studies. <br><br> Eshita has previously worked in digital marketing, which enables her to write SEO friendly copies that are clear and engaging. <br><br> Her primary interest lies in breaking down complex subjects and writing clear, accessible copies that inform readers. She aims to bridge the gap between technical financial language and everyday understanding. Outside the newsroom, Eshita enjoys reading non-fiction, and exploring new places, constantly seeking fresh perspectives and stories beyond headlines.
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