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Stockal Investors Face Rs 100-Crore Losses After Unauthorized Sale of US Stocks
Sentiment: NegativeHigh Priority
What Happened?
Nearly 30 Indian investors allege their US stock holdings were sold without consent, leading to losses exceeding Rs 100 crore. The incident has sparked a dispute between Stockal and its clearing broker, DriveWealth.
Key points
- Investors' US stock holdings, including shares of Apple and Tesla, were sold without consent on October 15, 2026.
- The unauthorized sales led to losses exceeding Rs 100 crore, with actual losses potentially higher.
- One investor reported a loss of around $450,000 after his shares were liquidated and redirected to purchase Zhibao Technology shares.
- Another investor claimed their $3.1 million portfolio was liquidated in two minutes without authorization.
- An FIR has been filed in Bengaluru against Stockal and DriveWealth, among others.
- Stockal suggested that phishing or social engineering may have compromised investor accounts.
Key insights
- The unauthorized sale of stocks could lead to increased scrutiny of fintech platforms' security measures.
- Affected investors may seek regulatory intervention, potentially impacting Stockal's operations.
- The incident highlights the risks associated with online trading and the need for better safeguards.
Why it matters
This incident raises concerns about the security of customer accounts and the responsibilities of financial platforms.
Entities
Stockal· CompanyDriveWealth· CompanyZhibao Technology Inc.· CompanyApple· CompanyTesla· CompanyAmazon· CompanyAlphabet· CompanyNvidia· CompanyAMD· CompanyHDFC Securities· CompanyBengaluru· CityIndia· Country
Source
India Today
