Fintech platform Stockal Securities is again at the center of a controversy, with a new investor alleging an unauthorized sale of US blue-chip stocks from their account, leading to a substantial loss of approximately $1 million. This claim emerges amidst ongoing concerns and previous reports of similar trading irregularities.
New Allegations Mirror Previous Claims
The brother of the affected investor reported that US blue-chip stocks held in his cousin's Stockal account were liquidated without consent. The proceeds from these sales were then allegedly channeled into thinly traded or illiquid securities, causing significant financial damage. The family is reportedly considering legal action.
This incident echoes earlier allegations reported on November 4, where multiple investors using Stockal Securities claimed their US stock portfolios were sold off without their knowledge or prior notification. Those investors also reported that the funds were subsequently invested into illiquid assets, sparking fears of potential fraud and trading irregularities.
Stockal Denies Responsibility
Stockal Securities has vehemently denied any liability, wrongdoing, negligence, or responsibility concerning the unauthorized activities. The company stated, "We remain committed to supporting customers while the facts & respective responsibilities are established."
Previous media estimates suggested that losses from these alleged unauthorized transactions could collectively amount to around Rs 100 crore. Affected investors have highlighted a lack of advance notification or trade confirmations, raising serious questions about account security and investor protection.
About Stockal Securities
Stockal Securities, a Bengaluru-based fintech platform registered with SEBI, facilitates Indian retail investors' access to US equities, exchange-traded funds (ETFs), and other overseas securities. The platform relies on US-based clearing and custody partners like DriveWealth LLC for trade execution and asset custody.