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Indian Investors Claim Rs 100-Crore Loss After Stockal Sells US Shares Without Consent

Wednesday, 4 November, 2026 - 3:00 PM

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A Major Shock for Indian Investors

Nearly 30 Indian retail investors have alleged that their US stock portfolios were sold without their permission through fintech investment platform Stockal Securities, resulting in reported losses exceeding Rs 100 crore. The incident has raised serious concerns about the security of overseas investment accounts, customer protection and the responsibility of financial technology companies.

According to a report by Moneycontrol, the alleged unauthorised transactions took place on October 15, 2026. Investors claim that their holdings in major American companies, including Apple, Tesla, Amazon, Alphabet, Nvidia and AMD, were liquidated and the money was used to purchase shares of a relatively unknown Chinese company, Zhibao Technology Inc.

The company’s share price subsequently dropped sharply, exposing investors to substantial financial losses.

How the Alleged Stockal Fraud Happened

Blue-Chip Stocks Sold Without Permission

Investors alleged that their Stockal accounts were accessed without authorisation and their valuable US stock holdings were sold without their knowledge.

One affected investor, a senior executive at a leading beverage company, claimed that 10 major stock holdings worth $335,768 were liquidated. These included shares of some of the world’s biggest technology companies.

Instead of keeping the money in the investors’ accounts, the entire sale proceeds were allegedly used to purchase 300,000 shares of Zhibao Technology, which trades under the ticker symbol ZBAO.

The shares were purchased at an average price of $1.05 each. However, the stock subsequently declined nearly 60%, closing at $0.42 on October 23.

The investor estimated his total losses at approximately $450,000, equivalent to around Rs 4.26 crore.

Another Investor Claims Rs 29-Crore Portfolio Loss

Another investor reported an even larger alleged unauthorised transaction. According to Moneycontrol, securities worth approximately $3.1 million, or nearly Rs 29 crore, were sold from the investor’s Stockal account.

The investor claimed that the entire portfolio was liquidated within two minutes and replaced with approximately 30.5 lakh shares of a thinly traded company.

The purchases were allegedly completed within 15 minutes without additional verification or proper warnings.

These accounts have raised questions about how such large transactions could take place without the investors’ approval.

Nearly 30 Investors Report Losses

The controversy has reportedly affected nearly 30 retail investors. The preliminary estimate of losses exceeding Rs 100 crore is based on information shared by two investors with Moneycontrol.

The actual financial damage could be higher, although the total amount has not yet been independently established.

For ordinary investors, the incident is particularly alarming because many had invested in established American companies with the expectation of long-term wealth creation.

The alleged transactions suddenly exposed their portfolios to a highly volatile and relatively unfamiliar stock.

What Is Stockal and How Does It Work?

Stockal Securities is a Bengaluru-based fintech platform that enables Indian investors to invest in US stocks, exchange-traded funds and other overseas securities.

The platform provides investment access and portfolio management services while working with international brokerage and custody partners.

One of its key partners is US-based DriveWealth LLC, which provides brokerage, trade execution and custody-related services.

Investors were also introduced to Stockal through HDFC Securities, which partnered with the platform in 2019 to launch globalinvesting.in. However, their operational global investing partnership ended in July 2024.

The controversy has now raised questions about the responsibilities of the different companies involved in providing overseas investment services.

Stockal Suspects Phishing and Social Engineering

Stockal’s parent company, Borderless Investing, has said that its initial investigation found no evidence of a breach of its platform, infrastructure or internal systems.

The company suggested that affected customers may have experienced phishing or social engineering attacks, through which unauthorised individuals could have obtained valid account credentials.

It also said that independent cybersecurity specialists had been engaged to examine the incident.

However, the exact method through which the accounts were accessed and the transactions were carried out remains under investigation.

Investors, meanwhile, have questioned the absence of regular transaction alerts and immediate notifications about the suspicious activity.

DriveWealth and Stockal Disagree Over Responsibility

The incident has also triggered a dispute between Stockal’s parent company and its US brokerage partner, DriveWealth.

In a communication to an affected investor, DriveWealth stated that the unauthorised access occurred through the Stockal interface and that security issues relating to that platform were Stockal’s responsibility.

DriveWealth also said that it had frozen affected accounts after receiving instructions from Stockal.

The US brokerage further alleged that some corrective actions were paused following instructions from Stockal, potentially leaving investors exposed to market losses.

Borderless, however, has disputed responsibility and maintained that its own platform was not compromised.

The disagreement has created uncertainty over which entity should ultimately bear responsibility for compensating affected investors.

FIR Filed and Regulatory Complaints Raised

The controversy has moved beyond the financial markets, with affected investors seeking intervention from regulatory and law enforcement authorities.

One investor has reportedly filed an FIR in Bengaluru naming Stockal Securities, Borderless entities, DriveWealth and HDFC Securities.

Another investor has approached the Securities and Exchange Board of India (SEBI) and the US Securities and Exchange Commission (SEC).

The investigation will need to establish how the unauthorised transactions occurred, whether adequate security measures were in place and which parties may be legally responsible.

What This Means for Indian Investors

The Stockal controversy highlights the importance of cybersecurity and investor protection in the rapidly growing overseas investment market.

Investors should regularly review their account statements, enable strong authentication, avoid suspicious links and monitor transaction alerts.

They should also preserve trade confirmations, account statements, emails and other evidence if they notice unauthorised activity.

The incident serves as a reminder that investing through digital platforms involves operational and cybersecurity risks in addition to ordinary market risks.

Conclusion:

Questions Over Investor Safety Remain

The alleged Rs 100-crore Stockal controversy has become a major warning for Indian investors exploring international stock markets.

While Stockal and DriveWealth have presented differing positions regarding responsibility, affected investors are still seeking answers and financial relief.

The final findings of the investigation will be crucial in determining how the incident happened and who should be held accountable.

Until then, the case raises an important question for the financial industry: How safe is an investor’s money when the shares can allegedly be sold without the investor’s consent?

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