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Stockal scam: DriveWealth denies role in unauthorised trades

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Core Development: Stockal scam: DriveWealth denies role in unauthorised trades
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Market & Financial Impact: The statement comes in response to a Moneycontrol story, which reported nearly 30 retail investors having allegedly lost more than Rs 100 crore in unauthorised stock trades linked to Bengaluru-headquartered fintech platform Stockal Securities.
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Actionable Insight: Monitor price volume action at market open; check key technical support/resistance levels.

The Stockal incident is "unrelated to DriveWealth, as it occurred on Stockal’s app, not our platform", global financial technology platform DriveWealth told Moneycontrol in a statement on November 5.

"DriveWealth has no customer-facing app through which trades are placed, and our systems and client data were not affected by this incident," the statement said.

The statement comes in response to a Moneycontrol story, which reported nearly 30 retail investors having allegedly lost more than Rs 100 crore in unauthorised stock trades linked to Bengaluru-headquartered fintech platform Stockal Securities.

The affected investors have alleged that their accounts were accessed without authorisation on October 15, resulting in the mass liquidation of their US blue-chip stock holdings and causing what "massive losses" to their portfolios.

Stockal Securities is a Bengaluru-based Indian fintech platform registered with Sebi that allows retail investors in India to buy and sell US stocks, exchange-traded funds (ETFs) and other foreign securities. It offers an India-facing app for account funding, trading and portfolio tracking, while partnering with US-based clearing brokers such as DriveWealth LLC to execute trades and hold assets in custody.

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Official Publisher Attribution: This report is aggregated from Moneycontrol. ZeroLive provides live aggregation, automated sentiment synthesis, and exchange disclosure monitoring for retail market participants.
Read Original Full Coverage on Moneycontrol ↗
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