Investors of Stockal Securities were led to believe the fintech platform was registered with the Securities and Exchange Board of India (SEBI), which lent it credibility, an aggrieved investor told Moneycontrol as he described how the alleged scam unfolded.
An investor, who spoke on condition of anonymity, said he was introduced to the Bengaluru-based firm through HDFC Securities in 2020. He added that all the affected investors are exploring legal remedies.
“I have already filed a complaint with the Securities and Exchange Board of India (SEBI), the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC),” the investor said, adding that the “monetary loss is huge.”
Moneycontrol reported on November 3 that nearly 30 retail investors have allegedly lost more than Rs 100 crore in unauthorised stock trades linked to the platform. Moneycontrol has spoken with three aggrieved investors.
The investors alleged that their accounts were accessed without authorisation on October 15, leading to the mass liquidation of their US blue-chip holdings and “massive losses” to their portfolios.