Bengaluru police have begun their probe into the Stockal scam case, summoning top executives for interrogation following investor allegations of unauthorised portfolio liquidations and cross-border financial negligence, sources privy to the matter told Moneycontrol.
The police summoned key executives of the Bengaluru-based investment platform on November 6, the sources said.
Moneycontrol reported on November 3 that nearly 30 retail investors had allegedly lost more than Rs 100 crore in unauthorised stock trades linked to Bengaluru-headquartered fintech platform Stockal Securities. The affected investors 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 "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.
Stockal’s parent company Borderless clarified in a statement on Friday that 13 investors were affected and the amount involved was $6.26 million, roughly Rs 58.8 crore.