Amid allegations of unauthorised trading in Stockal client accounts, global investing platform Vested Finance has highlighted four layers of investor protection, including direct membership of the US-based Securities Investor Protection Corporation (SIPC), regulatory oversight in India and the US, additional account-level security and continuous monitoring of transactions and technology infrastructure.
In a blog post published on Wednesday, Vested Finance founder Viram Shah said the company's US-registered broker-dealer, VF Securities Inc., is a direct member of SIPC and the Financial Industry Regulatory Authority (FINRA).
The announcement comes against the backdrop of allegations by nearly 30 Stockal investors that their US stock holdings were liquidated without their consent on October 15, with estimated losses exceeding Rs 100 crore. The story was exclusively reported by Moneycontrol.
Stockal's parent company, Borderless Investing, has acknowledged that an unauthorised third party appeared to have accessed 26 customer accounts using valid login credentials. Unauthorised trades were carried out in 13 accounts, involving the sale of large-cap US stocks and purchase of thinly traded microcap securities. The company has said its investigation found no evidence of a breach of its platform or internal systems.
Vested, however, has not indicated that its latest blog post was prompted by the Stockal incident. The post appears to be aimed at reassuring its clients about the platform's security measures.