Nearly 30 Indian investors have reported suspected unauthorised trading involving more than ₹100 crore through Bengaluru-based investment platform Stockal Securities, raising concerns about account security and investor protection in cross-border stock trading.
According to a November 3 Moneycontrol investigation, customers alleged that their portfolios containing Apple, Nvidia, Amazon, Tesla and other US equities were liquidated without consent on October 15, 2026.
The proceeds were allegedly redirected into thinly traded securities, including shares of Nasdaq-listed Chinese company Zhibao Technology. Several investors subsequently suffered substantial losses as the purchased shares declined sharply.
The preliminary ₹100 crore estimate is based on investor accounts rather than a completed regulatory assessment. On November 4, Stockal’s parent company, Borderless Investing, acknowledged unauthorised activity involving 26 customer accounts but disputed allegations of wrongdoing or negligence.
Investors Describe Rapid Portfolio Liquidations and Heavy Losses
One investor told Moneycontrol that ten US equity holdings worth approximately $335,768 were sold without authorisation. The proceeds were allegedly used to purchase 300,000 Zhibao Technology shares at an average price of $1.05.
Zhibao subsequently declined nearly 60%, closing at $0.42 on October 23. The investor estimated losses of approximately $450,000, equivalent to ₹4.26 crore, and submitted complaints to Indian and US securities regulators.
Another investor alleged that a portfolio worth approximately $3.1 million, or ₹29 crore, was liquidated within two minutes. The proceeds were reportedly used to acquire 3.05 million shares of a thinly traded company within 15 minutes.
The investor said the transactions occurred without authorisation or adequate verification. A police complaint was registered in Bengaluru naming Stockal, Borderless entities, US brokerage partner DriveWealth and HDFC Securities.
HDFC Securities previously distributed Stockal’s international investment services, but the operational partnership ended in July 2024. The filing of a complaint does not establish wrongdoing by the named companies.
Stockal Parent Denies Platform Breach as Investigation Continues
In its November 4 response, Borderless Investing said an unauthorised third party appeared to have accessed 26 customer accounts using valid login credentials. Of those, 13 accounts experienced unauthorised sales of large-cap US equities followed by purchases of thinly traded microcap stocks.
The company said no funds were withdrawn from the affected accounts. Borderless suggested that compromised credentials could have resulted from social engineering involving information exposed in an unrelated data breach. However, it acknowledged that this explanation remains unconfirmed.
The company said independent cybersecurity specialists were examining its systems and that its investigation had found no evidence of a breach of Stockal’s infrastructure. DriveWealth separately disputed responsibility, maintaining that the unauthorised activity originated through Stockal’s customer interface.
The US brokerage said affected accounts were frozen following instructions from Stockal. Borderless stated that additional authentication safeguards had been introduced and that it was working with DriveWealth to examine the transactions and possible resolutions.
The incident highlights the challenges associated with international investment platforms involving multiple intermediaries responsible for customer access, trade execution and custody. It also raises questions about suspicious trading detection, transaction alerts and procedures for restricting potentially unauthorised activity.
For affected customers, determining how their accounts were accessed and whether disputed transactions can be reversed or compensated remains the immediate priority. The final financial impact, the identity of those responsible and any potential liability will depend on the continuing investigations.
No regulatory finding establishing fraud or responsibility by Stockal, DriveWealth or HDFC Securities has been reported.