Nearly 30 Indian retail investors have suffered losses exceeding ₹100 crore in a suspected trading scam involving Bengaluru-headquartered fintech platform Stockal Securities, Moneycontrol reported.
The accounts of users were allegedly accessed without authorisation, following which their US stock portfolios were liquidated.
Stockal Securities is registered with the Securities and Exchange Board of India (SEBI). It enables Indian investors to invest in US-listed stocks, exchange-traded funds (ETFs) and other foreign securities.
The incident took place on October 15, with investors claiming that their holdings in prominent US companies such as Apple, Tesla, Nvidia and Amazon were liquidated and the proceeds were used to purchase shares of Zhibao Technology Inc., a relatively thinly traded Chinese company listed in the US.
The preliminary loss estimate of over ₹100 crore is based on information shared by investors. However, the final extent of the financial losses is yet to be ascertained, the news organisation stated.
Who can be held responsible for the losses?
Legal responsibility may rest with the Indian fintech platform, its US brokerage partner, or both, depending on the party that controlled the security and transaction, Alay Razvi, Managing Partner at Accord Juris, told Livemint.
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