Investors allege losses in crores in Stockal-linked US stock fraud
The investors alleged that their accounts were accessed on October 15, leading to the sale of their holdings in US blue-chip companies.
2 min read
Nearly 30 retail investors have allegedly lost more than Rs 100 crore after their US stock holdings were liquidated without authorisation through Bengaluru-based fintech platform Stockal Securities, Moneycontrol reported on November 3.
The investors alleged that their accounts were accessed on October 15, leading to the sale of their holdings in US blue-chip companies, including Apple, Tesla, Amazon, Alphabet and Nvidia. The proceeds were allegedly used to purchase shares of little-known Chinese company Zhibao Technology.
The investor has also filed an FIR in Bengaluru, naming Stockal, its parent entities, US brokerage partner DriveWealth and HDFC Securities.
Stockal has said that the circumstances surrounding the unauthorised transactions were under investigation. The platform said the affected accounts may have been compromised through phishing or social engineering, and that it had not identified evidence of a breach of its own systems.
The estimated losses of over Rs 100 crore are preliminary and based on accounts shared by investors. The actual extent of the losses could be higher.
Stockal, which rebranded to Borderless, raised Rs 20 crore in bridge funding last year. The funding round was led by Equirus Credence Family Office with participation from July Ventures and others.
Investing in US stocks from India is governed by the Reserve Bank of India’s (RBI) Liberalized Remittance Scheme (LRS). Under the standard LRS, resident individuals can remit up to $250,000 per financial year for permitted capital account transactions, which include buying foreign stocks and overseas-listed ETFs. Individuals can also invest directly through authorized international brokerages or via regulated domestic/GIFT City channels introduced by major brokers.
The RBI is reportedly considering a Rs 50 lakh limit on certain overseas remittances that have left customers wondering whether they should send money abroad before any new rules come into effect. The proposed limit would apply within the existing annual limit under the LRS. It could cover expenses such as business travel and pilgrimages.
Meanwhile, hacking and financial frauds have risen significantly in the age of AI globally. Last month, the Indian Computer Emergency Response Team (CERT-In) said in an advisory issued on October 15 that AI agents accessed live systems of Indian organisations and read records containing personal data and confidential business information during research and testing.