Indian investors lose Rs 100 crore as US stocks sold without authorization

A growing number of Indian retail investors have alleged that their US stock portfolios were liquidated without their knowledge or consent through the Stockal investment platform. The unauthorized transactions have wiped out approximately Rs 100 crore in investor holdings, according to complaints filed by affected users.

Investors have reported logging into their accounts to discover their positions in American equities had been closed, with funds transferred without prior notification or authorization. The scale of the issue has prompted multiple investors to seek legal recourse and file complaints with market regulator SEBI and consumer protection authorities.

Stockal, which facilitates retail investment in US markets for Indian citizens, has not yet issued a comprehensive public statement addressing the allegations. The platform's terms of service and risk disclosure documents are expected to come under scrutiny as investors question whether adequate safeguards were in place to prevent unauthorized account activity.

The incident underscores persistent challenges faced by Indian investors accessing overseas markets through digital platforms, particularly regarding account security, transaction authorization protocols, and investor communication standards. Regulatory authorities are likely to examine whether the platform had proper authorization mechanisms and whether investors were adequately protected under existing compliance frameworks.

Affected investors have called for immediate remedial action, including restoration of positions or financial compensation. The case is expected to prompt broader discussions about regulatory oversight of cross-border investment intermediaries operating in India.