Business · India Bureau
Multiple investors report unauthorised trades in Borderless brokerage accounts
Dozens of investors have alleged that their US large-cap stock holdings were sold without authorisation and the proceeds redirected into illiquid microcap securities. The matter has prompted multiple police complaints and regulatory filings with market regulator Sebi.
LSN India ·
A growing number of retail investors have lodged complaints alleging unauthorised trading activity in their accounts with brokerage firm Borderless, claiming their blue-chip US equity positions were liquidated without consent and the funds diverted into thinly traded microcap stocks.
The alleged pattern involves investors discovering that their established holdings in major US companies had been sold, with proceeds systematically moved into small-cap securities with limited trading volumes. Affected clients have characterised the transactions as occurring outside their knowledge or authorisation, raising concerns about account security and operational controls at the firm.
In response to the allegations, multiple first information reports (FIRs) have been registered with law enforcement authorities. Simultaneously, formal complaints have been filed with the Securities and Exchange Board of India (Sebi), the country's primary market regulator, triggering an investigation into the trading irregularities.
The incidents highlight ongoing concerns regarding brokerage account security and the execution of unauthorised transactions in Indian retail investing. Sebi and law enforcement officials are examining whether systematic irregularities occurred or whether individual account compromises were responsible for the unauthorised activity. The regulatory response will likely influence investor confidence in digital brokerage platforms operating in India's increasingly digital investment landscape.