- HDFC Securities is not named in the FIR related to the Stockal trading fraud case
- HDFC Securities ended its operational partnership with Stockal in 2024
- Stockal faces allegations of unauthorised trades causing losses over Rs 100 crore
Domestic brokerage HDFC Securities has clarified that it is not named among the accused in the First Information Report (FIR) registered in connection with the alleged Stockal trading fraud, following media reports linking the Bengaluru-based fintech platform to the case.
In a statement issued with respect to recent report referring to Stockal and the FIR, HDFC Securities said its operational partnership with Stockal had ended in 2024 and stressed that customer trust and regulatory compliance remained central to its operations.
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"To set out the facts, the report itself notes that HDFC Securities is not named among the accused in the FIR," the company said.
The brokerage added that it would continue to cooperate with regulators and authorities as required and share further updates, if appropriate.
What Actually Happened?
The clarification comes amid an escalating controversy surrounding Stockal Securities, which has been accused of being involved in a trading fraud that allegedly resulted in losses of more than Rs 100 crore for investors.
READ | Rs 100-Cr Hit: Indian Investors Allege Unauthorised Apple-Nvidia Swap For Chinese Stock On Stockal
The alleged fraud came to light after several retail investors reported unauthorised access to their Stockal accounts on October 15, 2026. Their holdings in prominent US-listed companies, including Apple, Tesla, Amazon, Alphabet, Nvidia and AMD, were allegedly liquidated without their consent, according to reports.
The proceeds were subsequently used to purchase large quantities of thinly traded stocks, including shares of Chinese company Zhibao Technology Inc. (ZBAO), according to reports. The targeted stock reportedly witnessed a sharp decline in value, leaving investors with substantial losses.
The incident has also brought Stockal's relationship with its US-based clearing broker, DriveWealth LLC, under scrutiny, with questions emerging over the breakdown in account security and trade execution.
HDFC Securities had partnered with Stockal in 2019 to launch its global investing platform, globalinvesting.in. However, the brokerage said the operational arrangement was discontinued in 2024.
The case has prompted affected investors to approach regulators, including the Securities and Exchange Board of India (SEBI) and the US Securities and Exchange Commission (SEC), seeking action and clarity on the alleged breach.
The investigation is ongoing, with questions surrounding account access, execution of unauthorised trades and the responsibility of the entities involved.
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