Rs 100-Cr Hit: Indian Investors Allege Unauthorised Apple-Nvidia Swap For Chinese Stock On Stockal

Nearly 30 Indian stock market investors have reportedly lost over Rs 100 crore after their US stock portfolios were liquidated without the required authorisation on fintech platform Stockal Securities. Those proceeds were then used to buy shares of a thinly traded Chinese company, according to a Moneycontrol report. The transactions allegedly took place on Oct 15, when a couple of investors claimed their holdings in blue-chip US stock darlings, including Apple, Nvidia, Amazon, Tesla, Alphabet and AMD, were sold and replaced with shares of Zhibao Technology Inc. (NASDAQ: ZBAO).

The shares of Zhibao subsequently plunged around 60%, closing at $0.42 on October 23, against an average purchase price of $1.05 cited by one affected investor to Moneycontrol.

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Moneycontrol reported that the preliminary estimate of losses exceeding Rs 100 crore was based on information provided by two investors. The total losses across all affected accounts could be higher, but the overall figure has not been established.

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Over ₹100 crore in blue-chip US stocks liquidated without consent. A severe wake up call on intermediary risk for Indian investors. Nearly 30 Indian retail investors have reportedly suffered losses exceeding ₹100 cr in an alleged unauthorised trading incident involving Stockal Securities & its US brokerage partner DriveWealth. On 15 Oct, investors claim their US portfolios were liquidated without permission, with blue-chip holdings such as Apple, Nvidia, Amazon, Tesla & Alphabet sold and the proceeds used to purchase large quantities of a thinly traded Chinese penny stock, Zhibao Technology (ZBAO). The stock subsequently crashed nearly 60%. One investor reportedly lost ₹4.26 cr. An FIR has been filed in Bengaluru & complaints have been made to SEBI & the SEC. Stockal suspects possible phishing or compromised credentials & denies evidence of a breach of its platform. DriveWealth, meanwhile, says the security lapse occurred at Stockal's end & disputes responsibility. Investors are now caught in a blame game, seeking answers & compensation. A serious reminder that choosing the right intermediary and understanding where your overseas assets are held matter enormously. @Nithin0dha

— Naresh Nambisan I ValuationMantra I SEBI RA (@nareshbahrain) November 3, 2026

One investor told Moneycontrol that 10 of his US stock holdings were sold for $335,768, and the entire amount was then redirected to purchasing 300,000 shares of Zhibao. He estimated his losses at around $450,000 (Rs 4.26 crore), and said he had filed complaints with SEBI and the US SEC. Another investor alleged that stock holdings worth $3.1 million (Rs 29 crore) were sold without their authorisation. The investor claimed that 30.5 lakh shares of Zhibao were then purchased within 15 minutes, without verification. The investor has also filed an FIR in Bengaluru, naming Stockal, its parent entities, US brokerage partner DriveWealth and HDFC Securities, among others in its report.

Blame-Game

Stockal told Moneycontrol in a statement that the circumstances surrounding the 'activity' were under investigation. The platform also said the affected customer's email account and credentials may have been compromised through phishing or a similar social engineering scam. It said that its own review had not found evidence of a breach of the Stockal platform.

On the other hand, DriveWealth, in an Oct 30 letter to an affected investor, disputed the responsibility saying the unauthorised access occurred through the investor's interface with Stockal and that any related security lapses belonged to the Indian platform, and not to DriveWealth's.

DriveWealth also alleged that Stockal had instructed it to freeze affected accounts and had paused certain corrective actions. It said it had repeatedly raised concerns about the continued market exposure of the unauthorised positions.

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