Nearly 30 retail investors have filed an FIR alleging that their US stock portfolios were liquidated without consent through the fintech platform Stockal. The incident, which reportedly took place on October 15, involved the unauthorized purchase of illiquid Chinese shares, causing estimated losses of over Rs 100 crore. Regulatory bodies in India and the US are now investigating the breach.
A serious security incident has emerged involving the cross-border investment platform Stockal, where retail investors report that their US stock portfolios were liquidated without their authorization. Approximately 30 investors have flagged the issue, estimating that the total loss from these unauthorized transactions exceeds Rs 100 crore. The events allegedly took place on October 15, 2026, leaving many users with significantly devalued accounts.
According to reports and legal filings, the incident involved the sudden sale of holdings in major US blue-chip companies, including Apple, Tesla, Amazon, and Nvidia. Investors allege that the proceeds from these sales were then used to purchase shares of Zhibao Technology Inc., a Chinese entity known for being thinly traded and highly volatile. The rapid decline in the value of these acquired shares has prompted immediate action from the affected account holders.
Legal and regulatory processes are already in motion to address the breach. An FIR has been filed in Bengaluru, which names Stockal Securities, its parent entities, the US-based clearing broker DriveWealth, and HDFC Securities. Because these transactions involve cross-border securities, the investigation is complex and spans multiple jurisdictions. Investors have begun lodging formal complaints with the Securities and Exchange Board of India (SEBI) via the SCORES portal, as well as with the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
The recovery of funds remains a significant concern for those impacted. Regulatory experts note that international financial disputes often face procedural hurdles, making immediate financial restitution difficult. The illiquid nature of the Zhibao Technology shares further complicates the situation, as exiting these positions may not be straightforward or possible at pre-incident prices.
Regulators have advised those affected to gather all necessary documentation to support their claims. This includes pre- and post-trade account statements, records of automated alerts, and specific trade confirmation logs provided by the platform. These documents are critical for any potential arbitration or legal claim. As the investigation continues, the focus for regulators and affected parties remains on determining how such a significant volume of assets could be liquidated without valid client authorization and identifying the systemic failures that allowed the trades to occur.