Nearly 30 Indian investors have alleged losses exceeding Rs 100 crore after unauthorised trades reportedly replaced their US stock holdings with shares of a little-known Chinese company. The transactions allegedly occurred through Stockal Securities on October 15, 2026.
Investors claim that their Apple, Nvidia, Amazon and Tesla holdings were sold without consent. The proceeds then went into Zhibao Technology, whose share price subsequently collapsed. Complaints have reached regulators in India and the United States.
The allegations have raised questions about account security and responsibility for investor losses. Stockal's parent company, Borderless, says its investigation has found no evidence of a breach of its systems.
According to Moneycontrol, investors discovered unexpected changes to their portfolios after the October 15 transactions. Their established US stock holdings had allegedly disappeared, while Zhibao Technology shares appeared in their accounts.
One investor, a senior executive at a beverage company, reported the sale of 10 major holdings worth approximately $335,768. The securities included Apple, Nvidia, Tesla, Amazon, Alphabet and AMD.
The investor claimed that the proceeds funded the purchase of 300,000 Zhibao shares at an average price of $1.05. He estimated his losses at $450,000, equivalent to approximately Rs 4.26 crore.
Meanwhile, another investor alleged that trades liquidated his $3.1 million portfolio within two minutes. The proceeds reportedly funded purchases of 3.05 million shares within 15 minutes. The investor said he received no verification requests or warnings. A complaint also led to an FIR in Bengaluru.
Zhibao Technology trades on Nasdaq under the ticker ZBAO. Its shares have relatively limited trading activity compared with major American technology companies.
The stock reportedly fell from $1.05 to $0.42 by October 23, representing a 60% decline. The sharp fall increased concerns about the transactions. Investors say they never authorised purchases of the Chinese company's shares.
Borderless subsequently reported suspicious activity involving 26 customer accounts. It said an unauthorized third party apparently accessed those accounts using valid login credentials.
According to the company, the intruder traded securities in 13 accounts. Borderless also confirmed that no money left the affected accounts through withdrawals. The company suspects a possible social engineering attack linked to an earlier external data breach. Nevertheless, investigators have not confirmed that connection.
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Stockal provides Indian investors with access to overseas securities through US brokerage partners, including DriveWealth. Borderless said DriveWealth notified it about suspicious transactions on October 16, India time. The brokerage subsequently restricted affected accounts.
Stockal maintains that its preliminary investigation found no evidence of compromised internal systems. Independent cybersecurity specialists are examining the incident. Meanwhile, DriveWealth reportedly told an investor that the unauthorized access originated through Stockal's interface. It disputed responsibility and questioned Stockal's response.
HDFC Securities also addressed the controversy because of its former partnership with Stockal. The company clarified that its agreement ended in July 2024, well before the alleged transactions.
It further stated that the FIR did not name HDFC Securities among the accused. Affected investors have approached SEBI and the US Securities and Exchange Commission seeking intervention and compensation.
The reported Rs 100 crore loss estimate remains unverified. Investigators must still establish how the accounts were accessed and who bears responsibility for the disputed transactions.
The Stockal incident has left Indian investors facing substantial losses after alleged unauthorized US stock trades. While Borderless reports no evidence of an internal breach, DriveWealth disputes responsibility. Regulatory complaints and ongoing investigations could determine how the transactions occurred, whether security controls failed and who must compensate affected investors.