Trust forms the foundation of any trading relationship. However, when questions arise around unauthorised trading, the concern becomes serious for any investor.
At the same time, it is important to understand the difference between a complaint and a confirmed regulatory violation.
So when the term “unauthorised trading” appears alongside a broker’s name, it immediately raises questions. Were trades placed without consent? Did regulators step in? Or are these simply complaints recorded on exchange portals?
Before forming an opinion, we need to examine the facts carefully. A complaint filed by a client does not automatically mean a violation has been established.
Exchanges record grievances. Arbitration panels examine disputes. Regulators pass orders only after formal findings.
In this blog, we analyse publicly available complaint data relating to 5paisa, examine common 5paisa issues, explain what unauthorised trading means under regulatory guidelines, and review whether any enforcement action exists.
The goal is simple – present the information clearly and help investors interpret it with context.
5paisa Securities Unauthorised Trading Complaints
5paisa operates as a SEBI-registered stock broker offering trading services across equity, derivatives, currency and commodity segments.
As a large retail-focused discount broker, it receives complaints through stock exchange grievance mechanisms, just like other brokers in the market.
Before we examine the numbers, we need to clarify what “unauthorised trading” actually means.
Under the framework laid down by the Securities and Exchange Board of India, unauthorised trading refers to execution of trades without documented client consent.
Brokers must maintain proper records of client instructions – whether through call recordings, written confirmations, or digital authorisation logs.
5paisa Complaints
Below is the complaint data for unauthorised trading (Type IV) over the past six financial years:
|
Financial Year |
Total Complaints |
Type IV (Unauthorized Trades) |
% of Complaints Under Type IV |
|
2020-21 |
148 |
7 |
4.73% |
|
2021-22 |
121 |
5 |
4.13% |
|
2022-23 |
96 |
3 |
3.13% |
|
2023-24 |
110 |
4 |
3.64% |
|
2024-25 |
138 |
2 |
1.45% |
|
2025-26 |
139 |
3 |
2.16% |
Across six financial years, Type IV complaints total 24 out of 752 overall complaints. Overall, this represents roughly 3% of all grievances recorded during this period.
However, the yearly percentages do not move in a straight line.
For example, the figure stood above 4% in 2020-21. It then declined over the next two years. Meanwhile, the percentage dropped to 1.45% in 2024-25. After that, it moved to 2.16% in 2025-26.
Overall, the numbers shift from year to year, but they still stay within a relatively narrow range.
So what does this actually tell us?
First, unauthorised trading complaints form a small part of the overall complaint mix. At the same time, the data does not show a sharp spike.
In fact, it also does not show a steady upward pattern. Instead, the percentages move within a band.
However, it is important to understand what this table represents. These numbers show complaints filed by clients with the exchange.
In other words, a complaint means a dispute was raised.
When Action can be Taken Against the Broker?
Not every complaint turns into regulatory action. There is a process.
If a client alleges unauthorised trading, the first question usually becomes simple: can the broker show proof of instruction?
Under SEBI guidelines, brokers are required to maintain proper evidence of client consent.
This can include recorded calls, written instructions, email confirmations, or digital order logs.
If a broker cannot produce this evidence, the dispute can move beyond a routine complaint.
Action may arise in situations such as:
-
The broker fails to provide proof of authorisation for the disputed trades.
-
There is no documented trail showing client approval.
-
Arbitration proceedings conclude that trades were executed without consent.
-
A regulatory inspection finds systemic lapses in maintaining records.
Typically, the matter first moves through the exchange grievance mechanism. If unresolved, it may proceed to arbitration. Regulatory action follows only if findings establish violations.
Understanding this sequence helps separate a filed complaint from a confirmed breach of rules.
So what should a trader do if such a situation actually occurs?
How to Report Against Broker?
If you suspect unauthorised trading in your account, take structured action:
- Contact the broker first.
Raise a written complaint and request detailed order logs, call recordings, and proof of trade authorisation. - File a complaint with the stock exchange.
Use the official grievance portal of the exchange (NSE or BSE) where the trade was executed. - File Complaint to SCORES.
If the broker’s reply is unsatisfactory or the matter remains unresolved, you can file a complaint with SEBI. - File an Arbitration in stock market.
If the dispute continues, apply for arbitration through the exchange mechanism for formal examination of evidence.
Act promptly and preserve all contract notes, SMS alerts, email confirmations, and communication records. Proper documentation strengthens your case.
Need Help?
If something in your trading account doesn’t feel right, don’t brush it aside.
Go back and check your contract notes, order book, SMS alerts, and email confirmations. Many disputes get clarity simply by matching timestamps and instructions.
If you’re still unsure whether a trade was placed with your approval, register with us.
We’ll help you review the records properly, understand what the exchange process involves, and guide you on the next steps if a formal complaint is required.
The sooner you examine the issue, the stronger your position will be.
Overall, the data provides perspective, but traders should still stay attentive.
Conclusion
Unauthorised trading is a serious allegation in the securities market. However, the numbers need context.
Over the past six financial years, Type IV complaints against 5paisa account for a small share of the overall grievances recorded by the exchanges.
The percentages move within a limited range and do not show a sustained upward trend.
At the same time, publicly available records do not show any SEBI enforcement order specifically holding the broker guilty of unauthorised trading.
However, retail traders should not look at these percentages and assume everything can be ignored, because even a small number of cases still represents a real unauthorised trading risk for investors.
Even a small number of complaints represents real investors who believed something went wrong in their accounts.
For the individual trader involved, the impact is never “small.”
Therefore, traders should remain proactive. Regularly review contract notes. Check your order book and trade confirmations.
Enable SMS and email alerts so you receive immediate updates on executed trades.
In the end, complaint statistics provide one layer of information.
Your own awareness and record-keeping provide the other. By staying attentive to your account activity, you protect your capital and reduce the chances of disputes going unnoticed.
