Many investors rely heavily on regulatory labels when choosing a broker. A SEBI registration, exchange memberships, and official-looking disclosures often create a sense of comfort and legitimacy.
The ATS Broking complaint highlights why that comfort can sometimes be misleading.
While the firm publicly positions itself as ethical, conservative, and client-oriented and displays multiple SEBI and exchange registrations, the user’s experience points to problems at the execution level.
According to the complaint, verbal assurances, aggressive trading activity, and disproportionate brokerage charges shaped the outcome, raising questions about conduct rather than registration status.
This blog explains the issue step by step, without assumptions, and shows how things can go wrong even with a registered broker.
ATS Broking Review
According to its website, ATS:
- Started operations in 2003
- Positions itself as ethical and conservative
- Claims more than 1 lakh clients across 800+ locations
- Offers 24×7 expert support
- Promises low brokerage
- Operates as a member of NSE, BSE, MCX, MCX-SX, and NCDEX
- Acts as a Depository Participant with CDSL
ATS also publicly discloses detailed SEBI and exchange registration numbers, including capital market, derivatives, currency, and commodity segments.
From a regulatory standpoint, ATS does appear to be a legitimately registered broker.
That makes the complaint more serious, not less.
Brokerage Churning by ATS Broking
This case does not allege that ATS is unregistered.
Instead, it raises questions about:
- How representatives interacted with a client
- What assurances they gave
- How trading activity unfolded
- Whether brokerage generation overtook client interest
SEBI registration allows a broker to operate. It does not allow:
- Guaranteed profits
- Verbal revenue-sharing promises without contracts
- Excessive trading to generate brokerage fees
- Loss recovery assurances
However, what was revealed in one of the complaints against the broker raised many questions.
Complaint Background
The victim received a call from an individual named Saksham Mote (name changed), who claimed to represent ATS Broking.
Another executive, Trisha (name changed), also contacted the user.
According to the complaint, both assured the user that:
- Trading through ATS would be profitable
- Losses would not remain unrecovered
- Brokerage would be shared generously
The user trusted these assurances largely because:
- ATS appeared SEBI registered
- The callers spoke confidently
- The firm had a physical office presence
But things didn’t end there. The victim was offered the proposal of:
- A 70:30 brokerage split in the user’s favor
- For example for every ₹1,00,000 brokerage: ₹70,000 credited to the user
- The arrangement was described as a sub-broker–style benefit
However, no written agreement followed for the same.
Everything remained verbal.
What Happened After the First Deposit?
The user deposited ₹2,50,000 into his trading account.
Initially:
- Some profits appeared
- Confidence increased
Soon after:
- Trading frequency increased sharply
- Many trades appeared unnecessary
- Brokerage rose rapidly
Approximate brokerage generated: ₹50,000. Final result: the entire capital wiped out
The user questioned how trading could continue when capital loss mainly benefited brokerage generation.
The Referral That Made Things Worse
The user then received advice to:
- Introduce another client
- Recover losses through brokerage from the new account
Trusting this, the user referred a client who deposited ₹2,50,000.
The same pattern followed:
- Heavy trading
- High brokerage
- Capital erosion
Brokerage is generated even from the referred client’s account.
The Core Allegation: Brokerage Churning
In total, the user claims churning in stock market:
- Personal deposit: ₹2,50,000
- Approximate brokerage charged: ₹2,00,000
- Loss recovery promises: Not honored
- Revenue-sharing promises: Not fulfilled
This pattern points to brokerage churning a practice where excessive trades occur mainly to generate fees, not to benefit the client.
Churning violates:
- SEBI’s fair dealing principles
- Broker fiduciary responsibility
- Exchange conduct rules
Registration does not excuse this behavior.
Why These Actions Matter Under SEBI Rules
Even a SEBI-registered broker cannot:
- Guarantee profits
- Promise loss recovery
- Execute excessive trades without client benefit
- Prioritize brokerage over suitability
- Operate verbal revenue-sharing models without contracts
SEBI expects brokers to:
- Act in the client’s best interest
- Maintain transparency
- Avoid conflict of interest
- Obtain clear consent
Failure to do so invites regulatory scrutiny.
How to File a Complaint Against a Stockbroker?
This section matters if you face a similar situation.
Step 1: Raise the Issue with the Broker
Start with a written complaint to the broker:
- Email the grievance or compliance team
- Ask for:
- Trade logs
- Brokerage breakup
- Call recordings
- Risk disclosures
Keep everything documented.
Step 2: File a Complaint on SCORES
Use the SCORES platform of the Securities and Exchange Board of India.
Provide:
- Broker name
- Client code
- Trade dates
- Brokerage details
- Nature of misrepresentation
SEBI tracks repeated patterns across brokers.
Step 3: Escalate to the Exchange
If the broker does not resolve the issue:
- File a complaint with the NSE/BSE
- The exchange may attempt resolution
- If unresolved, the matter becomes eligible for arbitration
Step 4: File an Arbitration in Stock Market
If losses and brokerage disputes remain unresolved:
- File for arbitration through the exchange
- Focus on:
- Excessive trading
- Disproportionate brokerage
- Verbal assurances vs written records
Arbitration relies on evidence, not emotion.
Need Help?
Cases like this confuse people because:
- The broker is registered
- The office exists
- The paperwork looks official
Register with us, we help investors:
- Understand whether trading crossed into churning
- Read trade logs and brokerage patterns
- Structure complaints that stand scrutiny
- Navigate exchange and SEBI processes step by step
The goal stays practical: clarity, evidence, and accountability.
Conclusion
ATS Broking holds valid registrations. That fact alone does not resolve this case.
What matters is how the broker and its representatives acted.
When:
- Profits get guaranteed
- Brokerage sharing gets promised verbally
- Trading frequency explodes
- Capital erodes while fees rise
The issue stops being market risk and starts becoming conduct risk.
Every investor must remember this: SEBI registration allows a broker to operate. It does not allow a broker to mislead.
