Sanjay (name changed) thought changing his password would lock out the brokers trading his account without permission.
It didn’t.
Within minutes of revoking access, new unauthorized trades appeared, wiping out his funds.
If your broker keeps executing trades after a password change, you aren’t alone, and you don’t have to carry the financial wreckage.
How a Broking Firm Logged Over ₹8 Lakhs in Unauthorized Trades
It started with persistent phone calls. Representatives from a registered broking company reached out to Sanjay, offering to handle his account and promising strong market returns.
Step by step, they pressured him into buying escalating service “packages”, first for ₹40,000, then ₹50,000, and eventually an expensive ₹3 lakh tier.
The exploitation didn’t stop at packages. A representative pushed Sanjay into taking an unapproved loan of ₹8 to ₹10 lakh.
Over just a few days, the firm’s staff systematically drew roughly ₹8 lakh out of his demat account through rapid, unauthorized trading.
Realizing his exposure had run into tens of lakhs, Sanjay finally said stop. He logged into his account and did the one thing that should have completely cut off their access: he changed his password.
It failed. Within minutes of drawing that boundary, a ₹40,000 market swing appeared in his ledger. The firm was still executing trades behind his back, completely bypassing his new security credentials.
When Sanjay escalated the breach to a senior executive at the firm, the company offered a classic corporate deflection:
“We have removed that employee.”
They treated firing the representative as the end of the matter, leaving Sanjay to deal with a ruined account. But a broker cannot simply delete a “rogue” worker’s email ID and walk away from the financial damage they left behind.
Is a Stock Broker Liable for Unauthorized Trades by Their Employees?
This is the heart of it. When a registered broking company’s representative trades your account without authorisation, the company does not get to wash its hands by announcing it fired him.
The core issue here is a clear case of unauthorized trading by a stock broker, and the firm is legally responsible for the actions of its staff. They are the ones who put that person in front of you.
The firm is the one that put that person in front of you. The firm gave them access to its systems, its client accounts, its tools. Whatever that representative did inside your account was done as the firm’s person, using the firm’s access.
“We removed the employee” is not a defence, if anything, it is an admission that something wrong was done in your account by someone the firm was responsible for.
A genuine, accountable firm answers for the conduct of its representatives. One that points at a single “rogue” employee and calls it settled is trying to make its problem into your loss.
Can a Broker Access My Account After a Password Change?
Sanjay said stop. He changed his password. From that moment, every further trade was without his consent.
And the fact that trades still happened is itself alarming. Once a client revokes access and changes credentials, continued trading points to access the firm should never have had, or should never have retained.
You do not have to explain how it happened, that is the firm’s burden. What matters is the simple, provable fact: you locked the door, and they came in anyway.
What to Do If Your Broker Executed Trades Without Confirmation?
Strip away the packages and the loan, and the core violation is plain: trades were placed in his account without his confirmation.
Every trade in your account needs your authorisation.
A representative, or a firm, executing trades you did not approve is doing exactly what the rules forbid, whether it happens once or for a week.
The escalating packages and the push into a loan make it worse, not better. They show a relationship built to maximise how much of his money could be put at risk, not to serve him.
How to File a Complaint Against a Broker to Recover Trading Losses
Evidence in unauthorized trading disputes disappears fast. Logs get wiped, and chats get deleted. Act right now, not at the end of the week.
Step 1: Lock Down Your Evidence Immediately
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Save timestamps of exactly when you changed your password.
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Screenshot all ledger balances, unauthorized contract notes, and trade logs showing activity after that password reset.
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Preserve every WhatsApp chat, email, and recording where the firm admits to removing the “guilty” employee. That admission is gold.
Step 2: Write a Sharp, Violation-Specific Complaint to the Broker
Do not send a vague, emotional email. State the facts clearly:
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You explicitly revoked access and changed your credentials.
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The firm executed unauthorized trades without your consent or confirmation.
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The employee pushed you into unauthorized packages and an unapproved loan.
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Demand a full reversal of the unauthorized losses and fees within 15 working days.
Step 3:Lodge a Complaint in SCORES
If the broker stalls, gives you a corporate excuse, or claims the matter is closed because the employee was fired, lodge an official complaint on SEBI’s investor grievance portal (SCORES).
Upload your timeline, password change confirmation, and the broker’s admissions. This forces a formal, regulated response.
Step 4: Raise a Complaint in SMART ODR
If the SCORES resolution is unsatisfactory, escalate your dispute to the SMART ODR platform. Here, a neutral arbitrator evaluates your case based strictly on the evidence you provide.
It is a time-bound, digital process that bypasses long legal delays.
Step 5: File for Exchange Arbitration
For deep financial damage involving unauthorized loans and packages, file for arbitration through the NSE or BSE. This process yields a binding legal award.
Panels routinely rule in favor of retail investors when it is clearly documented that a broker breached security protocols and traded without client confirmation.
Get Expert Help to Recover Your Trading Losses
What happened to Sanjay happens to many investors. Unscrupulous representatives abuse their access, push clients into high-interest loans, and keep trading even after the virtual door has been locked.
Sanjay came to us with an account in ruins but a clear paper trail. We helped him map out a definitive path toward recovery because a firm cannot simply fire a rogue employee and walk away from the financial wreckage they left behind.
If your broker traded your account without confirmation, breached your security after a password change, or pressured you into devastating loans, you do not have to fight this multi-billion-rupee industry alone.
Reach out to us today. We will review your case, analyze your trade logs, and tell you honestly what is claimable before you take your next step.
Conclusion
When you change your password, you are drawing a clear line to protect your hard-earned money. If your broker crossed that line and continued trading anyway, the law is on your side.
Do not let them shift the blame or dismiss your panic with a corporate excuse. You have the right to hold them accountable, demand your funds back, and file an official complaint.
Take a deep breath, gather your records, and take action today, your financial recovery starts now.
FAQ
1. The firm says they fired the employee who traded my account. Doesn’t that settle it?
No. A registered firm is accountable for what its representatives do in client accounts. Firing the person is an admission that something was wrong, not a release from the firm’s liability.
2. They traded even after I changed my password, is that on me?
No. Once you revoke access, any further trade is unauthorised, and continued trading points to access the firm should not have had. The resulting loss is theirs to answer for.
3. Can a broking company’s representative trade my account without confirmation?
No. Every trade needs your authorisation. Trades placed without your approval are unauthorised trading, plainly against the rules.
