If you’re searching for Choice Broking complaints, it usually means something happened that didn’t feel “normal.” Maybe a sudden charge, a payout that’s taking forever, a trade that didn’t go the way you expected, or support replies that sound like copy-paste.
And the worst part?
You’re left wondering: “Is it just me… or is this actually a problem?”
This blog serves the purpose.
It guides you with a clear, practical breakdown of what Choice Broking is, what users commonly complain about, what the regulatory/dispute trail can look like, and the exact steps to file a complaint properly.
Choice Broking Details
Choice Broking (Choice Equity Broking Private Limited) operates as a SEBI-registered stock broker, and its SEBI registration number is INZ000160131.
It offers multiple financial services under one roof, like equity broking, wealth management, insurance, and loans. It positions itself like a “full-service” setup rather than a bare-bones DIY broker.
Services Offered:
- Online and offline trading
- Research and advisory
- Portfolio management services
- Mutual fund distribution
- Insurance broking
- Investment advisory
Here’s the practical reality: the more moving parts a broker handles (advisory, broking, platforms, margins, back-office), the more things can go wrong for a client.
So, knowing your broker becomes the first step before investing.
Even though the broker is known for seamless services, there are a few concerns raised by its users from time to time.
Looking at the NSE/BSE data of this year, the following information can be obtained:
| Metric | Value |
| Total Active Clients | 241501 |
| Total Complaints Received | 267 |
| Resolved Complaints | 267 |
| Resolution Rate | 100% |
Now, the above data looks impressive. The resolution rate of complaints is definitely worth noticing.
But don’t get impressed so easily. Have a look at the complaint section given below and then decide if the broker is worth your time or not!
Choice Broking Complaints Types
Now, the complaint rate against the broker with respect to its client is quite low; however, based on data, most of the complaints fall under the category of unauthorised trading.
Apart from this, here are the details of the major complaints against the broker:
Type IV: Unauthorised Trades/Misappropriation
This involves trades or transactions done without your permission.
- IV a – Unauthorised trades in the client account
- IV b – Misappropriation of client’s funds/securities
Type V: Service Related Issues
Problems with the broker’s services and execution quality.
- V a – Excess brokerage
- V b – Non-execution of order
- V c – Wrong execution of order
- V d – Connectivity/system-related problem
- V e – Non-receipt of corporate benefits
- V f – Other service defaults
Type XI: Others
- Poor Agent Supervision
- Unauthorised Terminal Access
- Weak Cybersecurity Controls
- Inaccurate Client Reporting
- Late Penalty Payments
SEBI Orders Against Choice Broking
SEBI is the guardian of Indian investors. Without its regulation, the money of individuals like you would be at risk. It has made certain guidelines for its registered brokers.
When those brokers try to violate those regulations, SEBI comes into action and imposes a penalty on them. Choice Broking has also been on the list of SEBI adjudication orders.
The Timeline of Choice Equity Broking’s Regulatory Journey
Let’s connect the three SEBI actions into a clear timeline. This will show a pattern of recurring non-compliance and how one case directly led to another.
- October 9, 2024: SEBI imposes a ₹2 lakh penalty on Choice Equity Broking for multiple violations related to Authorised Persons (unauthorised terminal use, fund movements, poor record-keeping, client under-reporting).
- October 30, 2025: SEBI imposes another ₹1 lakh penalty for cybersecurity failures (failure to include branch firewalls in the critical asset list).
- January 1, 2025: SEBI issues Recovery Certificate No. 8494 for the unpaid ₹2 lakh penalty from the 2024 order, plus interest and costs (total ₹2,09,000).
- January 16, 2025: The Recovery Certificate is cancelled because Choice Equity finally paid the original penalty.
Let’s get into the details for a better understanding of the type of violations done by the broker so far.
₹2 Lakh Penalty for Widespread Compliance Failures:
On October 9, 2024, SEBI imposed a fine of ₹2 lakh on Choice Equity Broking Pvt. Ltd.
This was due to multiple compliance failures found during a joint inspection by SEBI, NSE, and MCX.
Background of the Case
Thematic Inspection: SEBI, along with NSE and MCX, conducted a joint inspection of Choice Equity Broking’s books of accounts on September 26, October 12–13, 2023.
Period Under Scrutiny: April 1, 2022, to May 31, 2023.
Focus: To examine the broker’s control over its Authorized Persons (APs), agents who provide clients access to trading platforms on behalf of the broker.
Outcome: SEBI found widespread and serious lapses in the broker’s oversight, leading to multiple violations.
Major Violations Identified
The inspection revealed four key areas of non-compliance across multiple APs:
1. Unauthorized Use of Trading Terminals
At Stockology Securities Pvt. Ltd.: One trading terminal (with 2 segments) was operated by Mr. Vikas Bundela, an employee, instead of the approved user, Mr. Aniket Shukla.
At Maloo Commodities & Stock Trading Pvt. Ltd.: Two trading terminals were operated by unapproved persons (Mr. Vipin and Mr. Tileshwar Barapatre) instead of the authorized users.
2. Unauthorized Movement of Funds Between APs and Clients
At The Grow Capital Finance Services: In 3 instances, the AP made payments to clients, allegedly as “refund of excess brokerage.”
At Maloo Commodities, 10 instances of fund movement between the AP’s related entity (Ravindra Maloo HUF) and clients were observed.
Violation: NSE Circular dated June 9, 2021, which strictly prohibits APs from accepting or making any payments related to client funds or securities.
Also, violation of Clauses A(2) & A(5) of the Code of Conduct (due to skill and compliance with statutory requirements).
3. Poor Office Management & Record-Keeping
Teena Bansiya (AP): Was not operating from her registered address; the office was under renovation. A payment of ₹4.78 lakhs to a co-working space (Workie) suggested operation from an unregistered location.
Stockology & Grow Capital: Failed to properly maintain Investor Grievance/Complaint Registers.
Maloo Commodities: Shared office space with another broker’s AP without proper demarcation and maintained joint records, risking client data confidentiality.
Violation: NSE Circular dated October 18, 2019, and Clauses A(2) & A(5) of the Code of Conduct.
4. Failure to Report Clients Mapped to APs
Significant Under-Reporting: The broker failed to report 7, 118, and 226 clients mapped to Teena Bansiya, Stockology, and Grow Capital, respectively, to the exchange.
SEBI’s Verdict
As per SEBI, the stock brokers are fully responsible for their Authorized Persons’ actions.
Any failure by an AP is considered a failure by the broker.
SEBI noted the violations were serious and across multiple APs. This showed weak supervision and poor compliance systems. The broker’s large network of over 1,300 APs made proper oversight even more important.
Since the broker failed in its duty, a penalty was necessary.
1. SEBI Penalty on Choice Broking
Amount: ₹2,00,000 under Section 15HB of the SEBI Act, 1992.
The amount must be paid within 45 days. If not paid, SEBI can start recovery proceedings, which may include attaching property.
- SEBI Penalises Choice Equity Broking for Cybersecurity Failures
On October 30, 2025, the Securities and Exchange Board of India (SEBI) issued an Adjudication Order against Choice Equity Broking Private Limited, imposing a penalty of ₹1,00,000 (One Lakh Rupees) for failures in its cybersecurity framework.
A joint inspection by SEBI, BSE, and MCX was carried out on September 30 and October 1, 2024, covering the period from April 1, 2023, to August 31, 2024.
The major focus of the inspection was to determine whether Choice Equity Broking complied with SEBI and BSE circulars related to Cybersecurity and Cyber Resilience.
However, in the key findings, the broker failed to include branch office firewalls at multiple locations in its critical asset list, in violation of mandatory cybersecurity norms.
Violations Identified
Choice Equity Broking was found in violation of the following regulatory provisions:
1. SEBI Circular dated June 7, 2022
Requires brokers to:
- Identify and classify critical assets (including business-critical systems, internet-facing applications, and sensitive data systems).
- Maintain an updated inventory of hardware, software, and network resources.
- Obtain Board approval for the list of critical systems.
2. SEBI Circular dated December 3, 2018
Mandates a Cybersecurity Policy that includes processes to:
- Identify critical IT assets and associated risks.
- Protect, detect, respond to, and recover from cyber incidents.
3. BSE Circular dated April 26, 2024
Aligns with and reinforces SEBI’s cybersecurity directives.
Penalty Imposed
Amount: ₹1,00,000 under Section 15HB of the SEBI Act.
Reasoning:
- No quantifiable investor loss or unfair gain was established.
- The broker took corrective actions after the inspection.
- However, past violations were considered, indicating repeated compliance failures.
Payment Deadline: 45 days from the date of the order via SEBI’s online portal.
Consequence of Non-Payment: Recovery proceedings under Section 28A, including attachment and sale of properties.
Why is this case Important for Retail Investors?
Here are some of the hidden risks associated with the poor cyber security of the broker’s terminal:
- Risk of Unauthorized Trading: Clients’ trading terminals were operated by unapproved persons, increasing the risk of fraudulent activities.
- Potential Misuse of Funds: Unauthorized movement of money between brokers’ agents and clients blurred financial safeguards.
- Weak Data Security: Failure to classify critical IT assets, such as firewalls, left investor data exposed to cyber threats.
- Poor Grievance Handling: Inadequate maintenance of complaint registers meant investor issues could go unrecorded and unresolved.
- Inaccurate Client Reporting: Under-reporting of client details to exchanges weakened regulatory oversight and investor protection.
- Repeated Non-Compliance: Multiple penalties across different areas indicate a pattern of operational negligence.
- Delayed Regulatory Compliance: Late payment of fines forced SEBI to initiate recovery action, reflecting poor financial discipline.
Arbitration Cases Against Choice Broker
Arbitration in the Indian stock market is basically the “final internal justice step” where an investor can ask for a formal decision when a broker/intermediary does not resolve a genuine complaint through normal support channels.
If conciliation/complaint handling fails, the investor can move to online arbitration through the exchange/ODR mechanism, and an arbitrator passes an award.
These five NSE arbitration matters mostly revolve around one common theme: clients alleged “unauthorized trades” (especially in F&O) and said the broker couldn’t show proper proof that the client had approved those trades.
Case 1: 99% Trades Without a Nod
Pawan Bajaj (client) filed the arbitration against Choice Equity Broking, claiming trades were done in his F&O segment without his clear permission. He said this led to a loss of Rs. 21,08,353 and also caused mental stress.
He alleged that 99.33% of the F&O trades were executed without pre-authorisation and without proper order-proof/records.
He also claimed the broker failed to produce mandatory pre-trade evidence like call recordings, as required under SEBI’s 22 March 2018 circular.
He further alleged “profit-looking” reports were shown to him while the account was actually in loss, pointing towards manipulated/fabricated statements by the RM.
Since GRC had earlier admitted only Rs. 5,08,053, he approached arbitration for the full loss amount.
Penalty imposed
The arbitrator held the broker liable and directed Choice to pay Rs. 21,08,353 to the client within 3 months. Choice was also directed to pay 10% p.a. interest from the date of the award until actual payment.
On top of that, Choice had to pay Rs. 20,000 as litigation cost and reimburse arbitration fees of Rs. 49,875.
Key learning for investors
- If a broker can’t show solid “order placing evidence”, that can become a serious weakness in their defence.
- Don’t rely only on “someone said it’s a profit” updates. Always insist on official contract notes/ledger and verify numbers regularly.
- Raise objections quickly and keep written proof (email/complaints), because later the fight becomes “your word vs their records.”
Case 2: Brokerage Loot on Unauthorised Trades
Vineet Vaibhav (client) filed an appeal in Appellate Arbitration against Choice Equity Broking after a partial arbitration award. His core allegation was that unauthorized F&O trades caused him losses, and the broker couldn’t produce the required pre-trade call recordings.
Earlier, IGRP admitted a smaller claim (Rs. 1,13,291), and later, a sole arbitrator awarded Rs. 3,07,022 for unauthorized F&O loss. He then appealed mainly because he said, “Even if the trades were unauthorized, why should the broker keep the brokerage earned on them?”
Penalty imposed
The Appellate Tribunal allowed the appeal and ordered Choice to pay Rs. 1,13,291 additionally (brokerage refund), taking the total to Rs. 4,20,313.
The tribunal also awarded 9% interest on the total amount from the complaint date (29 Sept 2022) until realisation.
Key learning for investors
- Even when “loss” is compensated, investors should check whether brokerage/charges were also wrongly collected. This case shows that it can be separately recoverable.
- Keep a sharp eye on the breakup: loss amount, brokerage, interest start-date, and whether costs are granted.
- The most practical habit: download and store contract notes, margin statements, and ledger statements as small charges can add up big.
Case 3: Offline Trades, No Proof
Divya Bajaj (client) filed an arbitration against Choice Equity Broking after being dissatisfied with an IGRP order that had “Admissible claim: NIL.”
She alleged that trades (including F&O) were done without any pre-authorization and without proper proof that she instructed those trades.
She claimed she suffered around Rs. 5.5 lakhs capital loss, and also alleged manipulated reports showing profits while her account was actually losing money.
The case record notes trades in her account from 13/06/2019 to 08/06/2022, and that all trades were offline. The arbitrator noted the broker failed to produce evidence of pre-trade confirmations for transactions in her account.
Penalty imposed
The arbitration application was allowed, and Choice was directed to pay Rs. 5,43,275.80 to Divya Bajaj.
Key learning for investors
- “Offline trades” need extra caution and always insist on documented pre-trade confirmation, not just end-of-day messages.
- If a broker’s proof is only a post-trade confirmation, it may not always answer the main question: “Did the client authorize the trade before it happened?”
- Never let long periods pass without reconciling holdings and the ledger, as disputes become harder when trading spans years.
- If you suspect fake/misleading statements, preserve the emails/messages immediately because they become key puzzle pieces later.
Case 4: Missing Pre-Trade Calls, Massive Payout
Naresh Bajaj (client) filed an arbitration against Choice Equity Broking, challenging the GRC order dated 19.07.2023.
He alleged unauthorized trading in his account and claimed a capital loss of around Rs. 39,81,611.
His main point was simple: the broker couldn’t produce mandatory pre-trade call records for the disputed F&O transactions.
He argued this violated SEBI’s 22 March 2018 circular on preventing unauthorized trades.
The tribunal also observed that pre-trade call recordings for the cash segment were placed, but pre-trade call recordings for the F & O segment were not available.
Penalty imposed
The arbitration application was allowed, and the GRC order dated 14.12.2020 was set aside. Choice was directed to pay Rs. 37,82,367 to Naresh Bajaj with 9% p.a. interest from 18.08.2023 till actual payment.
Choice was also directed to pay Rs. 15,000 towards legal costs.
Key learning for investors
- If your dispute is about F&O trades, focus on whether the broker can produce proper “before trade” authorization proof specific to F&O (not some other segment).
- Don’t get distracted by “we sent SMS/contract notes”. The legal fight often turns on whether the trade was authorized before execution.
- Maintain your own trail: emails, WhatsApp objections, complaint dates, and ledger snapshots as these timelines matter.
Case 5: OTP Sharing Disaster
Santosh Kumar Banerjee (client) filed a complaint alleging unauthorized trades and initially claimed Rs. 14,25,000.
He said he was a novice and had deposited Rs. 14,25,000 with the instruction to buy specific shares, but later found that different shares were bought without consent.
He admitted sharing password/OTP details in good faith with the dealing person, assuming it was needed for normal trading activity.
After he raised objections, he still didn’t get proper clarity about holdings/demat, and he eventually complained via SEBI SCORES.
The matter went through GRC, which admitted Rs. 5,19,221 (linked to brokerage earned), and he then went to arbitration as he was unhappy with the GRC outcome.
Penalty imposed
The arbitrator affirmed the GRC decision and directed the member (Choice) to adhere to the compensatory award of Rs. 5,19,221.
Key learning for investors
- Never share OTP, password, or login credentials, as once shared, they become messy because responsibility gets debated on both sides.
- Even if you share credentials, keep proof of your “conditions” (like “trade only after my consent”), because tribunals may examine the full conduct.
- If trades continue even after you object, escalate quickly in writing to the broker, exchange, and regulator portals as needed.
- Don’t ignore SMS/email alerts, as those alerts are often used in disputes to argue you “knew” about trades, even if you didn’t authorize them.
How to File A Complaint Against Stock Broker?
Facing issues with Choice Broking? The complaint process can be overwhelming, especially when dealing with regulatory portals and legal procedures.
We simplify the entire legal process for you.
Step 1: Register with Us
We’ll arrange a call with our dedicated Case Manager. They’ll understand your specific situation in detail.
Step 2: Navigate SEBI SCORES
The SEBI portal can be confusing for first-time users.
We provide:
- Help you register on SEBI SCORES
- Guide you through the filing process step-by-step
- Ensure all documents are properly uploaded
- Verify the complaint categorisation is correct
- Track your complaint status
- Help you respond to the broker’s replies
Step 3: File a complaint in Smart ODR
If your case moves to Smart ODR, we’re with you. Help you understand the conciliation process. Prepare yourself for discussions. Review settlement offers with you.
Step 4: Post-ODR Counselling
We will analyse their response thoroughly. Identify weaknesses in their arguments. Advise you on the best course of action. Help you decide: accept the settlement or proceed further?
Step 5: Move to NSE Arbitration
Our team will help you file at the National Stock Exchange. Prepare your case documentation. Explain the arbitration process clearly. Stand by you until the resolution.
Conclusion
Choice Broking remains an active player in India’s broking industry with a wide network. But this regulatory history cannot be ignored.
The 2019 penalty for misusing client funds is particularly serious. Mixing one client’s excess with another’s debit balance violates fundamental trust principles. It shows systemic control failures.
The 2025 penalties for unauthorised persons operating terminals are equally troubling. If a broker cannot supervise its authorised persons properly, what does that say about overall risk management?
The cybersecurity violations in October 2024 and October 2025 raise red flags in today’s digital trading environment.
Missing firewalls from critical asset lists? No documented IT asset policy? These aren’t minor oversights; they’re fundamental security gaps.
Even established brokers can have serious compliance issues. The size of a firm doesn’t guarantee ethical practices.
Before opening an account, check SEBI’s website for enforcement orders. Check the NSE/BSE member pages. Look at complaint statistics. This information is public; use it.
Stay informed!
