Hey there!
If you’ve ever opened your trading app only to notice your balance dipping or trades you didn’t authorize, it can feel alarming, especially when your stockbroker has done a few unauthorized transactions.
But here is the good news: the Indian regulatory system is actually very strict about this.
Knowing how to file a complaint against unauthorised trading is your first step toward getting your hard-earned money back and holding the wrongdoers accountable.
Unauthorised Trading in the Stock Market
Before we jump into the “how-to,” let’s clear up what counts as a “crime” versus a “mistake.”
In the simplest terms, unauthorised trading is when your broker or an automated app executes a buy or sell order without your explicit consent.
In India, SEBI (the market regulator) mandates that every single trade must have a “trail” of evidence.
This means if your broker bought 100 shares of a random company for you, they must be able to prove that you asked for it, be it through a phone recording, an SMS, an email, or a log from your trading portal.
If they can’t produce that proof? They’re in big trouble.
How to File a Complaint Against Unauthorised Trading in India?
If you spot a fishy trade, don’t wait. The clock is ticking! Your first move should always be to reach out to the broker directly. Most of the time, brokers have a dedicated compliance officer just for these issues.
- Check your alerts: Look for the SMS or email sent by the Exchange (NSE/BSE) at the end of the day. If the trade there doesn’t match your records, that’s your proof.
- Write an Email: Don’t just call. Send a formal email to their Investor Grievance Cell. This creates a paper trail.
- Ask for the ‘Recording’: Specifically ask them to provide the order placement evidence.
Most reputable brokers in India will try to resolve this within 15 to 30 days because they don’t want the regulator breathing down their necks.
Lodge a Complaint in SCORES
If your broker plays the “blame game” or ignores you, it’s time to escalate.
You don’t have to fight this alone; you have the SEBI SCORES 2.0 platform and the Stock Exchanges on your side.
SEBI recently updated its complaint portal to make it even faster. You can visit the SCORES website or use their mobile app.
- Timeline: You should ideally file this within one year of the incident.
- The Process: Once you lodge a complaint, it’s automatically forwarded to the broker. If they don’t give a satisfactory answer, it moves to a “Designated Body” for review.
File a Complaint in NSE/BSE
Both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) have “Investor Service Cells.”
You can file a complaint online through portals like NSE NICE Plus. They often have a faster turnaround for simple trade disputes.
Proofs to Carry to Complaint Against Unauthorised Trading
To make sure your complaint isn’t rejected, keep these items ready in a folder:
- Contract Notes: The digital receipt sent by your broker within 24 hours of a trade.
- SMS/Email Alerts: The automated messages from NSE/BSE/CDSL/NSDL.
- Communication Logs: Screenshots of your chats or copies of emails sent to the broker.
- Bank Statements: Showing the fund flow for the disputed trades.
How We at FraudFree Help to File a Complaint Against Unauthorised Trading?
Register with us, and we’ll get it for you. Dealing with legal jargon, technical evidence, and regulatory portals can feel like a second full-time job, especially when you’re already stressed about lost funds.
You shouldn’t have to navigate this maze alone.
At FraudFree, we specialize in making this process smooth and stress-free for you. We take the heavy lifting off your shoulders by managing the entire hierarchy of recovery:
- The Initial Strike: We start by drafting a powerhouse formal complaint to the broker’s compliance officer. Often, a professionally drafted letter is enough to make them realize you mean business and settle the issue right then and there.
- Handling the Technicalities (SEBI SCORES): If they don’t budge, we take the lead on the SCORES portal. We ensure all your technical evidence, like logs and timestamps, is presented perfectly so your case is ironclad.
- File a Complaint in SMART ODR: We guide you through the Online Dispute Resolution platform. We’re right there with you during counseling and meetings to ensure your voice is heard and a fair solution is reached.
- Arbitration in Stock Market: If the broker remains stubborn, we support you in filing an Arbitration case in the SEBI-appointed court. This is the “full and final” legal step to ensure you get your refund.
By letting us handle the documentation and regulatory follow-ups, you significantly increase your chances of recovering your capital without the headache.
Conclusion
Unauthorised trading can feel like a nightmare, but the Indian stock market has one of the best grievance systems in the world.
Whether it’s a “fat-finger” error by a sub-broker or a genuine attempt at fraud, you have the right to challenge every single rupee that moves out of your account.
By following the steps on how to file a complaint against unauthorised trading, you’re not just protecting your wealth; you’re making the market safer for everyone.
