If you have noticed your trading account balance is not quite adding up, you might be dealing with more than just market fluctuations.
Many investors do not realise that their biggest enemy is not always a bad stock pick; sometimes, it is the sheer volume of trades happening in their account.
This is a practice known as brokerage churning, and it is a problem that can quietly drain your capital through a constant stream of fees and taxes.
In this blog, we are taking a look at the recent complaints involving JM Financial excess charges.
We will break down what you need to look for, why these costs add up so quickly, and what you can do to take back control if your account feels like it is being over-traded.
JM Financial Excess Charges Overview
JM Financial is a diversified financial services group in India, with subsidiaries offering services such as investment banking, brokerage, wealth management, and lending.
Brokers earn money when you trade.
While that is a standard business model, it creates a conflict of interest if the broker or a relationship manager starts prioritizing transaction volume over your actual investment returns.
A common issue investors face is seeing a spike in trades that do not seem to have a clear strategic purpose.
Every time a stock is bought or sold, you are not just paying brokerage, you are also paying GST, exchange fees, and STT.
If these trades are happening every few days without your input, or if they do not align with your long-term goals, you are likely being charged extra.
If you are not digging into your contract notes every week, these repeated charges can easily go unnoticed until they have already taken a significant bite out of your portfolio.
JM Financial Excess Charges Complaints
The data from the last few years shows that more investors are starting to speak up about these costs.
There has been a very clear shift in the number of people filing JM Financial complaints:
| Year | Total Complaints | Brokerage Churning Complaints |
| 2021-22 | 15 | Around 4 |
| 2022-23 | 14 | Around 4 |
| 2023-24 | 25 | Around 13 |
| 2024-25 | 131 | Around 65 |
| 2025-26 | 124 | Around 68 |
The jump in 2024 is the most concerning part. The complaints went from a handful to more than a hundred in a single year.
This suggests that the issue of frequent trading and excess charges has become a much bigger problem for JM Financial clients lately.
When half of the total complaints are specifically about excess charges, it is a signal that you need to be extra vigilant with your own account statements.
Impact of These Complaints on Retail Investors
For a regular investor, the impact of brokerage churning is purely financial. It is a frictional cost that never goes away.
When a broker flips your positions too often, the compounding effect of your investments is broken.
Instead of your money growing, a large portion of it is being redirected into taxes and fees.
For anyone trying to build a retirement fund or save for a major goal, these unnecessary costs can delay your progress by years.
When Can It Be Considered Brokerage Churning?
Churning in the share market refers to excessive buying and selling of securities in a client’s account by a broker with the sole intent of generating more commissions, without any real benefit to the client.
It is not always easy to tell the difference between active trading and churning, but these signs are usually a clear indication of brokerage churning:
This is the most direct violation of trust. If you see trades in your ledger that you did not personally approve, you have a major issue on your hands.
Most people only find these by looking at the end-of-day SMS from the exchange or checking their email for contract notes.
If trades are happening without your approval, the broker is likely just trying to generate brokerage revenue at your expense.
Account Handling Without Proper Oversight
If you have given a relationship manager the freedom to help manage your trades, you need to watch them closely.
If they start moving your capital in and out of stocks every other day without giving you a clear, data-backed reason, you are being charged extra.
Manipulation Through Excessive Trading Suggestions
Are you getting non-stop buy and sell alerts? While research is part of the service, it becomes problematic when the goal is just to keep you clicking the trade button.
Watch out for recommendations that suggest you exit a stock only to re-enter it a few days later.
This flipping creates a massive volume of fees for the broker but usually leaves you with zero net gain. If the advice feels like it is about activity rather than quality, it is a red flag.
How to File a Complaint Against a Stock Broker in India?
If you suspect your account is being handled poorly, you should not wait to see if it gets better. You need to act:
1. Collect Relevant Evidence
Start by downloading every single contract note and ledger statement for the months you are worried about. If you have WhatsApp messages or emails where you questioned a trade, save those too.
Having a neat folder of evidence makes it much harder for a broker or a regulator to ignore your claim.
2. Raise the Issue With the Broker
Your first move is to contact JM Financial directly. Send a formal email to their grievance officer.
Be specific and list the trade details you did not approve or that seem unnecessary.
Getting a formal response is a necessary step before you can take the case to SEBI.
3. File a Complaint Through SCORES
If the broker does not give you a clear answer, you can file a complaint in SEBI through the SCORES portal. This is the official government platform.
When you file a complaint, the complaint is tracked by the regulator, and the broker is required to provide a formal, documented explanation for the activity in your account.
4. Approach the Stock Exchange
You can also opt for arbitration in the stock market.
This is a formal legal process where an independent arbitrator reviews the evidence and passes an arbitral award, a binding judgment that can force the broker to pay you back.
Need Help?
Figuring out the world of brokerage disputes can be frustrating, but we can help you cut through the chaos.
Register with us. Here is how we support you:
- Statement Auditing: We will help you analyse your trade data to find hidden fees and patterns of churning.
- Evidence Organisation: We assist in putting your logs and messages into a professional file that regulators can actually use.
- Drafting Grievances: We also help you write technical, firm complaint letters so your case is not dismissed as a standard inquiry.
- Guidance: We walk you through the entire process, from the first email to the final resolution.
Our goal is to make sure investors understand their rights and take the correct steps to protect their money.
Conclusion
At the end of the day, brokerage churning is a quiet way for your wealth to vanish.
The recent spike in complaints against JM Financial shows that many investors are waking up to this issue and taking action.
The best thing you can do is stay proactive. Check your statements every week. If you see a trade you do not recognise or a charge that was not explained, ask questions immediately.
Being an investor is not just about picking stocks; it is about making sure the money you earn stays with you.
By holding your broker to a high standard of transparency, you ensure your financial future stays on track. Do not let your portfolio become a source of easy fees for someone else.
