Most investors are so focused on market swings and potential profits that they completely overlook the actual cost of trading. It is easy to ignore a small fee here and there, but those charges can spiral out of control if your account is trading more than it should.
If you have noticed that your transaction costs feel high compared to the actual moves you are making, you might be dealing with brokerage churning.
Essentially, brokerage churning happens when a broker carries out an excessive number of trades in your account just to rack up more commission and fees.
In this blog, we are going to look at the recent complaints against Kotak Securities related to excess charges, how this practice works, and what you can do to protect your money.
Kotak Securities Excess Charges Overview
As part of the Kotak Mahindra Group, Kotak Securities is a major player in the Indian stock market space. They offer everything from equity and derivatives to mutual funds and portfolio management.
Since they are a full-service broker, they often provide relationship managers and research advisory to help you navigate the market.
While having professional advice sounds like a benefit, it can sometimes lead to a much higher volume of trades than your strategy actually needs. This is where churning in Stock Market comes in.
If your account is constantly buying and selling, especially if it is happening without your clear approval or does not match your long-term goals, you are likely being hit with excess charges.
If you are not auditing your contract notes, these fees can quietly hollow out your capital.
Kotak Securities Complaints
If you feel like your account is being over-traded, the data suggests you are not the only one. There has been a very noticeable rise in formal complaints over the last few years:
|
Year |
Total Complaints |
Complaints related to Brokerage Churning |
|
2021-22 |
393 | Around 107 |
| 2022-23 | 605 |
Around 203 |
|
2023-24 |
610 | Around 382 |
| 2024-25 | 1065 |
Around 592 |
|
2025-26 |
644 |
Around 382 |
While complaints were lower a few years ago, the volume has grown steadily and has peaked significantly in the most recent periods.
The numbers for 2024-25 are particularly high, with over a thousand complaints, and more than half specifically pointing to excess charges. Data for 2025–26 represents partial-year complaints.
The complaint trend shows that a huge number of investors are unhappy with how often their accounts are being traded and the deductions they are seeing.
Impact of These Complaints on Retail Investors
For a regular investor, brokerage churning is like a silent tax. Every single trade triggers a list of costs: brokerage, exchange fees, GST, and STT.
When trading becomes hyperactive, these costs pile up fast. You might find that even if your portfolio is doing well on paper, a large chunk of your actual returns is being eaten by transaction costs.
This makes it much harder to hit your financial goals, as the broker is essentially taking a cut of your growth every few days.
When Can It Be Considered Brokerage Churning?
Churning is not always easy to spot at first, but there are three main signs you should watch for:
1. Unauthorised Trading
This is the most serious red flag. If trades show up in your account that you never specifically approved or asked for, the broker is crossing a major line.
Most people only find these by checking their contract notes or SMS alerts at the end of the day.
If money is being moved without your permission, it is a clear sign that the account is being used to generate fees rather than follow your strategy.
2. Account Handling Without Proper Transparency
Many investors let a relationship manager handle the heavy lifting. While advisory support is fine, it becomes a problem if trades are happening constantly without a clear explanation.
If you are not being told exactly why a trade is being made, or if the strategy seems to change every other day, your account might be getting farmed for brokerage.
3. Manipulation Through Frequent Trading Suggestions
Are you getting constant buy or sell tips? While research is helpful, it becomes problematic when the goal is just to keep you clicking the trade button.
If you are being told to flip positions frequently but your portfolio is not actually performing better, you are likely just paying for unnecessary volume.
How to Report a Complaint Against a Stock Broker?
If you think your account has been hit with unfair charges, do not just hope it stops. You need to act:
1. Gather Evidence
Start by downloading your contract notes, account statements, and trade history. Save any emails or WhatsApp messages from your broker or relationship manager.
This evidence pack is what you will need to prove that the activity was unusual or unauthorized.
2. Raise the Issue With the Broker
Your first move should be to report the issue directly to Kotak Securities through their official grievance portal.
Be specific about the trades you are questioning and ask for a detailed breakdown of the charges. Having a record of this initial complaint is vital before you escalate.
3. File a Complaint on SCORES
If the broker does not solve the problem, take it to SEBI’s portal. This is the official government platform for investor grievances.
Once you file here, the regulator tracks the case, and the broker is required to provide a formal, documented response.
4. File Arbitration in Stock Market
If mediation does not work, you can take the matter to the NSE or BSE. These exchanges have a formal process called arbitration.
This is a legal step where an independent arbitrator reviews your evidence and the broker’s before passing a binding judgment.
It is one of the most effective ways to force a broker to pay you back if churning is proven.
Need Help?
Dealing with these issues can be exhausting, but you do not have to handle them alone. If you suspect your account is being over-traded, register with us.
We can help:
- Audit Your Trades: We will look through your statements to find hidden fees and churning patterns.
- Organise Evidence: We help you bundle your logs and messages into a clear file for regulators.
- Draft Your Letters: We assist in writing professional, firm complaint letters that get noticed.
- Full Guidance: We walk you through the entire process, from the first email to the final resolution.
- Tracking Complaint: We also assist you in tracking the status of the SEBI complaint online.
Our goal is to make sure investors understand their rights and take the correct steps to protect their money.
Conclusion
Excessive brokerage charges can quietly drain your returns if you are not paying attention.
The complaint trends for Kotak Securities show that this is a real concern for many investors.
The best defense is to stay active, check your statements every week, and never hesitate to question a trade you didn’t participate in.
Holding your broker accountable is the only way to make sure your money stays in your pocket. Being informed and proactive is the strongest safeguard against unnecessary trading costs.
