MDZ Securities operates as an authorized business partner of Angel One Ltd., providing investors in Nana Varachha and Yogi Chowk, Surat access to Angel One’s trading platforms, demat accounts, and financial products.
As a sub-broker, MDZ Securities trades, systems, and account controls ultimately fall under Angel One Ltd. This structure makes it important for investors to clearly understand where responsibility lies when trading decisions, communication, or disputes arise.
This article examines an investor-reported experience involving MDZ Securities to highlight risks that can emerge when roles, consent, and disclosures are unclear in sub-broker arrangements.
Investor Experience Reported With MDZ Securities
Although MDZ Securities is one of the sub brokers firm of Angel One, sometimes, the name is not enough. Sub broker, using the name of renowned stock brokers, are sometimes involved in misleading trading practices and violations, leading to losses of traders.
This is something that happened with one of the investors who faced a loss of around ₹80,000.
Below is the complete case study.
According to the investor, the account was opened after being approached directly by a representative of MDZ Securities. During onboarding, the investor was assured that trades would be managed professionally and ethically.
The investor was told that an investment of ₹1,20,000 could generate monthly returns of 7–8%. Margin trading was also suggested, with the promise of higher exposure if more capital was added. The investor declined margin trading due to risk concerns.
Later, the investor became aware that assurances of fixed or guaranteed returns are prohibited under SEBI regulations, raising concerns about the accuracy of the information provided during account setup.
After funds were deposited, trading frequency increased sharply. The investor observed:
- A large number of trades executed in a short period
- Very small profits per trade
- No clear explanation of the trading strategy
Within approximately three months:
- Account value declined from ₹1,20,000 to ~₹40,000
- Brokerage charges of ₹27,817.35 were deducted
- Total reported loss was approximately ₹80,000
The investor believes the trading activity primarily generated brokerage income rather than portfolio growth — a concern commonly associated with excessive trading (churning).
Key Concerns Raised by the Investor
The complaint highlights the following issues:
- Alleged mis-selling through return assurances
- Excessive trading leading to high brokerage costs
- Lack of clear disclosure on risks and total charges
- Trades not clearly aligned with the investor’s stated risk profile
- Inadequate or unclear trade authorization
When concerns were raised, the investor reports being advised to continue trading with assurances that performance would improve, without documented justification.
What Investors Should Do to Protect Themselves
Investors trading through sub-brokers should follow these safeguards:
- Treat any promise of fixed or guaranteed returns as a red flag
- Do not rely on verbal instructions or assurances
- Ensure all trades have clear, documented authorization
- Monitor trade frequency and brokerage charges regularly
- Confirm that strategies match your stated risk profile
- Avoid adding funds to recover losses without written reasoning
- Retain all account statements, emails, and confirmations
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Escalate concerns early through official grievance channels
How to Report Issues Involving a Sub-Broker
If an issue arises, investors should follow this escalation path:
- Raise the concern in writing with the sub-broker
- Escalate to the principal broker (Angel One Ltd.)
- File a complaint with the NSE/BSE
- Lodge a complaint in SCORES
- Proceed to exchange arbitration if unresolved
Each step creates an official record and improves the chance of resolution.
Need Help?
If you believe there has been mis-selling, unauthorized trading, excessive brokerage charges, or a lack of proper disclosure, taking timely action is critical.
Reach out to us; we assist investors at every stage of the grievance and resolution process, including
- Filing formal complaints with the sub-broker and the principal broker
- Reviewing account statements, trade logs, and brokerage charges
- Preparing and organizing documentation required for regulatory review
- Drafting clear and structured complaints aligned with the exchange and SEBI requirements
- Escalating matters to the stock exchange and SEBI SCORES when initial responses are inadequate
- Representing investors in arbitration in the stock market, including case preparation and submissions
Our focus is on helping investors present their concerns clearly, follow the correct process, and ensure that their case is supported by proper records and regulatory understanding.
Conclusion
MDZ Securities operates within a regulated sub-broker framework under Angel One Ltd. While such partnerships provide accessibility and local support, they also require investors to be vigilant about consent, disclosures, and accountability.
This case demonstrates how unclear communication and unchecked trading activity can expose investors to significant risk. Understanding the sub-broker model, monitoring account activity, and acting early when concerns arise are essential to protecting one’s investments.
