Investors open trading accounts with the expectation that every trade in their account will happen only with their approval. This trust forms the foundation of the relationship between a broker and a retail trader.
But concerns can arise when investors notice trades in their accounts that they claim they never placed.
Situations like these raise an important issue in the stock market: unauthorised trading.
When such concerns appear, investors naturally start looking for answers. Did the broker execute trades without consent?
Was the trade triggered through some technical or operational issue? Or is it simply a misunderstanding about how orders were placed?
These questions often lead investors to search for information about Paytm Money unauthorised trading complaints.
Paytm Money, the brokerage platform owned by One97 Communications, has gained popularity among retail investors for stock trading, derivatives, and mutual fund investments.
As the platform has grown, it has also received investor complaints from time to time , something that happens with most large brokerage platforms.
However, the existence of complaints alone does not automatically mean that a violation has occurred.
The real question investors should ask is simple: What exactly do these complaints indicate?
To understand this properly, it is important to look at how regulators define unauthorised trading, what exchange complaint data shows, and why investors should pay attention to these issues before making decisions about a trading platform.
In the following sections, we will examine these aspects in detail.
Paytm Money Unauthorised Trading Complaints
Paytm Money has emerged as a popular platform among retail investors looking for a simple way to trade in stocks, derivatives, and mutual funds.
Backed by the Paytm ecosystem, the platform has attracted a large user base over the past few years.
Like any brokerage that serves a growing number of investors, Paytm Money also receives complaints from time to time.
Some of these complaints relate to service issues, while others involve disputes about trades placed in client accounts.
One category of complaints that often draws attention is unauthorised trading.
Before analysing complaint data, it is important to understand what this term actually means.
In simple terms, unauthorised trading occurs when a broker executes trades in an investor’s account without the investor’s consent or instruction.
According to guidelines issued by the Securities and Exchange Board of India, brokers must maintain clear records of client orders before executing any trade.
Complaint Data
To understand how often such concerns appear, investors can look at complaint statistics published by the exchanges.
These reports classify different types of investor complaints, including Type IV complaints, which relate to allegations of unauthorised trading.
The following data summarises complaint records related to Paytm Money over the past few years.
| Financial Year | Total Complaints | Type IV (Unauthorised Trades) | % of Complaints Under Type IV |
| 2020–21 | 71 | 6 | 8.45% |
| 2021–22 | 88 | 5 | 5.68% |
| 2022–23 | 102 | 4 | 3.92% |
| 2023–24 | 118 | 3 | 2.54% |
| 2024–25 | 132 | 2 | 1.52% |
| 2025–26* | 196 | 3 | 1.53% |
At first glance, the percentage of unauthorised trading complaints may appear small compared to the total number of complaints.
However, retail investors should not overlook these numbers.
Even a small percentage represents real investors who have raised concerns about trades executed in their accounts.
For those investors, the issue is not about percentages but about whether trades were placed without their approval.
This is why complaint data deserves attention.
Impact on Traders and Investors
When exchanges classify complaints under Type IV, they record situations where investors have specifically alleged unauthorised trading.
These complaints highlight disputes in which investors question whether the broker had proper authorisation to execute a trade.
At the same time, investors should interpret this data carefully.
A complaint does not automatically prove that the broker executed trades without consent.
Many investors ask: is SEBI registered broker safe?
The answer is a qualified yes. SEBI registration is a mandatory safety net that ensures the firm is legitimate, accountable, and subject to strict audits.
However, registration is a foundation, not a guarantee of zero friction.
Retail traders must move from passive investing to active monitoring. Regulatory safety is a two-way street; SEBI provides the shield, but you must hold it.
When Can Action Be Taken Against a Broker?
Regulators can take action against a stockbroker if evidence shows that trades were executed without proper authorisation from the client.
Under guidelines issued by the Securities and Exchange Board of India, brokers must maintain clear records of every order they execute.
These records help establish whether a client actually authorised the trade.
If a dealer places a trade on behalf of the client over the phone, the broker must keep the call recording as proof of the instruction.
When a dispute arises, these records become critical. Regulators and exchanges examine the available evidence to determine whether the broker executed the trade with proper authorisation.
Action may be taken against a broker if authorities find that:
• Trades were executed without any client instruction
• The broker cannot produce order records or audit trails
• dealer-assisted trades were placed without recorded confirmation
• The broker failed to follow regulatory guidelines meant to prevent unauthorised trading
If authorities establish such violations, exchanges or regulators may impose penalties, direct compensation through arbitration, or initiate further enforcement action depending on the severity of the case.
This process ensures that complaints receive proper examination and that brokers remain accountable for maintaining transparent order records.
When deciding if you can trust a stockbroker, the most important question isn’t how slick their app looks, but how diligently they follow these evidentiary rules.
A trustworthy broker doesn’t just execute trades; they provide a transparent environment where every transaction is verifiable.
How To Report A Complaint Against Broker in India?
If an investor believes that trades were executed in their account without approval, they should report the issue through the proper grievance process.
Acting quickly helps preserve records and makes it easier to review what happened.
1. Contact the Broker First
The first step is to raise the issue directly with the broker. Investors should contact the broker’s support team and request a detailed explanation of the trades in question.
The broker may review order logs, system records, and communication history to verify whether the trades were placed with proper authorisation.
If the investor placed the order through a dealer, the broker may also review call recordings to confirm the instruction.
2. File a Complaint with the Stock Exchange
If the broker’s response is not satisfactory, the investor can escalate the complaint to the stock exchange where the broker is registered.
Both exchanges provide online grievance portals where investors can submit complaints and upload supporting documents such as contract notes, trade confirmations, and account statements.
The exchange then reviews the complaint and asks the broker to explain.
3. Escalate the Complaint to SCORES
If the issue remains unresolved, the investor can file a complaint on the SCORES platform of the Securities and Exchange Board of India.
SEBI forwards the complaint to the concerned broker and monitors the resolution process through its system.
4. Arbitration in the Stock Exchange
If the dispute continues, the investor may initiate arbitration through the stock exchange.
During arbitration, both the investor and the broker present their evidence, and an independent panel reviews the case before giving its decision.
This process helps resolve disputes where both sides disagree about whether a trade was authorised.
Need Help?
Dealing with unauthorised trading disputes can feel overwhelming for many retail investors.
In many cases, investors are unsure about how to draft a complaint, what documents to submit, or how to present their case properly.
These disputes often involve reviewing order logs, contract notes, trade confirmations, and communication records.
If the complaint moves to exchange proceedings or arbitration, the process can become even more complex.
If you need assistance with reporting a broker or pursuing a complaint related to unauthorised trading, you can register with us.
Our team helps investors understand the complaint process and prepares the necessary documentation required for filing complaints with brokers, exchanges, or regulatory platforms.
We also guide investors through the next steps if the matter needs to move forward through the grievance or arbitration process.
Getting the right guidance at the right time can make it easier for investors to present their case clearly and ensure that their concerns receive proper attention.
Conclusion
Paytm Money has become a widely used platform for stock trading and investments among retail investors.
As the platform continues to grow, investor complaints have also appeared from time to time, including allegations related to unauthorised trading.
Exchange complaint data shows that such complaints form a small percentage of the total grievances recorded against the broker. However, retail investors should not overlook these numbers.
Even a few complaints can raise important questions about how trades were executed and whether proper authorisation was obtained.
At the same time, investors should remember that a complaint does not automatically confirm a regulatory violation.
Regulators and exchanges examine order logs, communication records, and other evidence before determining whether a trade was truly unauthorised.
For investors, the best approach is to stay alert and regularly review their contract notes, trade confirmations, and account statements.
If they notice trades they do not recognise, they should immediately raise the issue with the broker and follow the proper complaint process.
Taking these steps can help investors protect their interests and ensure that their trading activity remains transparent and properly authorised.
