Many people enter the stock market with the goal of growing their savings. They analyse stocks, follow market trends, and look for good investment opportunities.
However, one important aspect of trading often receives less attention: brokerage and trading charges.
Every trade placed through a broker involves certain costs. When trading activity increases, these charges can also accumulate quickly.
Sometimes investors begin to notice frequent trades in their accounts along with rising brokerage deductions.
This raises an important question: are these charges part of normal trading, or is the account being traded more than necessary?
In this article, we review Reliance Securities Limited, examine complaint data related to the broker, explain the concept of brokerage churning, and discuss an arbitration case connected with the broker.
Reliance Securities Excess Charges Overview
Reliance Securities Limited operates as a brokerage firm that provides trading and investment services to retail investors in India.
Through a brokerage account, investors can access stock exchanges, place buy or sell orders, and manage their investment portfolios.
The broker offers services across multiple investment segments. These typically include:
- Equity trading
- Futures and options trading
- Mutual fund investments
- Initial Public Offerings (IPOs)
- Research and advisory services
Like most brokerage firms, the company earns revenue mainly through brokerage fees charged on trades executed in client accounts.
Every time an investor buys or sells a security through a broker, the transaction generates brokerage fees along with certain statutory charges.
Because brokerage applies to each transaction, the frequency of trades in a trading account directly affects the total charges paid by the investor.
Understanding this relationship between trading activity and brokerage charges helps investors monitor how their accounts operate.
Churning in the Stock Market
In a normal trading account, investors decide when to buy or sell securities based on their investment strategy.
Some investors trade occasionally, while others may trade more actively depending on their approach.
However, a situation called brokerage churning can occur when a trading account shows excessive buying and selling of securities, mainly generating brokerage fees rather than benefiting the investor.
For example, consider an investor who deposits ₹5 lakh in a trading account.
If the account shows frequent buying and selling within short intervals, the brokerage fee applied to each trade begins to accumulate.
Even if the investor does not see meaningful growth in the portfolio, the total charges may continue increasing.
However, when trading activity appears unusually frequent, and brokerage charges increase rapidly, investors may start reviewing their account statements more carefully.
Reliance Securities Excess Charges Complaints
Investor complaints often provide useful insight into the issues traders may face while dealing with brokerage firms.
Stock exchanges track and publish complaint data every year to improve transparency in the securities market.
Complaint records related to Reliance Securities Limited show the number of grievances registered by investors in recent years.
These complaints may involve different concerns, including service issues, trading disputes, or questions related to brokerage charges.
The table below summarises the complaint data for the broker across recent financial years.
| Year | Total Complaints Registered | Complaints Related to Excess Charges |
|---|---|---|
| 2021–22 | 41 | Around 3 |
| 2022–23 | 39 | Around 3 |
| 2023–24 | 36 | Around 2 |
| 2024–25 | 33 | Around 2 |
| 2025–26 | 31 | Around 2 |
The data shows that the total number of complaints has gradually declined over the years. Complaints reduced from 41 in 2021–22 to 31 in 2025–26.
At the same time, the table also shows that Type V complaints appear each year. These complaints generally represent matters that reach more serious stages of the exchange grievance process.
A small number of complaints reaching this stage does not automatically indicate misconduct.
In certain cases, investor discussions also reference topics such as Reliance Securities Unauthorised trading, particularly when account activity appears inconsistent with the investor’s intended trading strategy.
However, such cases show that certain disputes between investors and the broker required review through the formal complaint mechanism.
Impact of These Complaints on Retail Investors
Complaint data can offer useful insight into the experiences of retail investors dealing with brokerage firms.
The table above shows that investors have continued to raise grievances against Reliance Securities Limited over the past few years.
Although the total number of complaints has gradually declined, the presence of Type V complaints each year indicates that some disputes have reached more serious stages of the grievance process.
For retail investors, such disputes can have practical consequences.
Issues related to trading activity or brokerage charges may affect investment returns, especially when frequent trades lead to higher transaction costs.
These complaints also highlight why many investors pay close attention to trading frequency, brokerage deductions, and contract notes in their accounts.
Monitoring these factors can help investors identify potential concerns early and take appropriate steps if necessary.
When Can Brokerage Churning Be Suspected?
Active trading alone does not indicate any problem in a trading account. Some investors prefer short-term strategies and intentionally trade more often.
However, certain patterns may prompt investors to review their trading activity more carefully.
1. Unusually Frequent Trades
One possible sign appears when the trading account shows a large number of buy and sell transactions within a short period.
If the account records continuous trading without a clear investment strategy, investors may begin questioning whether all the trades were necessary.
2. Repeated Trading in the Same Securities
Another situation arises when the same stock appears repeatedly in the trading statement.
Frequent buying and selling of the same security within a short time frame can draw attention to the trading pattern in the account.
3. High Brokerage Compared to Investment Capital
Brokerage charges apply to every trade executed through a brokerage account.
When trading frequency increases, the total brokerage can also rise.
Investors sometimes review their accounts when the overall charges appear high relative to their investment capital.
4. Trades the Investor Does Not Recall Approving
Some investors raise concerns when they notice transactions they do not clearly remember approving.
In such cases, they usually review their contract notes and trading statements to verify the details of those trades.
5. Lack of a Clear Investment Strategy
A trading account that shows constant buying and selling without a clear investment approach may also prompt investors to examine their trading activity more closely.
These signs do not automatically prove brokerage churning.
However, they may encourage investors to review their account statements and seek clarification if the trading activity appears unusual.
In some situations, disputes related to trading activity and brokerage charges move beyond internal communication and enter the exchange dispute resolution process.
How to File a Complaint Against a Stock Broker in India?
Investors who face issues with their trading accounts are not without options.
The securities market in India provides a structured grievance redressal system that allows investors to raise complaints against brokers when disputes arise.
If an investor notices issues such as unauthorised trading, excessive brokerage charges, misleading advice, or other service-related problems, they can follow a step-by-step process to raise their concerns.
1. Contact the Broker First
The first step usually involves contacting the broker’s customer support or grievance redressal department. Many issues can sometimes be resolved directly at this stage.
Investors can submit their concerns through email, customer support portals, or the official complaint channels provided by the broker.
2. File a Complaint with the Stock Exchange
If the issue remains unresolved, investors can approach the stock exchange where the broker is registered.
You can file your complaint at NSE or BSE Limited, which deal with investor grievance cells to handle such complaints.
Investors can submit their complaints online through the exchange grievance portals. The exchange then reviews the complaint and may ask the broker to provide clarification.
3. Submit a Complaint Through SCORES
Investors can also file complaints through the Securities and Exchange Board of India complaint platform known as SEBI SCORES.
SCORES allows investors to submit grievances related to brokers, listed companies, and other market intermediaries.
Once the complaint is filed, the regulator forwards it to the concerned entity for resolution.
4. Arbitration Through the Stock Exchange
If the complaint still remains unresolved, the matter may proceed to arbitration through the stock exchange.
Arbitration panels review the evidence provided by both parties and issue a decision based on the records submitted.
This arbitration mechanism plays an important role in resolving disputes between investors and brokers without requiring lengthy court proceedings.
Understanding this process helps investors know the options available if they face concerns related to trading activity, brokerage charges, or other issues in their accounts.
Need Help?
Disputes with stock brokers can sometimes become difficult for investors to resolve on their own. Issues such as unauthorised trades, excessive brokerage charges, or misleading advice may require a closer review of trading records.
If you believe that a broker’s actions have caused financial loss, you may consider seeking professional assistance.
You can register with us, and our team will review your case and guide you on the possible steps available for pursuing the matter through the appropriate grievance channels.
Also, we will help you in tracking the online SEBI complaint status.
Conclusion
Trading charges form a normal part of investing in the stock market.
Brokers charge fees for executing trades, and exchanges apply statutory costs to every transaction.
However, investors should remain aware of how trading activity in their accounts affects the total brokerage they pay.
In this article, we reviewed Reliance Securities Limited, examined complaint data related to the broker, and explained how brokerage churning can occur when trading activity becomes unusually frequent.
We also discussed an arbitration case connected with the broker and explored the steps investors can take if they face disputes with a stock broker.
Monitoring trading statements, reviewing contract notes, and understanding brokerage charges can help investors stay informed about the activity in their accounts.
If concerns arise, investors can use the available grievance mechanisms to seek clarification or resolution.
