Sometimes a technical glitch in the trading app and other times the broker himself is responsible for the major loss of capital for retail traders.
In a few cases, the trader is aware of the glitch and can report it to SEBI or the Exchange at the right time, but sometimes traders themselves are not aware of such issues, resulting in major losses.
Recently, our team came across a rare case where trades were executed on their own from the account of Naveen (name changed), wiping out his entire capital in a few hours.
Here is what actually happened:
Naveen: Hello ADB Team, I need your help and want to file a complaint against my stock broker.
ADB: Yes Mr. Naveen, we are here to help. Please share your concern.
Naveen: I am a lawyer by profession and have been using the ABC broker trading app for the last 6 months to trade in options occasionally. Recently, I was busy with one of my client’s case and didn’t get time to check my trading app all day.
In the evening, when I got free from my work, I opened my trading account and was astonished to see that someone had opened a position in FinNifty call options, resulting in a loss of 70k.
ADB: Okay, so you didn’t open the position?
Naveen: No, I was not even aware.
ADB: Did you try to connect with your broker?
Naveen: Yes, but they say that the position was taken by me and I am not getting any satisfactory response from them.
ADB: Sorry to hear that. In such a case, we can reach out to SEBI.
Naveen: What all is required?
ADB: The trading details of that day and all proofs of chat or call that you had with your broker.
Naveen: Okay, will get it done. Thanks for your guidance.
ADB: You are welcome and feel free to reach out for further assistance.
