Most investors enter the market believing their trades will reflect their own decisions. Orders are expected to be placed only with clear consent, backed by proper confirmation and transparent charges. Brokers play a crucial role in this process, acting as intermediaries who execute trades exactly as authorised by the client.
Problems begin when this control breaks down. In cases of unauthorised trading, investors often discover transactions they never approved, sometimes only after reviewing contract notes or account statements. These situations can raise serious concerns about consent, disclosure, and internal controls within brokerage operations.
Discussions around Globe Capital unauthorised trading have drawn attention to how such violations can occur in practice. Allegations typically revolve around trades being executed without explicit permission, promises made during account onboarding, and a lack of clear communication regarding brokerage charges and trading authority.
This blog examines a reported case involving Globe Capital Market Limited to understand how unauthorised trading situations may develop, what regulatory expectations exist, and what steps investors can take to protect themselves. By understanding where the process failed and how oversight gaps arise, investors can respond more confidently and take informed action when something doesn’t feel right.
Globe Capital Unauthorised Trading Complaint
Globe Capital Market Limited is a full-service financial services company in India. It provides a range of services, including brokerage, portfolio management, mutual funds, and wealth management.
Despite Globe Capital Market Limited publicly warning investors about fake groups and impersonation attempts on social media, concerns continue to surface around how some investors experience unsolicited outreach and account handling issues.
In this case, the investor reports receiving an unexpected phone call from an individual who claimed to represent Globe Capital Market Limited. During the conversation, the caller encouraged the investor to open a Demat and Trading Account, presenting the opportunity as simple and low-risk.
To reinforce confidence, the caller allegedly assured the investor that they could start with a small amount of ₹10,000 and still achieve good returns. The investor initially hesitated, explaining that they had limited time to actively monitor trades and lacked deep trading experience. Instead of stepping back, the caller reportedly offered a solution, claiming that the trading would be managed on the investor’s behalf and that any losses would be “taken care of.”
Following the call, communication continued through a private WhatsApp chat. Messages shared in this chat included promotional statements and assurances related to trading performance. Such private, one-to-one solicitation. especially when combined with promises of returns, raised questions for the investor later, particularly around whether this communication was authorised or compliant.
Based on these assurances, the investor agreed to proceed and transferred funds to open the account. A payment of ₹10,971 was made to Globe Capital Market Limited. Shortly after the funds were credited, trading activity began in the account.
According to the investor, trades were executed without seeking explicit confirmation or consent for each transaction. The account reflected a high number of trades within a short period, all occurring in a single day. This trading activity resulted in a financial loss.
When the investor questioned the loss, the representative reportedly encouraged them to add more funds, stating that the earlier losses could be recovered. This response further increased the investor’s concern, as the losses had occurred without their direct approval or real-time knowledge.
It was only after reviewing the account statements in detail that the investor discovered a significant portion of the initial deposit had been charged as brokerage fees. Out of the ₹10,000 invested, ₹6,807 was reportedly deducted toward brokerage and related charges. The investor states that these charges were never clearly explained at the time of account opening.
Additionally, the investor claims they were not provided with:
- A clear breakdown of brokerage fees and charges
- Risk Disclosure Documents (RDD)
- Written consent authorising anyone to trade on their behalf
- Formal documentation explaining the scope of services
The absence of these basic disclosures and permissions led the investor to believe that the trades were carried out without proper authorisation.
Violations Done by Globe Capital
This case reflects several concerns commonly raised by investors in unauthorised trading penalties:
- Trades executed without explicit client approval
- No written authorisation granting discretionary trading rights
- High trading volumes without the investor’s consent
- Use of return and recovery assurances as persuasion
- Lack of upfront disclosure about brokerage charges
- A significant portion of funds was deducted as brokerage fees
- Absence of risk disclosure documents and formal communication
Taken together, these issues point toward gaps in communication, consent, and transparency — areas that are critical to maintaining investor trust and regulatory compliance.
What You Can Learn From This Case?
This case offers several practical lessons for investors, especially when dealing with brokers or third parties involved in account setup and trading execution. While markets carry risk, problems related to authorisation, disclosure, and control can often be avoided with awareness and caution.
1. Never rely on verbal assurances: Promises made over phone calls or private messages — especially about returns, loss recovery, or “managed trading” — should not be accepted without written documentation. Verbal assurances have no regulatory standing.
2. Trading authority must always be written and explicit: No one is allowed to place trades on an investor’s behalf unless there is clear, written authorisation. Investors should never assume that verbal consent or informal chats are enough.
3. Be cautious of unsolicited calls and messages: Unexpected calls encouraging quick account opening or funding are a common starting point in many complaints. Investors should independently verify the identity of anyone claiming to represent a brokerage firm.
4. Review charges before funding the account: Brokerage fees, taxes, and other charges must be clearly disclosed upfront. A large portion of capital being consumed by brokerage often becomes apparent only after reviewing statements — something investors should do early and regularly.
5. Monitor contract notes and statements closely: Unauthorised trades are often discovered after reviewing daily contract notes or transaction statements. Regular monitoring helps investors identify issues quickly rather than after losses accumulate.
6. No one can guarantee returns or recover losses: Claims suggesting assured profits or guaranteed recovery are red flags. Legitimate market participants cannot eliminate risk or promise outcomes.
7. Do not add funds to “recover” losses without clarity: Requests to add more capital immediately after a loss should prompt investors to pause and reassess, not rush into further commitments.
8. Insist on risk disclosures and formal documentation: Risk Disclosure Documents, service terms, and written communication are essential safeguards. Their absence often signals deeper process issues.
9. Act quickly when something feels wrong: Raising concerns early, asking for explanations in writing, and keeping records can make a significant difference if a dispute arises.
10. Control over your account should never be compromised: Regardless of who offers help or advice, the investor must remain in control of trade approvals, quantities, and account access at all times.
How To Report Such Unauthorised Trading?
Unauthorised trading can cause confusion and stress for investors. Staying calm and following a clear process helps protect your rights and keep records safe.
In India, regulators have set up specific ways for people to raise concerns. Reporting issues on time increases the chances of getting a proper review and solution.
Keeping clear and detailed records is very important during the whole process.
- Step 1: Talk to the broker: Investors should send a message to the broker’s official grievance or compliance email. They need to clearly explain the trades they are disputing, including the dates and amounts involved. Adding documents like contract notes, account statements, and any previous messages can help support their case.
- Step 2: Take the issue to the exchange grievance cell: If the broker doesn’t resolve the problem, the investor can file a complaint with NSE and BSE. Stock exchanges have online portals for handling complaints. Investors should upload all supporting documents for the exchange to review.
- Step 3: Lodge a Complaint in SCORES: The next step is to file a complaint on SEBI’s SCORES platform. This platform lets you track the progress of your complaint. SEBI then forwards the complaint to the relevant intermediary for them to respond.
Need Help?
Unauthorised trading can leave investors feeling cheated and unsure what to do. It’s frustrating when you lose control of your own account, and it can cause a lot of stress and anger.
Many people put their savings in brokers, trusting them to handle their money properly. But when trades happen without their permission, that trust is broken.
We understand how these experiences can really affect someone’s confidence and sense of security. We help investors through every step of getting things resolved.
Reach out to us, and our team clearly explains everything. We’re with you from the moment you decide to file a complaint until the issue is fully settled.
Our support includes:
- Helping you register and write the first complaint
- Gathering and organising all your trading records and evidence
- Talking to the broker and the exchange on your behalf
- Taking the matter to SEBI
- Assisting with the arbitration in stock market process if that’s required
Conclusion
Globe Capital Market Limited is a recognised participant in India’s financial markets and provides various investment services.
As with any trading arrangement, investors need to stay informed and actively participate. They should regularly check their account statements and trade confirmations.
Keeping clear communication and using written authorisation can help maintain control. Being cautious allows investors to spot problems early and take action when needed.
Investors can protect themselves by following practical and consistent steps. They should avoid giving verbal permission for trading and only use written consent. Keeping an eye on contract notes and charges can prevent unexpected issues.
Investors should communicate only through official channels. Taking timely action and making informed decisions helps ensure better financial security.
