NDTV Profit reported Wednesday that HDFC Securities said it was not named among the accused in a first information report (FIR) involving alleged unauthorized U.S. stock trades through Stockal.
Borderless, which operates Stockal, said its initial review indicated that valid credentials had been used to access 26 customer accounts. Trades occurred in 13 of them during the Oct. 15 U.S. market session, when holdings in large U.S. companies were sold to fund purchases of thinly traded microcap shares, the company said.
Moneycontrol reported that nearly 30 investors alleged unauthorized access to their accounts. Its preliminary estimate of losses above ₹100 crore was based on losses reported by two investors. The outlet also reported that the FIR mentioned HDFC Securities but did not list the brokerage as an accused.
NDTV Profit reported that HDFC Securities said its operational partnership with Stockal ended in 2024. HDFC Securities announced the partnership Sept. 25, 2019, to give Indian customers access to U.S. investments.
The brokerage’s current global investing page names Vested Finance as its product provider and directs customers with accounts opened before July 19, 2024, to Stockal. The page does not explain the arrangement for those older accounts.
Borderless said DriveWealth LLC notified it Oct. 16 in India about the trading. It said its investigation had found no withdrawals of funds and no evidence so far of a breach of its own systems. Independent cybersecurity specialists were examining the incident, while Borderless and DriveWealth reviewed the trades and sought a resolution for affected customers, the company said.
