Mumbai— A 72-year-old resident of Matunga West has alleged that he lost ₹35 crore after a stockbroking firm and its representatives allegedly misused his and his wife’s demat and trading accounts over a four-year period. The victim, identified in as Bharat Harakchand Shah, says the fraud went unnoticed because the brokerage supplied misleading profit statements while executing unauthorised high-risk trades.

According to the FIR filed with Mumbai police and now with the Economic Offences Wing (EOW), the couple opened demat and trading accounts with Globe Capital Market Limited in 2020 on a broker’s recommendation and transferred inherited shareholdings as collateral. The brokerage allegedly assigned staff as “personal guides” and repeatedly asked for OTPs, SMS access and other credentials — which were used to place large trades without the couple’s informed consent. The EOW has booked the brokerage and two employees in the case.

The scheme reportedly worked by sending the couple regular summary statements showing steady profits while the firm executed circular and high-risk trades that inflated losses on the back end. The victim only discovered the problem in July 2024 when the brokerage’s risk-management team informed them of a debit balance of ₹35 crore and demanded repayment or threatened liquidation of remaining holdings. On downloading detailed transaction logs and comparing them with earlier emailed statements, the couple found major discrepancies.

Legal experts say the case highlights recurring vulnerabilities in the securities ecosystem — particularly for elderly or non-trading investors who hand over control of OTPs, email/SMS access or power-of-attorney to brokers. Regulators and exchanges strictly prohibit unauthorised trading and circular trades; if proven, the accused brokerage could face charges including cheating, criminal breach of trust and manipulation under the Indian Penal Code and securities laws. The Mumbai police’s EOW is investigating to determine the chain of transactions and any regulatory lapses.

This episode serves as a warning for retail investors: never share OTPs or unconditional access to emails/SMS, insist on receiving complete transaction statements directly from the depository (NSDL/CDSL), and periodically verify holdings on the depository and exchange portals. Experts also advise appointing a trusted family member or chartered accountant to review account activity and immediately reporting unexplained debit balances to both the brokerage and the exchange grievance redressal channels.

The EOW investigation is ongoing; the accused brokerage has not publicly issued a statement in the reports cited.