Upstox's erroneous a/c freeze mail sparks client panic
Mumbai: An erroneous email sent by brokerage Upstox to multiple clients saying trading accounts had been frozen sparked panic during market hours on Wednesday, with
Mumbai: An erroneous email sent by brokerage Upstox to multiple clients saying trading accounts had been frozen sparked panic during market hours on Wednesday, with several users taking to social media to seek clarification. Some clients claimed they exited trading positions and incurred losses after receiving the communication.The email, screenshots of which were widely shared on X and other social media platforms, said, "Due to discrepancies observed post-activation of your account, we have temporarily frozen your trading account.
Please note that your trading and demat account will be closed after 30 days from the date of this intimation."In response to ET's email query, an Upstox spokesperson said the email to clients was an "inadvertent error"."We had immediately sent a follow-up email asking customers to disregard the previous communication and have apologised for any confusion caused.
We would also like to reassure you that our operations remain unaffected and customers' funds and securities are completely safe," the spokesperson said. The brokerage did not disclose further details.A senior executive at another brokerage, who declined to be named, said account closures after the opening of a demat account do not happen frequently and are typically carried out at the direction of stock exchanges or Sebi.
"In this case, the incident could have been human error," the executive said.
The BriefWire