Kotak Securities says additional margin limits were uploaded in few clients’ trading accounts

Kotak Securities said that it inadvertently deposited additional margin limits in the accounts of a few clients. This statement comes after reports of a man from Gujarat receiving Rs 11,677 crore in his Demat account on July 26. The individual invested Rs 2 crore out of it in the stock markets and booked a profit of Rs 5 lakh.

“On 26th July 2022, due to a technical glitch, additional margin limits were inadvertently uploaded in a few clients' trading accounts by Kotak Securities Limited (KSL). These additional limits were reflecting in the clients' trading accounts for a short period. Our IT team had worked on this issue and withdrew the additional limits in a short span of time within the trading hours. We confirm that no amount was transferred to the bank accounts of the clients in this regard. KSL had also promptly reported the said issue to the Exchange on the same day. At KSL we strive hard to make our systems robust and error free to avoid any such incident in the future,”  stated KSL.

On July 26, Ahmedabad-based stock investor, Ramesh Sagar, received the amount in the Demat account he has with Kotak Securities.

Sagar told news agency IANS that he received Rs 116,77,24,43,277.10 in his account, out of which he invested Rs 2 crore in the stock market and booked a profit of Rs 5 lakh. He said that the bank withdrew the money the same day, after about eight hours.

The investor said he received a notification from the bank stating that there was an issue with the margin update in the app. The notification said that he would be able to place orders, but the margin will not be updated.

Also read: Gujarat man mistakenly gets Rs 11,677 crore in Demat account, quickly invests Rs 2 crore