My name is Harsh, and I am writing to bring to your immediate attention a serious grievance regarding unethical charges and actions on my Upstox account (UCC: 2ECBMT), which Ibelieve violate both fair practice standards and SEBI guidelines.
I opened my account on 18th October 2024, and at the time of onboarding, your platform clearly stated no hidden charges and a free AMC/QMC for one year. This was one of the primar yreasons I chose Upstox as my broker, trusting the platform due to its association with the TataGroup.
However, on 3rd April 2025, a Quarterly Maintenance Charge (QMC) of ₹75 + 18% GST(₹88.50) was debited from my account without any prior intimation via SMS or email. At the time, my account had a positive balance of ₹28.78, and due to the QMC deduction, my balance turned negative (₹-59.72).
Subsequently, I was charged Delayed Payment Charges of ₹0.03 per day for 8 days, totaling₹0.24, without any communication or alert from Upstox.
Shockingly, on 11th April 2025, my stocks were sold without any consent, intimation, or prior notification. Following this, I was further charged:
RMS NSE Auto Square-off Charges – ₹88.50
Confiscate Charges – ₹59
This brings the total of unauthorized and unexplained charges to ₹147.50, excluding the negative balance and delayed payment charges.
Now, I want to highlight the most concerning part of this incident. The stock sold from my demat account was worth ₹54.29, but after taxes and charges, the realized value was only ₹29.09.Even after forcibly liquidating my holdings, the amount recovered was not suficient to clear thenegative balance of my account, which had already reached around ₹60. Furthermore, thecharges applied post-liquidation — namely the Auto Square-off fee (₹88.50) and Confiscatecharge (₹59) — were significantly higher than the shortfall they aimed to recover. This clearly indicates that the liquidation not only failed to serve its purpose but resulted in additional penalties and deeper losses. If the liquidation did not solve the issue of negative balance, whatwas the justification for proceeding with it at all? Moreover, all of this was done without anywarning, communication, or opportunity to self-correct, which is both unfair and non-transparent.The charges imposed appear arbitrary, punitive, and in direct conflict with basic investorprotection principles.
Furthermore, I would like to point your attention to the SEBI Circular(SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2022/153) dated 11th November 2022, which clearlyoutlines how clients’ securities must be handled and prohibits such arbitrary liquidation withoutdue process and communication.
In light of the above, I request the following actions be taken immediately:
- Full waiver of the QMC charges
- Complete removal of Confiscate Charges
- Refund of RMS NSE Auto Square-off Charges
- Restoration of my account to a positive balance
I sincerely hope this matter will be resolved swiftly and justly, allowing me to resume myinvestment journey with Upstox. I trust your leadership will ensure transparency, accountability,and fairness in handling this matter.
Looking forward to your prompt response.