Anand Rathi Share and Stock Brokers Limited has disclosed another case of alleged fraud involving unauthorized transfers from a client’s demat account, taking the estimated amount under investigation to around ₹9.35 crore.
The latest disclosure marks the company’s fourth regulatory update on the matter, following earlier announcements made on February 6, March 17 and April 24, 2026.
Shares of the company were trading at ₹522.80, down 0.39 percent from the previous close. Anand Rathi Share and Stock Brokers has a market capitalization of ₹3,298.80 crore.
Second client identified
According to the company’s filing, investigations into an FIR registered on March 16, 2026, have led to the identification of another client who appears to have been defrauded through a similar mechanism.
The case involves:
- Unauthorized off-market transfer of shares.
- Transactions recorded as “gift” transfers.
- Movement of securities outside the normal exchange mechanism.
The company said the affected client is currently unaware of the transfers and will be informed. Necessary remedial steps will also be undertaken.
Broking business unaffected
Anand Rathi clarified that the incident is restricted to its depository participant operations.
The company stated that:
- The fraud does not involve its broking business.
- Corrective measures have already been identified.
- Implementation of these measures is underway.
EOW probe widens
The investigation originated from complaints filed with Pune Police and N.M. Joshi Police Station.
Subsequently:
- An FIR was registered at Deccan Police Station, Pune.
- The Economic Offences Wing (EOW), Pune took over the investigation.
- The newly discovered case has also been reported to the EOW.
The identities of those involved have not been disclosed, and the investigation remains ongoing.
FY26 performance remains strong
Despite the operational issue, the company reported robust financial performance for FY26.
FY26 highlights
- Revenue: ₹1,198 crore, up 22 percent year-on-year.
- Profit after tax: ₹386 crore, up 28 percent.
- Return on equity: 46.7 percent.
The figures indicate continued growth across the company’s financial services businesses.
Wealth management business crosses ₹1 lakh crore milestone
The broader Anand Rathi group achieved a major milestone in April 2026 when Anand Rathi Wealth crossed ₹1 lakh crore in assets under management (AUM).
Other key metrics include:
- Net inflows of ₹13,457 crore, up 6.66 percent year-on-year.
- More than 13,395 client families served globally.
- Position among India’s top three non-bank mutual fund distributors.
The company also completed several capital allocation initiatives during FY26.
These included:
- A 1:1 bonus issue, with shares credited by June 7, 2026.
- A final dividend of ₹7 per share.
- Total FY26 dividend payout of ₹13 per share.
Key issue for investors
The emergence of another victim suggests that authorities are still determining the full extent of the fraud.
Investors are likely to watch:
- Progress of the EOW investigation.
- Effectiveness of internal control measures.
- Potential impact on client confidence.
- Further disclosures from the company.
During the Q4 FY26 earnings call, management said its competitive strength lies in a process-driven approach and focus on delivering risk-adjusted returns to clients.
About the company
Anand Rathi Share and Stock Brokers Limited provides:
- Stock broking services.
- Depository participant services.
- Mutual fund distribution.
- Wealth management solutions.
- Investment services for retail and institutional clients.
TL;DR
Anand Rathi Share and Stock Brokers has reported a second demat fraud case uncovered during the EOW investigation. Estimated exposure has risen to ₹9.35 crore, although the company said the issue is confined to its depository participant business. FY26 revenue and profit grew 22 percent and 28 percent, respectively.
AI Summary
- A second client fraud case has been identified.
- Estimated exposure under investigation has reached ₹9.35 crore.
- The issue relates only to depository participant operations.
- EOW Pune is continuing its investigation.
- FY26 revenue rose 22 percent and PAT increased 28 percent.
