Recently came across this newsand this has to be one of the wildest broker glitch stories.
Back in 2022, a tech glitch at Kotak Securities mistakenly showed around ₹40 crore of extra margin in a Mumbai trader’s account.
The trader, Gajanan Rajguru, used that margin to take F&O trades. All of this happened in roughly 20 minutes.
He initially lost around ₹54 lakh, then recovered and generated ₹2.38 crore in profits, eventually ending with a net gain of ₹1.75 crore.
Kotak Securities later reversed the incorrect margin and also tried to recover the profit, arguing that the trades were possible only because of the system error.
But in its December 2025 interim order, the Bombay High Court observed that the profits came from the trader’s own market decisions and risk-taking. The money was not generated automatically just because the extra margin appeared in his account.
The court also noted that Kotak Securities had not directly suffered the trading loss, so taking away the profit would effectively mean transferring the trader’s market gains to the broker.
Basically, Kotak Securities provided the margin by mistake, but the trader still had to take the trades and get them right.
Most people find bugs in their trading strategy.
This guy found one in Kotak Securities and ended up making ₹1.75 crore.