diff --git a/README.md b/README.md
index b282416a..0282865d 100644
--- a/README.md
+++ b/README.md
@@ -314,7 +314,7 @@ Usage:
   sftpgo portable [flags]
 
 Flags:
-  -C, --advertise-credentials   If the service is advertised via multicast DNS this flag allows to put username/password inside the advertised TXT record
+  -C, --advertise-credentials   If the SFTP service is advertised via multicast DNS this flag allows to put username/password inside the advertised TXT record
   -S, --advertise-service       Advertise SFTP service using multicast DNS (default true)
   -d, --directory string        Path to the directory to serve. This can be an absolute path or a path relative to the current directory (default ".")
   -h, --help                    help for portable
diff --git a/cmd/portable.go b/cmd/portable.go
index cc349220..95c62b76 100644
--- a/cmd/portable.go
+++ b/cmd/portable.go
@@ -74,6 +74,6 @@ func init() {
 	portableCmd.Flags().BoolVarP(&portableAdvertiseService, "advertise-service", "S", true,
 		"Advertise SFTP service using multicast DNS")
 	portableCmd.Flags().BoolVarP(&portableAdvertiseCredentials, "advertise-credentials", "C", false,
-		"If the service is advertised via multicast DNS this flag allows to put username/password inside the advertised TXT record")
+		"If the SFTP service is advertised via multicast DNS this flag allows to put username/password inside the advertised TXT record")
 	rootCmd.AddCommand(portableCmd)
 }
diff --git a/sftpd/handler.go b/sftpd/handler.go
index 6e2f9a39..7ea40130 100644
--- a/sftpd/handler.go
+++ b/sftpd/handler.go
@@ -220,7 +220,9 @@ func (c Connection) Filelist(request *sftp.Request) (sftp.ListerAt, error) {
 		c.Log(logger.LevelDebug, logSender, "requested list file for dir: %#v", p)
 
 		files, err := ioutil.ReadDir(p)
-		if err != nil {
+		if os.IsNotExist(err) {
+			return nil, sftp.ErrSSHFxNoSuchFile
+		} else if err != nil {
 			c.Log(logger.LevelError, logSender, "error listing directory: %#v", err)
 			return nil, sftp.ErrSSHFxFailure
 		}
diff --git a/sftpd/sftpd_test.go b/sftpd/sftpd_test.go
index 2f2d0935..ad758ad5 100644
--- a/sftpd/sftpd_test.go
+++ b/sftpd/sftpd_test.go
@@ -1227,6 +1227,67 @@ func TestMissingFile(t *testing.T) {
 	os.RemoveAll(user.GetHomeDir())
 }
 
+func TestOpenError(t *testing.T) {
+	if runtime.GOOS == "windows" {
+		t.Skip("this test is not available on Windows")
+	}
+	usePubKey := false
+	u := getTestUser(usePubKey)
+	user, _, err := httpd.AddUser(u, http.StatusOK)
+	if err != nil {
+		t.Errorf("unable to add user: %v", err)
+	}
+	os.RemoveAll(user.GetHomeDir())
+	client, err := getSftpClient(user, usePubKey)
+	if err != nil {
+		t.Errorf("unable to create sftp client: %v", err)
+	} else {
+		defer client.Close()
+		os.Chmod(user.GetHomeDir(), 0001)
+		_, err = client.ReadDir(".")
+		if err == nil {
+			t.Errorf("read dir must fail if we have no filesystem read permissions")
+		}
+		os.Chmod(user.GetHomeDir(), 0755)
+		testFileSize := int64(65535)
+		testFileName := "test_file.dat"
+		testFilePath := filepath.Join(user.GetHomeDir(), testFileName)
+		err = createTestFile(testFilePath, testFileSize)
+		if err != nil {
+			t.Errorf("unable to create test file: %v", err)
+		}
+		_, err = client.Stat(testFileName)
+		if err != nil {
+			t.Errorf("file stat error: %v", err)
+		}
+		localDownloadPath := filepath.Join(homeBasePath, "test_download.dat")
+		err = sftpDownloadFile(testFileName, localDownloadPath, testFileSize, client)
+		if err != nil {
+			t.Errorf("file download error: %v", err)
+		}
+		os.Chmod(testFilePath, 0001)
+		err = sftpDownloadFile(testFileName, localDownloadPath, testFileSize, client)
+		if err == nil {
+			t.Errorf("file download must fail if we have no filesystem read permissions")
+		}
+		err = sftpUploadFile(localDownloadPath, testFileName, testFileSize, client)
+		if err == nil {
+			t.Errorf("upload must fail if we have no filesystem write permissions")
+		}
+		os.Chmod(user.GetHomeDir(), 0000)
+		_, err = client.Lstat(testFileName)
+		if err == nil {
+			t.Errorf("file stat must fail if we have no filesystem read permissions")
+		}
+		os.Chmod(user.GetHomeDir(), 0755)
+	}
+	_, err = httpd.RemoveUser(user, http.StatusOK)
+	if err != nil {
+		t.Errorf("unable to remove user: %v", err)
+	}
+	os.RemoveAll(user.GetHomeDir())
+}
+
 func TestOverwriteDirWithFile(t *testing.T) {
 	usePubKey := false
 	u := getTestUser(usePubKey)