What happens if your broker dupes you of your margin money

N

newuser_RK

Well-Known Member
#1
#1
I have a query ...

What happens if the brokers takes your margin money ....is there any redressal or safety against this ...

Imagine you deposit 1000000 margin to a new broker offering a irresistible offer and taking this money from 10 clients that will be 10L and then running away from the country...
 
S

Sunny1

Well-Known Member
#2
#2
newuser_RK said:
I have a query ...

What happens if the brokers takes your margin money ....is there any redressal or safety against this ...

Imagine you deposit 1000000 margin to a new broker offering a irresistible offer and taking this money from 10 clients that will be 10L and then running away from the country...
Click to expand...
He cant do this. whenever brokers apply for membership. he has to follow certain rules.

Client margin account is maintained separate as per NSE and SEBI. This account is specially monitored by NSE and SEBI.

Are you planning for such things? :D

Do let us know of your experience.....after finishing...:D
 
N

newuser_RK

Well-Known Member
#3
#3
You are not getting my point
Say NSE takes a security of 1CR from a member

and the broker say has 20 clients of 1L margin margin money each
Now total margin money is say 2CR with broker

Net Profit = 2 - 1 = 1CR take it and escape to POK is this possible ?

NOTE : I am not talking about big established brokers like IIFL but new entrant and small player ....
 
S

Sunny1

Well-Known Member
#4
#4
newuser_RK said:
You are not getting my point
Say NSE takes a security of 1CR from a member

and the broker say has 20 clients of 1L margin margin money each
Now total margin money is say 2CR with broker

Net Profit = 2 - 1 = 1CR take it and escape to POK is this possible ?

NOTE : I am not talking about big established brokers like IIFL but new entrant and small player ....
Click to expand...

yes I understand what you said. I didnt talk about security money at all.

Client margin account is monitored by NSE and SEBI. Each client is registered with nse and sebi. and money he deposits directly in brokers nse monitored account. client should not deposit in any other account than the registered one.
 
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