fund safety with online broker

I just want to know about safety of funds which you keep with your online broker. what will happen if broker close down or run away with money. What are the regulator guidelines for safety of funds with online broker.
Can anybody throw light on this.

As soon as the broker runs away with your money, you are supposed to file a complaint, and get married if you arent. Because, its your children that will be able to get the money back through legal channels

Thanks bro for suggesting the way for keeping my children's future secure. on serious note can you add something in the topic.

The funds are kept in NSE by the broker, and the funds do not lie with the broker. Thats what brokers have told me.

The question is if broker provide the records to NSE that following client has deposited x-amt of money and following client has withdrawn y-amt of money on daily basis.

the point is your money is safe uptil what nse investor protection fund offers , though how long it will tkae to get is any one guess

Yes the broker can run with you money but its kinds of insured and when ever broker and his team is found they go to jail so its not worth for any one

But yes if the broker desperately requires money he can run

Lets raise the issue on the threads of brokers like zerodha, indiabulls etc. Its a valid point.

If the funds are kept in NSE by the broker then how do you trade in BSE with same fund.

Since the rules of the game are changing very fast,question of investor/trader fund safety is very important.
Earlier we use to deal with the broker having branch/franchise at our neighbourhood.
Now with the resurgence of so many low cost broker, having office at a particular city, all the transactions are being done online, no person is there for one to one contact in case of emergency, safety of funds becomes of utmost importance.
I think we have two low cost broker's threads in this forum, one of them need to come forward to clear the doubt of millions of trader those are still sceptical to leave their neighbour broker for them.

Yes the funds with the online brokers are equally safe as with the funds with street side brokers, as long it is a SEBI registered broker.

Funds Lies in the Brokers account, and not with NSE.

Even in the case of fraud, NSE has a trust called "NSE
Investor Protection Fund" which will compensate your losses upto Rs. 15 lakhs. Similar trust's are also available with BSE and other exchanges also.

So if you lose money upto 15 lakhs, you will get it back. But, if you lose 20 Lakhs, then you will be compensated only upto Rs. 15lakhs only.

Don't just think that online brokers are Risky. Even Street side brokers like Nirmal bang, SMC Global, Indiabulls etc can also go bankrupt.

Remembered the 2008 Lehman brothers bankruptcy?