what if broker got bust

#1
hello everybody
I am interested in investing in stock market through discount broker because of very low delivery brokerage.I have few things in my mind.

1 The business model of these brokers is very competitive and i think they are not earning very much .Suppose they went broke what will happen to our securities lying in their demat account and funds lying in their trading account ?

2 suppose they misuse our poa and sell the securities and keep the money with themselves what can we do ?

3 i Have read that nse will provide relief upto 10 lacs but do they provide this relief to discount brokers clients also.

4 Is there any way that we freeze the securities in demat account and only unfreeze when we have to sell.What is the cost structure for this facility ?

I am interested in quantitative investing so i may be investing with lot of trading so low brokerage will help me alot but i want to know what type of security i have on my account.

thanks in advance
 

OneThatGotAway

Well-Known Member
#3
up to 15 lakhs it;s safe ... i think limit was increased to 25 lakhs with any broker registered with NSE.

Beyond that makes sense to buy Alpha membership if u are above 1 Cr :xD

In Nse eyes all broker are same discount or full so yes they provide relief
 
#6
Dear Bhartesh,

I will not enter into technicalities.

Beyond the pricing, the key element you are looking for is reliability and safety. This is extremely important especially nowadays in 2020.
As mentioned by one member, bank brokers present the clear advantage to be backed by large banks (ICICI, HDFC, Axis, Kotak) and to be solid. We can add Sharekhan having BNP Paribas as only shareholder.

Does it mean that other brokers are not safe? No but with the 5 above you are sure to have a large institution backing them.

Enjoy trading
 

travi

Well-Known Member
#7
Dear Bhartesh,

I will not enter into technicalities.

Beyond the pricing, the key element you are looking for is reliability and safety. This is extremely important especially nowadays in 2020.
As mentioned by one member, bank brokers present the clear advantage to be backed by large banks (ICICI, HDFC, Axis, Kotak) and to be solid. We can add Sharekhan having BNP Paribas as only shareholder.

Does it mean that other brokers are not safe? No but with the 5 above you are sure to have a large institution backing them.

Enjoy trading
You should enter into technicalities.
If you fire a lot of blanks esp. by a sudden surge of posts on a single day, then your credibility is suspected.

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