Broker alert!!!

Creep

Active Member
#1
People,

If your broker is live on NSEL, National spot exchange Ltd, guess time to be careful.

6000 crore of option positions on the exchange and exchange has only 200 crores in settlement guarantee fund. Exchange has stopped payout, so the risk will eventually come back to the brokerage.

The big ones will be able to absorb, the small ones may not..
 

Creep

Active Member
#2
People,

If your broker is live on NSEL, National spot exchange Ltd, guess time to be careful.

6000 crore of option positions on the exchange and exchange has only 200 crores in settlement guarantee fund. Exchange has stopped payout, so the risk will eventually come back to the brokerage.

The big ones will be able to absorb, the small ones may not..
typo..
6000 crore open positions..
 

whisky

Well-Known Member
#5
Till date we traders raised questions about safe brokers, trustworthy brokers etc. and we always talked about the brokers credibility.

Now it's the time to think differently. The exchange can also go bankrupt.
Don't worry guys, that day will not come, as this is the key source of tax revenues for Govt. and will take care of every exchange. Govt. will act in favor of investors to keep their faith & keep the business going.
 

Creep

Active Member
#7
I am happy to note that me or my company Wisdom Capital is being compared with reputed Brokers Like Motilal Oswal /Edelewiss etc NSEL member.

:D
I was planning to keep quiet, but since you were putting the attitude up of my company and all, since this was also a thread I had started so:

What you wrote is basically how it is being in an illusionary world, so just to bring you back on the ground, you I guess are a sub-broker and not a broker.. There are over 80000 registered subbrokers/authorized persons on the exchange, so yes you are 1 among these 80,000.

Secondly, you as a sub-broker will be probably as much at ignorance as anyone else on what is happening with your main broker, which I guess in your case is Alice blue. If Alice blue does have decent open positions in NSEL, then there is quite a big risk that lies for you yourself, because I don't think you would be knowing what their overall net positions is.

Yesterday on the TV there were many soothsayers, trying to calm everyone saying there is no risk for brokerages. But if exchange eventually defaults, the hit for brokerages will be huge, because the brokerages will also default to the client. It is a chain effect.

Hopefully, nothing like that happens to a market whose sentiment is already damaged.
 
#8
@Dev Mookerji -Any advice on above for your customers & followers:lol:
I had to comment since that joker had asked some idiotic query. Otherwise I don't have time to read nonsense thread and comments like this. (One of my well wisher informed about this comment ).


Hopefully, nothing like that happens to a market whose sentiment is already damaged.
Really !!! then why are you creating panic for the trading community by opening thread like this :D
 
#9
I had to comment since that joker had asked some idiotic query. Otherwise I don't have time to read nonsense thread and comments like this. (One of my well wisher informed about this comment ).




Really !!! then why are you creating panic for the trading community by opening thread like this :D
It's not panic, Dev, it is an alert. At least the ordinary traders now know that even the exchanges can be in financial trouble.
 

Mr.G

Well-Known Member
#10
They had higher liabilities then the payment guarantee fund, If they dont pay up then the brokers will go to court.
 

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