How much funds have you parked with discount brokers?

How much funds you keep in discount broker's trading account?


  • Total voters
    38

iTrade

Well-Known Member
#1
Just an interesting poll to gain an insight into much funds people generally keep with discount brokers.
Note: Having low funds parked doesn't mean that you don't trust the broker. It all depends on one's trading style and risk appetite.
 

iTrade

Well-Known Member
#3
upto 10 Lakh you are secured by NSE, hence no worry,

if you capital is more than 10 lakh, then choose carefully
Really didn't know that. Thanks for sharing. I was trying to find an official statement or document for that but could not find. Do you have any pointers?
 
#7
upto 10 Lakh you are secured by NSE, hence no worry,

if you capital is more than 10 lakh, then choose carefully

I've some doubts about applicability of this 15 lakh security by NSE in all cases of fraud by broker.:confused:


Had this security guarantee of 15 lakh been given by SEBI, it would have been more applicable to all types of losses due to fraud by broker.

Whatever fund we park with our broker for trading/investing, we are free to use that fund through either BSE or NSE. Suppose if I do all of my trade with BSE only, why NSE will give protection to the investors lost amount?

If we go for delivery trade through BSE/NSE and used our DP account (either NSDL/CDSL) to keep these shares. If due to fraud by broker we loss our shares, then neither NSE or BSE are at fault. After settlement role of exchange is over.

We give power of attorney to our broker to deposit or withdraw share to or from our DMAT accounts as per our instructions (except extraordinary circumstances of default by us). If broker misuse this power of attorney then neither NSDL/CDSL or NSE/BSE is liable.

In my view this 15 lakh security is only to cover our losses due to unfulfilled commitment (default) by opposite party during settlement in any trade done through NSE.
It may happen in cases of bankruptcy of the opposite party in a trade due to very big margin pressure in cases of extreme volatility.

As per NSE this investors protection fund of Rs 15 lakh is for loss due to default (not due to forgeries and cheating).

These are my views only and I am not an expert. :confused:
Clarification solicited.
 
Last edited:

Jenu

New Member
#9
I've some doubts about applicability of this 15 lakh security by NSE in all cases of fraud by broker.:confused:


Had this security guarantee of 15 lakh been given by SEBI, it would have been more applicable to all types of losses due to fraud by broker.

Whatever fund we park with our broker for trading/investing, we are free to use that fund through either BSE or NSE. Suppose if I do all of my trade with BSE only, why NSE will give protection to the investors lost amount?

If we go for delivery trade through BSE/NSE and used our DP account (either NSDL/CDSL) to keep these shares. If due to fraud by broker we loss our shares, then neither NSE or BSE are at fault. After settlement role of exchange is over.

We give power of attorney to our broker to deposit or withdraw share to or from our DMAT accounts as per our instructions (except extraordinary circumstances of default by us). If broker misuse this power of attorney then neither NSDL/CDSL or NSE/BSE is liable.

In my view this 15 lakh security is only to cover our losses due to unfulfilled commitment (default) by opposite party during settlement in any trade done through NSE.
It may happen in cases of bankruptcy of the opposite party in a trade due to very big margin pressure in cases of extreme volatility.

As per NSE this investors protection fund of Rs 15 lakh is for loss due to default (not due to forgeries and cheating).

These are my views only and I am not an expert. :confused:
Clarification solicited.


NOTICE issued by NSE on 10th September/2014 due to Unicon Securities defaulter case -
http://theindianstockbrokers.com/unicon-securities-complaints-what-if-your-broker-goes-burst/

NSE asks investors to file claims against Unicon Securities – businesstoday.in
http://www.businesstoday.in/markets...s-against-unicon-securities/story/210198.html
 

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