Not everyone appreciates what we do and not saying that we are the perfect. We have our -'s, but what we have started hopefully is tomorrow's order of broking business.
No one of the 60 people at Zerodha has a brokerage target,
If you were to look at a very similar setup with another broker, 90% of the company has a brokerage target. 3 times, 4 times , 5 times of the salary to be generated as brokerage otherwise lose the job.
Every person has atleast 3 people above him putting pressure if he is not meeting the targets. .
This itself is a recipe for disaster.. Human's are inherently very selfish, they want to first take care of themselves before worrying about what the other person has to go through. What also encourages this behavior in the broking business is that the people around you are already doing the same.
I have always told, you guys on this forum are probably just 0.5% of the trading community, the part of community which is educated and upto date with what is happening around. There are people out there who are being taken for a ride by sub-brokers, relationship managers and so on and forth, claiming that they can make money and so on.. I have seen cases where people still pay 0.1% as futures brokerage and pay Rs 200 per lot on options. Are they foolish, maybe not, but they are ignorant.. Stocks never hit demat account, it always sits in the pool( a very popular broker who has heroine advertising, is known for this ) and so many such things..
I don't know if it is Zerodha or someone else, but it is required that broking business in India has to be changed. I wish that we are in the forefront of this change, but you never know. Broking today has to be run more like a BPO rather than broking.
Back to the question, can a broker sell the stocks and do unauthorized trades? Yes, if the intent is to do it, he can.
What can you do as individuals? Be careful and not associate with anyone who has such records. Consistently monitor your stock holdings and cash positions.
And hopefully tomorrow a lot more brokerages will follow our model of giving the onus of decision making completely on the clients.
Hoping the day happens sooner than later..
Good night..
Good night guys,