Broker Bankrupt

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In case the broker holding the shares of investor goes bankrupt?

Hi,

I have a trading account with some broker & a saving account (which is linked to the trading account) with bank. Suppose the broker goes bankrupt. But the bank is financially stable. then what happens to the shares I have bought? Would I lose my investment?
Replies (3)

nothing to worry 

your shares are safe in demat.

claim it from ur depository and transfer it to another broker by opening a new account

Hello Ankit,

Just make sure that ur holdings are transfered to ur DP account. DP account holdings will always remain safe no matter if ur broker goes bankrupt. Check your DP holdings with CDSL/NSDL with the help of unique BO ID ( Beneficiery Owner ID).

Also activate sms alerts from NSDL/CDSL so as to remain intimated about ur DP account. Its free of cost & any debit or credit to ur DP will be instantly intimated to you by an SMS.


Thank U

Bijoy

 

 

 "There is no gain without pain” is a common adage which many people believe in. Perhaps the gains which they have attained in the various spheres of life have been consistently greater than the proportion of risk and pain taken.

 

Read more at: https://www.moneycontrol.com/news/investing/how-to-control-riskreap-rewardsyour-investments_961429.html?utm_source=ref_article

 

Regards

Ramalingam K, MBA, CFP,                                                                                  

Director and Chief Financial Planner,

Holistic Investment Planners

“Best Performing Financial Advisor Award” Winners from CNBC TV18

www.holisticinvestment.in

(Follow us on):-

https://www.facebook.com/holisticinvestmentplanners

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