Hello Fellow members,
I am looking for advise on the fact that what happens to money and stocks when the stock broker itself goes bankrupt or goes out of business?
Is the money safe?
Please advise.
Thanks!
Rakesh Verma
P.S. recently read an article here on the same thoughts.
Recently one of this type of incident happened. Unicorn securities which used to charge very low (Rs 5) where the industry standard is Rs20 went broke. Actually a article briefs how the investor could have avoided this.
Better be safe than sorry .
Satish
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Before dealing with any stock broker check his history do enquiries about his relations with Customers.you can check more details on valuebroking.com
Before selecting a stock broking firm, it is very important to get complete information about it.
You will get complete guide on "How To Invest In Stock Market?" here. It will definitely help you to choose right for you.
For most part, a stock broker remains profitable and continues his operations. However, if it goes out of business for some reason, it shall transfer its investments to some other firm. It is his responsibility to safeguard your investment at all costs. Yet, if you feel a stock broker is evading his responsibilities, then it is a failure to comply with the rules of Securities and Exchange Board of India (SEBI). It has clear guidelines for stock brokers to run and close their business.
Ignoring your request would be a case of fraud. You can approach the SEBI or a court and file a lawsuit for breach of contract. There are several provisions in the law which shall provide you the required solution for your problem. In most cases SEBI deals with the broker and helps out the investors. To know more about the available legal options visit financial portals like Value Broking.
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