With so many brokers going bust these days, it is scary to trust any broker no matter how big or trusted they are. Currently I am broking with Zerodha but there are many brokers that are sending me messages about the next wave of collapse in discount broking houses.
With recent fall of reputed names like Karvy etc I would like to know the following broker agnostic information:
If I hold account with XYZ broker and these have been delivered shares in my DMAT a/c like CDSL/NSDL shouldn’t that be safe even if broker collapses ?
Can any broker sell shares in my DMAT without my consent at any given point in time ?
If I have idle cash in my broking account can broker use it without my consent ?
In general no one knows the financial health of any broker. What’s the best way to secure your holdings if there are any?
Thanks a lot for that information. I read/heard about SEBI imposing stricter restrictions on pledged shares post the Karvy fallout - are you aware of any such procedures ? . Additionally are there any measures/procedures in place at Zerodha that will prevent such fraudulent transactions ?