Recently there were lot of scams - i.e. Yes bank/Karvy/PNB and more…
So how can we be sure that our broker is not or will not be one of them?
What does SEBI and NSE do to protect clients of brokers? I have heard that SCORES which is complaint management system of NSE is like another customer service and lot of stress dealing with them.
We have hundreds/thousands/lacs of Rupees in our trading account …are not you guys worried? …at times we have seen there is blatant violation of ethics by people in power …let’s say for example one day a broker closes its doors with millions of Rupees in trading accounts - and disappear in to a country where India don’t have any bilateral treaty - what can you do ? or what even SEBI or other regulator could do ?
And most importantly even if there is recourse like arbitration or court case - what about the stress and agony one needs to go through ? So how do we verify that broker is not one of the scammers so we can have a peace of mind?
Your money is not safe in bank, in your pocket, in your home or anywhere else. There is always possibilities of worse case scenarios.
Peace of mind is within. And only solution is, diversification. Hehe.
Open account with 3 various brokers and keep 1/4th of capital with 1 brokers, other 1/4 with 2nd broker and 1/4 with 3rd. Remaining 1/4 with bank in case of margin requirements.
nothing is guaranteed dear.
but if the amount is larger, then central govt can help exchange to bear that amount. in a history, govt helped in UTI scam.
& sebi will continue action in recovering the amount.