If, for any reason, CDSL and NSDL become bankrupt, face management fraud, or any other issues, what will happen to the shares I am holding? I am just curious to know.
This should never happen. In case it does, do remember that they are always in electronic form, i.e., there is data available across networks.
Hence even if something goes wrong there will be an alternate proposed.
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You won’t lose your holdings if CDSL or NSDL go bankrupt. They are just custodians, not owners of your shares. Your Demat account is linked to your PAN, and SEBI regulations ensure your holdings are separate from the depository’s finances. Even if one fails, SEBI would facilitate transferring holdings to another depository, ensuring your shares remain safe.
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