Just a General Doubt

[Chander_Shekhar]

If I keep on accumulating shares in my demat account for years and invest in lacs. What if suddenly my broker goes bankrupt ?What happens to my shares and money?

[Joe_Chris]

Your shares are safe with the depositary no matter what

[ShubhS9]

Shares you have invested are safe in your Demat account. Your only concern is funds you’ve deposited in your account which you still haven’t utilized, even in that case SEBI has Investor Protection Fund through which you can claim upto 15 lakhs.

[Bhuvan]

@ShubhS9

You can read more in detail here .

Remove this. We already have answered this on tradingqna itself.

[Bhuvan]

What happens to Pooled shares if broker goes bust

The new regulations from SEBI strictly prohibit the broker to pledge client securities to any third party, even if the securities are not fully paid and if broker has kept it in the pool account until the full amount is paid by the client. But yes, if a broker goes bust and if your stocks is in the pool account and/or you have funds lying with the broker, you potentially could have problem recovering it. This is almost exactly like the way it is with the banks where your funds lie. Banks are a…