Safety of money in case of broker going bust

[neha1101]

If a broker close down, isn't the shares in our demat account safe?

I know there is investor protector fund in India to safeguard investors in the event of broker closing down. My question is, even in this case, isn’t the shares in our demat account safe or should the investor worry that the broker will sell the shares in demat without permission and take the money when running away ? If this is the case, is there anyway to protect the demat account , so only with permission of investor the shares can be sold ? My question is not regard to any specific broker ,…

What happens to Pledged Shares if Broker Goes Bankrupt?

Thanks, Abhishek! I am clear about the process of pledging but I still have doubts about the removal of the pledge. As you mentioned, there is a series of pledges that happen when the client authorizes it (broker → CM → CC). My question is that if Zerodha goes out of business tomorrow, how will the pledge be removed? Will they be automatically removed or is there a process that needs to be followed for that? Thanks!

Possibility of Broker's Default

In this panic, Is there any possibility of a broker getting bankrupt/default? How to make sure that our free cash in brokers’s account (apart from holding) is safe? if yes, then how to make our money safe? Should we withdraw our free cash?