Security of money with the brokers

[ShubhS9]

You can give this a read.

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…