Sign of possible broker failure


I had a question, are there any sign that can predict the possibility of broker failure before it actually happens?

Specially for brokers who use to offer 5X to 10X leverage before the SEBI rules came in. Their business might be impacted now due to the new SEBI margin rules.

Also is there any amount limit guarantee from SEBI in case the broker goes bust?
Does it make a difference if you using the entire margin placed with the broker to trade daily and not a free cash with the broker?

don’t think there is any way to see what’s happening and what’s going to happen… maybe you can keep eye on this list and stay away from brokers who have lots of complaints against then and also on complaints unresolved, that should give you fair idea imo.

shares which we hold are safe in our demat account… for funds exchange has investor protection fund which covers 25 lak in case of default…

SEBI is supposed to have systems in place to detect issues. The guarantee from Investor Protection Fund that all Stock Exchanges need to have is 15 lacs. this link has more info bro