Trading account

[leodecaps]

In any indian govt bank, I’d get atleast 5 lacs if I’ve deposited more than that and the bank goes bankrupt or can’t pay its depositors back.

What’s the similar provisions with trading account?

[ShubhS9]

This should clear all your doubts:

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…

[leodecaps]

So, pool shares + cash, 25 lakhs is insured, right?

[siva]

@leodecaps

pool shares + cash, 25 lakhs is insured, right?

Yes.

[RLM]

Do the insurance also cover the money of the pledged shares or the pledged FD ?

[Prayag]

Yes, even pledged shares come under Investor Protection Fund and a claim can be made for them as well. You can check this video for more details about how to make a claim to IPF (this is specifically for NSE, the part that mentions about pledged shares being eligible for claims under IPF starts from 22:58. For BSE, check this document) -

NSE Officials Explain how to apply for the Investor Protection Fund