Would like to know why brokers keep shares in a pool account and how long do a clients shares stay there?

Also pertaining to Zerodha, would llke to it's policies regarding a pool account..

Technically if you are compliant to exchange rules, as soon as the bought stock is delivered on T+2 days, it should be transferred to the client demat account and not kept in brokers pool account. Why do brokers keep it in pool account for longer,

It could be because the client has instructed to save on DP charges. Remember that DP charges come into play only once the shares are sold after taking delivery to demat. If it is sold from pool, there is no DP charges.

It could be because the client has bought this on leverage and doesn’t have 100% of the money, so the broker keeps the shares until he gets 100% cash .

and other such reasons.

At Zerodha as a policy, shares are delivered to the demat as soon as we receive it. We never keep any shares in the pool account.


Thanks for your reply, appreciate Zerodha’s policy :slight_smile: