Web Exclusive

Keep a close watch on the cash you've left lying with your broker

If you are not going to trade frequently, don't leave excess cash in your trading account and make sure check weekly reports sent by the exchange carefully

Topics
stockbroker | Indian equities | Sebi norms

Sanjay Kumar Singh  |  New Delhi 

Around 28 brokers affiliated to the NSE have defaulted since November 2019. Eight have defaulted in the current year. The regularity with which brokers default makes it imperative that retail investors entering the capital markets choose this intermediary with utmost care.

Why are brokers defaulting? The most common reason is that in the past they may have used clients' securities and cash for proprietary trading, and suffered losses. Or they have used one client’s cash or securities to offer enhanced margin to another client, who may have suffered losses. Over the ...

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, July 23 2021. 20:12 IST
RECOMMENDED FOR YOU
.