Business Standard

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

stocks, india inc, markets, investment, shares, dividends, brokers, shares, company, firms, BSE, exchange, earnings, results, profit, loss, dividend payout, tax
Premium

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 past year and a half, the Securities and Exchange

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in