Have you ever imagined if Zerodha, Groww, Sharekhan, etc. shut down?
What would happen to your investments?
You'll most probably panic if your broker is out of business.
But, you need not worry!
The broker only plays a role as an intermediary between the user and the stock exchange.
The broker never stores stocks with them.
The shares are stored in the depositories known as CDSL and NSDL.
These depositories are highly regulated by SEBI.
Thus, you can easily transfer shares from the old to a new broker.
The primary task of the brokerage firms is to make investing seamless for us.
But if you have a cash balance in your demat account, it can be a little concern if your broker shuts down.
You can apply to the Investor Protection Fund (IPF), set up by SEBI to receive compensation on time.
You should keep yourself aware of the working and reputation of your broker.
Which Demat account do you use and why?