In India, there are strict regulations governing all stockbrokers who are registered with SEBI. Therefore, all stockbrokers who are registered with SEBI are safe.
A stockbroker is a financial expert or firm that places client orders in the market. There are many brokers available on the market today. So, it is crucial to know which stock broker in India is safe because we entrust them with our hard-earned money.
Today, we will see which stock broker is safe in India.
Firstly, it is crucial to understand that it is not easy to become a stockbroker in India. All stock brokers are required to abide by the strict guidelines and requirements set by the SEBI.
Secondly, a stock broker merely serves as an intermediary between an investor and a depository. They don't have access to any of our holdings except the funds in the trading account. They are strictly under the regulation of both the depository and SEBI. So, all your money and investments are safe even if the broker flees or declares bankruptcy.
Therefore, all the brokers who are registered with SEBI are safe in India.
Brokers are only permitted to use funds from your trading account to settle dues or deduct brokerage fees. Even these transactions are tracked in the transactions report and are updated. In addition, any transaction will be liable to result in a fine for the broker.
It is crucial to verify whether a broker is registered with SEBI before opening a demat account with any broker. Because brokers registered with SEBI are strictly regulated and safe.
Now, that you are aware of security features associated with opening an account with a stockbroker in India, you might think of opening a demat account. If yes, do consider [Instant Account Opening with Zerodha](https://zerodha.com/open-account?c=ZMPBPJ), the No.1 Discount Broker in India.