If Your Broker Shuts Down, Are Your Shares Safe?

Your shares sit in your demat at CDSL/NSDL, not with the broker — a broker collapse can't erase them

Since Oct 2024, shares you buy land directly in your demat, bypassing the broker's pool account

If a broker defaults, the exchange's Investor Protection Fund pays eligible claims up to ₹35 lakh

Keep cash with the broker low — opt for running-account settlement and check your CAS monthly

The real risk is unauthorised pledging of your shares, not the broker simply 'losing' them