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馃數[Zerodha/Upstox] What to do when your stock broker runs away? Is Zerodha Safe? - YouTube
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Welcome to yet another episode of
Labour Law Advisor my name is Mandeep
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Today I am going to answer your question which
must have come to your mind at least once
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That question is, what if our stockbroker
in the future runs away, gets bankrupt,
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or cheats you, then in that case those
who bought their shares thinking
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that this will create wealth in the
future, will they disappear or what
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will happen to them eventually. Ultimately
are you going to be at loss?
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or if there is any way to escape,
So I am answering this question for two reasons.
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The first reason is that if you
have already opened your
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account with a broker, then you
should know these things.
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The second reason is that if you are thinking of
opening an account, then you should
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be sure of some things, then only
you have to choose your stockbroker.
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So you will know all these things in
this video. If you have not followed
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Labour Law on Instagram, then we have
started putting valuable information
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on that too regularly. Earlier we
use to do timepass but now you can
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follow there and you can follow me
also, I will be happy a little
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Now let's quickly know what can you
suffer if your broker runs away
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[Intro Music]
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So, first of all, you must know the number
of ways, a stockbroker can cheat you.
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or what unethical practices he
will follow to earn more profit which
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you don't know and because of
that your money may also be at stake.
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The first point is that according to
the SEBI rules, it is completely illegal
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for a stockbroker to trade
without your consent,
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using the money lying in your
account to earn profit
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and you will come to
know this regularly
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Another thing is also illegal according
to the Guidelines of SEBI.
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You must have noticed that if you
have opened an account with Zerodha
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or Upstox, with any one of them,
you must have got a POA
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whose printout has to be taken
out, it has to be signed
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and it has to be couriered. By the
way, I have not couriered it till today.
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And it was not compulsory but still
it was encouraged because without
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this the broker cannot sell your
shares. What happens is some brokers
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think that this is a very good
opportunity in the market,
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this person account has a lot of shares
and profit can be earned by utilizing them.
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And after some time we will keep
the shares in his Demat account silently.
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how he will know that? Now,
these problems do not exist with
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the big brokers like Zerodha and
Upstox. Because in their app, you can
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see the statements, you can see the
transaction statement, profit & loss reports,
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Many things are transparent.
And you also get emails when
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something is being bought and sold from
your account. But some small brokers
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are also misusing it, if you have
signed the POA, i.e Power of Attorney
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that means they have the right to
use your shares. So many times, they do
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such practices which noticed by CDSL
What is CDSL? I will tell you shortly
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Now CDSL has given you a TPIN.
About a month ago, an email must
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have come in which CDSL would have sent
you a TPIN. Remember and save the TPIN,
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Whenever you will sell the shares
you have to enter the TPIN to
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authorize the transaction. This ensures
that your shares without your consent
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cannot be sold by the broker
as you have the TPIN.So you just
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have to keep it safe. While selling
shares, you will be brought to the CDSL page
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where you have to enter the TPIN.
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You can sell your shares immediately
after enter entering TPIN.
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The third way, Maybe your broker
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especially a full-service
broker which is not reputed,
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I am not talking about reputed brokers.
But many times brokers give you trading
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calls that may not be so profitable
but they encourage you to buy, buy
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forcefully because whenever you buy
it, it will generate brokerage on it
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brokerage is the broker's main income.
So if you feel that your broker has
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done something like this without
asking you, you can complain to SEBI
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I will also give you the link of
this website is in the description.
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First, you have to create an account by
clicking on Register here, after
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that you can lodge a complaint against
your broker. And SEBI is very strict
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in this matter, will
take immediate action.
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If we are talking about SEBI
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then you must know that
brokers are regulated by SEBI.
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So SEBI audits their books of
accounts from time to time.
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Brokers are also required to submit
all their financial disclosures to SEBI.
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In fact, not every entity can become a
broker so easily. To become a broker,
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One has to maintain a huge entrance
deposit with SEBI, which is refundable
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Since there is a huge cost
in it, not every person can establish
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his brokerage firm, in this, you
have to incur the cost too. And still,
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After establishing a brokerage business if
a firm is involved in wrong practices
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then SEBI suspends or expels
which means they cannot enter
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the brokerage business again during their
entire lifetime. This is a list
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of some brokerage firms which have
been banned or expelled by SEBI from
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time to time. Now before I tell you that
what you should do if the broker runs away
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or gets bankrupt, or what will you
lose, you must know how to choose
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the right broker. So The very first
point is that always check SEBI
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registration number. If SEBI regulates
every broker then it will be
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registered with SEBI and will have a
registration number.If we talk about
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Zerodha, then go to the website of
Zerodha, scroll it and you will
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get a SEBI registration number in the
footer. You have to enter it on the
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SEBI website and click on the GO button,
after that look here, you could see
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both the NSE and BSE registration
numbers of Zerodha
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And the name is also exactly the same.
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What happens many times XYZ
company gets opened, and they put
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a fake registration number on their
website and you get the confidence
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that since it is SEBI registered, it will
be a good company. But you have to check,
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Maybe today I will open my company and
instead of my own SEBI registration
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number, have put the number of Zerodha.
You will believe on seeing it, actually
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you should check whether that number
belongs to this company or not. Similarly,
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if you go to the Upstox website,
then you have to scroll down,
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in the first line of the footer,
you will get the RKSV Securities
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SEBI registration number. RKSV Securities
is the name of the parent company of Upstox.
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So if you search for this number,
then the name "RKSV Securities" should
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come and see here, I have typed on
this SEBI page and click on the Go
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button then "RKSV Securities India Pvt.
Ltd." surely gets displayed.
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So we have verified Upstox and Zerodha
like this. It is compulsory for every broker
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that he must publish his
SEBI registration number
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so that there you will not
have any problem finding it.
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The next point is Charges. It
includes an Account Opening fee,
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AMC (Annual Maintenance Cost) or MMC
(the Monthly Maintenance Cost)
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And Brokerage also. you should look at
these 3 charges. Account opening fee is a
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one-time charge, you do not have to pay it
again and again. So according to me,
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you should have no problem with this
but still, you should know that
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If you open the account in Upstox before
12th date, then it is opening freely.
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Plus you are getting a one year free
subscription of Moneycontrol Pro
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If you want to explore trading,
then for the entire 30 days, you can
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trade at zero brokerage.
This is a very good offer.
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if it will be extended, then I will mention
in the description or if not that means
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it will end on the 12th date and new
offer will launch that also I will
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mention in the description.
Similarly, I will give you the
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link of Zerodha also, if you like
it then you can open that too.
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And full disclosure if you open Demat
account with that link then you will
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support Labour Law Advisor indirectly
without any extra cost.
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If you like our work then this
the way you can support us.
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2nd charge is AMC which is the same for both
Zerodha and Upstox. In Zerodha, AMC is Rs.300
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AMC is Rs.300 plus GST and the same Rs. 300.
In Upstox also but it gets deducted monthly
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so it is known as MMC. Rs.29.5 is
deducted monthly as MMC in Upstox.
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Then comes Brokerage. Brokerage is free
in both Upstox and Zerodha if you hold
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any share for more than a day meaning
Equity Delivery. Whereas in the
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case of a full-service broker, they
charge high fees in the name of the brokerage.
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Because they provide few additional services
also so there is no free brokerage.
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After that, you can see
Users and Ratings. If we talk
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about Zerodha and Upstox they are
India's No.1 and No.2 stockbrokers.
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Their user count is about 10 lakhs to 20
lakhs. They have good apps and their
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ratings are also good. It means you
will not suffer if you go with them
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Similarly, you can check transparency
also. If we talk about Upstox and Zerodha both
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I have accounts with
both of them and in my app itself,
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I can check reports, statements, transactions,
Profit & Loss Report, everything
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I like this the most that I don't
need to wait for monthly reports.
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Whenever I want I can generate
reports for any period.
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Now let's talk about what happens if
your broker goes bankrupt or runs away
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There are 2 cases. The first case is when
you buy shares you have to add funds in
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your app through which you can buy shares.
Suppose you have added funds but you have
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not purchased the shares. That amount
is lying in your trading account.
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That money can be misused. It may
be possible you have added money today,
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Tomorrow the broker goes bankrupt.
And with his bankruptcy, your
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trading account balance also suffered.
For this case, SEBI has been formed for you
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Investor Protection Fund. Without any
further delay if you complain then
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a maximum of up to Rs.15 lakhs can be
claimed. If you claimed after some
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delay but before 3 years then also IPF
can decide at its discretion that
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your claim can be pass or not. And
if you are claiming after 3 years then
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your claim cannot be passed. It is
suggested that even if you are losing
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one rupee then you must claim immediately.
So from where does, IPF get the money?
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Who runs it? For this, I am dropping
a link in the description you can
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read easily. For this particular
claim, you do not need to worry more
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Because if you are making a long-term
investment, then most of the time
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you will not keep a balance in your
trading account. You will add money
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only when you have to buy shares.
After shares are bought, the balance
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in the trading account will be zero
again. Traders have to worry more
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about this because the money remains
lying in their accounts at all times
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Now let's talk, you were holding
shares for a long time, they were
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stored in your Demat account. Then
what will happen, You need to know that
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a stockbroker is just an intermediary
to buy you shares. In reality,
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Your shares are stored in 2 places. Either
CDSL or NSDL. Both Zerodha and Upstox
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store the shares at CDSL. Someday
if your broker gets bankrupt or runs away
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then you can submit an application at CDSL
to transfer your shares to a new broker
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In fact, you can do that also in
the case when you
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are not happy with the services of
your current broker and you want to
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transfer all your holdings to a new
broker. If you want to know how this
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can be done then I have an account
opened in 2016 in Sharekhan. In which I
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had bought Dmart shares at Rs. 750 and
sold at Rs.2400. I know, I know.
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I'm the DIVINE. So I will use that
account to buy 1-2 shares and transfer
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them from Sharekhan to either Upstox
or Zerodha and create a tutorial for
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you. Tell me in the comments if you
need such a tutorial or not.
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Ultimately if you have not seen this video
where I have mentioned that before
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opening a Demat account you should
aware of all the charges. I also
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explained why a discount broker is better
than a full-service broker. So you
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must watch this video. Then if you
think we should shift from full service
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to discount, tell me that in the
comments. I'll create that video
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also in few days. Last night I read a
very disturbing comment. The comment
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was on an offer regarding Upstox on
Youtube Community. From Mr. Zubair Khan
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He said Brother, Don't open an
account here. Because these people
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can do anything to get Rs.400. They
never give detailed information
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regarding charges. Many charges are
there. And brother, it's not that simple
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I had opened the account. I'm at
loss as well. I pay Rs.300 plus GST
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also annually. They also charge a
brokerage of Rs.20 for intraday.
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Don't open. THEY have to earn their profits
THEY mean ME and Labour Law Advisor.
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Now my account is not even getting closed.
One who thinks he can earn profits
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in the share market and can pay
AMC of Rs.300, no need to open an
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account from their link. Because these
people give links anyhow. So that
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some people will open an account every time. Sir, I'll answer point by point
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Because we are pro-transparent
guys. The first point by you is
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that we give the Demat account opening
link multiple times to you for earning
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referral money. Yes, we give. You
should know that if someone is a
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full-time Youtuber, he has already
said bye to the wealth and money.
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Because he cannot become rich from Youtube
Ad Revenue. This is our passion to
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research day and night and create
quality videos for you people and
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add more value to your life. So we do.
And that is why in return, we ask
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for support from our 'Aware Public'.
We just need support that keeps us
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motivated to produce videos in the
future. Some time ago, I uploaded a
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video on how YouTubers earn money. In
that, I have shown you our ad revenue
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also which is not that good. And in
the last, I also told you about our
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expenses for making videos. So, sir,
the matter is such that we provide
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free of cost videos to our viewers.
We never want our viewers to pay
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even a single rupee to watch videos
and we seek only support in return.
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In that also, they do not need to spend
any extra money, they just have to
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use our link. Second thing you said
that we don't inform you about charges.
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I feel very bad about hearing this, I
mean on seeing this written by you.
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Because much time before, I have explained
to you all the charges through a video
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in which I have mentioned charges
of Zerodha, Upstox, and HDFC securities.
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Basically, what are the charges
of full-service brokers and discount
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brokers, I had taught you their
calculations too. So we are fully
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transparent. We keep you informed,
for that reason, we call our viewers
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'Aware Public' which implies that we gave
you all the information, now the decision
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is yours where you should open
your Demat account or anything else
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And what you wrote that you have to
pay Rs.300 as AMC and Rs.20 on
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intraday as brokerage. So, sir, you
should know this. First, you identify
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If you have to buy shares or not. If
yes, then these are the lowest charges
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which any discount broker gives.
And it's not possible to give you all
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the services for free. If this would
happen then they will also close
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their business in some time and go
home. So I'll encourage you to watch
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the Charges video and if you think
you have to buy shares then these
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minimum charges have to bear. So I hope
this answers all your doubts and we
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have just one deal. We will keep you
providing transparent and educational
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content. In return, we want just your
support and if you think that support
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is also not required then it's
your wish. So that's it for today.
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I hope you gain some knowledge from this
video. And if you weren't able to sleep
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peacefully, now you can. Since
now your money in the trading account
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is safe and your shares also. If
you are investing for 30-35 years,
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then nobody can touch your shares
without your will. You are 100% protected
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See you very soon in another new
video. Till then subscribe to our
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channel and can press the bell icon to
not miss any important video like this. Bye.
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