What Happens to Your Investments if Your Stockbroker Closes?

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Brokerage Shutdown: Your Investments Are Safer Than You Think

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Moneycontrol•24-02-2026, 13:15

Brokerage Shutdown: Your Investments Are Safer Than You Think

•Your equity shares and ETFs are held with depositories (CDSL/NSDL) in your name, not the broker's, ensuring ownership even if the firm collapses.
•Mutual funds are held with the fund house and its registrar; a platform shutdown does not cancel your ownership.
•The main vulnerability is uninvested cash in your trading account, which can be slow to retrieve if a broker is in trouble.
•Regulators and exchanges step in to freeze activity, reconcile holdings, and invoke investor protection funds, though the process can be lengthy.
•To stay safe: regularly download statements, keep surplus cash in your bank, and diversify across multiple brokers if your portfolio is sizable.

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