A lot of us have pledged shares to Dhan in order to get the margin required for trading.
So, let’s say a Black Swan Event hits the market and Dhan is not able to manage the risk and had to declare bankruptcy. (very, very unlikely but hey, that’s why they are called Black Swans, right ?
In such cases, what will happen to the pledged shares?
Are they still going to be in my Demat account?
Or do I need to go through NSE/SEBI to recover those shares?
Or I will loose my pledged instruments
It would be great if you can shed some light on this.
ps: I have full faith in Dhan’s ability to handle any adverse market events; I am just being prudent, that’s all
Hi @kbkalyani56 Yes, it is important to understand such black-swan events… not just for Dhan it can happen to any stock broker, largest or the smallest ones.
Your pledged shares are always in your Demat account. Until sometime back, pledged shares for margin were moved to broker’s account, not anymore. They stay now in your account.
While Indian Regulators do not get enough credit, SEBI has done an incredible job in last few years to make the Market Infrastructure very safe and removed a lot of risks from the system. India possibly leads the way globally for some of these regulatory measures.
