How do I ensure that my funds safety with RKSV?
How do I ensure my funds safety with RKSV
When you open an account with any financial services provider, it is critical to ensure that your funds are kept safe at all times. Keeping that in mind, RKSV takes every measure it can to ensure that client funds are kept segregated and that funds safety is a top most priority.
RKSV takes numerous steps to ensure that your funds safety is prioritized at all times.
- In India, all brokerage firms, are required to maintain a minimum deposit with each major exchange at all times to not only obtain memberships, but to also continue holding the membership. For more information on the minimum deposits that has to be maintained with the NSE and MCX, visit the following websites.
- By enforcing this requirement, the exchanges weed out brokerage firms that are not well capitalized. The exchanges also ensure that the brokerage firms maintain a minimum net worth at all times.
- It is a SEBI policy that client funds must be separated and segregated into a separate bank account. This is different from the brokerage firm’s account(s). Therefore, even if a brokerage firm does proprietary trading, funds for these trades cannot be mixed with clients funds in any way or form.
- Each year, all exchanges in India perform thorough audits on registered brokerage firms that span several days. The audit serves multiple purposes—it looks at when client funds entered the system, how much is being kept with the broker at any point in time, how and when the funds were used (trading audits), and other related compliance checks. These checks are done annually and in a detailed manner. This ensures safety of customers’ funds.
- RKSV records every single call between a client and RKSV. This is especially important for ‘Call and Trade’ orders, where the broker places an order on behalf of the clients. In case of any dispute, the recorded calls provide proof of exactly what transpired during a particular call. The client can also call the exchange and double check whether or not the broker properly placed the trade on their behalf.
- Exchanges have setup an Investor Protection Fund (IPF), which helps protect clients from losses arising due to the failure of the broker. The fund works by taking a part of the fees paid by the client and placing it into the IPF. A percentage of all transaction fees charged by each exchange go to their respective IPF’s. The main objective of the Investor Protection fund is to help clients recover losses in the rare case that a brokerage firm is responsible for client losses. This can happen in the case of electronic trades gone wrong, or a systematic, non-client-related failure that caused client losses. The IPF is maintained by the NSE, BSE and MCX.
- Furthermore, you can check RKSV’s registration numbers with each exchange by visiting our homepage.
As a general rule of thumb, we always encourage clients to first test our services by opening up a trading account with a small amount. Even if you opt to trade through another broker, we would recommend the same. As your trust grows with your broker, you can always increase your account size over time.
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