Safety of funds: How do I know that my funds are safe with RKSV?
Safety of Funds
RKSV ensures the safety of funds when you open a trading account. There are specific ways that we accomplish the safety of funds.
- If you are a broker in India, you have to keep a minimum amount of capital with each exchange in order to remain as a member. The membership requirements are different broker to broker. For the NSE, you can see the requirements here:
Similarly, for the MCX, you can see the requirements here:
http://www.mcxindia.com/membership/feestructure/feedepositstructure.htmThe purpose behind this rule is to ensure that any broker with a membership has adequate capital and net worth.
- RKSV cannot mix its own funds with client funds. Therefore, safety of funds is maximized. All funds from clients need to be maintained in a separate bank account.
- Exchanges, annually, perform thorough audits on all brokers with memberships. One of the critical components they check for has to do with the source of funds from clients, the amount of funds deposited, how much of those funds are with the broker, and how the funds were used. These thorough checks ensure the safety of funds.
- RKSV records all phone calls- this is used as a protective measure to prevent fraud. This, in turn, prevents any possibility of the safety of your funds being compromised.
- Investor Protection Fund – A percentage of all transaction fees go to the Investor Protection Fund which is to help clients recover losses in case of electronic, systematic or other non-client related failures. This is maintained by the NSE/BSE/MCX.
Finally, the best assurance for safety of funds is to see that RKSV is registered with SEBI and FMC with each exchange. All registration numbers can be found at the bottom of our website at www.rksv.in
Furthermore, if you are on our website you can click on our registration numbers on the bottom of every page to see our SEBI and FMC registration certificates.
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