Is my Money Secure in Stock Market Investments?

Absolutely, invested money in stock markets is 100% secure in stock markets provided your stockbroker or brokerage is a SEBI registered.

A Stockbroker should be SEBI registered. SEBI follows strict regulations regarding the security of money in Demat and Trading accounts. Also as the technology using by stock exchanges is very fine, no way of fraud in money transactions with Demat accounts.

So, before openings demat account confirm that your broker is SEBI registered. Also remember, there is no need to give any direct cash payment to broker cash trading account, instead always give in the form of cheque or D.D form, which are much safer form and no chance of any misuse by sub-brokers.

“Here readers should not understand the security of money as risk, which is a different concept that always exist in stock markets”

Instead of all these security labels, unfortunately there reported some misshapes on money transactions between stock trading accounts. Its best fit to use the word “Technical Mistakes/Errors” for this miss-happens, instead of ‘fraud’ or ‘misuse’. Online platform is source of many of these technical mistakes.

Some examples of these are:

Missed-orders, wrong orders or order cancellations
Your money may harvest in orders that you may not be placed actually. These are due to technical errors or technical incompatibility between exchanges and brokerages. But many brokerages are resolving these mistakes within 15days you may also complain about this type of issues in sebi official website.

Problems with online passwords:
We should work with extreme care while entering and saving online account passwords, and to change them timely. Indecimate use of online passwords would result in heavy misuses. It’s always preferable to work with your online trading account on own pc. But it’s not a big problem as many brokerages allow money transfer from trading account to single bank account only (that is registered with trading account), so that even third persons that know your password cannot able to transfer money to his account.

Conclusion: Money in trading accounts is absolutely secure; cases of misuse or technical mistakes are very very minor.