Last week, Sebi banned Karvy Stock Broking Ltd for pledging clients’ shares and transferring Rs 1,096 crore worth of clients’ securities to its group company Karvy Realty Pvt Ltd without their consent. The incident has worried retail investors who are bombarding their brokers with questions and pulling out their contracts. However, the bigger question is, to what extent can an investor trust his broker? What recourse does the investor have if holdings go missing? What precautions can one take to ..
