InvestorQ : What happens if my DP goes bankrupt or shuts his business?
Nishant Chandani made post

What happens if my DP goes bankrupt or shuts his business?

Answer
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Niti Shenoi answered.
2 years ago


Your shares are not residing with the DP. Your shares are residing with one of the main depositories; CDSL or NSDL, depending on where you have opened your demat account. Hence you need not to worry about your DP going bankrupt. That is not going to impact on your holdings in anyways. Normally, DPs do not go bankrupt. But, in a rare event of your DP going bankrupt or closing the operations, the interests of the investors will be fully protected. In such a situation, the investors will be given an option of either transferring the securities to a new DP or they may rematerialize the securities.