How do I know that my money is safe with Upstox?
There are many rules and regulations that are already in place to ensure that your funds are safe. Here are a few key main points:
- All brokers have to deposit a certain amount of money with the NSE and MCX to become members of the exchanges. This is done in order to ensure that Upstox has capital adequacy and a minimum net worth policy.
- Client funds have to be kept in a separate bank account. A broker cannot mix client and pro funds together in any way.
- Every year, the exchanges perform a thorough audit spanning several days. They check when funds came from clients, how much is with the broker, what they were used for and many other detailed compliance checks. Upstox has passed this check every single year.
- Our calls are on a recorded line. If the broker places an order on behalf of a client, he must have proof of doing that. Using RKSV NestTrader clients can double check who placed the orders by directly calling the exchange.
- Investor Protection Fund--Part of your transaction fees charged by the exchange go to this fund which is set aside to help clients recover losses in case of electronic, systematic or other non-client related failures. This is maintained by the NSE/BSE/MCX.
Furthermore, if you are on our website, you can click on our registration numbers at the bottom of every page to see our SEBI and FMC registration certificates.
As a regulatory requirement, we need to keep a few crores as a deposit with each exchange to become a licensed broker. We have also completed all the formalities required to be a broker.