Comment on Is fractional share investing possible in India?

Kushal commented on 25 Mar 2022, 11:26 AM

This is a very detailed article. thanks for the clear understanding.

However, almost with every paragraph that went by, I felt the Indian risk management system seems to be far more evolved and robust. Brokers holding shares in the name of clients could introduce systematic risk, right? price matching, risk management, verification of transactions etc become far more dubious if a broker is just making entries in a ledger than actual crediting the ownership to the investor. One can say the same about banks, but again, a bank’s money management policies are highly regulated by RBI, requiring all sorts of collateral for the leverage on its books etc. Would SEBI ever go in managing the risk on the book of a broker and monitor it on a regular basis? Perhaps it already does. But personally, I would never trust a broker (baring the top 3-5 profitable large ones) to be prudent in managing these practices. and regulations are designed for the entire industry, not the select few trustworthy institutions

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