Season of misery for India's Financial sector
A company which was started by 5 men who were working CA firm, decided to quit their job and start their own broking firm. when all the brokerage houses majority were operating out of Mumbai, they thought of starting in Hyderabad. A dream that we should have our own broking firm in the top iconic brokerage houses of India was questioned for malpractices. I hope you know which broking firm I'm talking about, Karvy Stock Broking. In the stock market, clients must create their account to invest, which is called Demat account where shares of the individual are stored. similarly, the broker also has an account called Pool account. A pool account is essentially an account where all the shares of the client are deposited and then are sold. if the shares are bought, first they are transferred into the pool account and then into the client Demat account. A broker can't steal the shares directly from the Demat account. Here a document comes into the picture and it ...