Some mistakes investors must avoid in relationship with their brokers

If you want to make money by lending shares, use the exchange platform meant for this purpose

A Delhi-based broker, Allied Financial Services, is in the news for the wrong reasons. Its activities have allegedly triggered a default by its clearing member, IL&FS Securities Services. Odisha Cement, a client, has alleged that mutual fund (MF) units worth Rs 344 crore were transferred by the broker from the demat account of one of its subsidiaries. While the courts and the regulator probe deeper into the case, let us focus on some of the mistakes investors must avoid in their relationship with their broker.

The first lesson, according to experts, is that clients should confine their relationship with their