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Explained: Sebi's new rule to protect clients' funds from broker misuse

Explained: Sebi's new rule to protect clients' funds from broker misuse

Did you know that small stock brokers can have hundreds of crores of clients' funds just sitting idle in their accounts? It might come as a surprise, but these brokers were allowed to use these funds to generate bank guarantees that they could use for their personal needs, similar to how investors pledge their shares to get cash.

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