If your stockbroker defaults, the regulators have put in place strong safeguards to preserve the safety of your holdings and funds.

Holdings

You can store securities electronically in either the CDSL or the NSDL in India. As a depository participant, your stockbroker indirectly manages the securities (i.e. a member of CDSL or NSDL). Because the assets are held safe at the depository, you will be able to transfer your holdings to another stockbroker of your choosing if current stockbroker defaults.
Funds

Stockbrokers, on the other hand, hold funds directly on behalf of their clients. Stockbrokers are required by SEBI to keep client Money in a separate client pool account. These funds can only be used by the stockbroker for their clients' investments and trades.

The Investor Protection Fund, like the DICGC, ensures the safety of your bank deposits. If your bank fails, the Investor Protection Fund ensures the safety of your cash held by your stockbroker (up to Rs. 25 lacs).
If your stockbroker fails to pay you, you have three years to submit a claim for compensation. You can see the eligibility criteria for such claims in this circular from SEBI.


Regarding claims arising from member expulsion/declaration of default, the NSE sets a maximum limit of Rs. 25 lakhs per investor per defaulter/expelled member. BSE, on the other hand, offers coverage up to 15 lakhs.