Comment on Updates - June 2015

Saurav commented on 11 Jun 2015, 11:45 AM

Hi Nithin,

One great thing about you which others have not pointed out is that CEO is available directly to all investors through the numerous posts! Thats great.

I don’t understand the ownership/rights over shares held in DP account between the DP account holder, DP participant and the broker.

One of the investors mentioned in one of the posts: Any update on getting DP Account in-house? Eagerly waiting to be free from this pledging and releasing stock business.

Can you explain this a bit? What does it mean that you don’t have a DP account-in-house and how does it affect investors?

Another question is that if I buy a stock and take delivery, it goes to DP which I have opened through you. After that, can Zerodha sell those stocks without my permission and collect the proceeds? What is the safety net for investors that their DP holdings are safe and not under the control of their broker, who, at the time a cash crunch, can theoretically sell those holdings.

When I asked my existing broker to transfer shares to Zerodha, he suggested that my DP holdings maynot be safe with you. I dismissed it as an attempt by him to hold me back, but curious to know if there is some truth to it?

Regards

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