Comment on Updates - June 2015

Nithin Kamath commented on 11 Jun 2015, 01:50 PM

Thanks Saurav,

Once the share hits your demat account, it belongs to you completely. A demat is very similar to a savings bank account, once money in that no one can touch. This is also the reason why a POA with right to debit shares is taken when u open an online demat account. The reason being, when you sell, the shares have to be debited from your demat and given to the exchanges.

Currently the demat accounts are maintained by ILFS (biggest pure DP service provider in India), but they work in the background and you never really get to know. ILFS charges a slightly higher AMC of Rs 400/year, and it is also a little inconvenient to pledge stocks. This is what the other guy was referring to.

When you open a demat with us, yes we get the right to debit shares from your demat, but only when you sell or want to pledge the shares. Works exactly the same way with any other online broker in India. Like I explained earlier, we are probably more safe than any other broker out there in India, we have no debt and don’t offer any loans. Your existing broker makes a very high brokerage from you selling delivery holdings with him, so what he is saying is to hold back on you moving your business.

Both depositories NSDL/CDSL, send u an sms as soon as any shares are debited from your demat.

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