What needs to be done while changing brokers

ravi_s_ghosh · #1 1st March 2008, 04:11 PM

Finally I'm say quits to 5paisa/india infoline and going to angel (it seems they are the least evil). Now, i'm concerned about all the paper works needs to be done. Brokers cannot be trusted and hence I thought of putting a question here which can help others going through similar situations:
1. To get my shares transferred to new dp, I need inter depository slips. my old broker will not cooperate with me in providing those slips and transfering shares since i'm closing a/c with them. how to get this done easily.
2. I've given my old broker power of attorney. can they use that to create trouble for me. I've bought mutual funds from them online for which they used this POA. Can they misuse the POA in future in any way. How can I make sure something like this does not happen. I guess they will not be returning me the original POA and I cannot force them to do so with excuses that they have discard it after entry into the computers, etc.

asarkar2 · #2 1st March 2008, 08:02 PM

Recently, I tried close my account with KOTAKSECURITIES.COM, but they are reluctant to do the same. Does anybody know how to take the case with appropriate authority to hasten the matter in order to close my account with KOTAK.

ravi_s_ghosh · #3 2nd March 2008, 01:59 AM

Thats the problem you face whenever you try to close an account. MIght be some guys who have gone through this may help

marcus · #4 2nd March 2008, 02:53 AM

Quote:

Originally Posted by asarkar2

Recently, I tried close my account with KOTAKSECURITIES.COM, but they are reluctant to do the same. Does anybody know how to take the case with appropriate authority to hasten the matter in order to close my account with KOTAK.

go to the office get an account closing form fill it up submit it to them and get the stamp with received time and signature on a photocopy. After that you will have to begin calling them every few days to remind them to close your a/c and transfer whatever money remains.

deepakji · #5 2nd March 2008, 09:10 AM

Hi !
Best alternative is to sell all shares and mutual funds and buy afresh as it is you will make money buying low when the market crashes again. Saves you a lot of trouble.

ravi_s_ghosh · #6 2nd March 2008, 06:59 PM

Quote:

Originally Posted by deepakji

Hi !
Best alternative is to sell all shares and mutual funds and buy afresh as it is you will make money buying low when the market crashes again. Saves you a lot of trouble.

BUt that involves giving out considerable amount of brokerage and loads in case of mf's.

ravi_s_ghosh · #7 2nd March 2008, 07:01 PM

The problem with MF's is that with the POA in hand, a broker can change bank details including account number in which case redemption will go to that a/c instead of mine. BUt I suppose thats something like a theft and "hope" brokers wont do that sort of stuff. but thats only hope!!!!!

wc2007 · #8 2nd March 2008, 07:18 PM

You have to say it loud to them, if you are upset of something, like I will change broker etc. If they don't respond, sell all and go to new broker. Don't forget to Report it to Main Branch of privious broker, so action is taken against then :P

medpal · #9 3rd March 2008, 07:53 PM

eventhough i am relatively inexperienced but had chance to interact with mutiple brokerages.

what i would suggest is:

first open a new account with your desired broker.
when the account is active ask new broker to provide Inter DP transfer forms or slips (sharekhan provides this as default in welcome kit and your id printed as beneficiary).

fill up this slips / forms and provide details about the shares (DP ID where the dematerialised securities are, Beneficiary DPID (new account), ISIN No. Quantity)

this is to be done at your new brokerage house and your old brokerage cant object to it. In worst case scenario they can charge some amount (may be .4 % of value of shares or 10-50 rupees per script)

when transfer completed close your old account.

this proedure is tidious may take anything from 10-20 days after your new account is active.

hope it helps.

if i am wrong i expect corrections by seniors

ravi_s_ghosh · #10 4th March 2008, 02:13 AM

BUt cant the old broker take advantage of POA in regards to already holding mutual funds.