Margin Monet for Anad Rathi new A/C?

Margin Money for Anad Rathi new A/C?

Hello

About a week back I filled up an a/c opening form with Anad Rathi through one of their local agent. Today i received a call from that agent informing me that there is a rule change by NSE making every new a/c opening form must be accompanied by a Margin Money cheque of Rs. 10,000 in the name of the broker. At the time of a/c opening the agent told me that there is no obligation for me to invest/ provide any margin money, but now he says there is, though I can withdrew that amount after sending a special request after 7-10 days once the new account is functional.

Is it really true? Has there been a change of rule?

Please help.

Thank you.

I don't think so...

Ask them whether NSE making a new rule or Anandrathi making a new rule...

As per the agent its a new NSE rule...applicable for all brokers

Re: Margin Money for Anad Rathi new A/C?

No, there is no rule as such. This agents get incentives based on margin collected from the clients, hence this call.

Re: Margin Money for Anad Rathi new A/C?

Thank you very much nac and Vijay....
Well I am quite baffled. This fellow is quite known to me. He has been filing my tax returns for quite some time. He is quite a trusted person.
Now I have to look for a new broker with least entry as well as maintenance cost. How about IndiaBulls? Thet have life time free account for Rs. 900/-. Being a small investor and newcomer, I can't really can't find any reason to deposit 10k at one shot.

I just mailed the sub agent informing that I am canceling my application.....I found the whole affair a breach of trust, and if this can happen even before i start doing business through them, I am not sure what is going to happen after I start trading actually

You are over reacting,there is nor breach of trust.To offer a lower brokerage the trader has to commit volumes (all) or deposit a margin cheque of atleast 10k to 25k (eg Angel,Sharekhan (1lakh),Indiabulls(1lakh)) or paid some amount as prepaid brokerage (Reliance,Sharekhan,Angel) or pay some recurring amount per month (eg RK Global,Sharebazaar,Asit C Mehta). This is how it is done. After the account is opened many brokers refuse to lower the brokerage. Before opening the account it is more negotiable.

Well, for IB, I had a talk with their representative, they never mentioned of any margin money even though I specifically asked for it. I am not sure about the other brokers. In my case, the broker never offered me anything special in terms of brokerage, it was normal rate available to anyone opting for a new a/c under that specific scheme. I felt it is breach of trust because they dragged NSE in it and tried to support/legitimize it by wrongly pointing out this as a "new NSE rule". If they have just said that they would require margin money to open and operate a new a/c, it would have been any problem, because as a customer I would have seen it as a transparent process. But if they try to force it upon me after I submit all my documents with application form, I surely think it as a malpractice on both the counts- not informing me beforehand and pushing it as a new NSE rule.

Re: Margin Money for Anad Rathi new A/C?

Please write to NSE and check with NSE directly, they will confirm whether there is such a rule or not and then you can take up the matter with your broker agent.

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Re: Margin Money for Anad Rathi new A/C?

Thanks for the heads up..
Just as I started this thread, I wrote to the NSE through their WEB feedback form regarding this. I am yet to receive any reply, though I had a doubt whether they are going to reply at all considering the scale of the matter in comparison with their scale of operation.