A little bit of context:
I have a large amount of money invested in mutual funds bought online through ICICI and HDFC bank accounts. I also have several small trading and demat accounts with several online brokers that I use to experiment with short-term trading (cash & fno).
As you know, the annual expenses of equity mutual funds (discarding the index funds) range between 2-3%, which is a rather large part of the returns over many years. So I have been looking at moving my mutual fund investments into my own diversified list of stocks to save on these recurring fund expenses. The list of stocks and their quantities may be periodically adjusted, but there won't be too much churn.
The problem is, I don't want to give PoA on my demat account to the broker. I want to keep my demat account with a safe DP and use a different broker to buy/sell equities. After searching the net on this issue, it looks like it is possible to do the following:
1. Link (but no POA) the demat account to the broker, so the shares purchased through the broker automatically get credited to my demat account.
2. For selling stocks, use SPEED-e to transfer shares from demat account to broker's pool account.
I have looked at the charges of many DPs and they range from 0.2% to 0.6% for debit. This is also a considerable expense when the amount involved is large. I finally found one DP (Federal Bank) that charges a flat Rs. 25 for debit and also provides SPEED-e and IDeAS facilities (according to their website). So, I am thinking of opening a new demat account with Federal Bank and use discount brokers like Zerodha or RKSV to buy and sell shares, without giving PoA to anyone.
I have the following questions:
1. Did anybody use Federal Bank demat account? If you used it, how is your experience? Do you recommend it for the above scenario?
2. When shares are transferred from demat account to the broker's pool account (using SPEED-e) at the time of selling, what is the link between the client-id and the transferred shares? If the transfer is done after the sale, I suppose settlement number can be used to link them. But do brokers like Zerodha & RKSV allow sales without having the shares already transferred to their pool account? If they don't, then how do they associate client's account with the transferred shares?
3. Any other ideas?
Thanks.
I have a large amount of money invested in mutual funds bought online through ICICI and HDFC bank accounts. I also have several small trading and demat accounts with several online brokers that I use to experiment with short-term trading (cash & fno).
As you know, the annual expenses of equity mutual funds (discarding the index funds) range between 2-3%, which is a rather large part of the returns over many years. So I have been looking at moving my mutual fund investments into my own diversified list of stocks to save on these recurring fund expenses. The list of stocks and their quantities may be periodically adjusted, but there won't be too much churn.
The problem is, I don't want to give PoA on my demat account to the broker. I want to keep my demat account with a safe DP and use a different broker to buy/sell equities. After searching the net on this issue, it looks like it is possible to do the following:
1. Link (but no POA) the demat account to the broker, so the shares purchased through the broker automatically get credited to my demat account.
2. For selling stocks, use SPEED-e to transfer shares from demat account to broker's pool account.
I have looked at the charges of many DPs and they range from 0.2% to 0.6% for debit. This is also a considerable expense when the amount involved is large. I finally found one DP (Federal Bank) that charges a flat Rs. 25 for debit and also provides SPEED-e and IDeAS facilities (according to their website). So, I am thinking of opening a new demat account with Federal Bank and use discount brokers like Zerodha or RKSV to buy and sell shares, without giving PoA to anyone.
I have the following questions:
1. Did anybody use Federal Bank demat account? If you used it, how is your experience? Do you recommend it for the above scenario?
2. When shares are transferred from demat account to the broker's pool account (using SPEED-e) at the time of selling, what is the link between the client-id and the transferred shares? If the transfer is done after the sale, I suppose settlement number can be used to link them. But do brokers like Zerodha & RKSV allow sales without having the shares already transferred to their pool account? If they don't, then how do they associate client's account with the transferred shares?
3. Any other ideas?
Thanks.
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