Broker foul play? Shares in Demat vs Shares in Trading A/c

[vinodshegde]

Dear Fellow traders,

I had bought a few stocks in January this year. Recently when I received my DP statement, I was shocked to see none of my stock holdings reflected in my DP account. At the same time, the stocks were accurately reflected on my brokers website and trading software terminal provided by him.

I immediately took up the same issue with my broker and to that the guys replied that the shares are lying in my trading account and were not transferred to my Demat. After my query they said that they will transfer the same to my Demat. Now, the shares are being deposited in bits and pieces.

Is this a normal thing in trading? Or should I be worried about some foul play?

Also, guys once the shares are in my Demat, can I automatically use them as margin? I write a few far spread nifty strangles for better than bank returns.

 

[nac]

^ I doubt he would get any dividend if the stocks are in trading account.

What's the use of demat account and why he should AMC if it just stays in trading account...

Yes, you should be worried.

 

[johnnypareek]

That is usually broker specific. Some broker's register the stocks in the street names instead of the clients name. This way the broker saves costs as he doesn't have to give the company details about each holder. Dividends are sent in broker's name which he then distributes among the share holders. Check with your broker whether the shares are registered in your name or the brokers name. You can get it changed if you wish.

Hmm, thing is, Is broker distributing this honestly?

But then its your money and you have to take care of. If you sleep at night without closing doors, its not others fault but yours if something stolen.