Non - trasfer of stocks to dmat account

[da.stock2010]

I am buying stocks for the last 13 months as SIP. Recently, I noticed that though my trading account back office is showing existance of the bought stocks the dmat account/ dp backoffice is showing no holdings. Even, I have received bo statement showing no holding.

When I asked the concerned broker, he says that he doesnot have the responsibility of transferring stocks to dmat account automatically after purchase.

I request all knowledgeable members of the forum to guide me.

 

[SavantGarde]

Do you have any written proof from the broker making the statement....that he is not responsible for transfer to your Demat account....!!!

Suggest you take him to task immediately..... through complains made to Depository (NSDL/CDSL, SEBI & The exchanges...)

Your Broker is keeping the Shares in the pool account which is illegal... if your payment to the Broker is cleared....!!!

Do Not Waste Time on This matter....Take it up as a Priority...!!!

Once you have the shares reflected in your Demat account...!!!

Transfer or SELL all the shares... close everything with the Broker.... and Get another Broker for Demat & Trading Account....!!!

SG

I am buying stocks for the last 13 months as SIP. Recently, I noticed that though my trading account back office is showing existance of the bought stocks the dmat account/ dp backoffice is showing no holdings. Even, I have received bo statement showing no holding.

When I asked the concerned broker, he says that he doesnot have the responsibility of transferring stocks to dmat account automatically after purchase.

I request all knowledgeable members of the forum to guide me.

 

[sanjosedesi]

I agree with SG that this must be tackled immediately. If you do not complain in a timely manner, many companies will not address your concerns.

Assuming the shares are in the pool account ... what might be faster than fixing the DP / demat issue is to ask him to just sell the shares and give you the money back. You have to assume that the broker is not clean ... so talk to him and judge whether you will get your money or not. Saam, Daam, Dand, Bhed ... get your money in your hands.

And once you have received the money, close this account and start complaining about him to all the agencies.

If the shares are not in the pool account, then you need to complain as well as investigate what happened to them. In this case, lodge a complaint immediately.

 

[da.stock2010]

I agree with SG that this must be tackled immediately. If you do not complain in a timely manner, many companies will not address your concerns.

Assuming the shares are in the pool account ... what might be faster than fixing the DP / demat issue is to ask him to just sell the shares and give you the money back. You have to assume that the broker is not clean ... so talk to him and judge whether you will get your money or not. Saam, Daam, Dand, Bhed ... get your money in your hands.

And once you have received the money, close this account and start complaining about him to all the agencies.

If the shares are not in the pool account, then you need to complain as well as investigate what happened to them. In this case, lodge a complaint immediately.

As per your advice, I initially emailed them to transfer the stock to my DMat account. Reply to the email was evasive. Later, they spoke from their head office over phone. When I asked about the matter for transference of stocks to DMat Account they told that they donot have the rule to automatic transfer to DMat account, the Branch Manager has to tell them to do so.

Is their contention correct?

However, they told that the stocks was lying in my trading account. I have sold them all and got transferred most money barring a few hundreds.

Whether stocks being kept in trading account for long time is fair practice?

Now, at time of closing the account they have asked me to fill up closure form for trading and DMat Account. In addition, they have handed me a form asking for reasons for closure.

Is providing reasons for closure is mandatory?

Though, my stocks was never transferred to DMat Account they have deducted annual charges for DMat account. Is it correct?

Thanking in advance.

 

[sanjosedesi]

Since you had the DP in your name, you owe them the charges. Would you not pay the charges if you never traded? You would ... this is no different.

Closure reason ... you can give anything. It is your choice whether you want to escalate the issue or move on.

If you buy shares, they must land up in your DP. If they don't, what is the use of the account? But don't over think ... close the account and move on. A few hundred bucks is nothing compared to the risk you had before.

Best practice is that you should see the shares in your account 2 days after you buy them since that is the settlement window. 5 days (holding for short period) and 3 years (holding for long period) is all equal as technically both are wrong.

As per your advice, I initially emailed them to transfer the stock to my DMat account. Reply to the email was evasive. Later, they spoke from their head office over phone. When I asked about the matter for transference of stocks to DMat Account they told that they donot have the rule to automatic transfer to DMat account, the Branch Manager has to tell them to do so.

Is their contention correct?

However, they told that the stocks was lying in my trading account. I have sold them all and got transferred most money barring a few hundreds.

Whether stocks being kept in trading account for long time is fair practice?

Now, at time of closing the account they have asked me to fill up closure form for trading and DMat Account. In addition, they have handed me a form asking for reasons for closure.

Is providing reasons for closure is mandatory?

Though, my stocks was never transferred to DMat Account they have deducted annual charges for DMat account. Is it correct?

Thanking in advance.

 

[chandra1]

I want to know the actual practice adopted for transfer of shares to dmat account after purchase and from dmat to broker account after a sale, while trading online as well as manual (calling the broker on phone for sale and purchase of shares).

How a delivery of shares is made in online and manual trading system

Does a broker has a reach by himself to investor's dmat account (in online trade) as it is learnt that trader has nothing to do in online system and broker himself makes the delivery of the shares sold. Then a dishonest broker can make a delivery from ones demat account without a sale as well.

Thanks

 

[SavantGarde]

Reply given below is based on assumption that broker has the POA....!!!

We are not discussing actual practice...but the guidelines laid down which every broker & clients have to follow....!!!

If you have bought Shares on Monday which is considered 'T' Trade Day and your ledger has sufficient money for the purchase shall be debited on the 'T' and ledger shall reflect that in the evening...!!!

Obligation for the shares to be credited to your Demat account is T+2 ...which in this case would be Wednesday....by 9.30 am all the obligations are completed by the Demat dept. and by 12.00 noon you should be able to see the purchased quantity of shares in your Demat account....!!!

Incase you have issued cheque for the purchase.....Shares will remain in the Broker's Pool account till the cheque is cleared...!!!
Once the broker has the confirmation of the credit of the cheque from his bank account.. Purchased shares lying in the pool account will be credited next morning before 9.30 am to Your account....!!!

Delivery or Obligation of Pay-in & Pay-out of Shares remain the same for Online or otherwise....!!!

If the shares have been released without a valid Contract Note or an offline Transfer executed through Instruction Slip.... will be considered a fraud perpetrated by the Broker towards that particular client....and necessary complain to the authorities can then be filed....!!!

Other instances where a Broker might sell Client's share due to persistent debit to recover the dues... can only happen with advance notice given to the client.....for which there are rules in place....and brokers have to abide by it without exception.....!!!

SG

I want to know the actual practice adopted for transfer of shares to dmat account after purchase and from dmat to broker account after a sale, while trading online as well as manual (calling the broker on phone for sale and purchase of shares).

How a delivery of shares is made in online and manual trading system

Does a broker has a reach by himself to investor's dmat account (in online trade) as it is learnt that trader has nothing to do in online system and broker himself makes the delivery of the shares sold. Then a dishonest broker can make a delivery from ones demat account without a sale as well.

Thanks

 

[chandra1]

Thanks Savant Sir.

It is now clear that Instruction Slip duly signed in offline mode and a valid Contract Note in online mode is required by a broker, to release shares from a client dmat account.

Thanks

 

[SavantGarde]

Hi Chandra,

Online Clients or Offline Clients there is no differentiation as long as the POA is with the Broker... and sale of shares by You either in Online or Offline Mode will be released automatically...!!!

Offline Transfer through 'DIS' Demat Instruction Slip is for transferring of shares from your Demat account to another Demat account for any number of reasons mentioned on the Instruction slip.....It doesn't have to be for any sale of share in the Secondary market......either Online or Offline.....!!!

Request to please address me simply as SG....Thank You....

SG

Thanks Savant Sir.

It is now clear that Instruction Slip duly signed in offline mode and a valid Contract Note in online mode is required by a broker, to release shares from a client dmat account.

Thanks

 

[da.stock2010]

Thanks @sanjosedesi for the useful answer.

I would like to know if stocks lying in pool account and stocks lying in my trading account is the same thing?