SBI 3 in 1 Account (trading,demat and savings account)

Discussion in 'Brokers & Trading Platforms' started by sam1233, Nov 3, 2007.

  1. rrdesai_goa

    rrdesai_goa Member

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    HDFC brokerage rates are available at
    http://www.hdfcsec.com/Common/Brok_Trade.aspx

    What i like here is the safety part.
    No unauthorised fooling around with shares in your account or your funds.
    Detailed printed and emailed contracts.
    Access to MF, IPOs, FnO etc

    In other words peace of mind while u concentrate on trading,
    but as i said not suitable for day trading only bcos of the software interface.

    so for that best use another broker and enjoy best of both worlds.
     
  2. magnet

    magnet Active Member

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    Yup i have used hdfc for my moms account.......its safest.......but as said not usefull for day trading.....
    brokerage are not that high..Also i dont think for every small reason they charge extra.....also all trading done within market hours..as the market closes funds released automatically to the demat account of your bank.......not lik icici which charges for e instructions and that instructions......
    I was thinking to start an account with icici.....but need to know with an e.g how they charge their brokerage stuff as i get confused...i m not in day trading but still want to know start with them as they support commodity trading which hdfc doesnt

    Where its mention abt sbi -motilal venture???i cant find it on my its site???
     
  3. biyasc

    biyasc Well-Known Member

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    hello, i have been told that hdfcsec min brokerage charges is rs.15. i just want to know that, is the min. brokeage charge of/ rs.15 per trade basis or based on per contract note. hope you will clear my doubt. thanks in advance.
     
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  4. sam1233

    sam1233 Member

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    Somebody called srikanth mentioned in this post

    http://www.traderji.com/brokers-dem...ak-vs-indiabulls-vs-5paise-50.html#post123960

    http://www.traderji.com/brokers-dem...ak-vs-indiabulls-vs-5paise-50.html#post122988
     
  5. sam1233

    sam1233 Member

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    http://sbi.mybroker.motilaloswal.com
     
  6. k vinod kumar

    k vinod kumar New Member

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    For the 3 in 1 account, the client has to sign an
    "Irrevocable power of attorney-cum-standing instructions"
    (extracts listed later) with SBI. There are some problems
    and lacunae in the PoA. Experience of other people
    gleaned from websites like traderji.com suggests that
    such blanket PoAs are prone to misuse, mostly by accident
    and by deliberate vindictive actions occasionally. The FAQ at the
    SBI site clearly explains how the client initiates
    a buy or sell, how the funds or securities are marked
    on lien, how MOSL carries out the buy or sell, transfers
    the affected funds or securities from the clients account
    to the MOSL account and releases the lien on the unaffected
    funds or securities. The FAQ also specifies the time by which
    the lien has to be released. The FAQ also explains how the
    transaction is completed by credit of securities into the client
    demat account in case of buy. In case of sell, the funds account
    of the client will be credited with the sales proceedings. These
    two actions are related to the settlement process of the stock
    exchange.

    Why not frame the PoA based upon the procedure explained in the FAQ?

    Problems and solution:

    Problem

    Under clause(b) MOSL is given sweeping powers.
    The clause (b) theoretically allows MOSL to transfer
    any or all funds/securities out of clients funds and demat
    accounts to MOSL accounts without any precondition. There
    are several reasons why clause (b) has to be tightened.

    Blocking or marking under lien funds/securities is governed
    by clause (a) and it can be only under the instructions of
    the client.
    Transferring funds/securities to MOSL is a much more stronger
    action than blocking/marking under lien funds/securities.
    So the transfer of funds/securities should also be under,
    at least, the same safeguards and instructions.

    The ez-trade@SBI FAQ at
    http://sbi.mybroker.motilaloswal.com/stocks/jsp/sbiuser/faq.htm
    clearly states that MOSL has rights only over the funds/securities
    under lien for a period of one day and that they have to release
    lien on securities/funds not transferred to MOSL.

    So the easiest way is to reword clause (b) as follows:

    (b) without any further instructions from me/us and irrespective of any
    instructions given by me/us to transfer all or any funds and/or securities,
    blocked or held or marked under lien according to
    clause (a) and limited to the extent of the actual transaction
    ,
    from my/our designated accounts ..to the Bank Accounts
    and/or Demat Accounts of MOSL as may be requested for by MOSL.
    For this purpose, Bank may do and carry out all acts and deeds, without
    any limitation, as may be necessary for transfer of such funds and /or
    securities to MOSL. I/We confirm that requests and/or instructions
    given by MOSL for transfer of such funds and/or securities shall
    be completely binding on me/us.



    What I have suggested is to qualify the securities/funds that can be
    transferred by inserting a line:

    ", blocked or held or marked under lien according to clause (a)
    and limited to the extent of the actual transaction,,"


    Clause (c) is redundant as (a), (b) sufficiently outline the operations
    on the accounts of the client. But these clauses do not bind MOSL
    to release of the lien within a day. Moreover, the clauses do
    not bind MOSL to transfer the proceeds of the transaction back
    to the client. So the clauses are better written as:

    (a) Electronic or written instruction by client to MOSL for
    sell/buy leads to block/mark on lien of securities/funds to
    the extent specified by the sell/buy instructions and no more.
    The block/mark on lien will be requested by MOSL and executed by SBI.

    The blocked fund cannot exceed the amount specified in the buy
    instruction. The blocked securities have to be exactly those
    specified in the sell instruction in number and name.

    (b) MOSL (through its online trading platform) will make best effort
    to sell/buy after the block/mark on
    lien (clause a) is successfull. After sell/buy MOSL will instruct
    SBI to transfer the blocked/marked under lien securities/funds
    to the extent and no more of the successful completion
    of the sell/buy instruction from the clients demat/fund account
    to MOSL's demat/fund account.

    (c) After transferring the securities/funds from client account
    to MOSL account as per clause b, the block/lien on the remaining
    securities/funds will be released. The release will happen within
    a day of imposing the block/lien.

    (d) Within the next settlement, MOSL will transfer the funds/securities
    arising from the sell/buy transaction (clause a to b) to the clients
    funds/demat account from MOSL's funds/demat account.

    ----------------------------------------------------------------
    Irrevocable power of attorney-cum-standing instructions (extracts from
    current form)


    To
    State Bank of India
    Branch .....

    Whereas I/We have entered into a Member Client Agreement ("the agreement")
    with Motilal Oswal Securities Limited, ("MOSL") ....
    ... for availing of their on-line trading facilities to invest and/or
    trade in shares and / or securities, ....

    This involves operation of my/our accounts including bank and demat
    accounts maintained with the State Bank of India i("the bank")...

    And for the purpose of availing the on-line trading facility ... it is
    necessary for me ..to give certain irrevocable authorizations/ standing
    instructions in favour of the bank..

    Now therefore, I/We, ..hereby irrevocably authorize State Bank of India
    .. to be my/our true lawful attorney and agent for the following purposes:-

    (a) to block, hold all or any of the funds and/or securities or to mark
    a lien either on the funds and/or securities in my/our
    designated accounts ..in favour of and for the benefit of MOSL as per
    my instructions in electronic form or otherwise...

    (b) without any further instructions from me/us and irrespective of any
    instructions given by me/us. To transfer all or any funds and/or
    securities from my/our designated accounts ..to the Bank Accounts
    and/or Demat Accounts of MOSL as may be requested for by MOSL.
    For this purpose, Bank may do and carry out all acts and deeds,
    without any limitation, as may be necessary for transfer of such
    funds and /or securities to MOSL. I/We confirm that requests
    and/or instructions given by MOSL for transfer of such funds and/or
    securities shall be completely binding on me/us.
    (c) To do all the necessary things, acts in connection with or aforesaid
    purposes.
    (d) I/W shall not be entitled to revoke this authority without consent
    of MOSL so long as I/We continue to avail online trading facility of
    MOSL...

    end extracts from Irrevocable power of attorney-cum-standing instructions
    ---------------------------------------------------------------------------
    http://sbi.mybroker.motilaloswal.com/stocks/jsp/sbiuser/faq.htm

    What is lien (on funds)?
    It means blocking funds in favour of the bank/ broker for
    the purpose of trading/ investing online and to fulfil the customers
    obligation in respect of trade/s executed by the customer and thereof
    for pay-in.
    For what duration is the lien marked?
    The lien marked in favour of the broker is for a period of one day.

    When I mark lien on funds, do they get transferred to the brokers
    account?
    No. On lien marking, the funds do not get transferred. The funds are
    lien marked in favour of the broker on which you will be provided
    exposure for trading activities.

    Who is the owner of the funds when lien is marked?
    On lien marking, the funds in favour of the broker, the broker has
    the right to the funds for that particular day. The funds can only
    be transferred to the brokers account if there is an outstanding
    debit in your account due to trading related activities.

    How does the lien get released?
    The broker will release the lien on funds by 8:30 PM everyday after
    ascertaining the debit in the customers trading account. For example:

    Particular Scenario 1 Scenario 1

    Funds Lien Marked 50, 000.00 50,000.00
    End of Day debit (Ledger Balance) 20, 000.00 0.00
    Fund Transferred to Broker 20, 000.00 0.00
    Lien Released 30, 000.00 50, 000.00



    Can I release the lien marked on funds during the day?
    No, the customer cannot release the funds lien marked in favour
    of the broker during the day. The funds will be released by
    the broker at 8:30 PM after ascertaining the end of day debit
    in your account.


    What is lien (on securities) ?
    It means blocking shares / securities in favour of the bank/ broker
    for the purpose of trading/ investing online and to fulfil
    the customers obligation in respect of trade/s executed by
    the customer and thereof for pay-in

    For what duration is the lien marked?
    The lien marked in favour of the broker is for a period of one day.

    When I mark lien on securities, do they get transferred
    to the brokers account?
    No. On lien marking, the securities do not get transferred.
    The securities are lien marked in favour of the broker on which
    you will be provided exposure for trading activities.

    Who is the owner of the securities when lien is marked?
    On lien marking, the securities in favour of the broker,
    the broker has the right to the securities for that particular
    day. The securities can only be transferred to the brokers account
    if there is an outstanding obligation in your account for pay-in
    of securities, which have been sold by you for delivery.

    How does the lien get released?
    The broker will release the lien on securities by 6:30 PM
    everyday after ascertaining the pay-in obligation in your
    trading account. For example:

    Particular Scenario 1 Scenario 2

    Security Lien Marked Reliance Ind Ltd Reliance Ind Ltd
    Quantity Lien Marked 100 100
    EOD Pay-in obligation 50 0
    Security (Qty) Transferred to Broker 50 0
    Lien Released 50 100

    Can I release the lien marked on Securities during the day?
    No, the customer cannot release the securities lien marked in favour
    of the broker during the day. The broker will release the securities
    at 6:30 PM after ascertaining outstanding obligation in your account
    for pay-in of securities, which have been sold by you for delivery.

    Can I issue transfer securities, which are lien marked?
    No, you cannot transfer securities lien marked in favour of
    the broker until the broker releases the lien.

    Once I mark lien, how soon will my trading account be updated?
    Once the broker gets a success message it will immediately update
    your trading account. This is an automated process.
    ----------end of extracts from faq -------------------------------
     

  7. muralimr

    muralimr Member

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    I have been trading with ICICI and HDFC for past three years.
    I really appreciate if you can provide me one service which ICICI charges and HDFC doesn't charge.

    e-instruction is nothing but off-line buy/sell using internet banking, (there is no e-instruction in HDFC, it is always physical instruction for off-line buy/sell and also HDFC charges)
     
  8. magnet

    magnet Active Member

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    u mean to say phone banking they charge??????hdfc guys???
     
  9. engrvenkatesh

    engrvenkatesh New Member

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    My advise is simple open any account but not icicidircet...Worst trading portal,Worst service..Highest Brokerages.
     
  10. anand.md

    anand.md New Member

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    Hello everybody! can anyone help me.
    I have opened Demat in HDFC. I want to know with HDFC can i trade in commodity.
     
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