Zerodha is forcing demat account conversion (From their own ILFS to Zerodha CDSL)

[superman]

Old Zerodha Customers Beware !

Remember Zerodha used to open IL&FS Demat accounts for us earlier. Now there is big issue :

Dear XXX
We see that the following demat account is linked to your trading account held at Zerodha.

Demat Account Number: XXXX
DP Name: IL&FS Securites Services Limited


In our endeavour to serve you better and ensure a smoother overall experience, we will no longer allow linking of third party demat accounts to Zerodha trading accounts.


By linking a Zerodha demat account, you’re ensured of getting accurate P&L reports, factoring in all corporate actions, access to Coin, our direct mutual fund platform. Our NBFC operations will also commence soon and you will be entitled to all benefits thereof (Loan against shares, margin trading facility, etc.) by virtue of holding a Zerodha demat account.


As such, we request you to open and move your holdings to a Zerodha demat account. For your convenience, a pre filled Zerodha demat form is available in the section of Q. You simply need to print, sign and courier this to us. There would be no account opening charges to open your new Zerodha demat account. Feel free to get in touch with our support desk on 080-40402020 in case of any queries. Please switch your demat account before September 30, 2018. Stocks held in third party demat accounts will stop being shown on the trading platform & hence be unavailable for selling from 1st October 2018.

Regards,
Team Zerodha

 

[superman]

Many may feel its not a big issue but it IS !


1) Apart from what all I buy from Zerodha, I have Govt Bonds ( GOI bonds) ; These are not even tradable ! What will happen to that ? Will that be transferred also to my Zerodha demat ??

2) The prefilled forms only talks about new demat creation. Where is the form to transfer all my holdings?

3) The statement made by Zerodha is wrong - "You simply need to print, sign and courier this to us" , You dont need cancelled cheque ? I see in pre-filled documents its mentioned that we need a cancelled cheque.

4) Also some bonds(especially GOI and Gold bonds) cannot be transferred from NSDL to CDSL. What will happen to those ?

5) Who will take responsibility to close the IL&FS demat account ? Why should i pay double AMC charges each year ?

6) Will the POA given to you for the IL&FS demat account be revoked or I should do that also ?

7) Tax implications , Demat transfer charges ??

Already have wrote my concerns to Zerodha team; Waiting for their response. Feeling angry and pissed off - You cant force customers to move; Zerodha only created ILFS demat accounts for us when they had not yet launched their own Demat account

 

[TracerBullet]

yeah, seems heavy handed. Please update thread once you get response.

One option is to link it with some other broker's account. I am thinking of leaving it unlinked now and later transfer/link to some other broker's account.

 

[superman]

yeah, seems heavy handed. Please update thread once you get response.

One option is to link it with some other broker's account. I am thinking of leaving it unlinked now and later transfer/link to some other broker's account.

No broker is accepting other broker's created demat account now
Its a serious violation of all SEBI rules. Demat was supposed to be interchangeable
Every broker runs always saying its too much hassle to issue a new POA etc etc


I never want to use DIS slips, It scares me to think that it will go through so many manual process and I am welcoming frauds by doing so. Many cases where DIS slips have been forged or duplicated by people and they lost their lifetime worth holdings

 

[monkeybusiness]

Many may feel its not a big issue but it IS !


1) Apart from what all I buy from Zerodha, I have Govt Bonds ( GOI bonds) ; These are not even tradable ! What will happen to that ? Will that be transferred also to my Zerodha demat ??

2) The prefilled forms only talks about new demat creation. Where is the form to transfer all my holdings?

3) The statement made by Zerodha is wrong - "You simply need to print, sign and courier this to us" , You dont need cancelled cheque ? I see in pre-filled documents its mentioned that we need a cancelled cheque.

4) Also some bonds(especially GOI and Gold bonds) cannot be transferred from NSDL to CDSL. What will happen to those ?

5) Who will take responsibility to close the IL&FS demat account ? Why should i pay double AMC charges each year ?

6) Will the POA given to you for the IL&FS demat account be revoked or I should do that also ?

7) Tax implications , Demat transfer charges ??

Already have wrote my concerns to Zerodha team; Waiting for their response. Feeling angry and pissed off - You cant force customers to move; Zerodha only created ILFS demat accounts for us when they had not yet launched their own Demat account

looks like finally time has come to bid adieu to 0dha.

 

[yusi]

Many may feel its not a big issue but it IS !

Disinclined to provide Zerodha with free education anymore, as you have, unless they indicate that they have thought most of it through.

In the past, there hav3 been two occassions to attempt to close a demat account, both were unsuccessful...

In one case, a particular company was demerging. While others could be transferred, these particular shares remained in the account and it could not be closed. This was a decade back. The account is live to this day (account holder has died), and the depository suggested to let it stay that way (value is about Rs 300). They still keep sending reports. In a similar situation, I may have issues with Varun Shipping shares; it has demerged but not yet listed.

In a second case, while all the shares were transferred, the dividend shares of LiquidBees were credited between the submission of closing documents and the actual closing. It is a tiny fractional amount (which in turn accrues dividend shares in tinier fractions), and requires that DIS and closing documents be submitted again.

My assumption is that if similar issues arise in our cases, they will remain our problems.

 

[2021]

No broker is accepting other broker's created demat account now
Its a serious violation of all SEBI rules. Demat was supposed to be interchangeable
Every broker runs always saying its too much hassle to issue a new POA etc etc

Exactly. I even have recorded call of upstox, fyers, rk global and zerodha (and few small brokers) where they denied opening of only trading account. Several excuses made as if customer who wants to link another demat are always uneducated and does not know or will not learn that selling is done with broker who has demat. Most of them have given in written too here or on twitter/fb/email. While this, sebi is sleeping being hand in glove. Some brokers got ready but with clause that chose such and such brokerage. Why should we? Pathetic behaviour, happy not to be on board with any such broker.

 

[traderniftybull]

looks like finally time has come to bid adieu to 0dha.

ha ha
you are still with 0dha
shayad fevicol ka majboot jor hai

I have bid adieu to 0dha, a few years back.

 

[TracerBullet]

Exactly. I even have recorded call of upstox, fyers, rk global and zerodha (and few small brokers) where they denied opening of only trading account. Several excuses made as if customer who wants to link another demat are always uneducated and does not know or will not learn that selling is done with broker who has demat. Most of them have given in written too here or on twitter/fb/email. While this, sebi is sleeping being hand in glove. Some brokers got ready but with clause that chose such and such brokerage. Why should we? Pathetic behaviour, happy not to be on board with any such broker.

Does it include Finvasia too? They do not charge demat AMC fees for their own demat accounts

 

[monkeybusiness]

ha ha
you are still with 0dha
shayad fevicol ka majboot jor hai

I have bid adieu to 0dha, a few years back.

Zero brokerage on equity, tempting for swing trades.