Are we all being ripped off?

mastermind007

Well-Known Member
#1
Today, I got marketing email from State Bank for Demat account. Since I already have demat account with diff brokers, I was about to delete this email. But, before deleting, I accidentally read the last line....

STATE BANK OF INDIA - Banker to Every Indian

Dear Customer,

FREE SBI Demat Account

SBI has tied with SBI Cap Securities Ltd to offer a FREE Demat & Trading account (worth Rs.850/-) alongwith waiver of 1 st year Annual Maintenance Charges (AMC). This is a limited period offer.

Why Demat Account:

1. Mandatory to convert physical shares certificates into dematerialised form to sell the shares
2. Mandatory to apply in IPO's and Offer to Sale (OFS)
3. Investments in dematerialised form are safe, secure and convenient.
4. Account for the future, as all financial documents are likely to be issued in dematerialized form in future.

Advantages of Demat Account:

1. Bonus/Dividends/Right shares/Split Shares allotted to the investor are immediately credited into the Demat account.
2. Transaction costs are lower than that in the physical segment.
3. No risk due to loss on account of fire, theft or mutilation.
4. A Demat account helps avoid problems typically associated with physical share certificates viz. delivery failures due to signature mismatch, postal delays, loss of certificate during transit, risks associated with forgery.
5. Reduced transaction cost as the scrips are stored electronically & hence there is no stamp duty to be paid.

How to get your free Demat Account:

Please SMS Demat to 567676

There are no trading transactions in which I have not had to paid the stamp duty! And I reckon that is true for all (most) of us...

Question is that if there is no stamp duty for demat account, who is getting the stamp duty?

Even the brokers who do provide online calculator dodge this by not showing calculations on screen.
 
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#4
I guess we all must individually send a mail to SEBI and flood its mail account. So that they are forced to look into it once and for all.

Just like they have taken the Sahara case vigorously as lakhs of people are involved there if not crores, the same logic goes here too, in my opinion.
 

shirajroz

Active Member
#5
I guess we all must individually send a mail to SEBI and flood its mail account. So that they are forced to look into it once and for all.

Just like they have taken the Sahara case vigorously as lakhs of people are involved there if not crores, the same logic goes here too, in my opinion.


Yes, its our STOMP DUTY to stomp hard on this stamp duty menace.

Is TRANSPARENCY too much to ask for ?
On Brokers' web sites, the Brokerage Calculator has drop down list for thousands of scrips and other variables but not a drop down list for hardly 29 states for stamp duty rates!!!!
May b they beleive in the saying " what u dont know wont HURT u "
Well v say " what u dont hide wont DIRT u"
 

Riskyman

Well-Known Member
#6
Stamp duty is applicable. However stamp duty is not applicable in the case of a transfer in demat mode. For ex shares go from A to B where B is the nominee then there is no stamp duty. Also guess there is no stamp duty if shares are pledged.
 

mt4trader

Well-Known Member
#7
stamp duty is state government matter, it differ state to state.
now this budget we hope they will make uniform rules in indian states.
 

mastermind007

Well-Known Member
#8
Stamp duty is state government matter, it differ state to state. Now this budget we hope they will make uniform rules in indian states.
mt4

Question in the thread is not about Stamp duty differences between States. State Bank of India, in its promotional email, is advertising "no stamp duty" for demat accounts. So, what on earth are we paying for?
 
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#9
Today, I got marketing email from State Bank for Demat account. Since I already have demat account with diff brokers, I was about to delete this email. But, before deleting, I accidentally read the last line....




There are no trading transactions in which I have not had to paid the stamp duty! And I reckon that is true for all (most) of us...

Question is that if there is no stamp duty for demat account, who is getting the stamp duty?

Even the brokers who do provide online calculator dodge this by not showing calculations on screen.
Can you please post the sender's name ? Wasn't a spammer, was it ? I keep receiving mails for SBI card and what not.
 

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