Finvasia

[raj98]

A lot of customers are still keen to know how you make money if you are working with zero brokerage.

If @Finvasia can explain this clearly, it would be helpful and many traders can taken an informative decision without doubts while choosing the broker.

Can @Finvasia explain this so that we can take informed decision. Waiting...

 

[dpksingh571]

Anyone Facing issue with Nest today(getting disconnected again and again)?

Sent from my Redmi Note 4 using Tapatalk

 

[Mayyappa]

@Finvasia, I have opened Trading and Demat account with you. As part of online registration procedure, I did e-Sign of Demat KYC document. While going thru the document later, I came across a clause which states that "I/We would like to instruct the DP to accept all the pledge instructions in my/our account without any other further instruction from my/our end." which is ticked it as 'Yes'. My question is; Is this common/generic clause with acceptance as 'Yes' for all KYCs you do OR do I need to be concerned about wording "without any other further instruction from my/our end" in the clause? Since it is ticked as 'Yes', does this clause give rights to you to do any transactions or sell my shares without my permission or knowledge? If I am not comfortable with this clause, what is the procedure to revert it to 'No'?

 

[Finvasia]

@Finvasia, I have opened Trading and Demat account with you. As part of online registration procedure, I did e-Sign of Demat KYC document. While going thru the document later, I came across a clause which states that "I/We would like to instruct the DP to accept all the pledge instructions in my/our account without any other further instruction from my/our end." which is ticked it as 'Yes'. My question is; Is this common/generic clause with acceptance as 'Yes' for all KYCs you do OR do I need to be concerned about wording "without any other further instruction from my/our end" in the clause? Since it is ticked as 'Yes', does this clause give rights to you to do any transactions or sell my shares without my permission or knowledge? If I am not comfortable with this clause, what is the procedure to revert it to 'No'?

Hi, This is in reference to the pledge your shares which are placed in your DP account to any other financial institution. Say you wish to pledge your shares in your Demat a/c to any bank or NBFC for LAS, then the system shall auto allow to pledge your shares to any financial institution without asking us to approve your pledge request. Hope it clarifies your doubt.

 

[raj98]

Can @Finvasia explain this so that we can take informed decision. Waiting...

It seems FINVASIA is intentionally avoiding such queries. This raises more and more doubts on the viability of the broker. If someone asks me, I will certainly advice to stay away from such brokers who are not transparent.

 

[Mayyappa]

Hi, This is in reference to the pledge your shares which are placed in your DP account to any other financial institution. Say you wish to pledge your shares in your Demat a/c to any bank or NBFC for LAS, then the system shall auto allow to pledge your shares to any financial institution without asking us to approve your pledge request. Hope it clarifies your doubt.

@Finvasia, Well, I understood the purpose. But why it should do automatically without my knowledge? If I am NOT comfortable with this clause, how can I set it to 'NO'? What is the process to change it?

 

[Infooo]

I started using NEST 3.16 version.. it doesn't launch Nest plus for me. How can I do that..

 

[curiousv]

Hi, This is in reference to the pledge your shares which are placed in your DP account to any other financial institution. Say you wish to pledge your shares in your Demat a/c to any bank or NBFC for LAS, then the system shall auto allow to pledge your shares to any financial institution without asking us to approve your pledge request. Hope it clarifies your doubt.

How can a client pledge shares in our demat account? I mean what a client needs to do ? U said if client wants to pledge but what if client never told u to pledge but u still go ahead and pledge and use that money for your own use ..I believe that is what Karvy did ?

 

[curiousv]

my mentor, a very wise man told to buy liquid bees and pledge that for your trading margins. this way, your main cash is safe in your demat account, in case broker goes broke.

in case you are trading with very less capital, to bother about haircut and the percentage of your capital you lost, one need not worry about broker going broke. we are anyway in a risky business and risk is like eating rusk for us.

So when you pledge liquid bees you are not at risk by broker's default?

 

[curiousv]

In case broker goes broke. Who will provide the margin money to unpledge the shares? Because pledging is one kind of loan one takes, unless the loan amount is again given back, I don't think shares will be unpledged. Correct me if I am wrong.

Do u know when a broker pledge your shares and give you margin money against your shares or mutual funds ..where do they get funds ..I mean who exactly they give your shares to ? do they give to NBFC or NSCCL or they just use their own money? And lets say they give to NBFC ....what is their incentive in this? do they get any interest or kickback from NBFC?