Multiple Trading Accounts with one NSDL Demat?

#1
Hello All

We all sometimes change brokers, sometimes due to better rates, sometimes better service & other reasons. Many times rather than finally severe old relationships one keeps them inoperative and moves on with the new one, resulting in more than one operative trading account.

Most of my Demat account were NSDL, but still the new brokers kept insisting that I had to open new NSDL accounts through them. My thought was that they just needed a POA on my existing NSDL account...as long as the old trading account was not closed I did not need to inform NSDL/old broker to cancel the old POA.

Maybe it should be possible to open account directly with NSDL and then extend the brokers POA on the account. Why can't two brokers hold POA on one Demat? Why should a user need to open multiple Demat Accounts? The stocks lying in Demat account are not owned by ANY broker. If however, I borrow against them, broker obtains electronically an NSDL lien and only free stocks can be lienmarked!!

So what's the resolution to the problem?

With regards.
Sanjay.
 

a2744010

Active Member
#2
Most of the broker agents push you to open a new a/c as they a) have monthly targets b) earn commission c) company gets charges you pay d) for stamp of 50 they ask you 250. Thogh in reality you can use same nsdl/csdl dp id with 2 or more brokers.

I have RKG a/c linked with kotak and sharekhan linked with SBI. I opened sharekhan way back during reliance power and have had sbi's old demat of motilal oswal. Since people were rushing to open demat they offered me to link any demat I already have thus I got a/c without opening charges. In RKG I paid 50 bucks for stamps and linked kotak as sub-broker was my friend and he saved my 500 bucks. Also I'm sure quite number of RKG a/c owners will confirm the same.

You can save if you insist but 99% chances they won't listen you for reasons stated above. SEBI should strictly do something and not just hunt us by pan card numbers. They should allocate 1 dp to 1 pan just like number potibility in mobile coming. :(
 
#3
So, they simply take additional POAs? What is the documentation aspect?

Thanks for solving this for me. I'll write to NSDL Chairman, with copy to the Finance Minister...let's see what the reaction is...when I accuse NSDL of profiteering from poor consumers like me ;-))

Sanjay.
 

nac

Well-Known Member
#4
I am not sure about this... But seems to be the reason. Some may throw more light on this...

Brokers won't provide any exposure/leverage if we keep our demat account somewhere else but not with the broker you are trading.

If you are gonna trade only in derivatives or without using exposure in CM, you can link your demat account. I don't how many brokers accepting our application form if we don't give POA....
 
#5
I am not sure about this... But seems to be the reason. Some may throw more light on this...

Brokers won't provide any exposure/leverage if we keep our demat account somewhere else but not with the broker you are trading.

If you are gonna trade only in derivatives or without using exposure in CM, you can link your demat account. I don't how many brokers accepting our application form if we don't give POA....
Don't know where it states that POA cannot be given to more than one broker. POA is nothing but authority to act on one's behalf and move the stocks to under lien of the broker.

I am willing to give POA to more than one broker...point is what the procedure for it? That's what needs to be cleared. Once the paper work is cleared...its the broker's decision to lend or not...but I think this is just clerical mentality.....corporate executives are new babus ;-)
 

nac

Well-Known Member
#6
We are giving POA to where we have our demat account not with broker (with whom we are trading).

If you wanna give POA to your broker, then you should have your demat account with him. So its not possible for the broker to allow you to do margin trading in CM.

I guess now I am getting clear. I remember reading similar statement in a thread where the discussion is about zerodha.

Since a277... have linked his account, he can clear this whether his broker allowing him to do margin trading or not...
 
#7
no, the POA is given to the broker, so that he can place/remove lien, even buy/sell stock deposited with the DP, if required. Of course, the executed POA is deposited with the DP by the broker, so that the DP allow him to use it.
 

nac

Well-Known Member
#8
:(

I gotta clarify myself with the broker.

I am sure employees/ex employees from broking firm or sub brokers are surfing this forum. They should be knowing about this...
 

a2744010

Active Member
#9
We are giving POA to where we have our demat account not with broker (with whom we are trading).

If you wanna give POA to your broker, then you should have your demat account with him. So its not possible for the broker to allow you to do margin trading in CM.

I guess now I am getting clear. I remember reading similar statement in a thread where the discussion is about zerodha.

Since a277... have linked his account, he can clear this whether his broker allowing him to do margin trading or not...
I was not getting margins on sharekhan a/c and don't get on RKG too. I am allowed to use only that amount which is laying in my a/c and not a penny more. In sbi/kotak I get margin (5x in sbi/6x in kotak).

I've stopped using sharekhan which I used for intraday. I've to be honest have not logged in since dec last year when I sold some mutual funds running in sharekhan cos kotak started giving mutual fund for no extra charges.

As far as POA is concerend, I guess that 50 rupee stamp duty is paid for POA cos I remember signing on suh stamp paper. And with it there was a 40 pages 50 odd signature form which no one reads. Apart from that I just gave pan xerox copy, a cancelled cheque and id proofs.
 

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