Hi!
We all Trade on NSE-BSE and also invest in stocks listed on NSE-BSE.
And either for trading or for investing, we do the activities through our respective brokers on these platforms provided by the NSE-BSE. We pay the brokerages to the brokers and taxes and levies to the government.
We Pay Nothing to the Stock Exchanges, who need money to run their activities that are used by us for trading/investing . And yet, we do NOT give even a paisa to either NSE or BSE. The Stock Exchanges are funded by the companies listed on them.
Then why a similar view is NOT taken for the dematerialized stock holding companies, NSDL & CSDL? The holdings in the Demat account of NSDL-CSDL is the result of trading on NSE-BSE.
Therefore, the listing amount for the companies as prescribed by the stock exchanges, should proportionately be increased to cover the expenses for NSDL-CSDL, and an investor should not be asked for any annual or other maintenance charges by NSDL-CSDL.
We, as investors shall only have to pay to NSDL-CSDL, when there is either a credit or debit in our Demat account resulting through purchase or sell of stocks on NSE-BSE. No holding charges.
What will be the advantage?
Today, many Paper Stock Holders , who are not active traders, are not dematerializing their stocks due to maintenance charges. With this arrangement, Paper Certificates shall totally get eliminated, and everyone can have one’s Demat account, wherein the holdings can be credited by onetime payment.
How can this have an advantage to all?
The so called “UnClaimed” dividend has in totality risen above 1100 Crores. This is because, mostly these UnClaimed dividends are claimed, but the companies and registrars find funny excuses to refuse the payment. SEBI has kept this all very subjective, which can change from person to person, handling the situation. No fixed rules.
Same is the case for “Lost Paper Certificates” which go under “Unclaimed Shares”. SEBI does not bother about the investors.
But if the above suggestion is implemented, then there shall be no Unclaimed Shares and Unclaimed Dividend and likely scam in Unclaimed dividend in future (on the lines of Sharepro problem) can be avoided. Or else, such scam is inevitable when this 1100 Crores amount starts approaching hundred thousand Crores, and only SEBI shall be responsible for such a scam.