My broker (some small scale local private broker.Dont want to reveal name ) is demanding huge money for applying for ofs & buyback. I am trying to shift everything to zerodha.But before that I want to know,
Is there any way I can apply for buyback &ofs without my broker involvement??
If yes,I want to know how…
I want to know is there any way I can apply for buyback without the interference of my Broker agency.
This is because my broker agency is creating a lot of hurdles in applying for it.
He is knowing my shareholding so he is asking me to pay commission based on my gain.If I am gaining more he is demanding more money.
If I refuse he is saying he will not apply.
Kindly help.
If it is an online trading account, POA would be in favor of broker for debiting shares from demat when you sell stocks. So if the broker has POA, buyback has to kind of get approved by the broker. Even if not POA, the broker will have to be in the loop. So, No.
Btw, you haven’t yet shifted to Zerodha? Anything holding back?
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According to my knowledge I think that POA gives broker the right to debit my shares but then it should not take away my right to debit or transfer my shares and he should get my approval before debiting my shares , not me .
Or is it something else
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@athvik , you can not participate in Buyback or Ofs , Open offer ,D listing without a bse/nse member broker rather most buybacks are only through bse broker. i also deal with a local member broker but charges are normal what i pay in regular buy-sell. what is the contention of broker in asking “huge money” ?
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Thank you ,I have shifted to zerodha and doing all new transactions with zerodha but my old holdings are still with that broker which I am trying to transfer.It may take time since I am out of chennai where I am holding that account from past 5 yrs.Need to go and complete paperwork.
Huge means … For example was holding 1.5 lk worth shares of Infy last year. I tendered it, he waited till last day intentionallly and created a panic in me and on last day he told me that he will personally take this task and he demanded me to pay 1000 Rs extra for it without which he cannot apply.Last year he had created the same problem with applying for ICICI lombard IPO through ICICI Bank Shareholder category and even with some PSU OFS which he failed to apply and later gave me some technical failure as the reason.
He is not creating with issues like ONGC,IOC where gain is marginal.But big gain Buybacks and he will be ready to trouble me.
I dont know how can I handle this
very unusual and unethical practice by your broker. since you shifted your account but you say your old holding are still with old broker , i assume you mean to say with DP . i have my demat account with a cooperative bank DP.broker is not allowed to keep your holdings with him if no dues are there.
I am thinking to log a complaint with SEBI and also request for a policy change where the shareholders can apply for buyback through CDSL/NSDL without consent of Broker.
Just like how people can apply for IPO through Banks blocking their funds through ASBA, similar thing must be done for Buyback where CDSL/NSDL Blocks your shares for Buyback .
I think many people might have faced these issues. I am a small investor,I am thinking what happens with HNIs if any broker does like this.
Most probably this is the batter thing which can be done in future.