I have two demat accounts. I used zerodha for trading and angel broking for long term bets. Generally, I check angel broking account weekly or biweekly basis. Today, when I checked angel broking account for demat holding, I see following
It says holding are in “Broker A/C” and not in my account. I called them to clarify this. As per them, shares are kept in pooled account as a security for Angel broking. I had following questions ?
Security against what ? I am not using margin from angel broking. These are my share so why should broker keep it in his account for security ?
customer care confirmed that, if I sell shares, I still have to pay DP charges eventhough shares are not deducted from my demat account.
In holding statement, my shares are shown as “collateral shares” . As per my understanding collateral are similar to pledging. Why Angel is getting shared pledged without my consent ?
When I asked them that these shares should in my demand account, I was informed to send an email to have these shares payout to my demat account. First, I was not informed about this pooled account scheme, secondly, they may charge me again for transfering shares from one demat (pooled account) to another demat (My demat).
What is the tax implications considering long term/short term holding for such a transfer.
If anyone faced similar issues, please let me know if I am missing something
Did you send a compliant to SEBI with screen shots/ statements etc.? I have a demat account with one of the pvt banks for investment purpose. It is always mentioned under my name and as “free hold”.
Brokerages can get innovative and do cute things with client’s shares/money. Dont forget to update here after finishing with your follow ups.
It is quite possible that POA you had signed had some “innovative” wordings that could make it legally possible for your broker to leverage on client’s money. However it needs further probing with your broker / complaint with SEBI.
(1) broker is not suppose to keep the share in his account after pay out .
(2) DP charges should not be rather in my view can not be charges when the shares were not debited from your account.
(3) unless you have some payable obligation ,"collateral shares " is not valid concept on your rightful shares .
(4) there is no charge for receiving of shares but since in all probability the broker will NOW (as the shares were purchased sometimes back ) transfer the same to your account in an off market mode ,he will incur charges and based on such poor very poor experience as posted by you ,broker will debit the charges to you.
no view on tax implications but surely not at all an advisable thing to continue if what you have posted is correct .
Do not call but e mail or post a registered letter to them asking these things .i am sure they will not answer anything in writing but only call and try to satisfy you.
I spoke with them, customer representative asked me to send an email requesting transferring these shares to my demand account. No confirmation was given on following.
Will I incur charges including DP charges for this.
Whether this is being done for all angel broking customer
what will happen to future shares bought by me.
Anyone else here using angel broking, can you please check your demand account holding ?
(1) you do not incur DP charges on credit of shares but if the broker is crediting the share in an off market mode he will incur charges.
(2) Absolutely not possible that the broker is doing for all clients . what he is doing is not ethical if you do not have any due .(3) in the e mail as asked by your broker ,you also mention that in future all your purchases should be transferred to your demat account AS PER SCHEDULE based on settlement no of your purchase.
I tried to check it in CDSL CAS. Details are available till FEB 2018 only. I will check once details for march and April are available on CDSL website.
here is remark by angel broking on incident created.
If u are not using exposure and have credit balance in ur account u can request ur dealer i.e angel broking employee to make share payout from pool to dp they will make it. If u have debt balance in ur account they pool to dp is not possible u must have credit amount.
Some client used expose against there holding that’s y there share are shown in pool account if u are not using exposure then u can transfer to dp account
They should not be doing that unless you are taking some kind of leverage from them. You can raise a complaint. Be careful of such behavior from any broker.
stupid guys have done it again. Please see the screenshot. my latest purchase is in “Broker a/c” again.
You can see my previous shares are in my account but latest one are not.
As per T plus 2 settlement system followed by bse and nse shares purchased MUST BE ,SHALL be in client’s Demat exactly on third working day( including date of purchase).
you can read all the messages in this thread .it looks like this particular broker like to keep your property with him( and perhaps leverage to his advantage ) enjoy some even when no payment is due.you will also notice that even after giving a letter to this effect by one of the client the broker is not following it t plus 2 when share credit to investors demat is there.
