@Nithin: Thanks Nithin. You are at the forefront of and I hope you can offer a solution not just to ZD customers but the industry at large.
How is the consent given in eDIS better than POA ? I mean there is no issue with POA if there is no intent on fraud. The issue as in the case of Karvy is that they abused the POA to move securities for alleged illegitimate reasons. The problem is the free consent and not the legal instrument. Do you agree ? Hence …
My question is still the same: Is it legally possible to insist that customers give consent for auto debit of shares else there is a refusal of service by ZD ? Is that allowed ? Either ways - can you lead the broking industry with your team into a new operating model ?
Check this podcast with Deepak from Capitalmind recently
In today’s day and age, the only way to ensure that you are not being scammed financially is by tracking your accounts actively - trading, demat, banks, credit cards, etc.
Also like I have mentioned, all new accounts today is being opened without taking a POA. We will open this up for all our clients soon.
Why Demat depositors are not allowing freeze and unfreeze the accounts. With that investor can freeze the account and be at peace when he want to sell from holding delivery shares he can unfreeze and then give sell in traders platform. If he misses unfreezing before giving sell broker should get notification and can pass it on to the client. This way POA is ok. Is this possible?
Csdl easi says freezing is stopped from 2015. Have to submit some form to broker something. How to activate this facility. .
Allow clients to place online digitally signed requests to freeze unfreeze shares in depository.
unfreezing should be on real time basis instant , so that one can sell
freezing request could take time upon verification
@siva so now OTP instead of POA is in effect? @nithin said its in beta so now its effective?
so if someone is not comfortable with POA they can use OTP to authenticate transaction?
Do you provide CDSL -easiest facility now or still now? @Bhuvan
Yes, it is. You can revoke your PoA and sell stocks using the 2FA pin. Suggest you hold on for a few days (a week or so), there are some changes in this process, whereby the PIN to be entered while selling stocks will be sent to you by the Depository - CDSL. This process will go live and the details will be shared on the process to switch from PoA to Pin based selling.
If you want to activate easiest, you can. But upon activating easiest easi*est, we will not show you your holdings on the trading platform to sell. This is due to the risk of client being able to sell and transfer stocks at the same time.
1.So you mean we need to use CDSL pin …I thought everytime we try to sell or pledge we have to enter new OTP that is sent to our phone? please correct which one is true?
2.How do I activate easiest …I have easiest account but how can I add zerodha as trusted user?
You get a pin, like an ATM pin that you’ll have to key in when you’re transacting. With SMS, there’s an added risk of failure, how do you sell if you don’t get the SMS for any reason?
We don’t allow you to transfer stocks to our account and then sell through us. You can register for easiest and transfer stocks to any other account of choice.
Ok to clarify you will allow to other cdsl account like other broker or a friend/family member but u will not allow to transfer to zerodha? May I know why?
Also, I heard that from June 1st onwards there willbe some big change from exchange/cdsl that shares will not remain in broker’s pool/collateral account …it will remain in client’s demat account …can you please clarify on that? @Bhuvan@nithin
If you want to sell holdings, the holdings have to be available under the ‘Holdings’ tab on Kite. Your stocks appear under the holdings tab only when the stocks are in your demat account with a PoA/online consent given to the Broker. When you transfer stock directly to our pool account, we’ll have to manually update holding qty to a client which we don’t considering the risk involved.
That’s correct. You can read this SEBI circular to know more.
@nithin This response is exactly one of the example I am talking about…when I said 'You are smart but don’t mislead -intentional or unintentional ) It sounds like you will just stick to your point and argue proving your point. Instead of listening to others. I don’t know @nithin much but it sounds like …he is at least trying to listen…(I guess that is why he is the boss/ceo)
1.Earlier you said what if OTP is not delivered…well if OTP is not delivered shares will not be transferred. OTP is more reliable than CDSL pin because password or pin can easily be stolen/misused than your phone(OTP).
Why do you think govt. uses OTP for aadhar verification etc.?
Upstox is using this system for like 3 years now.
2. Instead of saying ratio is required by exchange …you could have said we don’t have excess funds lying around to meet exchange’s margin requirement that is why we have a policy for each client to maintain this ratio. And yes there are brokers out there who don’t insist on this ratio from clients. If you insist its fine but don’t imply that you have this policy because exchange or some govt agency wants it from clients.
3. Further to my understanding Easiest was created by CDSL to avoid situation like Karvy (of course for convenience too)but you simply refuse to use it. You just want POA without listening to hundreds are saying. You might claim that oh we are not like Karvy …but how do we know that? We won’t know unless something nasty happens right? and most importantly its peace of mind that our shares in safe custody of CDSL and only we have a key to transfer it.
I’m not disputing the fact that OTPs are safer, I’m giving you the CDSL’s reasoning behind making it Tpin and not OTP. On any day, say markets are falling and you wish to sell stock and you don’t receive SMS, that’s another point of failure which is why they’ve set it to Tpin. An option to secure your account is to setup TOTP on your Kite login. Read more here
I don’t know why you believe otherwise. The Exchange cannot put everything in print, some things are just understood. A broker is an intermediary, a connecting point between the Exchanges and the client. I gave you an example to help you understand why the rules ultimately boil down to the client, I rest my case.
Absolutely, as an investor you gotta do everything you can to safeguard your own interest. That includes choosing a broker you’re comfortable trading with. PoA is not mandatory, you can opt to revoke the PoA and enter a tpin each time you’re trying to execute a sale transaction. Currently, we don’t have the provision of allowing a client to transfer to our pool and sell, if there are any changes on that front, we’ll let you know.
To my understanding - even if we revoke POA, we have to choose online DIS as explained on this link
To me it is very similar to POA because once we choose online DIS …its permanent…we have to choose that only once.It has similar language to POA.
To my knowledge…Our shares are not in safe custody unless they are in our individual CDSL demat account. so using tpin is just superficial security …To my knowledge with Zerodha our shares remain in some common account (when you say you can see in it holding) and when we enter tpin it just transfers from that common (I guess we can say colllateral/pool account) to the buyer(in case of sale)
Which is different than having our shares in our individual CDSL demat account.
Correct me if I am wrong. @nithin
Under the new tpin process, you have to pre authorize the quantities that you wish to sell by validating it with the tpin you would receive from cdsl. Broker can debit shares only to the extent authorised by you. You can either choose to pre authorise while placing every sale trade, or authorise all quantities for all your holdings at once.
Ok so, are you confirming that broker will debit from individual CDSL demat of a customer every time a customer will use tpin? (in other words it is very similar to easiest transfer to trusted user?) with easiest you can transfer to any 4 trusted users but with tpin I guess you can only transfer from your own demat to your broker? @nithin