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.
@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 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
Opened an account for my dad without any POA. But the new process of verifying holdings everyday is very tiresome. Can we still add POA like in old accounts? If yes please provide a link. Thanks @ShubhS9