Say I am a long term investor but who chooses to sell part of his ortfolio from time to time. After SEBI’s rule about eDIS, now selling of securities require Pre-Authorize using CDSL T-PIN and OTP.
But following is part of an article posted on Moneylife website in 2019, which states that
“When you register for easiest/speede, the broker loses the PoA over your demat account; this would mean that you cannot sell shares from your holdings using your trading platform because the broker will no longer be able to debit your shares from the demat account.”
So now today in 2024, what is current state of this?
Can a person sell stocks in his/her portfolio using eDIS (CDSL TPIN + OTP) from Kite i.e. Broker’s Platform, after he activates CDSL Easiest Facility?
If not, what procedure he has to follow post Easiest Actication?
Snippet from the article…
Some Other Preventive Measures
Use CDSL’s ‘easiest’ or NSDL’s ‘speede’. These are Internet-based facilities that permit clearing members of beneficial owner (clients) to submit off-market, on-market, inter-depository and early pay-in debit instructions from their demat account.
**When you register for easiest/speede, the broker loses the PoA over your demat account; this would mean that you cannot sell shares from your holdings using your trading platform because the broker will no longer be able to debit your shares from the demat account.** You will now have the power over your demat account as a result of which you will be able to transfer shares using easiest/speede.
Separate your broker from the DP. For example, your DP for the holding can be a prominent broker while your broker for trading purpose could be a small/discount broker who charges less.