I received an email regarding transferring my Demat account from IL&FS Securites Services Limited to Zerodha, and it says that if the transfer is not done then the Zerodha will stop showing the holdings on trading platform & hence be unavailable for selling from 1st October 2018?
So, why is it necessary and why did Zerodha opened my Demat on IL&FS Securites Services Limited on the first place?
How much time does it take to transfer it to Zerodha Demat and what’s the exact procedure?
Has anyone else received this email? Or is it just me??
I too received and find this ridiculous and a nuisance.
I just paid AMC for ISSL demat account. Zerodha demat charges e.g debit charges are higher.
Not just ISSL, any non-zerodha accounts are being delinked.
I don’t see what is wrong with current system.
For the first few 3 years of our business, we had partnered with IL&FS for demat accounts. So the trading accounts belonged to us and demat by them. 4 years back we became a depository participant and started offering our own demat accounts. Out of the almost million accounts we have, just around 1% of active accounts are with ILFS.
So the process where we receive or give shares during equity delivery trades process, calculation of holding/P&L, pledging, etc is completely differently as versus Zerodha demat accounts. Operationally it has become extremely tough to offer support to IL&FS demat accounts now. We have had to even hold back on certain new features because of these demat accounts. Also recently ILFS has been bought by Indus Ind bank.
So to ensure we don’t slow down because of this, we have decided by ask clients to move the demat accounts to Zerodha. Check this support ticket on how to.
Hello Nithin,
Can you tell me how much time will it take to transfer all the shares to Zerodha Demat account? And does that include any charges?? Will my average price and holdings will show up as it is after transferring?
Transition period should have been longer. I see myself paying AMC to both Zerodha & ISSL for overlapping period. If this was planned even 3 months ago, I could have saved AMC paid to ISSL. I am assuming closure of ISSL will also incur debit charges for each security held for transfer to Zerodha demat.
Your average price of holdings/dates will not get affected. There isn’t any charge because you are closing your demat and transfer of shares using close out form doesn’t have any charge.
There isn’t any charge to transfer using the closure form. About AMC hmm… let me see if we can do something.
@zomby : AMC is levied in advance but is refundable proportionality if the account is closed in between . no practical experience but it is clearly written on my demat statement cum bill. so the rule has to be same with every DP.
Have no idea how to fill ILFS closure form https://s3.ap-south-1.amazonaws.com/intranet.zerodha.net/intranet_file_uploads/2018/03/12/Article/W5O2O8IV_ILFSclosureletter.pdf
Is there any sample prefiled forms available? Don’t know which options to choose in that form!
Will all my pledge shares also get trasnferred automatically? or do I have to unpledge them first.
AMC fee is refunded proportionally into the account linked to your demat after your demat account closure is processed. Make sure you close your demat account which might need to be done seperately with ILFS or with ZD as the case might be.
I am really not happy about this. I have many concerns :
Apart from what all I buy from Zerodha, I have Govt Bonds ( GOI bonds) ; These are not even tradable ! What will happen to that ? Will that be transferred also to my Zerodha demat ??
The prefilled forms only talks about new demat creation. Where is the form to transfer all my holdings?
The statement made by Zerodha is wrong - “You simply need to print, sign and courier this to us” , You dont need cancelled cheque ? I see in pre-filled documents its mentioned that we need a cancelled cheque.
Also some bonds(especially GOI and Gold bonds) cannot be transferred from NSDL to CDSL. What will happen to those ?
Tax implications , Demat transfer charges ??
Please dont penalize your old customers !
Sad, this 1% users whom they belittle now were the initial backbone of this company. Even out of respect for your initial supporters the company should have hand holded the process. Now i heard just a missed call and a zerodha agent comes to your home to open account yet for your oldest customer the solution you give is go to that link read and do that, and this 1 month ultimatum mail would be in spam folder of many.
Yeah I agree, they should be treated as patrons … but atleast the one here is hasselled by this.
Hi Nithin,
This mail went into Spam folder. I don’t think thousands of your foundation customers would have seen this mail yet. This one month ultimatum is completely unwarranted. It could have been phased out may be in a period of one year. I don’t think even either your back office or IL&FS back office can transfer tens of thousands of accounts with different shares and bonds within a month error free. Can you absolutely guarantee this will be seamless process and error free. An error will hit the life savings of your foundation customers. The hassle of running from one customer care to the other is waste of time for your customers.
If this process takes 15 days of time. 1. What will happen to corporate actions like bonus shares and splits which are generally credited after 15 to 20 days.(in case by that time IL&FS Demat is closed after record date)
2. What will happen in case the demat transfer happens on the record date of a dividend?
3. What happens if we already submitted some shares for Buy back? The Unbought shares will be returned after 30 days.
4. What will happen to the people who trade very actively and take deliveries? Their trading activity will halt for this 15 days of period, it seems…
5. People who are carrying F&O positions with pledging of shares will be in soup with this. They will be forced to cut down their positions.
6. Liquidity management will go for toss for this period. Don’t know where the liquidbees dividend will go after IL&FS demat is closed.
7. Active Running portfolios have to think too much about this…
Please don’t rush this activity like this. Do it over a period of one year by giving multiple reminders to all old customers. Customers need to adjust their running portfolios so that they will have no impact.
And also one more request, I hope your back office do this diligently without error. I know some people even holding 300+ holdings in a demat.
Please be sensitive towards the sentiments of people who made you what you are today.
Please do this over a period of one year. Whatever new facilities you want to bring you could offer to those who are already on Zerodha demat for the time being…
I am a strong votary of Zerodha and made many accounts to open with you. I hope you understand our sentiments…
In the IL&FS closure form, point 4 asks for the target demat account details (DP ID & Client ID). These details will be available only after the new demat account is open. However Zerodha support is insisting on sending the closure form along with the new demat account opening form. So I assume I should just sign the IL&FS account closure form and send it without filling up all the fields, which would later be filled by Zerodha staff? I’m not comfortable signing blank forms. What if zerodha staff make a mistake and fill incorrect details in the IL&FS account closure form? All my current holdings may end up getting transferred to the wrong demat account!
@nithin I see that new clients are able to open demat account and trading account online instantly. Why can’t we use this feature to open zerodha demat account. Once the new demat account is open, we could then send the IL&FS account closure form and POA for the new demat account through courier.
Getting refund from Indian Service providers is like milking a bull. You get nothing out of it.
Like many other posters said if this was planned 6-12 months ago, transition would have been smooth, painless and saved money for lot of us.
I believe Zerodha does not offer demat account from NSDL, only CDSL.
1% ISSL demat holders may be minority, but they are also the oldest Zerodha clients.