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…