Why do I have to transfer my Demat account from IL&FS Securites Services Limited to Zerodha?


#61

I checked my demat holding directly by creating login at the NSDL website eservices.nsdl.com
There the holdings were correct , phew that was a sigh of relief for me !!

Also NSDL always sends an SMS whenever a stock leaves my demat account so in that ways i am updated if something fishy is going on.

But what has been so painful now:

  1. Its been 3 working days and zerodha hasn’t even acknowledged the problem till now, let even explaining to me how and why this happened.

2)Their helpline is always busy, in fact the whole today I couldn’t speak to a customer care executive, despite trying from morning till evening. Their support ticket system is also useless, its like some government email ID which fall on deaf ears!

It seems with two demat accounts mapped Kite is having trouble accessing your holdings. There is no way one can trade in such an environment.

@NithinKamath @nithin, @Bhuvanesh please look into these issues and ensure a trouble free transition for us.


#62

Some of my holdings too are missing in Kite but show up in Q Backoffice. I’m unable to sell them though since they do not show up in Kite. No idea how much longer the process to close IL&FS demat account and transfer the holdings to Zerodha will take. Wish there were updates from the support team and tickets were answered on time.


#63

My Demat is opened and also received a mail from CDSL, but still waiting for the confirmation from Zerodha about successful transfer of all the holdings from IL&FS to Zerodha Demat!


#65

My experience - https://support.zerodha.com/tickets/20180914572884


#66

Hello @Bhuvanesh,

My Zerodha Demat account is opened with CDSL and the IL&FS account closure fee is also got deducted from my ledger, but the transfer of all my holdings from IL&FS to Zerodha Demat is not showing in CDSL account! So, can you tell me why is it happening? Even after sending you the IL&FS closure application why my holdings are not yet transferred to CDSL from NSDL? And when will they show up on my new CDSL account?

Please let me know!


#67

your ticket is not public and only you can view it. So the above link will not work for others


#68

I really dont like this “I dont give a damn” attitude from Zerodha !
We have tagged the key persons involved but they dont bother to reply here but they are active in other threads.

They consider those holding IL&FS demat as second class citizens but they dont know we trusted them at first when they were tiny ! TIme to support other tiny brokers which can rise to levels of Zerodha and give them nice lessons !


#69

Hi Nithin,

I am one of those loyal customers who have been with Zerodha since the initial days. As I read the above comments, it is the same experience I am having for my IL&FS demat with Zerodha. First of all, I must say Zerodha team is very helpful & they are doing whatever best possible. But unfortunately, it is not enough. My Zerodha demat was opened 1 month back. Your team said 3 weeks back that they sent the closure & transfer forms to IL&FS. But then it got stuck. There is no meaningful update in last 3 weeks. The trading is happening in Kite, but I am more worried about the safety of my holding. Besides the dividends, splits, bonus etc pointed out by another member here, I am worried actually for the shares itself. Can there be an organization level link-up between Zerodha and IL&S to make this one-time bulk transition better ? It is not an issue of 1 account or 2, there will be thousands customers like us - and taking everything on 1-1 basis will just make everything very slow & error-prone. If needed, please charge a fee for this transfer. That is also fine. But please deploy a dedicated team to do the followup and closure of this issue in person. That is the need of the hour. You must understand that it is a business loss for IL&FS. So they will not give a damn. We - at Zerodha - we need to put a pressure and make it fast. Otherwise it will just take ages, increasing the risks.

Now the matter got even worse with the bankruptcy situation of IL&FS, resignation of their CEO etc. The whole scenario is very dark now. We trusted IL&FS because we actually trusted you. Now it is very concerning that the company got bankrupt and God knows what will happen to our shares. I know you will think that I am over-reacting to the credit-default case of IL&FS. But what we have seen in last one year in this land, it is now very difficult to trust any financial institution. ANYTHING can happen. It is better to transfer all the IL&FS shares to Zerodha as soon as possible. And it is very difficult to do that followup at our individual level. Please Please deploy a dedicated team to close this forever & smoothly, without a loss to our holdings. If that needs extra cost, I am sure we customers will happily bear the extra fee. It is better to pay 500 Rs to safeguard our lakhs of savings. Please consider this as an urgent requirement. It is about the very basic safety of our fund & shares.

Thank you.
Sudipta.


#70

I agree. First, the closure failed due to pending dues in IL&FS. Although I do NOT understand how that could happen, considering after each sale, demat charges get debited to my ledger and every year AMC charges get debited, I still paid off the dues in order to get the process done quickly. Now, IL&FS are claiming that my signature on the closure form is not an exact match with the one in their records. I went to their office, confirmed my identity by showing them my passport and pan card originals and gave them attested copies of the same. Yet, after doing all this, the closure and transfer process is still not completed. It looks like IL&FS is trying to stall the process and delay it as long as possible.

@nithin, request you to kindly put pressure on IL&FS and help us get this process of closing and transferring holdings to Zerodha, done and over with as soon as possible.


#71

There is no issue with IL&FS securities, it has been sold to Indus Ind bank and there is no group exposure. You don’t have to be worried about your shares.

The reason we had asked clients to move to Zerodha from IL&FS was because were having operational issues supporting another DP. Some of the biggest investors in India use them for custodial services, keeping thousands of crores of their stock with them. Nothing has changed on this.

That said, yes they have been extremely lethargic in terms of closing accounts. We are pushing them for it now - we have now even agreed to debit any demat AMC from trading account and give them directly. Just to make sure they close the account fast.


#72

As per mail notification send by Zerodha, IL&FS holdings will not be shown after 30th September.
So what will happen if the whole process not completed before that ?


#73

@nithin,

This timelines needs to be extended and there has to be complete visibility and support by your team. There should not be a single suffering to any of your customer because of this transition.


#74

@nithin Well, hope the shares are safe. Thanks for your response. However, can we still make the transfer easier & faster ? I think your reply got truncated, you were saying something but did not finish. I can give you the ticket number which I am following up with your support team without any meaningful update & every time they say they are following up with IL&FS (ticket # 20180811705211). This is running for 3 weeks or so. I am sure you can understand that we small traders do not have the capacity to run after a company like IL&FS. You have the expertise (or you can hire that expertise from the market). Taking all our cases together will make it easier for you as well to followup, faster & error free. Thanks if you are thinking already in that line.


#75

One of the reason for delay was because of any dues pending to them. We have spoken to them now and have agreed to debit client ledger and give it to them, not to slow closure and transfer because of this. Hopefully this should help. Will get someone to check the ticket.


#76

You will not be able to see it on Kite and hence not be able to sell until you transfer stocks from ILFS. But we will see if this can be extended for a few more days.


#77

No need to worry guyz… your holdings are safe in NSDL and once the ILFS account closes, the NSDL holdings will get transferred to CDSL Zerodha demat! We will just have to be patient and give them some time to deal with this. I am pretty sure that the holdings will be safe with NSDL. And I definitely want to transfer all my holdings to Zerodha, because I am not at all comfortable with ILFS now! Thank you @nithin for answering the doubts and question asked in this thread!


#78

I paid my AMC directly to ILFS and zerodha also debited AMC without explicit consent. Now AMC is paid twice, when are we supposed to see the refund for AMC?
Any early bird here, who got their prorated AMC refunded?


#79

@nithin :: It seems there is still no update on the shares transfer. Only 1 more week is left. Something that could not be done in last 1 month, will that be done within 1 week ? It does not seem so. And your response about extending the deadline of 30th Sep to “few more days” is not helpful enough. Why only “few more days” and why not “until the issue is resolved” ? The way IL&FS is delaying the transfer, it can take any time. While that delay itself is an issue, now the extension of your deadline is showing as another issue. I am sure you will extend it couple of times… and then you will probably raise your hands that - enough, now we cannot support these customers! Just think Nithin, are you not failing for the first time as a broker house, with respect to big names like ICICI Direct or companies like that ? Just see what you are proposing to your customers… An uncertainty about their shares, and limited support on their holding which will be stopped within few days now. Till date I have been very vocal about Zerodha’s success. But I can no longer say that it is dependable. Sure it is cheap, it is smart, but it is less dependable. This change of mind happened due to the experience we have received on this transfer case. I believe sufficient effort & plan was not put forward before rolling out this movement. Stability is the key for any trading house. That very thing is losing here. Even if this pending issue gets resolved over time, the feel of insecurity & left-over, will be a lesson for us - your oldest customers. Wrong execution Nithin. By the way, I have not received any update on the ticket number I provided you on which you said someone will look into.


#80

My suggestion is to extend the deadline to few months, may be till this year end. So those who don’t have their holdings transfered by that time can even sell their shares and buy back after creating new demat account.


#81

Hello Nitin,
Unfortunately it has been more than 20 days since the process of transfer from ILFS to Zerodha has started. It is still pending! My shares too have been blocked! Your above comment of seamless movement of shares between demat accounts not affecting the trading is not true! Your backroom staff too have been very rude and have told me to directly contact ILFS! Unfortunately not the kind of service and response that i expected!

regards,
Naveen A