After reading all the valuable comments I couldn’t stop my self from contributing to the column. ICICI direct I agree has a lot of problems. Leaving online regular traders for whom this website is not built because of certain time limits which a trader or jobber requires executing his orders. It’s simply NO NO for them. Long term investors like us who buys some good stuff for a very long time and regularly not checking there status the question is whom to trust.
When it comes to Demat holdings these are not just shares but a form of assets which we all hold and because of demat frauds happening these days as you all read and see in through electronic media. It becomes a matter of concern. Demat with Banks or with broker companies.
*The Question is what happens if there is a problem?
Suppose one fine day Market goes for a tails spin and shows some negative numbers which hits Brokerage companies hard many are bound to shut shop what happens to our online demat for which POA is already given. No choice- POA comes in our life -who are working class and there jobs takes them to cities and out of station and does not give enough time to visit branches they all depend upon this dangerous element called POA.
Now comes Bank demat. Still the issue remains the same. most of the banks tied up with online brokers so if you have to carry your trade the shares goes from your demat to there account and for that you have to give POA to those brokers to take those shares from your bank demat account if not
then the same procedure Delivery Instruction slip has to be given and again those people who are working class or shortage to time or circumstances prevent them from opting for DIS will have to opt for POA which brings us all back to square one.
Shares in Demat are always at risk due to these circumstances. So the same question what should be done to prevent or cut down the risk of Demat holding.
Here’s what I think.
Distribute your holdings in different ways.
If you are are a trader and investor. Open a demat with your broker for online trading and go for a bank demat for long term investment. At least open 3 to 4 demats and distribute your holdings with them. Classified them short term holdings medium term holdings and long term ones.
So what we get here. If suppose one company takes a hit due to wrong adventures you just saved yourself from ruining your life.
I am in this market for more than 3 years and have seen most of the brokers and services.
Heres my personnel take.
ICICI DIRECT can give you headaches while trading, but still they are one of the biggest so will not do some foolish things to upset your demat. If there is any problem little pillar to post running will solve your problem.
The list I got from my personnel findings are:
ICICI DIRECT 3 IN ONE ACCOUNT
HDFC SEC 3 IN ONE ACCOUNT
IDBI PAISABUILDER 3 IN ONE ACCOUNT
UTI DEMAT+ COLLABRATED WITH GEOJIT- A COMPANY IN WHICH BNPPRIBAS HAS MAJOR STAKE-UTI OFFERS 3 IN ONE ACCOUNT
SBI-COLLABRATED WITH MOTILAL OSWAL OFFERS 3 IN ONE ACCOUNT
ABN AMRO 3 IN ONE ACCOUNT
PUNJAB NATIONAL BANK+ COLLABRATED WITH IDBI PAISABUILDER OFFERING 3 IN ONE ACCOUNT
INVESTMART -CAN BE CONSIDERED FOR TRADING AND DEMAT
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These are few on which I worked on and found to be good enough for giving long term investors a decent safety of there demat accounts.
online traders and jobbers-well for them I have no comments because those who trade regular and dodge the movements to earn profit and loss are the daredevils and most of them I have seen manage there demat accounts very well because they are always in and out of the market and are always tracking everything each and every penny is tracked by them so they can take care of there demats and shares.
This review is for long term investors and people who have issues with share holdings.
(disclaimer- This is my personel views and not an aim to misguide or sell any product or services nor am here trying to spoil any reputation of some comany in the market. No one should take it as an accurate findings but a veiw and opnion from my side on personel grounds)