WHAT ARE DEMAT SHARES??
15th Aug 1999 Natwar Lath @newmail.net
It seems demat of shares has taken its plight on upcountry and small share holders. None of the DP are giving services they are expected to including the big one like Karvy. The statement arrives after a month and in between query are never responded. This is also proving to be expensive. For instance, if I had do demat share, I have to pay courrier charges at Rourkela from DP local office to DP HQ Office. DP HQ Office then charges courrier charges to company and processing fees. Then there is no time limit by when such demat request will be processed. This is atleast one area where SEBI seems to have gone wrong. They should have ensured proper and efficient infrastructure before proceeding to compulsory demat in so many scripts. The small investors are really in a very bad situation. Many of the local agent of DP are not trustworthy. If one gives share for demat to them no body can be sure about its fat. The local agent has everything including your DP no., your statement of holding, your specimen signature. Further sales advice are not being processed in timely manner. This result in auction of shares. Then the DP are also closing offices they should not have opened at the first place. This they do after collecting Annual Maintenance Charges and giving practically no service. What are the safeguard against such incidence. Can the DP be made to refund AMC. I would like to know the view of the other members on the DP including Suggestion of a good DP based in Calcutta. Thanks for your time. Natwar Lath, Rourkela (INDIA)
16th Aug 1999 Jagdeep Nagdev @bom7.vsnl.net.in
Dear inmates I would like to know what are demat shares exactly?. Please help me out. Thanks in advance. Regards Jaggi email@example.com
19th Aug 1999 chaps @tc4hq.cmcltd.com
Shares in electronic form. No physicals, once you get your shares stored electronically in a database the physical shares are shredded. You can, of course, convert them vice-versa if you want to. Dematerialized shares are supposed to help in maintenance, cutting costs of postage etc. HTH, Chalapathi And His Four-Line Signature! :-)