Recent Discussions

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