Not sure whether I started the trend…but a few days ago I asked this question. In fact I am not even convinced that I should have dematted my dad’s Tisco, Telco, Coromandel fertilisers, Colgate, …etc. but that is done.
Clearly I did it because I saw it was way to easy to demateralise shares of inactive shareholders (they will not know it till the next dividend pay out if they reconcile dividends, or not at all like it must have already happened). Given the poor quality of people getting into the business, I am sure that many shares held by trusts, dead shareholders, old Parsis, etc. must have been dematted…OMG…am I scaring you?
here moneylife has done a story…
of course all this must have inspired the Old Lady of Borbunder also to do a story on the same topic. Of course they have forgotten that address change is now done by the KYC form which means only one person needs to be informed about the change of address. They also forgot that nomination in case of a demat account cannot be done for individual shares separately.
One more advantage touted is all the holdings will be visible in one place (why not put it up on some free website like iris, value research, or money control) and transactions can be done (most small brokers I know will not get into it, so it is the biggies to whom you will have to go!!). These websites will analyse your portfolio and even calculate your capital gains – a demat account cannot do that. Well most of them cannot. Why not buy a software which will keep track of all your investment and file your tax return (my iris plus does it). Also one national level player is saying ‘it has many advantages, and it will soon take off’ Well Warren Buffet said ‘do not ask a barber whether you need a haircut’…anyway read on!
Hmmm nobody asked them, maybe?
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