Please make an application to NSDL and SEBI for change of your broker and transfer of D mat account to another broker for the purpose of running of your account for buying and selling of shares of recognized scripts by SEBI .
Transfer of shares from Demat account with barred/banned broker
Hi, My parents had their DEMAT accounts with a broker which has been barred by SEBI in Nov 2019. Due to this, the holdings in these DEMAT accounts are stuck and we are unable to do any transactions in the DEMAT account. There is monthly statement from NSDL which shows listing of all current holdings and dividend is also received in related bank accounts which confirms that the holdings in our demat accounts were not siphoned off / manipulated by broker. Need to get my holdings transferred to another demat account. The usual procedure of requesting DP to do such transfers is not applicable since the DP has been barred and is no longer in business. Can such transfer be done by NSDL directly? What will be the procedure to get the holdings transferred to another demat account in such situation. Pls guide.
Asked 5 years ago in Business Law
10 Answers
you will have to make a representation to NSDL
The demat account can be kept suspended like this just because the DP is barred
because if the holder of the units desires to sell the units, then in absence of a DP, the transaction will not go through and the holder will suffer losses
so please make a representation to NSDL and if it does not respond then you will have to file a writ petition in High Court
Dear Sir,
You are suggested to consult the another DP in this regard and get the demat account transferred as per law. I mean the process is very simple and can be done with the assistance of said DP.
SEBI is apex body, NSDL is below sebi and cannot act agaisnt the order sebi.
Without unfreezing, holding cannot transfer.
Why account freezed?
Without knowing the reasons behind department of a/c by SEBI the remedial measures are very difficult to advise.
The bar is being pur in place in respect of the Broker for violation of SEVI guidelines.
Therefore if you can establish before SEBI thar your demar account has no nexus with the illegal operations of the Broker the Same can be allowed by SEBI.
Do write to SEBI to release or transfer your account.
You write to NSDL about this giving details and clarify the details about the formalities that are to be followed in this regard.
You can visit the website of NSDL in this regard for all such further issues.
- As per rule , the SEBI can barred a broker , if found irregularities and misuse of securities/fund of investors.
- Further , the said broker also not allow to do any transactions in the client account , if having a Power of Attorney by the investors /clients.
- Hence, even if you will open a new account with the NSDL , then also your holdings cannot transferred without getting permission from the SEBI.
- You should lodge your complaint regarding the same to SEBI , and thereby request to give permission to transfer the fund in a new demat account.
You need to first know why it's barred. If it's barred for any legal condition nsdl will also not do the transfer. You need to challenge sebi decision if barring the same.
transfer from one Demat account to another can be done in two ways,, Manual and Online.
Yes the transfer of shares from barred DP account will be handled by NSDL after opening of your new Demat account with another broker You can raise request through new broker.
