SEBI-What is Wrong ?

Like the Income Tax, where there are slabs for different incomes, SEBI never thought on similar lines.

Small investors of 20-30 years ago, who then had bought one or two tradable lots of listed shares and had kept them in joint names with one’s spouse, son, daughter (as the case may be), for safety purpose, is now a senior citizen facing problem even for opening Demat account in the names in which the shares stand.

SEBI does NOT distinguish between small investors with one-two tradable lots in physical condition and those who hold a sizable percentage of stocks.

Because, the dividend gets credited into the First Holder’s name, SEBI should have allowed dematerialization of physical shares held in joint names to the Demat account in the first holder’s name, provided that the initial holding when bought, was one or two tradable lots (which might have increased later due to Bonus shares)

But then…. SEBI is a regulator with a Mindset, which does NOT understand the common citizen. So, it shall never be done, because, what about the stocks and dividends so transferred to IEPF, because this facility was NOT allowed?

In case SEBI wishes to solve the problem, there is one solution, though :

SEBI should ask all those companies, who have transferred either shares, or dividend or both to IEPF, to re-assess the situation, help the conversion to first holder’s name, as well as to provide any other help required, so that the legal owners do NOT suffer.

Unless the companies are given the responsibility, it could never be done, as the employee look for some kick-back and delay the matter on purpose. Unfortunately, such persons get SEBI’s support for the reasons known only to SEBI. more  

Small investors of 40-50 years ago, who then had bought shares on assurance of our political / Economic / Stock Exchange experts that this investment not only will give decent returns but will help in nation building.

Now keeping future in mind we kept shares in joint names with one’s spouse, son, daughter (as the case may be), for safety purpose, is now a senior citizen facing problem even for opening Demat account in the names in which the shares stand.

Now we are facing multiple problems such as --

1] How to get shares demated unless SEBI modifies provision i.e. should allow dematerialisation of physical shares held in joint names to the Demat account in the first holder’s name.

2] SEBI's web should contain all company's name who at any time was in trade list of any stock exchange whether [ then ] Bombay / Calcutta / Delhi /Madras etc. etc. besides other names related / connected to this original co. which arose due to any sort of action i.e. merger / demerger / consolidation etc. so that any investor writing any name after visiting that page should get present details along-with old details of that co. [ along with who was then registrar and who is presently ]

This web page should be developed in such manner which do not force seniors to feel waste of time - what I mean simple as this will help investors to pursue the case effectively otherwise we are not in a position to keep track of old investments.

This web page should also contain name of those co. which vanished OR liquidated

3]Due to age and passage of time signatures is bound to differ but certainly style,manner,flow and language will match. Hence there should be certain relaxation in these type of cases.

4] Due to unavailability of physical shares SEBI should make mandatory for co. to accept affidavit on 10/- stamp paper and rest exercises should be on plain paper besides FIR should be waived and advt. if necessary then it's exp. should be borne by co.

Now why I insist for above please note seniors have no so much energy to comply all - as every step requires frequent visit besides expenses [ please note those who have retired from pvt. firms do not have pension hence they have little source of income ]. Secondly 10/- stamp paper carries same weight as 500/- stamp paper.

3] Further please note that after paying all due taxes every year besides controlling our so many needs we invested in shares ignoring other investment such as Land / Gold / FD etc. keeping in mind nation building but gradually government started imposing tax on its' income [income arises due to long term share investment ] then after repeated representation small investors got relief not in all cases but over dividend income and LTCG which again last year got disturbed
though I have suggested method which will garner not only more income but will also provide relief to genuine long term investors.

In view of above if we try unitedly then only we can expect relief.

G D Binani
gd_binani@yahoo.com
7976870397 / 9829129011 more  
Sr.ctzn,s who hold a couple of shares for decades are now compelled to go for Demat. Demat is not done that easily.Even after all these struggles , no trading. The only main reason is upon demise the nominee or the 2nd holder can have it transferred easily. Now the Bankers are charging for keeping in Demat. The SEBI should to to redress the issues for such ctzn's. Maybe SEBI can have an undertaking for non-sale during their life time. Else the maintanance charges seems a penalty. more  
Small investors are basically buying shares as investment to future and not like business to trade , buy and earn quick money. Bulk buyers may be of some other category. It is necessary that small investors are given basic benefits and concession for investing and also some incentives for future trading more  
This is a practical problem.To over come this ,I was forced to open two new Demat a/c and convert physical shares in to electronic mode. Even the share Transfer Agency harass for "signature not matching ", and one has to fulfill their requirements. more  
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