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  
Post a Comment

Related Posts

    • LIC POLICY ADDRESS CHANGE

      LIC being a very big insurance company, why not they look into the possibility of making the changes in the existing policies, like change in address, name change, bank details etc. ONLINE. When on...

      By Hari Shenoy
      /
    • Bank's refusal to honor agreed FD interest.

      Dear members, I am Sekar and new to localcircles.com. In 2014 I booked some 5 years fixed deposits with a private bank, due to their higher interest rate promised to me. During matu...

      By Sekar Rg
      /
    • DEAF Account

      It often happens that people don’t share even the basic financial details with their family members. In case of any untoward incident, the family members are left in the lurch as they are una...

      By Aditi Jain
      /
    • Tax on dividend

      I fully agree with the circle member's claim to approach the FM/PM, requesting to remove the senior citizens from taxing 10% on the dividend received on the Mutual Funds. In fact the present level ...

      By Subramanian Sekaripuram Ananthakrishnan
      /
    • Benefit of new tax regime for 13L+ salary earners

      Most of the salaried individuals with gross income of ₹13 lakh or more and non-salaried persons with income of ₹9.5 lakh or more will get to make tax savings if they sign up for the new lower incom...

      By Satvik Singh
      /
    • NRI income in zero tax domiciles taxable in India

      NRIs living in zero tax domiciles like UAE (Dubai Sharjah & also Bahamas etc) will have to pay tax in India. And now all those who (partly) moved to Dubai recently to evade taxes are stuck.

      By Aditi Jain
      /
    • Farmers must be taxed

      The tax system is currently design to squeeze the middle class. This must change. We are India’s most abused tax payers.

      By Aditi Jain
      /
    • BEWARE OF ICICI POLICIES

      I am cautioning the circle members and the general public at large that the insurance policies issued by ICICI are to be taken with a pinch of salt. The agents of ICICI who sell their policies as w...

      By Subramanian Sekaripuram Ananthakrishnan
      /
    • Why one should insist for Fixed Deposit Receipt

      As you all know now-a-days whenever we request any sort of statement / report etc. from non-banking financial companies (NBFCs) i.e. insurance, chit fund, merchant banking, stock broking service p...

      By G D Binani
      /
    • Beware of brokers

      2000 crore fraud by karvy on its customers. Sebi has banned it now. How come we only do bans and the regulators are never facing penalties and punishments for letting shit happen.

      By Aditi Jain
      /
    • Simplification of Tax Return Filing

      The income tax return filing has been made so complicated that no common man/person today is able to file her return on her own, without the help/assistance of tax professionals. Each time we have ...

      By Sujata
      /
Share
Enter your email & mobile number and we will send you the instructions

Note - The email can sometime gets delivered to the spam folder, so the instruction will be send to your mobile as well

Please select a Circle that you want people to invite to.
Invite to
(Maximum 500 email ids allowed.)