As per the rules set by the market regulator, SEBI, demat shares have to be transferred into the investor’s account within three days that is trading day plus two days. However, an investor from Gurgaon has alleged that Sharekhan has failed to credit the shares into his demat account as per the prescribed norms.
Trilok Gupta, a blogger who writes on the stock market, wrote to Sharekhan pointing at this irregularity of the company. But it fell into deaf ears.
He narrates every time a complaint has been made the brokerage firm credits the shares or else it takes more than seven days to credit. This is way beyond the norm set by the market regulator.
Despite the complaint, Sharekhan continued doing this. So, Gupta decided to escalate the issue to the regulator. The regulator directed him to the National Stock Exchange (NSE). The exchange pulled up the brokerage firm, Gupta added, the firm was unable to provide a valid reason.
From July 30th to September 8, there were multiple emails written, yet there was no solution. So, the exchange decided to get Sharekhan; Governance, risk management and compliance (GRC) team; and Gupta together on a video call.
Gupta was surprised by the response of the Sharekhan team. The team stated Gupta was trading daily, thus, there is a need for manual intervention to credit the shares into his demat account.
Gupta claimed that it was only in May that he noticed this discrepancy and then he started tracking all his transactions. “So, I emailed NSE on every delay with documents on 30th July, 5th August, 24th August, 8 September,” tweeted Gupta. Gupta wrote down his ordeal on micro-blogging site, Twitter, in a series of posts.
Yet another point, Gupta highlighted is that while the GRC team stated that Sharekhan is not compliant by doing this, NSE still went ahead and closed the case. He reiterated in his posts that while he is aware that Sharekhan is being non-compliant, why are the exchange and regulator not standing with the investor.