Pl solve my doubt?

Question

I want to save some thing for long term.So if i started to buy shares of some company through demat account, what happens if that private bank where my demat is closes suddenly like what happening now way days?what about our shares?which is valid? or disappear with bank???

i have a phobia to start equity investment

Answer 1

Vinod,

good question. You don't want to worry on that. Because, if such action is taken, they should inform the customer before 1 month or 2 months to transfer all your shares. To face this, start another dmat account with any of the local stock exchange directly. They will give facility to hold your shares but no facility for online trading. They are not charging any yearly maintenance chanrges and your shares will be safe with them.

To sell, You have to transfer your shares to a dmat account where you have online trading facility to sell the shares. These will not take more than 3 days.

With anything, keeping a redundancy is an advisable and excellent method.

does this make sense to you?

Regards,

Sheirn

Answer 2

If you are long term investor then you will got good profit

start from mutual fund

http://shaktibanna.blogspot.com/2008/07/...

then jump in share market

http://shaktibanna.blogspot.com/2008/06/...

Answer 3

Go for reputed institutions/Brokers like ICICI DIRECT, Sharekhan, India Bulls, SBI etc. Lakhs of people have opened demat accounts with them and it's practically not possible that these people would close their shop in a day. It's just like having a savings account in a bank.

Later on if you feel that the banks might close you can always transfer your shares from one Demat Account to the other.

Answer 4

dont worry, as your demat account has nothing to do with private or government back, the shares in your demat account is with NSDL and its a government of india enterpise.

Answer 5

The demat account is not directly with the Banks.  Even if the bank closes, the demat a/c will be open as it is handled by the NSDL and CDSL.  So you can come out of ur aversion and start investing in the markets.