Upstox has introduced a facility called e-Dis. This facilitates debit/credit from demat account without giving power of attorney to broker/dp. Read more about it
Now sell your shares without a Power of Attorney letter
My understanding is OTP authenticates the transaction and shares are transferred from demat account of customer to pool account of broker. From pool account broker can transfer the shares to account of buyer if shares are sold.
This is a new offering and welcome one but I have few questions -
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How quick is the transfer from demat account of customer to pool account of Upstox? General feedback is Easiest facility of CDSL takes almost one day for transfer!
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Let’s say I have shares of company X in my demat account and market price of the company is Rs.100/-. I place a limit sell order for Rs. 120/-. While placing the order the shares are transferred from my demat account to pool account of Upstox via OTP using e-DIS. Imagine the order is not executed till EOD because price remains below 120 and order is cancelled. In such case What will happen to my shares transferred to the pool account of broker? Are they returned back to my account the same day? Do I have some option of portal where I can transfer them back whenever I want to?
Thanks