I have few questions regarding the pool account practice done by few brokers and the problem associated with it. I want to understand why they do and if its within the regulation.
Since they use pool accounts to operate, If you sell your shares, they debit your demat account on T+1 days. Due to which if you sell on Ex-date, your eligibility for bonus issue or rights issue doesn’t get recorded by registrar. Then you have to follow up with the DP for few weeks in order to get it corrected.
I faced issue with bonus shares few months back, Now I am facing issue with TATA Steel rights issue. They have said that the entitlement they have received against pool account and they will send it to registrar for split and accordingly they will courier my entitlement, hopefully before its too late.
So if any of you have faced the same issue before, could you throw some lights on this?