Why did I receive an email saying I have to close my ILFS DEMAT and open a Zerodha DEMAT?
For the first few 3 years of our business, we had partnered with IL&FS for DEMAT accounts. So the trading accounts belonged to us and DEMAT by them. 4 years back we became a depository participant and started offering our own DEMAT accounts.
The process where we receive or give shares during equity delivery trades process, calculation of holding/P&L, pledging, etc is completely different as versus Zerodha DEMAT accounts. Operationally it has become extremely tough to offer support to IL&FS DEMAT accounts now. We have had to even hold back on certain new features because of these DEMAT accounts. Also recently ILFS has been bought by Indus Ind bank.
By switching to a Zerodha DEMAT account, you are ensured to get accurate P&L reports factoring all corporate actions and access to Coin - our direct mutual fund platform. We will start our NBFC operations soon an by virtue of having a Zerodha DEMAT you will be entitled to benefits of availing Loan against shares, margin trading facility etc.
- This transfer would be considered as a 'closure cum transfer', i.e. closing your account with IL&FS and transferring out your shares, for which there will be no charges.
- Your Annual Maintenance Charges (AMC) for your IL&FS DEMAT account, which had been charged at the beginning of the year, will be reversed on a pro-rata basis for the year.
The instructions for switching your DEMAT is provided in the EMail sent to you and can also be found here.