What to do if broker fails to accept eDIS EASIEST transaction on time?

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1

Hello Dhan team.

I need your advice.

Yesterday I applied for transfer of all my shares from Upstox to Dhan via EASIEST. (Before 1PM)

On Easiest platform it was showing - “Txn Ready For DP Auth”

I even sent email message to Upstox for same to approve the transfer.

However they did nothing yesterday and now today status is showing as “Txn expired”

Can you please inform:

  1. Aren’t brokers bound to execute eDIS via EASIEST on time?
  2. What action can I take if they fail to do so?
  3. Is there any penalty clause for such inaction by broker?

Please guide / inform.

Thank you.

2

Further to above. on contacting Upstox, they say that “Transaction waiting for DP approval” means that Dhan has to approve it!

If I am not wrong then it is Upstox who has to approve it because shares are with Upstox and I want to transfer to Dhan.

Is there anyway Dhan can help me here?

Thank you

3

@PravinJ can you or someone from your team help?

I am stuck. As Upstox is not responding properly and not approving transfer and letting it expire. All it says is please wait but then by that time, my transaction will expire again today.

Are they not supposed to honor EASIEST transaction requests without any delay?

I cant transfer shares to Dhan due to this.

4

Hi @amish,

Thank you for reaching out and for sharing the detailed context with us.

You’re absolutely right in your understanding — when shares are being transferred from one demat account (let’s call it the “Source DP”) to another (the “Destination DP”), it is the responsibility of the Source DP (i.e., the DP currently holding your shares) to approve the transaction after you’ve completed the eDIS authentication on the CDSL Easiest platform.

If the transaction remains in a “Pending for DP Approval” status and subsequently expires, it typically means the approval wasn’t completed by the Source DP within the stipulated timeframe.

In such a case, the transaction would need to be re-initiated on the CDSL portal. We recommend following up directly with the Source DP and, if required, escalating the matter via official grievance channels. You may also choose to keep CDSL in loop when doing so by including their grievance redressal Email ID: complaints@cdslindia.com.

If you plan to re-initiate the request and require any assistance from our end, please feel free to reach out. We’re here to help in any way we can.

5

Thank you very much for offering to help.

I already re-initiated all transaction today. But it has still not been done. All transactions are still showing status - “Txn Ready For DP Auth”

Can you tell me if there is any penalty clause that I can threaten Upstox with? Otherwise I doubt they care anymore for outgoing customer.

They must have obligation under the SEBI/EASIEST rules to approve transaction as and when presented without fail. And there must serious penal action taken by CDSL for repeat lapse in fulfillment of its duties as DP / broker.

Thank you again.

PS:
I followed steps here:

and also using: (more or less same instructions)
How to transfer shares from the Upstox account (CDSL) to another CDSL demat account?

6

Hi @amish We are not sure about any such penalty, however know that different brokers may have different ETAs for approvals. At Dhan - we process all requests within 24 hours to 48 hours at the max.

7

Thank you but if Execution date is today, then ETA can not be more than 24 hours.

Infact Upstox has clearly mentioned to place transaction before 1PM (which I did) indirectly hinting that ETA is by EOD.

And yes I know Dhan is fast. Most of my CDSL trusted account requests were processed within 4-5 hours.

That is why I am shifting to Dhan.

2 Likes
8

DP Auth is to be Enabled by Broker if u like just made cdsl easiest account .takes 2 days to activate .

9

Yes, what is mentioned by @john_conner is important factor @amish

10

EASIEST was enabled almost 15-20 days back or more.

11

Just an update.
Transfer is still not done.
Everyday I go to EASIEST, apply for transfer of all shares to Dhan DEMAT.
Then I email Upstox. They never reply on their own.
They dont authenticate transactions.
Day ends.
Transaction expires.
New day starts.
Repeat.

Now I have complained CDSL. Lets see.

12

I think you don’t have sufficient cash for DP charges in your ledger. Please keep atleast 40 Rs per company stock. For example if you are transferring 5 different companies stocks then (40*5 = 200) keep atleast Rs 200 in your ledger balance. (Spouse you have 10 shares of Reliance and 20 Zomato shares so charges would be under Rs 80 because these are two companies). Try this and i am sure your transaction will not fail again. Thanks

13

I have sufficient funds even then it is failing.

The reason that Upstox is now giving is that when they try to approve the transaction then CDSL throws an error that PAN does not match.

But then first holder PAN is same. Still somehow CDSL throws error.

Issue I believe is that Upstox account has 2 holders whereas Dhan account has 1 holder. So possibly when I select transfer reason as “Transfer to own account”, it looks like CDSL does not accept this.

Funny thing is for income tax purposes, it is always the first holder that is taxed. Yet CDSL does not consider it as own account.

So then I used reason as “Gift”, even then it was not processed. Possibly CDSL thinks “How can person Gift to themselves?”.

So you knows its contradictory.

If I say reason as “own account” as reason, CDSL considers it as NOT own account and does not accept.

If I say reason as “gift”, CDSL considers it as OWN account and does not accept!

Now I am stuck, all other reasons are not applicable in my case.

If I show as “off market sell” then I will have to pay huge capital gain tax as well as stamp duty.

There is no option at CDSL which allows transfer of shares from Joint holder account to single holder account.

@PravinJ @ravimukherjee Any idea, which reason is accepted by CDSL (without stamp duty / without capital gain tax) for transfer cases where Source BO is joint account (A and B) and destination BO is single holder account (only A).

OR if possible can you inquire CDSL for such cases? I will also raise a query with CDSL but being a DP, you are likely to get answers quickly from them.

Please guide if you can. Upstox guys said they dont have any clue on which reason I should select.

Thank you.

14

Hi. Please do read my above post and help if you can.

Thank you.

15

@PravinJ @ravimukherjee @Dhan Please do suggest if you have a way out.

16

Hi @amish

We are reviewing your query and will get back to you with a resolution shortly.

1 Like
17

Hey @amish

If the primary holder is the same in both broker accounts, you can transfer shares online through Easiest. Please try the process again using ‘Gift’ as the transfer reason. Since the transfer is initiated from the other broker, they will be able to guide you and explain the reason if it gets rejected again.

18

In that case select Reason “Transfer between family members” an under relation code select “Members of same HUF”

19

As I have already mentioned in previous post, I already tried “Gift” but that did not go through either. But Upstox did not mention the reason.

Neither source nor destination DEMAT account is HUF. So it won’t work.

But today I have tried “Transfer between family members” with “Spouse” as option.

Lets see if it gets approved or not.

20

Finally transferred to Dhan with a hack.

CDSL has very weird logic for transferring from Joint account (A and B) to single holder (just A)

If you transfer using reason “Transfer to own account” - it says PAN is NOT same, so does not transfer! (Even if PAN is same for first holder.)

If you transfer using reason “Gift”, it says PAN is same, so does not transfer!

Either PAN is same or PAN is not same. How can both be true?

For transferring to own account, they should match just first holder PAN. As that is what matters to Income tax.

If anyone else has same problem then select “Transfer to family member” as reason and select relation of second holder and transfer will go through.

Make sure first holder PAN is same, so you don’t have to pay capital gain tax. As for income tax purposes, it will be transfer to self.