|
Depository Services
|
Who is a Non-Resident Indian (NRI)?
- Non-Resident Indian (NRI) means a ‘person resident outside India’ who is a citizen of India or is a ‘person of Indian origin’.
|
Who is a ‘person resident outside India’?
- Under the Foreign Exchange Management Act,1999 (FEMA), a person who is NOT a ‘person resident in India’ as defined under Section 2 (v) of the Act is considered a person resident outside India’. The most important change in definition (since FERA 1973) is that the citizenship of a person no longer has a bearing in determination of residential status.
|
Who is a ‘person of Indian origin’?
Person of Indian Origin’ means a citizen of any country other than Bangladesh or Pakistan, if
- He at any time held Indian passport; or
- He or either of his parents or any of his grandparents was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955; or
- The person is a spouse of an Indian citizen or a person referred to in sub-clause (a) or (b).
|
What is an ‘Overseas Corporate Body’ (OCB)?
- Overseas Corporate Body’ means a company, partnership firm, society and other corporate body owned directly or indirectly to the extent of at least sixty per cent by Non-Resident Indians and includes overseas trust in which not less than sixty percent beneficial interest is held by Non-Resident Indians directly or indirectly but irrevocably.
|
Where can an NRI open a demat account?
- NRI can open a demat account with any Depository Participant . The NRI needs to mention the type (‘NRI’ as compared to ‘Resident’) and the sub-type (‘Repatriable’ or ‘Non-Repatriable’) in the account opening form collected from the Depository Participant.
|
Does an NRI need any RBI permission to open demat account?
- No permission is required from RBI to open a demat account. Holding securities in demat only constitutes change in form and does not need any special permission.
|
Does NRI requires to take permission for dematerialisation/rematerialisation of securities?
- No special permission is required. Holding securities in demat only constitutes change in form and does not need any special permission. Permission taken (where required) at the time of acquiring the securities is adequate.
|
Can securities purchased under repatriable and non-repatriable category be held in a single demat account?
- No. An NRI must open separate demat accounts for holding ‘repatriable’ and ‘non-repatriable’ securities.
|
How does NRI dematerialise securities purchased while he/she was resident?
- As per FEMA rules, NRI must regularize his/her holdings to reflect change of status — in this case, bring them to ‘Non-Resident’ status. For this, NRI must submit (if not already submitted to the issuing company earlier) a letter addressed to the issuing company along with the Demat Request Form stating change of status and giving details of foreign address.
|
What are the procedures to be followed in respect of investment in securities in case person resident in India becomes NRI?
- On becoming an NRI, a new depository account with appropriate NRI status is to be opened and all the balances held in account with ‘Resident’ status should be transferred to the account with NRI status & securites held under this account will be treated on non-repatriable basis.
|
What are the procedures to be followed in respect of investment in securities in case NRI becomes person resident in India?
- On becoming a resident, a new depository account with appropriate status — ‘Resident’ in this case — is to be opened and all the balances held in account with ‘Non-Resident’ status should be transferred to ‘Resident’ status.
|
Can a NRI purchase securities by subscribing to an issue? What are the approvals required?
- The issuing company is required to issue shares to NRIs on the basis of specific or general permission from GoI/RBI. Therefore, individual NRI need not obtain any permission.
|
Can a NRI purchase securities in the secondary market? What are the approvals required in the new FEMA rules?
- Purchases made in the secondary market are investments under Portfolio Investment Scheme. Permission to buy in the market is given by authorised dealers under the Portfolio Investment Scheme on repatriable/ non-repatriable basis. The said permission is a one-time general permission.
|
|
Does NRI require any permission to subscribe to Rights issue of a company?
|
|
Does NRI require any permission to receive bonus shares?
|
|
Can an NRI nominate or be nominated in depository account? Whether such nominee can be person resident in India?
|
Can an NRI and person resident in India have a joint demat account?
- Yes. For the purpose of determining ownership of holding, the first holder is taken into account. Hence, even though other joint holders may be persons resident in India, the sale proceeds of such securities can be repatriated in case the first holder is permitted to repatriate funds.
|
What are the permissions required for off-market transfer of securities?
- From NRI to NRI - No permission From person resident - No permission outside India to person resident in India (Gift) From person resident in - Application to RBI India to person resident by transferor outside India (Gift) From person resident in - Approval from GoI India to person resident and then RBI, if the outside India (Sale) acquisation is on repatriable basis. But if acquisation is on non-repatriable basis, approval only From person resident - RBI Permission outside India to person through form Ts1 resident in India (Sale).
|
What type of bank accounts are to be given at the time of account opening and subsequently (by way of change of details)?
- The bank details recorded by the Depository Participant may be used by the issuer of securities to directly credit the dividend or interest. The following bank accounts may be given:
- For non-repatriable - NRO [dividend/interest is repatriable] - NRSR [dividend/interest is not repatriable] For repatriable - NRE.
|
What is a depository?
- A depository can be compared to a bank. A depository holds securities (like shares, debentures, bonds, Government Securities, units etc.) of investors in electronic form. Besides holding securities, a depository also provides services related to transactions in securities.
|
How can I avail the service of a depository?
- A depository interfaces with the investors through its agents called Depository Participants (DPs). If an investor wants to avail the services offered by the depository, the investor has to open an account with a DP. This is similar to opening an account with any branch of a bank in order to utilise the bank's services. Suggestions on how to select a DP are given in Section IV.
|
II. Benefits (Information CREDIT NSDL)
- What are the benefits of a depository?
The benefits of participation in a depository are:
- Immediate transfer of securities;
- No stamp duty on transfer of securities;
- Elimination of risks associated with physical certificates such as bad delivery, fake securities , etc.;
- Reduction in paperwork involved in transfer of securities;
- Reduction in transaction cost;
- Nomination facility;
|
III. Services
- What are the facilities offered by a DEPOSITORY?
A Depository offers the following facilities: -
- Dematerialisation i.e., converting physical certificates to electronic form;
- Rematerialisation i.e., conversion of securities in demat form into physical certificates;
- Electronic settlement of trades in stock exchanges connected to .the Depository.
- Pledging/hypothecation of dematerialised securities against bank loan;
- Electronic credit of securities allotted in public issues, rights issue;
- Receipt of non-cash corporate benefits such as bonus in electronic form;
- Freezing of demat accounts, so that the debits from the account are not permitted;
- Nomination facility for demat accounts;
- Services related to change of address;
- Effecting transmission of securities;
- Instructions to your DP over Internet through SPEED-e facility. (Please check with your DP for availing the facility).
- Account monitoring facility over Internet for clearing members through SPEED facility.
- Other facilities viz. holding debt instruments in the same account , availing stock lending/borrowing facility, etc.
|
|
IV. Account Opening
|
Who is a DP?
- A Depository like NSDL(National Securities Depository Limited) or CDSL(Central Depository Services Limited)provides its services to investors through its agents called depository participants (DPs). These agents are appointed by NSDL& CDSL with the approval of SEBI. According to SEBI regulations, amongst others, three categories of entities i.e. Banks, Financial Institutions and Members of Stock Exchanges registered with SEBI [brokers] can become DPs. You can get a list of DPs from NSDL's or CDSL’s office.
|
How do I select a DP? Whether all DPs are same?
- You can select your DP to open a demat account just like you select a bank for opening a savings account. Some of the important factors for selection of a DP can be:
- Convenience - Proximity to the office/residence, business hours.
- Comfort - Reputation of the DP, past association with the organisation, whether the DP is in a position to give the specific service you may need?
- Cost - The service charges levied by DP and the service standards.
|
What should I do when I want to open an account with a DP?
- You can approach any DP of your choice and fill up an account opening form. At the time of opening an account, you have to sign an agreement with DP in a NSDL prescribed standard agreement, which details your and your DPs rights and duties. All investors have to submit following proof of identity and proof of addresses along with the prescribed account opening form.
- Proof of Identity : Your signature and photograph must be authenticated by an existing demat account holder with the same DP or by your bank . Alternatively, you can submit a copy of Passport, Voters Id Card, Driving License or PAN card with photograph.
- Proof of Address : You can submit a copy of Passport, Voters Id Card, Driving License or PAN card with photograph, ration card or bank passbook as proof of address.
- Passport-size photograph :You must remember to take original documents to the DP for verification.
You should remember to obtain a copy of the agreement and schedule of charges for your future reference.
|
Can I open more than one account with the same DP?
Yes. You can open more than one account with the same DP. There is no restriction on the number of accounts you can open with a DP.
|
Am I restricted to having account with only one DP?
- No. There are no restrictions on the number of DPs you can open accounts with or the number of accounts you can open with a DP. Depository accounts are similar to bank accounts. Just as you can have savings or current accounts with more than one bank, you can open accounts with more than one DP.
|
Can I open a single account for securities owned in different ownership patterns such as securities owned individually and securities owned along-with my wife?
- No. The demat account must be opened in the same ownership pattern in which the securities are held in the physical form. e. g. if one share certificate is in your individual name and another certificate is jointly held in your and your wife's name , two different accounts would have to be opened.
|
What do I do if I have physical certificates with the same combination of names, but the sequence of names is different. i.e. some certificates with husband as first holder and wife as second holder and other set of certificates with wife as first holder and husband as the second holder? (example changed from A & B to husband & Wife)
- In this case you may open only one account with husband and wife as the account holders and lodge the security certificates with different order of names for dematerialisation in the same account. You will fill-up an additional form called "Transposition cum Demat" form. This would help you to effect change in the order of names as well as dematerialise the securities.
|
Why should I give my bank account details at the time of account opening ?
- It is for protection of your interest. Your bank account number will be mentioned on the interest or dividend warrant you are entitled to so that such warrant cannot be encashed by any one else. Further, a DP cannot open the account if bank account number is not given.
|
Can I change details of my bank account?
- Yes. Since in the depository system monetary benefits on your security balances are paid as per the bank account details provided by you at the time of account opening , you must ensure that any subsequent change in bank account details is informed to your depository participant.
|
What is 'Standing Instruction' given in the account opening form?
- In a bank account, credit to the account is given only when a 'paying in' slip is submitted together with cash/cheque. Similarly, in a depository account 'Receipt in' form has to be submitted to receive securities in the account. However, for the convenience of investors, facility of 'standing instruction' is given. If you say 'Yes' [or tick] for standing instruction, you need not submit 'Receipt in' slip every time you buy securities.
|
Can I operate a joint account on "either or survivor" basis just like a bank account?
- No. The demat account cannot be operated on "either or survivor" basis like the bank account..
|
Is it compulsory for every investor to open a depository account to trade in the capital market?
- Since 99.5 % of the settlement at the stock exchanges is taking place in demat form , an investor buying securities would receive the securities in demat form only. Therefore, investors who actively buy and sell securities need to open a depository account to receive delivery of demat securities.
|
What should I do if my address is changed? Do I need to write to each company separately?
- In case your address is changed, you only need to inform the new address to your DP(s). When DP enters the new address in the depository computer system, it will be automatically conveyed to all companies in which you hold shares.
|
Can I close my demat account with one DP and transfer all securities to my account with another DP ?
- Yes. You can submit account closure request to your DP in prescribed form. Your DP will transfer all your securities, as per your instruction, and close your demat account.
|
What would be the charges for account closure and securities transfer due to account closing?
- The charges would be as per the schedule of charges agreed by you at the time of account opening or any subsequent changes there-in.
- NSDL is allowing waiver of charges to DPs where all the securities in an account are moved to another account with another DP due to account closure if account name remains the same. NSDL allows waiver of its charges for cases where NSDL charges to the DP are more than Rs 100/-. Your DP may pass on this benefit to you.
|
V. Nomination
Who can nominate?
- Nomination can be made only by individuals holding beneficiary accounts either singly or jointly. Non-individuals including society, trust, body corporate, partnership firm, karta of Hindu Undivided Family, holder of power of attorney cannot nominate.
|
Can joint holders nominate?
- Yes. Nomination is permitted for accounts with joint holders. But, in case of death of any of the joint holder, the securities will be transmitted to the surviving holder(s). Only in the event of death of all the joint holders, the securities will be transmitted to the nominee.
|
Can a NRI nominate?
- Yes, NRI can nominate directly. But, the power of attorney holder cannot nominate on behalf of NRI.
|
Can a minor nominate?
- No, a minor cannot nominate either directly or through its guardian.
|
Who can be a nominee?
- Only an individual can be a nominee. A nominee shall not be a society, trust, body corporate, partnership firm, karta of Hindu Undivided Family or a power of attorney holder.
|
Can there be more than one nominee?
- No, at present only one nomination can be made for one depository account.
|
Can a minor be a nominee?
- Yes, a minor can be a nominee. In such a case, the guardian will sign on behalf of the nominee and in addition to the name and photograph of the nominee, the name, address and the photograph of the guardian must be submitted to the DP.
|
Can separate nomination be made for each security held in a depository account?
- No. Nomination can be made account wise and not security wise.
|
Can a NRI be a nominee?
- Yes, NRI can be a nominee subject to the exchange control regulations in force from time to time.
|
What is the procedure for nomination?
- The nomination form (format provided as Annexure) duly filled-in should be submitted to the DP either at the time of account opening or later. The account holder, nominee and two witnesses must sign this form and the name, address and photograph of the nominee must be submitted.
- If nomination was not made at the time of account opening, it can be made subsequently by submitting the nomination form.
|
Can the nominee be changed?
- Yes, the nomination can be changed anytime by the account holder/s by simply filling up the nomination form once again and submitting it to the DP.
|
VI. Transmission
What does transmission mean in relation to demat accounts?
- In a bank account, credit to the account is given only when a 'paying in' slip is submitted together with cash/cheque. Similarly, in a depository account 'Receipt in' form has to be submitted to receive securities in the account. However, for the convenience of investors, facility of 'standing instruction' is given. If you say 'Yes' [or tick] for standing instruction, you need not submit 'Receipt in' slip every time you buy securities.
|
What is the procedure for transmission of securities to the nominee in case of the death of the account holder ?
- In case of the death of the sole holder , for the purpose of transmission of securities, the nominee has to submit a duly filled-in transmission form, notarised copy of death certificate and an affidavit in the prescribed format. After verifying these documents, the DP will transmit the securities to the account of the nominee.
|
What would happen if no nomination is made for the account?
- In case nomination is not made, the securities would be transmitted to the account of legal heir(s), as may be determined by an order of the competent court. However in cases where the value of securities to be transmitted is less than Rs. 1,00,000/- the DP may process the request based on submission of necessary letter of indemnity , surety , affidavits and NOC documents.
|
What is the procedure for transmission in case of Joint Accounts ?
- In the event of death of one of the joint holders , the securities will be transmitted to the surviving holder(s) on submission of Transmission Form and notarised copy of the death certificate of the deceased joint holder to the DP. For transmission of securities , the account of the surviving holder(s) must be in the same sequence in which the names appear in the joint account to be closed.
|
VII. Dematerialisation
What do you mean by dematerialisation?
- Dematerialisation is the process by which physical certificates of an investor are converted to an equivalent number of securities in electronic form and credited in the investor's account with his DP.
- In order to dematerialise certificates; an investor will have to first open an account with a DP and then request for the dematerialisation of certificates by filling up a dematerialisation request form [DRF], which is available with DP and submitting the same along with the physical certificates. The investor has to ensure that before the certificates are handed over to the DP for demat, they are defaced by marking "Surrendered for Dematerialisation" on the face of the certificates.
|
Can I dematerialise any share certificate?
- You can dematerialise only those certificates that are already registered in your name and are in the list of securities admitted for dematerialisation at NSDL or CDSL.
- All the scrips included in S&P, CNX, NIFTY and BSE SENSEX have already joined NSDL. This list has more than 3700 companies and is steadily growing. You can get an updated list of these of these companies from your DP or from NSDL's office or NSDL website at www.nsdl.co.in
|
What precautions should I take before defacing a share certificate?
- Before defacing the share certificates, you must ensure that it is available for dematerialisation. You must therefore check with your Depository Participant (DP) whether the ISIN (code number for the security in a depository system) has been activated and made available for dematerialisation by the depository. If yes, then you may deface the share certificate. The certificates are defaced by marking "Surrendered for Dematerialisation" on the face of the certificate. The diagram given below shows the proforma of a defaced certificate.
|
How long do the dematerialisation process take?
- Dematerialisation will normally take about 30 days.
|
What if it takes more than 30 days for dematerialisation of the shares?
- If the process of dematerialisation takes more than 30 days, please contact your DP. If he is unable to help you, than you may send your grievance to:
The Officer in Charge
Investor Grievance Cell
National Securities Depository Limited
4th Floor, Trade World
Kamala Mills Compound
Senapati Bapat Marg
Lower Parel
Mumbai - 400 013
Email: relations@nsdl.co.in
|
VIII. Government Securities and Debt Instruments
Can I dematerialise my debt instruments, mutual fund units, government securities also in my demat account ?
- Yes. You can dematerialise and hold all such investments in a single demat account.
|
IX. Rematerialisation
Can my electronic holdings be converted back into certificates?
- Yes. If you wish to get back your securities in physical form, all you have to do is to request your DP for rematerialisation of the same. 'Rematerialisation' is the term used for converting electronic holdings back into certificates. Your DP will forward your request to NSDL after verifying that you have the necessary balances. NSDL in turn will intimate the registrar who will print the certificates and dispatch the same to you.
|
X. Trading / Settlement
What is the procedure for selling dematerialised securities?
- The procedure for selling dematerialised securities is very simple. After you have sold the securities, you would instruct your DP to debit your account with the number of securities sold by you and credit your broker's clearing account. This delivery instruction has to be given to your DP using the delivery instruction slips given to you by DP at the time of opening the account. Procedure for selling securities is given here below:
- You sell securities in any of the stock exchanges linked to NSDL through a broker.
- You gives instruction to DP to debit his account and credit the broker's [clearing member pool] account.
- Before the pay-in day, your broker gives instruction to DP for delivery to clearing corporation.
- Your broker receives payment from the stock exchange [clearing corporation]
- You receive payment from the broker for the sale of securities.
|
How can I purchase dematerialised securities?
- For receiving demat securities you may give a one-time standing instruction to your DP. This standing instruction can be given at the time of account opening or later. You may also choose to give separate receipt instruction every time some securities are to be received.
The transactions relating to purchase of securities are summarised below:
- You purchase securities through a broker;
- You make payment to your broker who arranges payment to clearing corporation on the pay-in day;
- Your broker receives credit of securities in clearing account on the pay-out day;
- Your broker gives instructions to DP to debit clearing account and credit your account;
- You receive shares into its account. However, if standing instructions are not given at the time of opening the account, you will have to give 'Receipt Instructions' to your DP for receiving credit,.
- You should ensure that your broker transfers the securities purchased from his clearing account to your depository account, before the book closure. If the securities remain in the clearing account of the broker, the company may give corporate benefits to the broker. In that case, you have to collect benefits from your broker.
|
What do you mean by 'Market Trades' and 'Off Market Trades'?
- Any trade settled through a clearing corporation is termed as the 'Market Trade'. These trades are done through stock brokers on a stock exchange. 'Off Market Trade' is one which is settled directly between two parties without the involvement of clearing corporation. The same delivery instruction slip can be used either for market trade or off-market trade by ticking one of the two options.
|
If I sell securities through a sub-broker which part of the delivery instruction slip has to be filled?
- If you are delivering securities to your sub-broker you would need to fill-in the off-market trade portion of the delivery instruction slip.
|
What settlement details are required on the delivery instruction slip and when delivery is to be given to a broker?
- On every stock exchange various settlements are effected every day such as weekly settlement, daily settlement, auction settlement etc. Each of these settlements is identified by the combination of the market type and the settlement number. You are required to mention the appropriate settlement details on the delivery instruction slip while transferring the shares to your broker's account. These settlement details are available on the contract note issued by the broker.
|
How do I come to know about the settlement deadlines?
- The depository participant with whom you have your demat account will prescribe the deadlines to be followed by you for submission of delivery instruction slips. You should deliver instructions to your DP as per these deadlines.
|
When I buy shares, in what time should I receive the securities from my broker?
- The broker is expected to transfer the securities to you within two working days or four calendar days after securities are received in his pool account, provided you have made the requisite payment to the broker.
|
|
What precautions do I need to observe with respect to Delivery Instruction Slips [DIS]?
|
What is 'execution date' given in the delivery instruction form?
- Execution date is the date on which securities will be actually debited from your account. The execution date written on the delivery instruction has to be entered by the DP in the DPM system [computer]. DPM system will record the date and will debit your account only on that date. You may issue the instruction well in advance of the date on which you want the securities to be debited from your account but your account will be debited only on the execution date.
|
What benefit do I get by giving delivery instruction from with a future execution date?
- By giving a future dated instruction the risk of non-execution of instruction due to lack of time or last minute rush is covered.
|
What is the importance of record dates to me?
- In case the securities bought by you are yet to be transferred into your account by your broker before the book closure / record date, you will not be entitled to receive corporate benefit such as dividend or bonus since your name will not figure in the list of beneficial owners. Hence, you must ensure that securities bought by you are transferred into your account before the book closure / record date announced by the company.
|
Can I buy and sell shares through Depository Participant?
- No. Shares can be bought and sold only through a stock broker. DP facilitates delivering the shares against a sell transaction or receiving the shares for a buy transaction.
|
XI. Corporate Benefits
Who will give me the corporate benefits arising out of my holdings?
- The benefits will be given by the company If at the time of book closure / record date, shares are in your broker's account the company will give the corporate benefits (dividend/bonus) to the broker and the broker has to pass on the same to you.
|
How would I get my dividend / interest or other cash entitlements?
- The concerned company obtains the details of beneficiary holders and their holdings as on the date of the book closure / record date from NSDL. The payment to the investors will be made by the company through the ECS ( Electronic Clearing Service) facility or by issuing warrants on which your bank account details are printed. The bank account details will be those which you would have mentioned in your account opening form or changed thereafter.
|
How would I get my bonus shares or other non-cash entitlements?
- The concerned company obtains the details of beneficiary holders and their holdings as on the date of the book closure / record date from NSDL. Your entitlement will be credited by the company directly in your NSDL depository account.
|
In case of discrepancies in corporate benefits whom do I contact?
- In case of discrepancies in corporate benefits, you can approach your DP or the company / its R&T Agents.
|
How will the investor confirm that bonus/rights entitlement is credited into the account?
- An allotment advice will be sent by the Issuer/ their R&T agent for bonus/ rights entitlement. The Transaction Statement given by the DP, will also show the bonus/ rights credit into the account. The quantity shown in the advice and statement of transaction should match.
|
XII. Pledging
Can I pledge dematerialised securities?
- Yes. In fact, pledging dematerialised securities is easier and more advantageous as compared to pledging physical securities.
|
What should I do if I want to pledge electronic securities?
- The procedure is as follows:
- Both you (pledgor) as well as the lender (pledgee) must have depository accounts;
- You have to initiate the pledge by submitting to your DP the details of the securities to be pledged in a standard format;
- The pledgee has to confirm the request through his DP;
- Once this is done, your securities are pledged
- All financial transactions between the pledgor and the pledgee are handled as per usual practice outside the depository system.
- Yes. You can dematerialise and hold all such investments in a single demat account.
|
How can I close the pledge after repayment of my loan?
- After you have repaid your loan, you can request for a closure of pledge by instructing your DP in a prescribed format. The pledgee on receiving the repayment will instruct his DP accordingly for the closure of the pledge.
|
Whether pledgee account can be in a different DP?
- Yes. The pledgee can have an account with a different depository participant of NSDL.
|
Can I change the securities offered in a pledge?
- Yes; if the pledgee [lender] agrees, you may change the securities offered in a pledge.
|
Who would receive the corporate benefits on the pledged securities?
- The securities pledged are only blocked in the account of pledgor in favour of the pledgee. The pledgor would continue to receive all the corporate benefits.
|
XIII. Securities Lending and Borrowing
- SEBI has introduced Securities Lending and Borrowing scheme. As per this scheme, those persons having securities can lend their securities for consideration and those requiring securities (managing market obligations , as collateral etc.) can borrow the same. Under the scheme, the securities are lent through intermediaries who are approved by SEBI. The approved intermediary would borrow the securities for further lending to some borrowers. Lenders of the securities and borrowers of the securities enter into separate agreements with the approved intermediary for lending and borrowing the security. Lending and borrowing is effected through the depository system. A lender can recall securities; similarly borrower can repay securities as per agreement with the intermediary.
|
Can I lend the securities lying in my account ?
- Yes. You can lend your securities through Intermediaries approved by SEBI.
|
How would I lend my demat securities?
- You may enter into an agreement with the approved intermediary, to be a lender under this scheme. After that, you may lend securities any time by submitting lending instruction to your DP.
|
How would I get back the securities lent by me?
- Intermediary may return the securities at any time or at the end of the agreed period of lending. Intermediary has to repay the securities together with any benefits received during the period of the loan.
|
How would I receive the corporate benefits which would accrue on these securities during the period of lending ?
- The benefits will be given to the Intermediary/borrower. However, whenever the securities are being returned/recalled, Intermediary/borrower will return the securities together with benefits received.
|
XIV. Charges
What will be the charges for account opening and other depository related transactions?
- NSDL charges the DPs and not the investors. NSDL's charges to its DPs are fixed. However, the DP is free to charge its client for the services offered. The charges that DP will be charging you for various services are mentioned in the Schedule of Charges which forms a part of the account opening agreement. You may keep a copy of this for your future reference. You can get the details of the charges from the DPs. You can also get a comparative list of DP charges from NSDL's office or from the NSDL website.
- Your DP may change charges by giving you 30 days notice in advance notice.
|
XV. Inter Depository Transfers
If my depository account is with NSDL, can I receive my securities from an account holder having account with some other depository in India?
- Yes. Inter depository transfers are possible
|
XVI. Safety Features
How will I know that my DP has updated my account after each transaction?
- Your DP will give you a Transaction Statement periodically, which will detail your current balances and the various transactions you have done through the depository account. If you so desire, your DP may provide the Transaction Statement at intervals shorter than the stipulated ones, probably at a cost. A format of statement of transactions is reproduced as Annexure.
|
At what frequency will I receive my Transaction Statement from my DP?
- You will receive a Transaction Statement from your DP once in a quarter. If you have done any transaction during the quarter, you will receive the statement within fifteen days of the transaction.
|
What is to be done if there are any discrepancies in my transaction statement?
- In case of any discrepancy in the transaction statement, you can contact your DP. If the discrepancy cannot be resolved at the DP level, you should approach NSDL.
- NSDL also sends out a statement of holdings to a few clients of DPs, picked at random. In case the balance in your account as indicated by your DP does not tally with the balance as indicated by NSDL, you can contact your DP/ NSDL for clarification.
|
What happens if I lose my Transaction Statement?
- Simple. Inform your DP and obtain a duplicate Transaction Statement.
|
What security do I have if the only proof of my holdings in the depository is merely a piece of paper indicating my account balance?
- No transaction can be effected in your account without your written authorisation. Further, if you are away for a long time, you have the facility of freezing your account wherein only credits into your account will be allowed and no debit will be possible.
|
What will happen if my DP goes bankrupt or stops operation?
- In a rare event of your DP going bankrupt or closing the operation, the interests of the investors will be fully protected. In such a situation, the investor will be given option of either transferring the securities to a new DP or else he may rematerialise the securities.
|
What precautions does NSDL take to protect the data in its depository system?
- The data carries a high importance in the NSDL depository system. NSDL has taken necessary steps to protect the transmission and storage of data. The data is protected from unauthorized access, manipulation and destruction. The following back up practices are adopted to protect the data:
- Local Back up
- Remote Back up
- Disaster Recovery Site.
- In addition to this, every DP is required to take daily back up, at the end of each day of operation.
|
Can I freeze my account?
- The depository system provides the facility to freeze the depository accounts for any debits or for both debits and credits. In an account which is "freezed for debits", no debits will be permitted from the account, till the time it is defreezed. This is the additional security feature for the benefit of the investors.
|
What should I do if my DP is unable to resolve my problem?
- In case of failure of a DP to resolve your grievance, you can write to the investor grievance cell at the following address:
The Officer in Charge
Investor Grievance Cell
National Securities Depository Limited
4th Floor, Trade World
Kamala Mills Compound
Senapati Bapat Marg
Lower Parel
Mumbai - 400 013.
|
