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FAQ
  1. Can one open more than one (1) Demat account with the same identified CBS branch or different DPs?

  2. What should the Demat account holder do if his/her address is changed? Does he / she need to write/send mail to each company separately?

  3. What do ‘Market Trades’ and ‘Off Market Trades’ mean?

  4. Is an investor restricted to having Demat account with only one DP?

  5. What is 'Standing Instruction' given in the account opening form?

  6. What is the procedure for nomination?

  7. What is the advantage of transmission?

  8. What is the procedure for transmission of securities to the nominee in case of the death of the account holder?

  9. What is meant by Dematerialization?

  10. Can one Dematerialize any share certificate?

  11. What precautions Demat account holder should take before defacing a share certificate?

  12. How long does the Dematerialization process take?

  13. What if it takes more than 30 days for Dematerialization of the shares?

  14. Can an investor Dematerialize his/her debt instruments, mutual fund units; government securities also in his/her Demat account?

  15. Can his/her electronic holdings be converted back into certificates?

  16. What precautions, the Demat account holder(s) need to observe with respect to Delivery Instruction Slips [DIS]?

  17. What is 'execution date' given in the delivery instruction form?

  18. What benefit a client gets by giving delivery instruction slip with a future execution date?

  19. Can he / she open a single account for securities owned in different ownership patterns such as securities owned individually and securities owned along-with his /her wife/husband?

  20. What one should do if he/she has 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 given below)

  21. Can he/she change details of his/her bank account?

  22. How would the client get his/her dividend / interest or other cash entitlements?

  23. How would the client get his/her bonus shares or other non-cash entitlements?

  24. How will the investor confirm that bonus / rights entitlement is credited into the account?

  25. Can client pledge Dematerialized securities?

  26. What should the client do if he/she wants to pledge electronic securities?

  27. How can the client close the pledge after repayment of his/her loan?

  28. Whether pledgee account can be in a different DP?

  29. Can the client change the securities offered in a pledge?

  30. Who would receive the corporate benefits on the pledged securities?

  31. What will happen if DP goes bankrupt or stops operation?

 
1 How one can select a DP? Whether all DPs are same?
 

One can simply select any identified CBS branch (if it is authorized to open Demat account) just like one selects a branch for opening a Savings Account. Some of the important factors for selection could be:

  1. Convenience - Proximity to the office/residence, business premises and working hours of DP.
  2. Services offered & speed of the same.
  3. Cost - The service charges levied by us are very competitive.

All DPs are same but they differ in above aspects.

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2. What should one do when he/she wants to open a Demat account with an identified CBS branch of our bank?
 

He / she can approach any identified CBS branch of his/her choice and fill up an account opening form. All investors have to submit following documents:

  1. Proof of Identity
  2. Proof of Address
  3. Passport-size photograph 
  4. PAN Card (for all individuals; minors; HUF etc).
  5. Cancelled cheque/ latest Bank statement not old more than 3 months.
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3. Can a Demat account holder 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. All the holders to the account must sign all documents (including Delivery Instructions) jointly.

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4. Is it compulsory for every investor to open a Demat 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.

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5. Can one open more than one (1) Demat account with the same identified CBS branch or different DPs?
 

Yes. One can open more than one account with the same identified CBS branch or DP. There is no restriction on the number of accounts one can open with our identified CBS branch/branches (linked to Central Back Office DP Operations i.e. CBODPO) or with any other DP.

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6. What should the Demat account holder do if his/her address is changed? Does he / she need to write/send mail to each company separately?
 

In case his/her address is changed, he/she only needs to inform the new address to the branch DP along with necessary proof of change of address. When branch DP enters the new address in the depository computer system, it will be automatically conveyed to all companies in which the account holder holds share/s.

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7. What do Market Trades and Off Market Trades mean?
 

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.

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8. Is an investor restricted to having Demat account with only one DP?
 

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.

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9. 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 Demat 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 account holder says 'Yes' [or tick] for standing instruction at the time of opening Demat account, he/she need not submit 'Receipt in' slip every time he/she buys securities.

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10. What is the procedure for nomination?
 

The nomination form (format provided in account opening form) duly filled-in should be submitted to the branch DP at the time of account opening. The account holder, nominee and two witnesses must sign this form and the name; address and photograph of the nominee must be submitted. (Photograph of nominee is not required in case the account is opened with CDSL DP/branch)
If nomination option is not opted at the time of account opening, it can be made subsequently by submitting the nomination form.

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11. What is the advantage of transmission?
 

The major advantage in case of Dematerialized holdings is that transmission formalities for all securities held in Demat account can be completed just by interaction with the branch DP alone, unlike in the case of physical securities, where the claimant has to interact with the Issuer or its Registrar separately.

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12. 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, notarized 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.

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13. What is meant by Dematerialization?
 

Dematerialization 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 Dematerialize certificates; an investor will have to first open an account with a branch DP and then request for the Dematerialization of certificates by filling up a Dematerialization request form [DRF], which is available with branch DP and submitting the same along with the physical certificates. The investor has to ensure that before the certificates are handed over to the branch DP for Demat, they are defaced by marking "Surrendered for Dematerialization" on the face of the certificates.

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14. Can one Dematerialize any share certificate?
 

One can dematerialize only those certificates that are already registered in one�s name and are in the list of securities admitted for Dematerialization at NSDL or CDSL.

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15. What precautions Demat account holder should take before defacing a share certificate?
 

He/she must ensure that it is available for Dematerialization. He/she must, therefore, check, with his/her branch Depository Participant whether the ISIN (code number for the security in a depository system) has been activated and made available for Dematerialization by the depository. If yes, then he/she should submit Demat Request Form along with the physical certificates. He / she should NOT deface the certificates. (In case of NSDL, a client is advised to affix the relative rubber stamp “Surrendered for Dematerialization” on share certificates)

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16. How long does the Dematerialization process take?
 

Dematerialization will normally take about 30 days.

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17. What if it takes more than 30 days for Dematerialization of the shares?
 

If the process of Dematerialization takes more than 30 days, the client should be advised suitably after contacting CBODPO. If the client has a grievance, he should be advised to submit grievance to the branch with a copy to bank�s Central Back Office DP Operations (CBODPO)

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18. Can an investor Dematerialize his/her debt instruments, mutual fund units; government securities also in his/her Demat account?
 

Yes. He/she can Dematerialize and hold all such investments in a single Demat account

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19. Can his/her electronic holdings be converted back into certificates?
 

Yes. If Demat account holder wishes to get back his/her securities in physical form, all he/she has to do is to request branch DP for Rematerialization of the same. 'Rematerialization' is the term used for converting electronic holdings back into certificates. His/her branch DP will forward his/her request to CBODPO, which in turn will forward to NSDL/CDSL after verifying that he/she has the necessary balances. NSDL/CDSL in turn will intimate the registrar who will print the certificates and dispatch the same to him/her.

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20. What precautions, the Demat account holder(s) need to observe with respect to Delivery Instruction Slips [DIS]?
 

The following precautions are to be taken by a Demat account holder (these should be advised by branch DP to the client):

  • Account holder should ensure and insist with branch DP to issue DIS book; Branch DP should not issue loose slips.
  • Ensure that DIS numbers are pre-printed and branch DP takes acknowledgment from you for the DIS booklet issued to you.
  • Ensure that your account number [client id] is pre-stamped.
  • If Demat account is a joint account, all the joint holders have to sign the instruction slips. Instruction cannot be executed if all joint holders have not signed.
  • Do not leave signed blank DIS with anyone viz., broker/sub-broker/branch’s staff.
  • Keep the DIS book under lock and key when not in use.
  • If only one entry is made in the DIS book, strike out remaining space to prevent misuse by any one.
  • Please fill in target account-id yourself; and all details in the DIS yourself.
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21. 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 branch DP in the DEBOS system [computer]. When this is uploaded to DPM/CDAC by CBODPO, the Depository’s system will record the date and will debit client’s account only on that date. Client may issue the instruction well in advance of the date on which he/she wants the securities to be debited from his/her account but his/her account will be debited only on the execution date.

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22. What benefit a client gets by giving delivery instruction slip 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.

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23. Can he / she open a single account for securities owned in different ownership patterns such as securities owned individually and securities owned along-with his /her wife/husband?
 

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 his individual name and another certificate is jointly held in his and his wife's name, two different accounts would have to be opened.

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24. What one should do if he/she has 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 given below)
 

In this case he/she may open only one account with husband & wife + daughter as the account holders and lodge the security certificates with different order of names for Dematerialization in the same account. He/she will fill-up an additional form called "Transposition cum Demat" form. This would help him/her to effect change in the order of names as well as Dematerialize the securities.                      

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25. Can he/she change details of his/her bank account?
 

Yes. Since in the depository system monetary benefits on his/her security balances are paid as per the bank account details provided by him/her at the time of account opening, he/she must ensure that any subsequent change in bank account details is informed to the branch DP immediately.

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26. How would the client get his/her 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/CDSL. The payment to the investors will be made by the company through the ECS (Electronic Clearing Service) facility or by issuing warrants on which client’s bank account details are printed. The bank account details will be those which the client would have mentioned in his/her account opening form or changed thereafter.

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27. How would the client get his/her 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/CDSL. The payment to the investors will be made by the company through the ECS (Electronic Clearing Service) facility or by issuing warrants on which client’s bank account details are printed. The bank account details will be those which the client would have mentioned in his/her account opening form or changed thereafter.

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28. 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 branch DP, will also show the bonus / rights credit into the account. The quantity shown in the advice and statement of transaction should match.

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29. Can client pledge Dematerialized securities?
 

Yes. In fact, pledging Dematerialized securities is easier and more advantageous as compared to pledging physical securities.

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30. What should the client do if he/she wants to pledge electronic securities?
 

The procedure is as follows:

  • Both ,the client (pledgor) as well as the lender (pledgee) must have Demat accounts;
  • Client has to initiate the pledge by submitting to his/her branch DP the details of the securities to be pledged in a standard format;
  • The pledgee has to confirm the request through his/her DP;
  • Once this is done, the securities are pledged.
  • All financial transactions between the pledgor and the pledgee are handled as per usual practice outside the depository system.
  • Yes. Client can Dematerialize and hold all such investments in a single Demat account.
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31. How can the client close the pledge after repayment of his/her loan?
 

After the client has repaid the loan, he/she can request for a closure of pledge by instructing branch DP in a prescribed format. The pledgee on receiving the repayment will instruct his/her DP accordingly for the closure of the pledge.

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32. Whether pledgee account can be in a different DP?
 

Yes. The pledgee can have an account with a different depository participant of NSDL or CDSL i.e. both the DPs should be of the same depository.

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33. Can the client change the securities offered in a pledge?
 

Yes, if the pledgee [lender] agrees, client may change the securities offered in a pledge.

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34. 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 (client) would continue to receive all the corporate benefits.

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35. What will happen if DP goes bankrupt or stops operation?
 

Ours is a premier nationalized bank and a Government of India undertaking.
In a rare event of Bank going bankrupt or closing the operation, the interests of the investors will be fully protected. In such a situation, the investor is given option of either transferring the securities to a new DP else he may rematerialize the securities.

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