Demat

• To hold securities of investors in dematerialised form and facilitate its transfer, while ensuring safekeeping of securities and protecting interest of investors.
• To provide timely and accurate information to investors with regard to their holding and transfer of securities held by them.
• To provide the highest standards of investor education, investor awareness and timely services so as to enhance Investor Protection and create awareness about Investor Rights.

A Depository is an organization which holds securities of investors in electronic form. Depositories provide services to various market participants - Exchanges, Clearing Corporations, Depository Participants (DPs), Issuers and Investors in both primary as well as secondary markets. The depository carries out its activities through its agents which are known as Depository Participants (DP). Details available on the link [https://nsdl.co.in/dpsch.php]

(1) Basic Services

Sr. no.	Brief about the Activity /Service	Expected Timelines for processing by the DP after receipt of proper documents
1.	Dematerialization of securities	7 days
2.	Re materialization of securities	7 days
3.	Mutual Fund Conversion / De statementization	5 days
4.	Re-conversion / Restatementisation of Mutual fund units	7 days
5.	Transmission of securities	7 days
6.	Registering pledge request	15 days
7.	Closure of demat account	30 days

(2) Depositories provide special services like pledge, hypothecation, internet based services etc. in addition to their core services and these include

Sr. no.	Type of Activity /Service	Brief about the Activity / Service
1.	Value Added Services	Depositories also provide value added services such as; a. Basic Services Demat Account(BSDA) The facility of BSDA with limited services for eligible individuals was introduced with the objective of achieving wider financial inclusion and to encourage holding of demat accounts. No Annual Maintenance Charges (AMC) shall be levied, if the value of securities holding is upto Rs. 50,000. For value of holdings between Rs 50,001- 2,00,000, AMC not exceeding Rs 100 is chargeable. In case of debt securities, there are no AMC charges for holding value upto Rs 1,00,000 and a maximum of Rs 100 as AMC is chargeable for value of holdings between Rs 1,00,001 and Rs 2,00,000. b. Transposition cum dematerialization In case of transposition-cum- dematerialisation, client can get securities dematerialised in the same account if the names appearing on the certificates match with the names in which the account has been opened but are in a different order. The same may be done by submitting the security certificates along with the Transposition Form and Demat Request Form. c. Linkages with Clearing System For actual delivery of securities to the clearing system from the selling brokers and delivery of securities from the clearing system to the buying broker. d. Distribution of cash and non-cash corporate benefits( Bonus, Rights, IPOs etc.)
2.	Consolidated Account statement (CAS)	CAS is issued 10 days from the end of the month (if there were transactions in the previous month) or half yearly (if no transactions).

The Process of investor grievance redressal

1.	Investor Complaint/ Grievance	Investor can lodge complaint/ grievance against the Depository/DP in the following ways : a. Electronic mode - (i) SCORES (a web based centralized grievance redressal system of SEBI) https://scores.sebi.gov.in Two Level Review for complaint/grievance against DP: - First review done by Designated Body - Second review done by SEBI (ii) Respective Depository’s web portal dedicated for the filing of compliant https://investor.nsdl.com/portal/en/home (iii) Emails to designated email IDs of Depository relations@nsdl.com
2.	Online Dispute Resolution (ODR) platform for online Conciliation and Arbitration	If the Investor is not satisfied with the resolution provided by DP or other Market Participants, then the Investor has the option to file the complaint/grievance on SMARTODR platform for its resolution through by online conciliation orarbitration. https://smartodr.in/login
3.	Steps to be followed in ODR for Review, Conciliation and Arbitration	Investor to approach Market Participant for redressal of complaint If investor is not satisfied with response of Market Participant, he/she can escalate the complaint on SEBI SCORES portal. Alternatively, the investor may also file a complaint on SMARTODR portal for its resolution through online conciliation and arbitration. Upon receipt of complaint on SMARTODR portal, the relevant MII will review the matter and endeavour to resolve the matter between the Market Participant and investor within 21 days. If the matter could not be amicably resolved, then the Investor may request the MII to refer the matter case for conciliation. During the conciliation process, the conciliator will endeavor for amicable settlement of the dispute within 21 days, which may be extended with 10 days by the conciliator. If the conciliation is unsuccessful, then the investor may request to refer the matter for arbitration. The arbitration process to be concluded by arbitrator(s) within 30 days, which is extendable by 30 days.

NEW GRIEVANCE REDRESSAL SYSTEM : Click here to download

Sr. No.	Type of special circumstances	Timelines for the Activity/ Service
1.	Depositories to terminate the participation in case a participant no Longer meets the eligibility criteria and/or any other grounds as mentioned in the bye laws like suspension of trading member by the Stock Exchanges. Participant surrenders the participation by its own wish.	Client will have a right to transfer all its securities to any other Participant of its choice without any charges for the transfer within 30 days from the date of intimation by way of letter/email.

Sr. No.	Guidance
1.	Always deal with a SEBI registered Depository Participant for opening a demat account.
2.	Read all the documents carefully before signing them.
3.	Before granting Power of attorney to operate your demat account to an intermediary like Stock Broker, Portfolio Management Services (PMS) etc., carefully examine the scope and implications of powers being granted.
4.	Always make payments to registered intermediary using banking channels. No payment should be made in name of employee of intermediary.
5.	Accept the Delivery Instruction Slip (DIS) book from your DP only (preprinted with a serial number along with your Client ID) and keep it in safe custody and do not sign or issue blank or partially filled DIS slips. Always mention the details like ISIN, number of securities accurately. In case of any queries, please contact your DP or broker and it should be signed by all demat account holders. Strike out any blank space on the slip and Cancellations or corrections on the DIS should be initialed or signed by all the account holder(s). Do not leave your instruction slip book with anyone else. Do not sign blank DIS as it is equivalent to a bearer cheque.
6.	Inform any change in your Personal Information (for example address or Bank Account details, email ID, Mobile number) linked to your demat account in the prescribed format and obtain confirmation of updation in system
7.	Mention your Mobile Number and email ID in account opening form to receive SMS alerts and regular updates directly from depository.
8.	Always ensure that the mobile number and email ID linked to your demat account are the same as provided at the time of account opening/updation.
9.	Do not share password of your online trading and demat account with anyone.
10.	Do not share One Time Password (OTP) received from banks, brokers, etc. These are meant to be used by you only.
11.	Do not share login credentials of e-facilities provided by the depositories such as e- DIS/demat gateway, SPEED-e/easiest etc. with anyone else.
12.	Demat is mandatory for any transfer of securities of Listed public limited companies with few exceptions.
13.	If you have any grievance in respect of your demat account, please write to designated email IDs of depositories or you may lodge the same with SEBI online at https://scores.gov.in/scores/Welcome.html
14.	Keep a record of documents signed, DIS issued and account statements received.
15.	As Investors you are required to verify the transaction statement carefully for all debits and credits in your account. In case of any unauthorized debit or credit, inform the DP or your respective Depository.
16.	Appoint a nominee to facilitate your heirs in obtaining the securities in your demat account, on completion of the necessary procedures.
17.	Register for Depository's internet based facility or download mobile app of the depository to monitor your holdings.
18.	Ensure that, both, your holding and transaction statements are received periodically as instructed to your DP. You are entitled to receive a transaction statement every month if you have any transactions.
19.	Do not follow herd mentality for investments. Seek expert and professional advice for your investments
20.	Beware of assured/fixed returns.

• Receive a copy of KYC, copy of account opening documents.
• No minimum balance is required to be maintained in a demat account.
• No charges are payable for opening of demat accounts.
• If executed, receive a copy of Power of Attorney. However, Power of Attorney is not a mandatory requirement as per SEBI / Stock Exchanges. You have the right to revoke any authorization given at any time.
• You can open more than one demat account in the same name with single DP/ multiple DPs.
• Receive statement of accounts periodically. In case of any discrepancies in statements, take up the same with the DP immediately. If the DP does not respond, take up the matter with the Depositories.
• Pledge and /or any other interest or encumbrance can be created on demat holdings.
• Right to give standing instructions with regard to the crediting of securities in demat account.
• Investor can exercise its right to freeze/defreeze his/her demat account or specific securities / specific quantity of securities in the account, maintained with the DP.
• In case of any grievances, Investor has right to approach Participant or Depository or SEBI for getting the same resolved within prescribed timelines.
• Every eligible investor shareholder has a right to cast its vote on various resolutions proposed by the companies for which Depositories have developed an internet based ‘e-Voting’ platform.
• Receive information about charges and fees. Any charges/tariff agreed upon shall not increase unless a notice in writing of not less than thirty days is given to the Investor.
• Right to indemnification for any loss caused due to the negligence of the Depository or the participant
• Right to opt out of the Depository system in respect of any security.

• Deal with a SEBI registered DP for opening demat account, KYC and Depository activities.
• Provide complete documents for account opening and KYC (Know Your Client). Fill all the required details in Account Opening Form / KYC form in own handwriting and cancel out the blanks.
• Read all documents and conditions being agreed before signing the account opening form.
• Accept the Delivery Instruction Slip (DIS) book from DP only (preprinted with a serial number along with client ID) and keep it in safe custody and do not sign or issue blank or partially filled DIS.
• Always mention the details like ISIN, number of securities accurately.
• Inform any change in information linked to demat account and obtain confirmation of updation in the system.
• Regularly verify balances and demat statement and reconcile with trades transactions.
• Appoint nominee(s) to facilitate heirs in obtaining the securities in their demat account.
• Do not fall prey to fraudsters sending emails and SMSs luring to trade in stocks / securities promising huge profits.

(Part D of Third Schedule of SEBI (D & P) regulations, 2018)
A Depository shall:

• always abide by the provisions of the Act, Depositories Act, 1996, any Rules or Regulations framed thereunder, circulars, guidelines and any other directions issued by the Board from time to time.
• adopt appropriate due diligence measures.
• take effective measures to ensure implementation of proper risk management framework and good governance practices.
• take appropriate measures towards investor protection and education of investors.
• treat all its applicants/members in a fair and transparent manner.
• promptly inform the Board of violations of the provisions of the Act, the Depositories Act, 1996, rules, regulations, circulars, guidelines or any other directions by any of its issuer or issuer’s agent.
• take a proactive and responsible attitude towards safeguarding the interests of investors, integrity of depository’s systems and the securities market.
• endeavor for introduction of best business practices amongst itself and its members.
• act in utmost good faith and shall avoid conflict of interest in the conduct of its functions.
• not indulge in unfair competition, which is likely to harm the interests of any other Depository, their participants or investors or is likely to place them in a disadvantageous position while competing for or executing any assignment.
• segregate roles and responsibilities of key management personnel within the depository including
  • Clearly mapping legal and regulatory duties to the concerned position
  • Defining delegation of powers to each position
  • Assigning regulatory, risk management and compliance aspects to business and support teams
• be responsible for the acts or omissions of its employees in respect of the conduct of its business.
• monitor the compliance of the rules and regulations by the participants and shall further ensure that their conduct is in a manner that will safeguard the interest of investors and the securities market.

(Part A of Third Schedule of SEBI (D & P) regulations, 2018)

• A participant shall make all efforts to protect the interests of investors.
• A participant shall always endeavour to—
  • render the best possible advice to the clients having regard to the client’s needs and the environments and his own professional skills;
  • ensure that all professional dealings are effected in a prompt, effective and efficient manner;
  • inquiries from investors are adequately dealt with;
  • grievances of investors are redressed without any delay.
• A participant shall maintain high standards of integrity in all its dealings with its clients and other intermediaries, in the conduct of its business.
• A participant shall be prompt and diligent in opening of a beneficial owner account, dispatch of the dematerialisation request form, rematerialisation request form and execution of debit instruction slip and in all the other activities undertaken by him on behalf of the beneficial owners.
• A participant shall endeavour to resolve all the complaints against it or in respect of the activities carried out by it as quickly as possible, and not later than one month of receipt.
• A participant shall not increase charges/fees for the services rendered without proper advance notice to the beneficial owners.
• A participant shall not indulge in any unfair competition, which is likely to harm the interests of other participants or investors or is likely to place such other participants in a disadvantageous position while competing for or executing any assignment.
• A participant shall not make any exaggerated statement whether oral or written to the clients either about its qualifications or capability to render certain services or about its achievements in regard to services rendered to other clients.
• A participant shall not divulge to other clients, press or any other person any information about its clients which has come to its knowledge except with the approval/authorisation of the clients or when it is required to disclose the information under the requirements of any Act, Rules or Regulations.
• A participant shall co-operate with the Board as and when required.
• A participant shall maintain the required level of knowledge and competency and abide by the provisions of the Act, Rules, Regulations and circulars and directions issued by the Board. The participant shall also comply with the award of the Ombudsman passed under the Securities and Exchange Board of India (Ombudsman) Regulations, 2003.
• A participant shall not make any untrue statement or suppress any material fact in any documents, reports, papers or information furnished to the Board.
• A participant shall not neglect or fail or refuse to submit to the Board or other agencies with which it is registered, such books, documents, correspondence, and papers or any part thereof as may be demanded/requested from time to time.
• A participant shall ensure that the Board is promptly informed about any action, legal proceedings, etc., initiated against it in respect of material breach or noncompliance by it, of any law, Rules, regulations, directions of the Board or of any other regulatory body.
• A participant shall maintain proper inward system for all types of mail received in all forms.
• A participant shall follow the maker—Checker concept in all of its activities to ensure the accuracy of the data and as a mechanism to check unauthorized transaction.
• A participant shall take adequate and necessary steps to ensure that continuity in data and record keeping is maintained and that the data or records are not lost or destroyed. It shall also ensure that for electronic records and data, upto- date back up is always available with it.
• A participant shall provide adequate freedom and powers to its compliance officer for the effective discharge of his duties.
• A participant shall ensure that it has satisfactory internal control procedures in place as well as adequate financial and operational capabilities which can be reasonably expected to take care of any losses arising due to theft, fraud and other dishonest acts, professional misconduct or omissions.
• A participant shall be responsible for the acts or omissions of its employees and agents in respect of the conduct of its business.
• A participant shall ensure that the senior management, particularly decision makers have access to all relevant information about the business on a timely basis.
• A participant shall ensure that good corporate policies and corporate governance are in place

Data for every month ending

SN	Received from	Carried forward from previous month	Received during the month	Total Pending	Resolved*	Pending at the end of the month**		Average Resolution time^ (in days)
						Pending for less than 3 months	Pending for more than 3 months
1	2	3	4	5	6	7		8
1	Directly from Investors	NIL						NA
2	SEBI (SCORES)
3	Depositories
4	Other Sources (if any)
5	Grand Total	NIL

Trend of monthly disposal of complaints

SN	Month	Carried forward from previous month	Received	Resolved*	Pending**
1	2	3	4	5	6
1	April 2024	NIL
2	May 2024	NIL
3	June 2024	NIL
4	July 2024	NIL
5	August 2024	NIL
	Grand Total	NIL

Trend of annual disposal of complaints

SN	Year	Carried forward from previous year	Received during the year	Resolved during the year	Pending at the end of the year
1	2017-18	NIL
2	2018-19	NIL
3	2019-20	NIL
4	2020-21	NIL
5	2021-22	NIL
6	2022-23	NIL
7	2023-24	NIL
	Grand Total	NIL

Download : Advisory –KYC Compliance

What are the benefits of participation in 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;
• Change in address recorded with DP gets registered electronically with all companies in which investor holds securities eliminating the need to correspond with each of them separately;
• Transmission of securities is done by DP eliminating correspondence with companies;
• Convenient method of consolidation of folios/accounts ;
• Holding investments in equity, debt instruments and Government securities in a single account;
• Automatic credit into demat account, of shares, arising out of split/ consolidation/merger etc.

What are the facilities offered by NSDL?
NSDL offers following facilities: -

• Dematerialisation i.e., converting physical certificates to electronic form;
• Rematerialisation i.e., conversion of securities in demat form into physical certificates;
• Facilitating repurchase / redemption of units of mutual funds;
• Electronic settlement of trades in stock exchanges connected to NSDL;
• Pledging/hypothecation of dematerialised securities against 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.

1.  You mentioned that I would have to open an account with a DP if I want to participate in the depository. Who is a DP?
NSDL provides its services to investors through its agents called depository participants (DPs). These agents are appointed by NSDL 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 [brokers] registered with SEBI can become DPs. You can get a list of DPs from NSDL's office or from our website at www.nsdl.co.in

2.  How do I select a DP?
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:

1. Convenience - Proximity to your office/residence, business hours.
2. 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?
3. Cost - The service charges levied by DP and the service standards. In order to obtain the complete list of DP locations and their comparative charge structure, you may log on to www.nsdl.co.in or else you may write to NSDL for the same.

3.   Whether all the DPs are same?
All the DPs are appointed subject to fulfilment of uniform requirements of SEBI ( Depositories and Participants) Regulations, 1996 and requirements of NSDL. However, the type of services offered and the service standards may differ among various DPs. For example, a DP branch having direct connectivity with the main office having depository set-up may be in a position to execute instructions faster

4.   Whether all the DPs are same?
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 the DP in a NSDL prescribed standard agreement, which details your and your DP’s rights and duties. You have to submit the following with the prescribed account opening form. In case you want to open account jointly with other person(s), following should be submitted for all the account holders.

1. Proof of Identity (POI) (copy of any one proof):
   • Ration card
   • Passport
   • Voter ID Card
   • Driving license
   • Bank passbook
   • Verified copies of Electricity bills (not more than two months old)/ Residence Telephone bills (not more than two months old)/ Leave and License agreement / Agreement for sale.
   • Self-declaration by High Court & Supreme Court judges, giving the new address in respect of their own accounts.
   • Identity card/document with address, issued by

     Central/State Government and its Departments,
     Statutory/Regulatory Authorities,
     Public Sector Undertakings,
     Scheduled Commercial Banks,
     Public Financial Institutions,
     Colleges affiliated to universities (this can be treated as valid only till the time the applicant is a student); and
     Professional Bodies such as ICAI, ICWAI, Bar Council etc., to their Members.

2. Passport-size photograph.
3. Copy of PAN Card.
   You must remember to take original documents to the DP for verification. Your DP will carry-out “in-person verification” of account holder(s) at the time of opening your account. You should remember to obtain a copy of the agreement and schedule of charges for your future reference.
   NOTE : Your DP may ask an additional proof of identity/address.

5.   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.

6.   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. Just as you can have savings or current accounts with more than one bank, you can open accounts with more than one DP.

7.   Do I have to keep any minimum balance of securities in my account with my DP?
No. The depository has not prescribed any minimum balance. You can have zero balance in your account.

8.   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.

9.   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?
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.

10.   Can someone else operate my account on my behalf on the basis of a power of attorney ?
Yes. If you authorise any person to operate your account by executing a power of attorney and submit it to your DP, that person can operate the account on your behalf.

11.   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.

12.   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.

13.  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' for standing instruction, you need not submit 'Receipt in' slip everytime you buy securities.

14.   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.

15.   Can I add or delete names of account holders (second or third account holder) after opening the account ?
No.Names of the account holders for a depository account cannot be changed. If you want to change name or add / delete an account holder, you need to open a new account in the desired holding pattern (names) and transfer the securities to the newly opened account. The old account may be closed.

16.   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.

17.   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.

18.  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 of your DP, agreed by you at the time of account opening or any subsequent changes therein.

1.   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.

2.  Can joint holders nominate?
Yes. Nomination is permitted for accounts with joint holders. But, in case of death of any of the joint holder(s), 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.

3.   Can a NRI nominate?
Yes,NRI can nominate directly. But, the power of attorney holder cannot nominate on behalf of NRI.

4.   Can a minor nominate?
No, a minor cannot nominate either directly or through its guardian.

5.   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.

6.   Can there be more than one nominee?
No, only one nomination can be made for one depository account.

7.   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.

8.   Can separate nomination be made for each security held in a depository account?
No.Nomination can be made account wise and not security wise.

9.  Can a NRI be a nominee?
Yes, NRI can be a nominee subject to the exchange control regulations in force from time to time.

10.   What is the procedure for nomination?
The nomination form 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.

11.  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.

1.  What does transmission mean in relation to demat accounts?
Transmission is the process by which securities of a deceased account holder are transferred to the account of the surviving joint holder(s)/nominee/legal heirs of the deceased account holder. Process of transmission in case of dematerialised holdings is more convenient as the transmission formalities for all securities held in a demat account can be completed by submitting documents to the DP whereas in case of physical securities the surviving joint holder(s)/nominee/ legal heirs has to correspond independently with each company in which shares are held.

2.   What is the procedure for transmission of securities to the nominee in case of the death of the sole 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 to the DP. After verifying these documents and if found in order, the DP will transmit the securities to the account of the nominee.

3.   What would happen if no nomination is made for the account?
In case nomination is not made by the sole account holder, 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.

4.   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.

1.   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 its 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 the 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.

2.   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. All the scrips included in S&P, CNX, NIFTY and BSE SENSEX have already joined NSDL. This list has more than 4,300 companies and is steadily growing. You can get an updated list of these companies from your DP or from NSDL's office or from NSDL website at www.nsdl.co.in.

3.  What precautions should I take before defacing a share certificate?
Before defacing the share certificate, 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.

4.  How long does the dematerialisation process take?
Dematerialisation will normally take about 30 days.

5.  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, then 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

1.  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.

1.  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 balance. NSDL in turn will intimate the registrar who will print the certificates and dispatch the same to you.

1.  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 your 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 give instruction to your DP to debit your account and credit the broker's [clearing member pool] account;
• Before the pay-in day, your broker gives instruction to its 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.

2.  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. Alternatively, you may 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 ;
• You make payment to your broker who arranges payment to clearing corporation on the pay-in day ;
• Your broker gives instructions to its DP to debit clearing account and credit your account;
• You receive shares into your 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 from its clearing account to your depository account, before the book closure. If the securities remain in the clearing account of the broker, the company will give corporate benefits (dividend or bonus) to the broker. In that case, you will have to collect the benefits from your broker.

3.   What do you mean by 'Market Trades' and 'Off Market Trades'?
Any trade settled through a clearing corporation is termed as a '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.

4.   If I sell securities through a sub-broker, which part of the delivery instruction slip should 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.

5.   What settlement details are required on the delivery instruction slip?
On every stock exchange, various settlements are effected every day such as daily settlement , auction settlement etc. Each of these settlements is identified by combination of a market type and a 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.

6.   What is T+3 rolling settlement cycle and when delivery is to be given to a broker ?
In case of T+3 rolling settlements , the trades taking place on each trading day are required to be settled on the third day following the date of trade. For example trades of Monday will be settled on Thursday morning. In this example, if you have sold securities, you need to make sure that the securities reach the account of clearing member of the stock exchange latest by Wednesday.

7.   In case of T+3 rolling settlement cycle if I am trading (selling) through a sub-broker when do I need to give delivery instruction to my DP?
In this case also the settlement deadlines will remain the same (i.e. Thursday morning for a Monday trade). However, there is an additional transfer involved. You will transfer securities to the sub-broker's account and the sub-broker will further transfer the securities to the account of clearing member. Therefore, in this case you should give delivery instructions to your DP immediately after confirmation of sale transaction.

8.   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.

9.   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.

10.  What precautions do I need to observe with respect to Delivery Instruction Slips [DIS]?
The following precautions are to be taken :-

• Ensure and insist with your DP to issue DIS book;
• do not accept loose slips. Ensure that DIS numbers are pre-printed and DP takes acknowledgment from you for the DIS booklet issued to you.
• Ensure that your account number [client id] is pre-stamped.
• If your 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.
• Avoid using loose slips
• Do not leave signed blank DIS with anyone viz. broker/sub-broker.
• Keep the DIS book under lock and key when not in use. If only one entry is made in the DIS , strike out remaining space to prevent misuse by any one.
• Please fill in target account -Id and all details in the DIS, yourself

11.   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. This facility is called future execution date facility.

12.   What benefit do I get by giving delivery instruction 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.

13.   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 benefits 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.

1.  Is it possible to give delivery instructions to the DP over Internet and if yes how?
Yes. NSDL has recently launched a facility for delivering instructions to your DP over Internet , called SPEED-e. The facility can be used by all registered users. Your DP will help you in registering for the facility.

2.  How does SPEED-e work? Ans.
You can submit delivery instructions electronically, on the SPEED-e website https://www.speed-e.nsdl.com
after your DP has authorised you to operate your account through the SPEED-e facility. You can monitor the status of such delivery instructions to ensure that the instructions have been executed.

3.  How can I, as a Demat Account-holder / Clearing Member benefit from SPEED-e?
The benefit offered by SPEED-e to a demat account holder / Clearing Member is the convenience of conducting demat account transactions using an Internet connection from anywhere at anytime eliminating paperwork. Time and efforts for obtaining delivery instruction forms from your DP and submitting them to the DP everytime you sell securities is saved.

4.  How can I register myself for SPEED-e?
For using the SPEED-e facility it is essential that your DP must be registered with NSDL for this facility. There are two types of users for this facility , one is password based user who logs in with his password and can transfer securities only to three pre-specified broker accounts of his choice. The second is the smart-card based user who is issued a smart card for logging on to the site and can transfer the securities to any account. A password user can visit the SPEED-e website, fill-up the registration form available on the website. The website would allot a registration number and the DP of the client would authorise him for using the facility upon submission of a request with the registration number.
A smart card user can download the form from the website, fill it and submit the same to its DP. The DP will process the form and enable the client for using the facility. The smart card user will also be issued a smart card reader and a smart card.

5.  What is the difference between Smart-card and Password based access to SPEED-e? Ans.
Smart card based access to SPEED-e is more secure as your identification is based both on "What you have i.e. smart card" and "what you know i.e. PIN code" and provides a digital signature to identify you. In the case of password based access , you should handle your password carefully. In view of this security difference, the password based users have been permitted to transfer securities through SPEED-e facility to only three pre-specified broker accounts. These three accounts can be changed by the user.

6.  Is there any further benefit of the smart card option in SPEED-e facility?
Following are the additional benefits of smart card option in SPEED-e facility :

• smart card user can transfer securities to any account unlike password users where transfer of securities is permitted only to three pre-notified broker accounts;
• single smart card can be used to access all your demat accounts, opened with the same DP;
• facility of multiple authorisation;
• you can freeze your demat account or any particular ISIN or specific quantity within an ISIN yourself, through SPEED-e. The account freezed using SPEED-e can be unfreezed only by you.

Thereby you can deliver instructions and transfer securities when you wish, lock the account and unlock it only when you need, i.e. complete control of your account in your hands.

7.  How does one operate jointly held Demat Accounts through SPEED-e?
For password based operation, only one user can operate the account. Joint holders will have to give a power of attorney to one joint holder among themselves. For smart card based operation, in addition to what is stated above, all the joint holders can operate the account independently or jointly using multiple authorisation facility.

1.   How would I get my dividend / interest or other cash entitlements?
The concerned company obtains the details of beneficiary holders and their holdings 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.

2.  How would I get my bonus shares or other non-cash entitlements?
The concerned company obtains the details of beneficiary holders and their holdings from NSDL. Your entitlement will be credited by the company directly in your NSDL depository account.

3.  How will the investor confirm that bonus/rights entitlement is credited into the account?
An allotment advice will be sent by the Issuer/ its 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.

1.   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;
• single smart card can be used to access all your demat accounts, opened with the same DP;
• 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 its DP. It is suggested that after creation of the pledge request, you may inform the pledgee and request him to confirm the request;
• 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.

2.  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 its DP accordingly for the closure of the pledge.

3.   Whether pledgee account can be in a different DP?
Yes. The pledgee can have an account with a different depository participant of NSDL.

4.  Can I change the securities offered in a pledge?
Yes; if the pledgee [lender] agrees, you may change the securities offered in a pledge.

5.  Who will receive dividend on the pledged securities?
Pledgor will continue to receive dividend on the pledged securities. The pledgee will get the benefits only if pledge is invoked and on record date the shares are in the pledgee's account.

6.  How will the distribution of bonus shares for pledged shares happen?
The software in NSDL has been modified to handle distribution of bonus entitlements through Automatic Corporate Action (ACA) Module.
This works as follows:

• The holdings as of the record date / book closure, (including those holdings which are pledged) are considered for computing bonus entitlements.
• At the time of effecting the credit of bonus shares, the system checks whether pledge is still open or closed.
• Where pledge orders are not closed / invoked or partially closed / invoked, the bonus entitlements in such cases are credited to the pledgor's account with pledge marked in favour of the pledgee.
• If the pledge is closed/invoked fully, the bonus entitlements will be credited to the pledgor's account as free balances.

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 (for meeting 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 borrowers. Lenders of the securities and borrowers of the securities enter into separate agreements with the approved intermediary for lending and borrowing the securities . Lending and borrowing is effected through the depository system.
1.  Can I lend the securities lying in my account ?
Yes. You can lend your securities through Intermediaries approved by SEBI.

2.   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.

3.  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.

4.   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.

1.  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 and are based on the usage of NSDL system. Complete details of NSDL charges as are payable by the DPs are available on NSDL website (www.nsdl.co.in). The DP charges its client for the services offered. The charges that the 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 revise charges by giving you 30 days notice in advance.

1.  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.

1.  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 Transaction Statement at intervals shorter than the stipulated ones, probably at a cost.

2.  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.

3.  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.

4.   What happens if I lose my Transaction Statement?
You should inform your DP and obtain a duplicate Transaction Statement.

5.   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.

6.  What will happen if my DP goes bankrupt or stops operation?
In a rare event of your DP going bankrupt or closing the operations, the interests of the investors will be fully protected. In such a situation, the investors will be given an option of either transferring the securities to a new DP or they may rematerialise the securities.

7.   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 unauthorised 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.

8.  Can I freeze my account?
NSDL 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 unfreezed.

9.  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 of NSDL 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
Email : relations@nsdl.co.in