What is a depository?
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 (DP’s). If an investor wants to avail the services offered by the depository,
the investor has to open an account with a DP.
What should I do when
I want to open an account with a DP?
You can approach us and fill up Account Opening Form. At the time of opening an
account, you have to sign an agreement with the DP. You have to submit the account
opening form along with the required documents as mentioned in the Account Opening
Form.
You must remember to carry original documents to the DP for verification. 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.
Can I open a single account
for securities owned in different ownership patterns?
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 e.g. A & B, B & A ?
In this case you may open only one account with A and B as the account holders and
lodge the security certificates with different order of names for dematerialization
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 dematerialize the securities.
What do I do if I have
physical certificates with the same combination of names, but the sequence of names
is different e.g. A & B, B & A ?
In this case you may open only one account with A and B as the account holders and
lodge the security certificates with different order of names for dematerialization
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 dematerialize the securities.
Can someone else operate
my account on my behalf on the basis of a power of attorney?
Yes. If you authorize 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.
Can I change my address
and bank details?
Yes. You can change your address and bank details in your Demat account, you must
ensure that any subsequent change in address and bank detail is informed to your
Depository Participant.
What is 'Standing Instruction'
given in the account opening form?
This is a instruction if opted for allows you to receive credits automatically in
your Demat account.
Can I add or delete
names of accountholders (second or third accountholder) after opening the account?
No. Names of the accountholders for a depository account cannot be changed. If you
want to change name or add / delete an accountholder, 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.
Is it mandatory to nominate?
No, it is not mandatory to give nomination but a declaration that the holder do
not wish to make a nomination has to be provided.
What is the procedure
for nomination?
The nomination form duly filled-in should be submitted 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.
How many nominees can
be appointed?
Only one person can be nominated irrespective of the fact whether the Demat account
is held singly/jointly.
Who cannot nominate?
Non-individuals including societies, trusts, body corporate, partnership firms,
Karta’s of Hindu Undivided Family, minor, holders of power of attorney cannot avail
of nomination.
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 address of the nominee, the name
and address of the guardian must be submitted to the DP.
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.
What do you mean 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 its DP. In order to dematerialize certificates; an
investor will have to first open an account with a DP and then request for the dematerialization
of certificates by filling up a dematerialization request form [DRF], which is available
with the DP and submitting the same along with the physical certificates. The DP
has to ensure that before the certificates are sent to the RTA / Company for Demat,
they are defaced by marking "Surrendered for Dematerialization" on the face of the
certificates.
Can I dematerialize any
share certificate?
You can dematerialize only those certificates that are already registered in your
name and are in the list of securities admitted for dematerialization at CDSL. You
can get an updated list of companies from your DP or from CDSL website at
www.cdslindia.com
Can my electronic holdings
be converted back into certificates?
Yes. you can to get back your securities in physical form from electronic form i.e.
called rematerialisation of shares. For rematerialisation, you would have to forward
your request to your DP, which will be verified for the balances you possess and
your request will forward to the registrar (Share transfer agent) who will print
the certificates and dispatch it to you.
What should I do if I
want to pledge electronic securities?
The procedure is as follows:
- Both you borrower (pledger) 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 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 pledger and the pledgee are handled as per usual practice outside the depository
system.
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.
Who will receive dividend
and bonus shares on the pledged securities?
The pledger will receive the dividend and bonus shares if any declared on the pledged
securities.
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 etc..
- 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 by yourself.
How would I get my dividend
/ interest or other cash entitlements?
The concerned company obtains the details of beneficiary holders and their holdings
from 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 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
from CDSL. Your entitlement will be credited by the company directly in your CDSL
depository account.