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guidetodepositorie

guidetodepositorie

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Published by: api-3719573 on Oct 14, 2008
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N a tio n a l S e c u r itie s D e p o s ito r y L im ite d
In d ex
C o n te n ts
Page N o.
I
G E N E R A L
1
I I
B E N E F IT S
1
I I I
S E R V IC E S
2
I V
A C C O U N T O P E N IN G
3
V
N O M IN A T IO N
9
V I
T R A N S M IS S IO N
1 0
V II
D E M A T E R IA L IS A T IO N
1 2
V III
G O V E R N M E N T S E C U R IT IE S A N D D E B T
IN S T R U M E N T S
1 4
I X
R E M A T E R IA L IS A T IO N
1 4
X
T R A D IN G / S E T T L E M E N T
1 4
X I
S P E E D -e A N D ID eA S (IN T E R N E T F A C IL IT IE S )
1 8
X II
C O R P O R A T E
B E N E F IT S
2 1
X III
P L E D G IN G
2 2
X IV
S E C U R IT IE S L E N D IN G A N D B O R R O W IN G
2 3
X V
C H A R G E S
2 4
X V I
IN T E R
D E P O S IT O R Y T R A N S F E R S
2 5
X V II
SAFETY FEATURES
2 5
FORM AT OF :
F O R M
F O R C H A N G E IN B A N K D E T A IL S
2 9
F O R M
F O R C H A N G E IN A D D R E S S
3 0
N O M IN A T IO N
F O R M
3 1
T R A N S A C T IO N
STATEM ENT
3 3
V is it u s a t w w w .n s d l.c o .in
N a tio n a l S e c u r itie s D e p o s ito r y L im ite d
N a tio n a l S e c u r itie s D e p o s ito r y L im ite d
T
he shareholders ofN a tio n a l S e c u r itie s D e p o s ito r y L im ite d
(N S D L )a re In d u s tria l D e v e lo p m e n t B a n k o f In d ia , U n it T ru s t

o f In d ia , N a tio n a l S to c k E x c h a n g e o f In d ia L im ite d , S ta te B a n k of India, H D F C B ank, D eutsche B ank, D ena B ank, C anara B ank, O riental B a n k o f C o m m e rc e , S ta n d a rd C h a rte re d B a n k , C itib a n k N A , H o n g k o n g & S h a n g h a i B a n k in g C o rp o ra tio n L im ite d a n d U n io n B a n k o f In d ia .

N S D L c o m m e n c e d o p e ra tio n s in N o v e m b e r 1 9 9 6 . H o ld in g a n d h a n d lin g
o f s e c u ritie s in e le c tro n ic fo rm

e lim in a te s p ro b le m s th a t a re n o rm a lly a s s o c ia te d w ith p h y s ic a l c e rtific a te s , lik e m u tila tio n , lo s s in tra n s it, p ro b le m s o f b a d d e liv e ry , e tc . F u rth e r, it fa c ilita te s fa s te r s e ttle m e n t cycles. The num ber of users of N SD L depository system

is steadily in c re a s in g . It is o u r e n d e a v o r to k e e p a ll th e p re s e n t a n d p ro s p e c tiv e users of N SD L depository system

a w a re o f th e fa c ilitie s , b e n e fits a n d p re c a u tio n s in u s in g th e N S D L d e p o s ito ry s y s te m . T h is b o o k le t o f " fre q u e n tly a s k e d q u e s tio n s " is a n e ffo rt to w a rd s th a t e n d .

I
G E N E R A L
1 .
W h a t is a d e p o s ito r y ?
A ns.
A d e p o s ito ry c a n b e c o m p a re d to a b a n k . A d e p o s ito ry h o ld s
securities (like

shares, debentures, bonds, G overnm ent S e c u ritie s , u n its e tc .) o f in v e s to rs in e le c tro n ic fo rm . B e s id e s h o ld in g s e c u ritie s , a d e p o s ito ry a ls o p ro v id e s s e rv ic e s re la te d to tra n s a c tio n s in s e c u ritie s .

2 .
H o w c a n I a v a il th e s e r v ic e s o f a d e p o s ito r y ?
A ns.
A

d e p o s ito ry in te rfa c e s w ith th e in v e s to rs th ro u g h its a g e n ts calledD e p o s ito r y P a r tic ip a n ts (D Ps). If an investor w ants to a v a il th e s e rv ic e s o ffe re d b y th e d e p o s ito ry , th e in v e s to r h a s to o p e n a n a c c o u n t w ith a D P. T h is is s im ila r to o p e n in g a n a c c o u n t w ith a n y b ra n c h o f a b a n k in o rd e r to u tilis e th e b a n k 's s e rv ic e s . S u g g e s tio n s o n h o w to s e le c t a D P a re g iv e n in S e c tio n IV .

I I
B E N E F IT S
1 .
W h a t a r e th e b e n e fits o f p a r tic ip a tio n in a d e p o s ito r y ?
A ns.
T h e b e n e fits o f p a rtic ip a tio n in a d e p o s ito ry a re :
1 .
Im m ediate transfer of securities;
2 .
no stam p duty on transfer of securities;
3 .
e lim in a tio n o f ris k s a s s o c ia te d w ith p h y s ic a l c e rtific a te s
s u c h a s b a d d e liv e ry , fa k e s e c u ritie s , e tc .;
4 .
re d u c tio n in p a p e rw o rk in v o lv e d in tra n s fe r o f s e c u ritie s ;
5 .
re d u c tio n in tra n s a c tio n c o s t;
6 .
n o m in a tio n fa c ility ;
7 .
c h a n g e in
address recorded
w ith
D P

g e ts re g is te re d e le c tro n ic a lly w ith a ll c o m p a n ie s in w h ic h in v e s to r h o ld s s e c u ritie s e lim in a tin g th e n e e d to c o rre s p o n d w ith e a c h o f th e m

s e p a ra te ly ;
8 .
transm ission of securities is done by D P
e lim in a tin g
correspondence w ith com panies;
9 .
c o n v e n ie n t m e th o d o f c o n s o lid a tio n o f fo lio s /a c c o u n ts ;
1 0 .
H o ld in g in v e s tm e n ts in e q u ity , d e b t in s tru m e n ts a n d
G o v e rn m e n t s e c u ritie s in a s in g le a c c o u n t;
1 1 .
A u to m a tic c re d it in to d e m a t a c c o u n t o f s h a re s , a ris in g o u t
o f s p lit/ c o n s o lid a tio n / m e rg e r e tc .
I I I
S E R V IC E S
1 .
W hat are the facilities offered by N SD L?
A ns.
N S D L o ffers fo llo w in g facilities:-
1 .
d e m a te ria lis a tio n i.e ., c o n v e rtin g p h y s ic a l c e rtific a te s to
e le c tro n ic fo rm ;
2 .
re m a te ria lis a tio n i.e ., c o n v e rs io n o f s e c u ritie s in d e m a t fo rm
in to p h y s ic a l c e rtific a te s ;
3 .
fa c ilita tin g re p u rc h a s e / re d e m p tio n o f u n its o f m u tu a l fu n d s ;
4 .
e le c tro n ic s e ttle m e n t o f tra d e s in s to c k e x c h a n g e s c o n n e c te d
to N S D L ;
5 .
p le d g in g /h y p o th e c a tio n o f d e m a te ria lis e d s e c u ritie s a g a in s t
lo a n ;
6 .
e le c tro n ic c re d it o f s e c u ritie s a llo tte d in p u b lic is s u e s , rig h ts
is s u e ;
7 .
receipt of non-cash corporate benefits such as bonus, in
e le c tro n ic fo rm ;
8 .
freezing of dem at accounts, so that debits from the account
a re n o t p e rm itte d ;
9 .
n o m in a tio n fa c ility fo r d e m a t a c c o u n ts ;
V is it u s a t w w w .n s d l.c o .in
1
V is it u s a t w w w .n s d l.c o .in
2
N a tio n a l S e c u r itie s D e p o s ito r y L im ite d
N a tio n a l S e c u r itie s D e p o s ito r y L im ite d
1 0 .
services related to change of address, change in bank
a c c o u n t d e ta ils , c h a n g e in n o m in e e ;
1 1 .
effecting transm ission of securities;
1 2 .
In s tru c tio n s to y o u r D P o v e r In te rn e t th ro u g h S P E E D -e
fa c ility . (P le a s e c h e c k w ith y o u r D P fo r a v a ilin g th e fa c ility );
1 3 .
o th e r fa c ilitie s v iz . h o ld in g d e b t in s tru m e n ts in th e s a m e
a c c o u n t, a v a ilin g s to c k le n d in g /b o rro w in g fa c ility , e tc .
I V
A C C O U N T O P E N IN G
1 .
Y o u m e n tio n e d th a t I w o u ld h a v e to o p e n a n a c c o u n t w ith a
D P if I w a n t to p a r tic ip a te in th e d e p o s ito r y . W h o is a D P ?
A ns.

N S D L p ro v id e s its s e rv ic e s to in v e s to rs th ro u g h its a g e n ts c a lle d D e p o s ito ry P a rtic ip a n ts (D P s ). T h e s e a g e n ts a re a p p o in te d b y N S D L w ith th e a p p ro v a l o f S E B I. A c c o rd in g to S E B I re g u la tio n s , a m o n g s t o th e rs , th re e c a te g o rie s o f e n titie s i.e . B a n k s , F in a n c ia l In s titu tio n s a n d

M em bers of Stock

Exchanges (brokers) re g is te re d w ith S E B I c a n b e c o m e D P s . Y o u c a n g e t a lis t o f D P s fro m N S D L 's o ffic e o r fro m o u r w e b site a t w w w .n s d l.c o .in .

2 .
H ow do I select a D P ?
A ns.

Y o u c a n s e le c t y o u r D P to o p e n a d e m a t a c c o u n t ju s t lik e y o u s e le c t a b a n k fo r o p e n in g a s a v in g s a c c o u n t. S o m e o f th e im p o rta n t fa c to rs fo r s e le c tio n o f a D P c a n

b e :
A .
C o n v e n ie n c e - P ro x im ity to th e o ffic e /re s id e n c e , b u s in e s s
h o u rs.
B .

C o m fo rt - R e p u ta tio n o f th e D P, p a s t a s s o c ia tio n w ith th e o rg a n is a tio n , w h e th e r th e D P is in a p o s itio n to g iv e th e specific service you m ay need?

C .
C ost - The service charges levied by D P and the service
s ta n d a rd s .

In o rd e r to o b ta in th e c o m p le te lis t o f D P lo c a tio n s a n d th e ir c o m p a ra tiv e c h a rg e s tru c tu re , y o u m a y lo g o n tow w w .n s d l.c o .in or else you m ay w rite to N S D L for the sam e.

3 .
W h e th e r a ll th e D P s a r e s a m e ?
A ns.
A ll th e D P s a re a p p o in te d s u b je c t to fu lfilm e n t o f u n ifo rm
re q u ire m e n ts
o f
S E B I
(D e p o s ito rie s
a n d
P a rtic ip a n ts )

R e g u la tio n s , 1 9 9 6 a n d re q u ire m e n ts o f N S D L . H o w e v e r, th e ty p e o f s e rv ic e s o ffe re d , th e s e rv ic e s ta n d a rd s m a y d iffe r a m o n g various D Ps. For exam ple, a

D P
b r a n c h
h a v in g
d ire c t
c o n n e c tiv ity w ith th e m a in o ffic e h a v in g d e p o s ito ry s e t-u p m a y
b e in a p o s itio n to e x e c u te in s tru c tio n s fa s te r.
4 .
W h a t s h o u ld I d o w h e n I w a n t to o p e n a n a c c o u n t w ith a D P ?
A ns.

You can approach any D P of your choice and fill up an account o p e n in g fo rm . A t th e tim e o f o p e n in g a n a c c o u n t, y o u h a v e to s ig n a n a g re e m e n t w ith th e D P in a N S D L p re s c rib e d s ta n d a rd a g re e m e n t, w h ic h d e ta ils y o u r a n d y o u r D P 's rig h ts a n d d u tie s . Y o u h a v e to s u b m it th e fo llo w in g w ith th e p re s c rib e d a c c o u n t o p e n in g fo rm . In c a s e y o u w a n t to o p e n a c c o u n t jo in tly w ith o th e r p e rs o n (s ), fo llo w in g s h o u ld b e s u b m itte d fo r a ll th e a c c o u n t h o ld e rs .

I .
Proof of Identity (PO I) (copy of any one proof):
\u2022
P assp o rt
\u2022
V o te r ID C a rd
\u2022
D riv in g lic e n s e
\u2022
PA N c a rd w ith p h o to g ra p h
\u2022

Id e n tity c a rd /d o c u m e n t w ith a p p lic a n t's P h o to , is s u e d b y a ) C e n tra l/S ta te G o v e rn m e n t a n d its D e p a rtm e n ts , b ) S ta tu to ry /R e g u la to ry A u th o ritie s , c ) P u b lic S e c to r U n d e rta k in g s , d ) S c h e d u le d C o m m e rc ia l B a n k s , e ) P u b lic F in a n c ia l In s titu tio n s , f) C o lle g e s a ffilia te d to U n iv e rs itie s (th is can b e treated as valid on ly till th e tim e th e

a p p lic a n t is a s tu d e n t), g) Professional B odies such as
IC A I, IC W A I, IC S I, B ar C o u n cil etc., to th eir M em b ers;
and h) C redit cards/D ebit cards issued by B anks.
I I .
Proof of A ddress (PO A ) (copy of any one proof):
\u2022
R a tio n c a rd
\u2022
P assp o rt
\u2022
V o te r ID C a rd
\u2022
D riv in g lic e n s e
\u2022
Bank passbook
\u2022

V e rifie d c o p ie s o f E le c tric ity b ills (n o t m o re th a n tw o m o n th s o ld )/ R e s id e n c e T e le p h o n e b ills (n o t m o re th a n tw o m o n th s o ld )/ L e a v e a n d L icense agreem ent / A greem ent for s a le .

V is it u s a t w w w .n s d l.c o .in
3
V is it u s a t w w w .n s d l.c o .in
4

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