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Table of Contents

Index Title Page no


1.
Executive Summary
5
2.
Brief Overview, Banks Logo , ission,
!ision
6-9
3.
S"are "olding #attern and S"are Price
ovement
10-11
4.
Indian $a#ital arket Overview % Stock
Broker, $ustodian, $learing &ouse' $learing
$or#oration , (e#ository, (e#ository
Partici#ant
13-21
5.
(e#ository services at (ena Bank
)*+ ,ccount O#ening
-Procedure, (ocuments re.uired/
22-26
6.
0* (ematerialisation Of securities
- Procedure/
27-29
7.
1 Transfer of security
1*+ arket Transfer
-Inter2(P and Intra (P transfer Procedure/
1*3 Off2 arket Transfer
-Inter2(P and Intra (P transfer Procedure/
30-37
+
8.
4* Transmission Of Securities
4*+ In event of deat" of any of 5oint
"olders
4*3 In event of deat" of sole "older
-Procedure involved /
38-39
9.
6* Pledge
6*+ $reation of #ledge 7y
#ledgor-Procedure/
6*3 $onfirmation of Pledge 7y t"e Pledgee
-Procedure/
6*8 Pledge Invocation 7y Pledgee
-Procedure/
40-45
10.
9ematerialisation of securities
-Procedure/
46-48
11.
:ree;ing and (efree;ing Of an ,ccount ,
(efree;ing of an ,ccount -Procedure/
49-50
12.
Sc"edule of c"arges for (emat ,ccount at
(ena Bank
51-52
13.
9ecommendations for im#rovement in
services at (ena Bank -$a#ital arket
Branc"/
53-55
3
EXECUTIVE SUMM!"
(oing t"is #ro5ect was a colossal ex#erience and in t"e great deal I found out t"e
im#ortance of de#ositories in Indian 7anking sector*
T"e #ur#ose of t"is #ro5ect was to understand t"e current (e#ository Services in India
and (e#ository Services in (ena Bank and t"en suggest an im#roved and via7le 7usiness
model for t"e (e#ository de#artment of (ena Bank*
(e#ositories is a wide as#ect to talk a7out wit" new services coming u# and eac" one
"aving a different view a7out it, 7ut I "ave tried and #ut some of t"e #oints t"at I consider
to 7e im#ortant and tried to analyse t"e same* I 5ust "o#e t"at I "ave done 5ustice to t"e
to#ic in t"is w"ole wide world of information w"ere everyone "as a different o#inion
a7out t"ings*
:or t"is #ur#ose, I studied t"e conce#t of (e#ository Services and various tools, #roducts
< #ractices availa7le*
In finding out more a7out t"e to#ic, I took valua7le ti#s and information from a wide
array of #eo#le, 7ooks, maga;ines and we7sites, and "ow it is #utting its im#act on t"e
economy*
T"e #ro5ect re#ort #rovides detailed review of various market related conce#ts* It gives a
detailed view of t"e (e#ository o#erations and its 9elated Services*
,ll in all, to sum t"ings u#, t"is #ro5ect stands out to 7e an =eye o#ener in real terms for
me towards a 7roader vision in understanding t"e interde#endence of t"e economy,
7anks, 7usiness and tec"nology wit"in t"e economy*
#!IE$ %VE!VIE& %$ 'E( #()
8
o (ena Bank was founded on 30t" ay, +684 7y t"e family of (evkaran >an5ee
under t"e name (evkaran >an5ee Banking $om#any Ltd*
o (ena Bank was nationali;ed in ?uly +606 wit" +8 ot"er ma5or 7anks and is now a
#u7lic sector 7ank*
M*lestone+-
o One among six Pu7lic Sector Banks selected 7y t"e @orld Bank for sanctioning a
loan of 9s*13*8 crores for augmentation of Tier2II $a#ital under :inancial Sector
(evelo#mental #ro5ect in t"e year +66)*
o One among t"e few Banks to receive t"e @orld Bank loan for tec"nological
u#gradation and training*
o Launc"ed a Bond Issue of 9s*63*+8 crores in >ovem7er +660*
o aiden Pu7lic Issue of 9s*+4A $rores in >ovem7er +660*
o Introduced Tele 7anking facility of selected metro#olitan centers*
o ore t"an +3AA B Branc"es
o ore t"an C6A B ,T
o +AA B $BS 7ranc"es
$*,st to Int,o-./e+-
o inor Savings Sc"eme*
C
o $redit card in rural India known as D(E>, E9IS&I S,E& P,T9,D -(ESP/*
o (rive2in ,T counters of ?u"u, um7ai*
o Smart card at selected 7ranc"es in um7ai*
o $ustomer rating system for rating t"e Bank Services*
#an01s 2o3o
)
T"e logo of 'ena #an0 de#icts 4o--ess 2a0s56*7 t"e Foddess of @ealt", according to
&indu myt"ology*
It was t"e desire of t"e founding fat"ers of t"e Bank t"at t"e Bank s"ould 7e a sym7ol of
#ros#erity for all its clients, and t"e logo re#resents t"is #romise*
T"e contem#orary 8'8 in t"e logo reflects t"e -9na6*s6, -e-*/at*on and t"e -,*:e
towards customer satisfaction
M*ss*on
T"e mission of (ena Bank states t"at it will #rovide its customers, #remier financial
services of great value* T"e Staff wit" #ositive work environment and o##ortunity for
growt" and ac"ievement* T"e S5a,e5ol-e,s will gain su#erior financial returns and
$ommunity wit" economic growt"*
V*s*on
(ena Bank will emerge as t"e most #referred 7ank of customer c"oice in its area of
o#erations, 7y its re#utation and #erformance*
S5a,e5ol-*n3 ;atte,n
Share holding pattern
as on :
31/03/2011 31/12/2010 30/09/2010
Face value 10 10 10

No. Of
Shares
%
Holding
No. Of
Shares
%
Holding
No. Of
Shares
%
Holding
Promoter's holding
Indian Promoters
19338587
4 58.01
14682000
0 51.19
14682000
0 51.19
Sub total
19338587
4 58.01
14682000
0 51.19
14682000
0 51.19
Non promoter's holding
Institutional investors
an!s Fin. Inst. and
Insurance 21476543 6.44 18854826 6.57 19494091 6.8
0
FII"s 45563653 13.67 48384142 16.87 50205645 17.5
Sub total 76653022 22.99 76345533 26.62 78477163 27.36
#t$er investors
Private %or&orate
odies 12047744 3.61 15147715 5.28 14159367 4.94
'(I"s)#%"s)Forei*n
#t$ers 1429025 0.43 1562940 0.54 1581457 0.55
+overnment 4000 , , , , ,
#t$ers 150558 0.05 99652 0.03 20752 0.01
Sub total 13631327 4.09 16810307 5.86 15761576 5.5
+eneral &ublic 49718851 14.91 46847360 16.33 45764461 15.96
rand total
3333!90"
# 100
2!$!2320
0 100
2!$!2320
0 100

S5a,e ;,*/e Mo:e6ent
1
Se,:*/es %ffe,e- at 'ena #an0
4
'ena #an0, t"e trusted family 7ank, offers vide range of so#"isticated 7anking services
7y way of ,ny27ranc" 7anking, ulti $ity c"e.ue, (ena ,TGs, (ena $ards, online
remittance, Internet Banking, o7ile 7anking, Tele 7anking, Online utility Bill Payment,
!alue added Service t"roug" ,T, Eiosks and many more*
@it" over ++AA 7ranc"es across t"e country, (ena Bank always ready to serve our
customers, and to offer t"em t"e 7est of t"e tec"nology2ena7led 7anking #roducts and
services*
$ollo<*n3 a,e t5e se,:*/es =,o:*-e- b9 'ena #an0
$ore Banking Solution
(ena ,T Services
!erified 7y visa services
Internet Banking
(ena e2Tax Pay
o7ile Banking
P"one Banking
(ena ,lert Services
(ena BillPay
9TFS'>E:T
(ena India9emit
In7ound 9emittances
(irect Tax $ollection
Indirect Tax
(istri7ution of utual funds
(emat Services
T5e In-*an Ca=*tal Ma,0et - n %:e,:*e<
T"e function of t"e financial market is to facilitate t"e transfer of funds from sur#lus sectors
-lenders/ to deficit sectors -7orrowers/* >ormally, "ouse"olds "ave investi7le funds or savings,
w"ic" t"ey lend to 7orrowers in t"e cor#orate and #u7lic sectors w"ose re.uirement of funds
far exceeds t"eir savings*
6
, financial market consists of investors or 7uyers of securities, 7orrowers or sellers of
securities, intermediaries and regulatory 7odies* :inancial market does not refer to a #"ysical
location* :ormal trading rules, relations"i#s and communication networks for originating and
trading financial securities link t"e #artici#ants in t"e market*
Ca=*tal Ma,0et ;a,t*/*=ants
T"ere are several ma5or #layers in t"e #rimary market* T"ese include t"e merc"ant 7ankers,
mutual funds, financial institutions, foreign institutional investors -:IIs/ and individual
investors* In t"e secondary market, t"ere are t"e stock 7rokers -w"o are mem7ers of t"e stock
exc"anges/, t"e mutual funds, financial institutions, foreign institutional investors -:IIs/, and
individual investors* 9egistrars and Transfer ,gents, $ustodians and (e#ositories are ca#ital
market intermediaries t"at #rovide im#ortant infrastructure services for 7ot" #rimary and
secondary markets*
Sto/0 #,o0e,s
Stock7rokers are t"e intermediaries w"o are allowed to trade in securities on t"e exc"ange of
w"ic" t"ey are mem7ers* T"ey 7uy and sell on t"eir own 7e"alf as well as on 7e"alf of t"eir
clients* Traditionally in India, individuals owned firms #roviding 7rokerage services or t"ey
were #artners"i# firms wit" unlimited lia7ilities* T"ere were, t"erefore, restrictions on t"e
amount of funds t"ey could raise 7y way of de7t* @it" increasing volumes in trading as well as
in t"e num7er of small investors, lack of ade.uate ca#itali;ation of t"ese firms ex#osed
investors to t"e risks of t"ese firms going 7ust and t"e investors would "ave no recourse to
recovering t"eir dues* @it" t"e legal c"anges 7eing effected in t"e mem7ers"i# rules of stock
exc"anges as well as in t"e ca#ital gains structure for stock27roking firms, a num7er of
7rokerage firms "ave converted t"emselves into cor#orate entities* In fact, >SE encouraged t"e
setting u# of cor#orate 7roking mem7ers and "as today "as only +AH of its mem7ers w"o are
not cor#orate entities*
C.sto-*ans
In t"e earliest #"ase of ca#ital market reforms, to get over t"e #ro7lems associated wit" #a#er2
7ased securities, large "olding 7y institutions and 7anks were soug"t to 7e immo7ili;ed*
Immo7ili;ation of securities is done 7y storing or lodging t"e #"ysical security certificates wit"
an organisation t"at acts as a custodian 2 a securities de#ository* ,ll su7se.uent transactions in
suc" immo7ilised securities take #lace t"roug" 7ook entries* T"e actual owners "ave t"e rig"t
to wit"draw t"e #"ysical securities from t"e custodial agent w"enever re.uired 7y t"em* In t"e
case of IPO, a 5um7o certificate is issued in t"e name of t"e 7eneficiary owners 7ased on w"ic"
t"e de#ository gives credit to t"e account of 7eneficiary owners* T"e Stock &olding
$or#oration of India was set u# to act as a custodian for securities of a large num7er of 7anks
and institutions w"o were mainly in t"e #u7lic sector* Some of t"e 7anks and financial
institutions also started #roviding D$ustodialD services to smaller investors for a fee* @it" t"e
introduction of demateriali;ation of securities t"ere "as 7een a s"ift in t"e role and 7usiness
o#erations of $ustodians* But t"ey still remain an im#ortant intermediary #roviding services to
t"e investors w"o still "old securities in a #"ysical form*
+A
Clea,*n3 Co,=o,at*on>Clea,*n3 ?o.se +
T"is term a##lies to an entity res#onsi7le for clearing and settlement of trades done 7y clearing
mem7ers on a recognised stock exc"ange* , $learing $or#oration ' $learing &ouse of a stock
exc"ange is admitted to t"e de#ository system for clearing and settlement of securities traded on
t"eir res#ective stock exc"anges* :or electronic settlement of securities in (emat form, t"e
concerned $$'$& of t"e stock exc"ange needs to "ave electronic connectivity wit" t"e de#ository*
, $learing $or#oration or a $learing &ouse of a stock exc"ange may 7e admitted as a Iser on
>S(L su75ect to its entering into an agreement wit" >S(L as laid down in t"e 7ye laws of >S(L*
, different agreement "as to 7e drawn u# if a clearing "ouse of a stock exc"ange is not a legal
$ounter#arty to t"e trades on t"e exc"ange and t"e trade'settlement guarantee fund is "eld and
managed 7y t"e exc"ange* , t"ird ty#e of agreement "as to 7e entered into if t"e mem7ers'dealers
of t"e exc"ange are not t"e clearing mem7ers of t"e $learing &ouse* , stock exc"ange may 7e
admitted as a user on t"e de#ository, if it conducts t"e activity of clearing and settlement of trades
and if it is not a legal counter#arty to t"e trades t"ereon and "olds and manages t"e trade'settlement
guarantee fund* ,n agreement, as laid down in 7ye laws of >S(L, "as to 7e entered into* T"e
#rovisions of t"ese agreements govern t"e rig"ts and o7ligations of t"e >S(L, t"e clearing
cor#oration or t"e clearing "ouse of a stock exc"ange and t"e exc"ange, in res#ect of transactions
entered into in #ursuance of suc" agreements*
Ma,0et ,e3.lat*on+
It is im#ortant to ensure smoot" working of ca#ital market, as it is t"e arena w"ere t"e #layers
in t"e economic growt" of t"e country* !arious laws "ave 7een #assed from time to time to
meet t"is o75ective* T"e financial market in India was "ig"ly segmented until t"e initiation of
reforms in +663268 on account of a variety of regulations and administered #rices including
7arriers to entry* T"e reform #rocess was initiated wit" t"e esta7lis"ment of Securities and
Exc"ange Board of India -SEBI/* T"e legislative framework 7efore SEBI came into 7eing
consisted of t"ree ma5or ,cts governing t"e ca#ital markets%
+* T"e $a#ital Issues $ontrol ,ct +6C1, w"ic" restricted access to t"e securities market and
controlled t"e #ricing of issues*
3* T"e $om#anies ,ct, +6)0, w"ic" sets out t"e code of conduct for t"e cor#orate sector in
relation to issue, allotment and transfer of securities, and disclosures to 7e made in #u7lic
issues*
8* T"e Securities $ontracts -9egulation/ ,ct, +6)0, w"ic" regulates transactions in securities
t"roug" control over stock exc"anges* In addition, a num7er of ot"er ,cts,
e*g*, t"e Pu7lic (e7t ,ct, +6C3, t"e Income Tax ,ct, +60+, t"e Banking 9egulation ,ct, +6C6,
"ave su7stantial 7earing on t"e working of t"e securities market*
'e=os*to,9 S9ste6
T"e erstw"ile settlement system on Indian stock exc"anges was also inefficient and increased
risk, due to t"e time t"at ela#sed 7efore trades were settled* T"e transfer was 7y #"ysical
movement of #a#ers* T"ere "ad to 7e a #"ysical delivery of securities 2a #rocess fraug"t wit"
delays and resultant risks* T"e second as#ect of t"e settlement related to transfer of s"ares in
++
favor of t"e #urc"aser 7y t"e com#any* T"e system of transfer of owners"i# was grossly
inefficient as every transfer involves #"ysical movement of #a#er securities to t"e issuer for
registration, wit" t"e c"ange of owners"i# 7eing evidenced 7y an endorsement on t"e security
certificate* In many cases t"e #rocess of transfer would take muc" longer t"an t"e two mont"s
sti#ulated in t"e $om#anies ,ct, and a significant #ro#ortion of transactions would end u# as
7ad delivery due to faulty com#liance of #a#er work* T"eft, forgery, mutilation of certificates
and ot"er irregularities were ram#ant* In addition, t"e issuer "ad t"e rig"t to refuse t"e transfer
of a security* ,ll t"is added to costs and delays in settlement, restricted li.uidity and made
investor grievance redress time consuming and, at times, intracta7le*
To o7viate t"ese #ro7lems, t"e (e#ositories ,ct, +660 was #assed* It #rovides for t"e
esta7lis"ment of de#ositories in securities wit" t"e o75ective of ensuring free transfera7ility of
securities wit" s#eed, accuracy and security* It does so 7y -a/ making securities of #u7lic
limited com#anies freely transfera7le su75ect to certain exce#tionsJ -7/ demateriali;ing t"e
securities in t"e de#ository modeJ and -c/ #roviding for maintenance of owners"i# records in a
7ook entry form*
In order to streamline 7ot" t"e stages of settlement #rocess, t"e ,ct envisages transfer
owners"i# of securities electronically 7y 7ook entry wit"out making t"e securities move from
#erson to #erson* T"e ,ct "as made t"e securities of all #u7lic limited com#anies freely
transfera7le, restricting t"e com#anyGs rig"t to use discretion in effecting t"e transfer of
securities, and t"e transfer deed and ot"er #rocedural re.uirements under t"e $om#anies ,ct
"ave 7een dis#ensed wit"* Two de#ositories, vi;*, >S(L and $(SL, "ave come u# to #rovide
instantaneous electronic transfer of securities*
In any stock exc"ange, trades or transactions "ave to 7e settled 7y eit"er s.uaring u# t"e
carrying forward #ositions or settling 7y #ayment of net cas" or net delivery of securities* T"is
account settlement #eriod, if it is long, leads to several #rice distortions and allows for market
mani#ulation* It increases t"e c"ances of s#eculation resulting in volatility, w"ic" "urts
t"e small investors* @it" t"e a##lication of IT in t"e securities market 2 screen27ased trading
and trading t"roug" t"e Internet 2 it "as 7een #ossi7le to reduce t"is settlement #eriod*
'e=os*to,*es
T"e de#ositories are im#ortant intermediaries in t"e securities market t"at is scri#2less or
moving towards suc" a state* In India, t"e (e#ositories ,ct defines a de#ository to mean Da
com#any formed and registered under t"e $om#anies ,ct, +6)0 and w"ic" "as 7een granted a
certificate of registration under su72section -I,/ of section +3 of t"e Securities and Exc"ange
Board of India ,ct, +663*D T"e #rinci#al function of a de#ository is to demateriali;e securities
and ena7le t"eir transactions in 7ook2entry form* (emateriali;ation of securities occurs w"en
securities, issued in #"ysical form, are destroyed and an e.uivalent num7er of securities are
credited into t"e 7eneficiary ownerGs account* In a de#ository system, t"e investors stand to
gain 7y way of lower costs and lower risks of t"eft or forgery, etc* T"ey also 7enefit in terms of
efficiency of t"e #rocess* But t"e im#lementation of t"e system "as to 7e secure and well
governed* ,ll t"e #layers "ave to 7e conversant wit" t"e rules and regulations as well as wit"
t"e tec"nology for #rocessing* T"e intermediaries in t"is system "ave to #lay strictly 7y t"e
rules* , de#ository esta7lis"ed under t"e (e#ositories ,ct can #rovide any service connected
wit" recording of allotment of securities or transfer of owners"i# of securities in t"e record of a
de#ository* , de#ository cannot directly o#en accounts and #rovide services to clients* ,ny
#erson willing to avail of t"e services of t"e de#ository can do so 7y entering into an agreement
wit" t"e de#ository t"roug" any of its (e#ository Partici#ants*

+3
(TI%(2 SECU!ITIES 'E;%SIT%!IES 2IMITE'
Overview of >S(L
>ational Securities (e#ository Limited is t"e first de#ository to 7e set2u# in India* It was
incor#orated on (ecem7er +3, +66)* T"e Industrial (evelo#ment Bank of India -I(BI/ K
t"e largest develo#ment 7ank in India, Init Trust of India -ITI/ 2 t"e largest Indian
mutual fund and t"e >ational Stock Exc"ange ->SE/ 2 t"e largest stock exc"ange in
India, s#onsored t"e setting u# of >S(L and su7scri7ed to t"e initial ca#ital* >S(L
commenced o#erations on >ovem7er 4, +660*
Owners"i#
>S(L is a #u7lic limited com#any incor#orated under t"e $om#anies ,ct +6)0* >S(L
"ad a #aid2u# e.uity ca#ital of 9s* +A) crore* T"e #aid u# ca#ital "as 7een reduced to 9s*
4A crore since >S(L "as 7oug"t 7ack its s"ares of t"e face value of 9s* 3) crore in t"e
year 3AAA* &owever, its net wort" is a7ove t"e 9s* +AA crore, as re.uired 7y SEBI
regulations*
>S(L 2 Bank 22 ,n ,nalogy

B,>ES >S(L
&olds funds in accounts &olds securities in accounts
Transfers funds 7etween accounts Transfers securities 7etween accounts
Transfers wit"out "andling cas" Transfers wit"out "andling #"ysical
securities
Safekee#ing of money Safekee#ing of securities
In a 7ank t"e medium of exc"ange is money, w"ereas a de#ository deals in securities* In
a 7ank money is given for safe2kee#ing* In a de#ository, securities are ke#t safely* Banks
"old and transfer fundsJ de#ositories #erform t"e same function wit" securities* Banks
can transfer funds from one account to anot"er wit"out "andling cas"J a de#ository can
do t"e same wit" #"ysical securities* ?ust as in a 7ank an
'E;%SIT%!IES
(S'2 C'S2
+8
account is o#ened to avail of t"e 7anking services, an account "as to 7e o#ened wit" a (P
for "olding scri#s in t"e de#ository segment*
>S(L 2 Bank 22 T"e (ifference
B,>ES >S(L
Eit"er of "olders can sign instructions ,ll 5oint "olders to sign instructions
inimum 7alance to 7e maintained >o minimum 7alance re.uired
Entitled for interest Interest can 7e earned only 7y #artici#ating
in Stock Lending Sc"eme
Ises 7alances in accounts (oes not move 7alances in account wit"out
account "olders aut"ori;ation
>omination is ke#t confidential Signature and #"otogra#" of nominee to 7e
#rovided
In case of transactions in a 7ank account, any one of t"e 5oint "olders can sign t"e
instructions -c"e.ues/, w"ereas in t"e de#ository, all 5oint "olders are re.uired to sign all
t"e instructions* inimum funds 7alance #rescri7ed 7y t"e 7ank "as to 7e maintained in
t"e 7ank accountJ no minimum 7alance of securities is re.uired to 7e maintained in a
de#ository account* , 7ank uses t"e funds "eld in a 7ank account for lending #ur#oses*
T"e securities maintained in a de#ository account 7y an investor can 7e moved from t"e
account only on 7asis of a #ro#er aut"orisation from t"e account "older* , de#ository
cannot use t"e clientGs security 7alances* >omination is ke#t confidential in case of 7ank
accounts* T"e #"otogra#" and signature of t"e nominee is re.uired to 7e affixed on t"e
nomination form for registering t"e nomination for a de#ository account*
T"e following organisations are s"are"olders of >S(L as on arc" 8+, 3AA3%
+* Industrial (evelo#ment Bank of India
3* Init Trust of India
8* >ational Stock Exc"ange
C* State Bank of India
)* Flo7al Trust Bank Limited
0* $iti7ank >,
1* Standard $"artered Bank
4* &(:$ Bank Limited
6* T"e &ongkong and S"ang"ai Banking $or#oration Limited
+A* (eutsc"e Bank
++* (ena Bank
+3* $anara Bank
+C
CE(T!2 'E;%SIT%!IES SE!VICES 2IMITE'
O!E9!IE@ O: $(SL
T"e Stock Exc"ange, um7ai -BSE/ 5ointly wit" leading 7anks suc" as State Bank of
India, Bank of India, Bank of Baroda, &(:$ Bank, Standard $"artered Bank, Inion
Bank of India and $enturion Bank, #romoted $(SL* BSE "as 7een involved wit" t"is
venture rig"t from t"e ince#tion and "as contri7uted overw"elmingly to t"e fruition of t"e
#ro5ect* T"e initial ca#ital of t"e com#any is 9s*+AC*)A crores* $(SL was set u# wit" t"e
o75ective of #roviding convenient, de#enda7le and secure de#ository services at
afforda7le cost to all market #artici#ants* Some of t"e im#ortant milestones of $(SL
system are%
$(SL received t"e certificate of commencement of 7usiness from SEBI in :e7ruary,
+666*
&onoura7le Inion :inance inister, S"ri Las"want Sin"a flagged off t"e o#erations of
$(SL on ?uly +), +666*
Settlement of trades in t"e demat mode t"roug" BOI S"are"olding Limited, t"e clearing
"ouse of BSE, started in ?uly +666*
,ll leading stock exc"anges like t"e >ational Stock Exc"ange, $alcutta Stock Exc"ange,
(el"i Stock Exc"ange, T"e Stock Exc"ange, ,"meda7ad, etc "ave esta7lis"ed
connectivity wit" $(SL*
,s at t"e end of (ec 3AAC, over C6AA issuers "ave admitted t"eir securities -e.uities,
7onds, de7entures, and commercial #a#ers/, units of mutual funds, certificate of de#osits
etc* into t"e $(SL system*
$E>T9,LISE( (,T,B,SE
$entral (e#ository ,ccounting System -$(,S/, $(SLs de#ository software "as 7een
develo#ed, customi;ed and su##orted 7y $$ Ltd* $(,S is e.ui##ed wit" centrali;ed
data7ase arc"itecture* T"is im#lies t"at $(SL centrally #erforms ma5or activities suc" as
#rocessing, storing and maintenance of data and its 7acku#* Transactions of any user,
irres#ective of t"e location, are u#dated t"e moment t"ey are committed into t"e system,
ensuring t"at t"ere are no Min2transitN #ositions 7etween $(SLs records and t"ose of t"e
users*
+)
'e=os*to,9 ;a,t*/*=ants
, (e#ository Partici#ant -(P/ is descri7ed as an agent of t"e de#ository* T"ey are t"e
intermediaries 7etween t"e de#ository and t"e investors* T"e relations"i# 7etween t"e
(Ps and t"e de#ository is governed 7y an agreement made 7etween t"e two under t"e
(e#ositories ,ct* In a strictly legal sense, a (P is an entity w"o is registered as suc"
wit" SEBI under t"e #rovisions of t"e SEBI ,ct* ,s #er t"e #rovisions of t"is ,ct, a
(P can offer de#ository related services only after o7taining a certificate of registration
from SEBI* SEBI -(<P/ 9egulations, +660 #rescri7e a minimum net wort" of 9s* )A
lak" for stock7rokers, 9<T agents and non27anking finance com#anies ->B:$/, for
granting t"em a certificate of registration to act as (Ps* If a stock7roker seeks to act as
a (P in more t"an one de#ository, "e s"ould com#ly wit" t"e s#ecified net wort"
criterion se#arately for eac" suc" de#ository * >o minimum net wort" criterion "as 7een
#rescri7ed for ot"er categories of (Ps* &owever, de#ositories can fix a "ig"er net wort"
criterion for t"eir (Ps* >S(L re.uires a minimum net wort" of 9s* +AA lak" to 7e
eligi7le to 7ecome a (P as against 9s* )A lak" #rescri7ed 7y SEBI -(<P/ 9egulations*
+0
'e=os*to,9 se,:*/es at 'ena #an0
(ena Bank (emat Services
(ena Bank a#art from normal 7anking services also offers you t"e ca#ital market oriented
#roduct in t"e form of (emat account called 2(ena Laxmi (emat ,ccount* (ena Bank is
(e#ository #artici#ant of >ational Securities (e#ository Limited ->S(L/*since +661 and is
extending (e#ository services to t"e (emat ,ccount "olders of t"e Bank*
(ena Bank #rovides "assle free transactions in t"e securities t"roug" t"e (ena Laxmi (emat
,ccount*
@"y (ena Bank
Trading in securities today is #ermitted 7y SEBI only in electronic form on t"e stock
Exc"anges* ,lt"oug" "olding security in electronic form is not mandatory, "owever for
7etter safe kee#ing against any natural calamity and to "ave convenience of en2
cas"ing it at an o##ortune time it is always advisa7le to "old t"e securities in (emat
form (ena Laxmi (emat ,ccount ena7les t"e customer to convert t"e #"ysical
securities ' s"ares in electronic form* T"e securities in electronic form can 7e
transferred 5ust like transfer of funds in your 7anking account
1. CC%U(T %;E(I(4+
,n investor intending to "old securities in t"e electronic form in a de#ository system s"ould
o#en an account wit" a Partici#ant* So also s"ould all t"e clearing mem7ers w"o intend to
#rovide settlement function in t"e de#ository system
T"ere are four ty#es of ,ccounts t"at (e#ository Partici#ant $an aintain%
+* Beneficiary account
3* &ouse account
8* $learing account
C* Own $learing account
$urrently (ena Bank offers only #enef*/*a,9 //o.nt to client for t"e #ur#ose of "olding its
securities
#enef*/*a,9 //o.nt
T"is is an account o#ened 7y investors to "old t"eir securities in dematerialised form wit" a
de#ository and to carry out t"e transactions of sale and #urc"ase of suc" securities in 7ook
entry form t"roug" t"e de#ository system* , 7eneficiary account "older is legally entitled for
all rig"ts and lia7ilities attac"ed to t"e securities -i*e* e.uity s"ares, de7entures, government
securities, etc*/ "eld in t"at account* T"erefore, t"e account is called 7eneficial owner accountD
By o#ening an account wit" t"e Partici#ant t"e client will 7e a7le to avail of t"e facilities like
(ematerialisation of its existing "olding in securities, Purc"ase any security, receive credit in
its account t"roug" Bonus, rig"ts, etc*, Sell its "olding, Pledge its securities for availing credit
facilities from a lender*
+1
;,o/e-.,e fo, a//o.nt o=en*n3+
'o/.6ents ,e@.*,e- <5*le o=en*n3 a 'e6at >/
AaB ;,oof of I-ent*t9 A;%IB-
I. ;ass=o,t
II. Vote, I' Ca,-
III. ',*:*n3 l*/ense
+4
T"e client will su7mit t"e re.uest for account o#ening in t"e
C$o,6 DE along wit" documents as s#ecified 7y (ena Bank
T"e Partici#ant will verify t"at t"e account o#ening form is duly
filled in* It will also verify t"e enclosed documents, if any*
Incom#lete forms will 7e forwarded to t"e client for rectification
In case t"e documents are not #ro#er, t"e Partici#ant will re5ect
t"e form and intimate t"e client of t"e same, stating t"e reasons
for doing so* T"e co#y of t"e agreement su7mitted 7y t"e client
is destroyed
If t"e form is in order, t"e Partici#ant will acce#t t"e same and
give an acknowledgment sli# duly signed and stam#ed, to t"e
client* T"e Partici#ant will execute t"e agreement and give a
co#y of it to t"e client
,fter com#letion of all documentation, t"e Partici#ant will enter
t"e client details as mentioned in t"e account o#ening form in
t"e (P -software #rovided 7y >S(L to t"e Partici#ant/ screen
#rovided for t"e #ur#ose* ,fter entering client details in t"e
system, a client account num7er will 7e generated 7y t"e (P*
T"e Partici#ant will enter t"is in t"e account o#ening form
T"e Partici#ant will record t"e clients signature -on t"e form/
as s#ecimen for aut"orisations in t"e future
T"e Partici#ant will give a co#y of t"e re#ort listing t"e client
details ca#tured in t"e (P data7ase to t"e client* T"e re#ort
will 7e generated 7y t"e (P
IV. ;( /a,- <*t5 =5oto3,a=5
V. M;I( /a,- -SEBI vide its $ircular >o* 9('(oP'$ir2A4'3AA1 dated ?une 3), 3AA1 "as
communicated its decision to discontinue wit" t"e re.uirement of Ini.ue
Identification >um7er -II>/ under t"e SEBI -$entral (ata7ase of arket Partici#ants/
9egulations 3AA) -,PI> regulations/'circulars*
VI. I-ent*t9 /a,->-o/.6ent <*t5 a==l*/ant8s ;5oto7 *ss.e- b9
a/ $entral'State Fovernment and its (e#artments,
7/ Statutory'9egulatory ,ut"orities,
c/ Pu7lic Sector Indertakings,
d/ Sc"eduled $ommercial Banks,
e/ Pu7lic :inancial Institutions,
f/ $olleges affiliated to Iniversities -t"is can 7e treated as valid only till t"e
time t"e a##licant is a student/,
g/ Professional Bodies suc" as I$,I, I$@,I, I$SI, Bar $ouncil etc*, to t"eir
em7ersJ and
"/ $redit cards'(e7it cards issued 7y Banks*
AbB ;,oof of a--,ess A;%B F
I. !at*on /a,-
II. ;ass=o,t
III. Vote, I' Ca,-
IV. ',*:*n3 l*/ense
V. #an0 =assboo0
Bank #ass7ook is one of t"e Proof of ,ddress -PO,/ 7eing su7mitted 7y a##licant-s/
to t"e (P at t"e time of o#ening de#ository account* In t"is regard, #rocedure is as
follows,
+6
A*B Co6=.te, 3ene,ate- o,*3*nal ban0 state6ent+
(Ps may acce#t t"e com#uter generated original 7ank statement as PO, if
>eit"er o7taining t"e co#y of 7ank #ass7ook nor attestation -stam# and signature/
of t"e aut"ori;ed official of t"e 7ank on t"e original 7ank statement is feasi7le*
Provided suc" original 7ank statement is #rinted on t"e stationery of t"e 7ank,
carries logo < name of t"e 7ank, dis#lays t"e name, address and 7ank
Transactions'"oldings of t"e $lient for t"e latest .uarter ending*
A**B Co6=.te, 3ene,ate- ban0 state6ent on =la*n =a=e,+
(Ps may acce#t t"e com#uter generated 7ank statement w"ic" is #rinted on a #lain #a#er as
PO, #rovided it clearly mentions t"e name, address and 7ank transactions'"oldings of t"e
$lient for t"e latest .uarter ending* Provided suc" a 7ank statement is duly attested -signed and
stam#ed/ 7y t"e aut"orised official of t"e 7ank mentioning t"e name and designation of suc"
aut"orised official* In 7ot" t"e aforesaid circumstances, (Ps are advised as follows%
a/ O7tain a cancelled c"e.ue in original and signature of t"e a##licant-s/ -all
t"e "olders in case of 5oint "oldings/ on t"e 7ank statement*
7/ Te 7ank statement s"ould 7e of t"e latest .uarter ending eg* de#ository
accounts o#ened in t"e mont" of ,#ril, ay and ?une s"ould 7e su##orted
7y t"e 7ank statement of t"e .uarter ending arc" 8+*
2. 'EMTE!I2IGTI%( %$ SECU!ITIES%
(ematerialisation is t"e #rocess 7y w"ic" a client can get #"ysical certificates converted into
electronic 7alances maintained in its account wit" t"e Partici#ant in t"e de#ository system*
Securities "eld in dematerialised form are fungi7le, i*e*, t"ey do not 7ear any distinguis"ing
features*
,n investor intending to dematerialise its securities needs %
+* To "ave an account wit" a Partici#ant*
3* T"ey "ave to deface and surrender t"e certificates registered in its name to t"e
Partici#ant*
3A
,fter intimating >S(L electronically, t"e Partici#ant sends t"e securities to t"e
concerned Issuer'9<T agent* >S(L in turn informs t"e Issuer'9<T agent electronically
a7out t"e re.uest for dematerialisation* If t"e Issuer' 9<T agent finds t"em in order, it
registers >S(L as t"e "older of t"e securities and confirms to >S(L electronically* On
receiving suc" confirmation, >S(L aut"orises credit to t"e relevant client account wit"
t"e Partici#ant*
Procedure involved in demateriali;ation%
3+
T"e client will su7mit a re.uest for demateriali;ing securities in
t"e C$o,6 'E ,long wit" t"e certificates of securities to 7e
dematerialised
T"e Partici#ant will verify w"et"er t"e no of securities,
certificates and security ty#e are as given in (9:* If it is in
order t"en it will issue an acknowledgment sli# duly signed and
stam#ed to client
T"e Partici#ant will scrutini;e t"e form and t"e certificates
w"ic" involves !erification of $lients signature, $om#are t"e
order of "olders names on (9: and $ertificates wit" t"e $lient
account, Paid u# status, ISI> , Pari Passu Status, Lock 2 in
status, (istinctive num7ers*
33
T"e Partici#ant must verify t"e nature of t"e security, its
#ari#assu status wit" reference to t"e list of ISI> codes availa7le
wit" it*
If #art of t"e certificates #ertaining to a single (9: is #artly
#aid2u#, t"e Partici#ant will re5ect t"e re.uest and return t"e
(9: along wit" t"e certificates* It may advise t"e client to send
se#arate re.uests for t"e fully #aid2u# and #artly #aid2u#
securities*
In case if t"e securities are damaged or defaced in suc" a way t"at
t"e material information is not reada7le, t"e Partici#ant will re5ect
t"e dematerialisation re.uest* It may advise t"e client to send t"e
certificates to t"e Issuer'9<T agent and get new securities issued
in lieu t"ereof*
If #art of t"e certificates #ertaining to a single (9: is locked2in,
t"e Partici#ant will re5ect t"e re.uest and return t"e (9: along
wit" t"e certificates to t"e client* It may advise t"e client to send
a se#arate re.uest for t"e locked2in certificates*
In case t"e securities are found in order t"e details of t"e re.uest
as mentioned in t"e form are entered in t"e (E,T9IO and a
(ematerialisation 9e.uest >um7er-(9> / will 7e generated
7y t"e system*
T"e (9> so generated is entered in t"e s#ace #rovided for t"e
#ur#ose in t"e dematerialisation re.uest form*
(etails recorded for t"e (9> s"ould 7e verified 7y a #erson
ot"er t"an t"e #erson w"o entered t"e data* T"e re.uest is t"en
released to ( -( 2 (e#ository odule, >S(Ls software
system/ 7y t"e Partici#ant*
T"e ( forwards t"e re.uest to t"e Issuer'9<T agent
electronically*
T"e Partici#ant will #unc" t"e certificates on t"e com#any name
as s"own in :orm E so t"at it does not destroy any material
information on t"e certificate
@"en t"e Issuer'9<T agent confirms acce#tance of t"e re.uest
for dematerialisation, t"e ( will electronically aut"orise t"e
creation of a##ro#riate credit 7alances in t"e clients account*
3. T!(S$E! %$ SECU!ITIES

, client "aving an account wit" a Partici#ant "as t"e facility to receive credit for #urc"ase of
securities in electronic form* Similarly, a client can sell its securities "eld in electronic form*
:or doing t"is, t"e client "as to aut"orise t"e Partici#ant to transfer 7alances from or to its
account*
In case a client sells its dematerialised securities, it must give a de7it aut"orisation to t"e
Partici#ant in t"e form of a delivery instruction form* In t"e market trades, t"e client will 7e
re.uired to transfer its securities to t"e Pool account of t"e clearing mem7er -eit"er 7roker or
custodian or any ot"er as t"e case may7e/* In case a client #urc"ases demateriali;ed
securities it must give a credit aut"orisation to t"e Partici#ant in a recei#t instruction form* In
t"e market trades t"e client will 7e receiving securities from t"e Pool account of t"e clearing
mem7er to its account*
38
T"e Partici#ant must inform t"e client of t"e c"anges in t"e
clients account following t"e confirmation of t"e re.uest*
M!)ET T!'ES
arket trades are t"ose trades w"ic" are executed on t"e stock exc"ange and are cleared
and settled t"roug" t"e clearing cor#oration* :or t"e #ur#ose of >S(L o#erations, trades
w"ic" are negotiated and su7se.uently re#orted for 7eing cleared and settled t"roug" t"e
clearing cor#oration, will also 7e treated as market trades* arket trades can 7e settled
only t"roug" a clearing mem7er*
Sale of se/.,*t*es+
@"en clients sell securities, t"e securities are moved from t"e clients accounts to t"e
Pool account of t"e clearing mem7er, and at t"e time of #ay2in, t"e securities are moved
to t"e clearing cor#oration 7ased on t"e net o7ligation of t"e clearing mem7er*
Procedure for selling t"e securities%
CSE 2. Int,a-'; t,ansfe,
If t"e target Partici#ants (P Id is t"e same as its own (P Id, t"e Partici#ant will enter t"e
e.uest in t"e (e,T9IO as an intra2(P transfer*
Transfer of securities
Transfer of securities
arket Trades
arket Trades
Off2 arket Trades
Off2 arket Trades
Buying of security
Buying of security
Sale of security
Sale of security
3C
T"e selling client will su7mit a re.uest in M:orm LN for
transferring securities from its account to t"e Pool ,'c of t"e
clearing mem7er t"roug" w"om t"e client intends to settle its
trade*
T"e Partici#ant will verify t"at t"e form is duly filled in and t"at
t"e Signature as on t"e form tallies wit" t"e s#ecimen signature
availa7le in its records*
If t"e signatures are different t"e Partici#ant will ensure t"e
identity of t"e client
T"e Partici#ant will c"eck t"e target Partici#ants (P Id on t"e
form w"et"er its Intra2(P transfer or Inter2(P transfer
T"e Partici#ant will enter t"e re.uest in t"e (e,T9IO and t"e
(e,T9IO will generate an Instruction num7er for t"e re.uest*
T"e Partici#ant will t"en verify and release t"e Instruction*
CSE 2. Inte,-'; T,ansfe,
@"ile verifying t"e transfer re.uest form if t"e Partici#ant finds t"at t"e target
Partici#ants (P Id is different from its own (P Id, t"en it "as to initiate an inter2(P
transfer*
3)
In case of a transfer from a 7eneficiary account to t"e Pool
account of a clearing mem7er,if t"e >S(L deadline date and
time "as #assed at t"e time of verification' release, t"e
(e,T9IO will disallow release of t"e instruction*
Transfer takes #lace on t"e execution date entered as #art of t"e
instruction, #rovided t"ere is sufficient free 7alance in t"e client
account as at t"at time* In case t"e execution date entered
"a##ens to 7e a "oliday t"e transfer will 7e executed on t"e
7usiness day following t"e "oliday*
If sufficient free 7alance is not availa7le in t"e client account on
t"e execution date, T"e re.uest is marked as =overdue 7y t"e
system* If t"ere are not sufficient 7alances availa7le in t"e
account till t"e end of t"e regular o#erations for t"e 7usiness
day, t"e order is re5ected 7y t"e (e,T9IO* Part delivery, to
t"e extent of free 7alance availa7le, does not take #lace*
In t"e event of suc" re5ection, t"e Partici#ant will intimate t"e
client stating t"at sufficient free 7alance was not t"ere in its
account for executing t"e transfer*
T"e Partici#ant will enter t"e re.uest in t"e (e,T9IO and
t"e (e,T9IO will generate an instruction num7er for t"e
re.uest* T"e Partici#ant will t"en verify and release t"e re.uest*
In case of a transfer from a 7eneficiary account to a clearing
mem7er Pool account, if t"e >S(L deadline date and time is
#ast at t"e time of verify ' release, t"e (E,T9IO will
(etails of t"e re.uest are released to t"e ( 7y t"e (e,T9IO
on t"e execution date mentioned in t"e re.uest* T"e clients free
7alance gets 7locked to t"e extent of t"e transfer, w"en t"e
re.uest is released to t"e (* In case t"e execution date entered
"a##ens to 7e a "oliday, t"e transfer will 7e executed on t"e
;.,/5ase of Se/.,*t*es+
@"en clients #urc"ase securities, t"e funds are moved from t"e clients accounts to t"e
Pool account of t"e clearing mem7er, and at t"e time of #ay2in, t"e funds are moved to
t"e clearing cor#oration 7ased on t"e net o7ligation of t"e clearing mem7er* , client
executing #urc"ases in t"e de#ository segment will 7e re.uired to give a credit
aut"orisation to its Partici#ant*
Procedure for Purc"ase of Securities%

30
Transfer is initiated 7y t"e ( if t"e de7it instruction t"us
released to t"e ( is atc"ed 7y a com#lementary credit
instruction coming to t"e ( from t"e Partici#ant of t"e clients
clearing mem7er* ,lternately, t"e clearing mem7er may "ave a
standing instruction, in w"ic" case, t"e com#lementary
instruction is generated 7y t"e ( and matc"ed wit" t"e
delivery instruction w"ic" is sent to t"e (P of t"e Partici#ant
@"en t"e transfer is effected 7y t"e ( and intimated to t"e
(P, it will de7it t"e clients concerned 7locked "oldings*
If t"e instruction is not matc"ed 7y a com#lementary instruction
at t"e (, t"e re.uest is re5ected 7y t"e ( at t"e end of t"e
7usiness day and t"e status is intimated to t"e (P* On recei#t
of t"e message, t"e (P will un7lock t"e "olding of t"e client
7locked for t"e #ur#ose of transfer*
T"e Partici#ant will accordingly intimate t"e client of t"e
re5ection
T"e 7uying client will su7mit a re.uest to t"e Partici#ant in t"e
M:orm N to transfer securities to its own account*
On recei#t of t"e re.uest, t"e Partici#ant will verify t"at t"e
form is duly filled in and in case of signature difference t"e
Partici#ant will ensure t"e identity of t"e client*
If t"e Target Partici#ants (P Id is same as its own (P Id, t"e
Partici#ant will enter t"e re.uest as Intra2(P transfer* On t"e
execution date, t"e corres#onding clients account is credited*
'*a3,a6 of Ma,0et T,ansfe,
%$$ M!)ET T!'ES
31
If t"e target Partici#ants (P Id on t"e form is different from its
own (P Id, t"e Partici#ant will enter t"e re.uest in t"e (P as
an inter2(P transfer and will release t"e same on execution date
Transfer is initiated 7y t"e ( if t"e credit instruction t"us
released to t"e ( is matc"ed 7y a com#lementary de7it
instruction coming to t"e ( from t"e Partici#ant of t"e clients
clearing mem7er*
If t"e credit instruction is not matc"ed 7y a corres#onding de7it
instruction, t"e ( will re5ect t"e re.uest at t"e end of t"e
7usiness day and t"e re5ected status is intimated to t"e (P*
,nd t"e #artici#ant will intimate t"e client a7out suc" re5ection*
Status of t"e re.uest is automatically u#dated in t"e (P and
may 7e c"ecked 7y .uerying on t"e re.uest details*
Off2market trades are deals, generally for 7ulk .uantities, w"ic" are negotiated outside
t"e trading system of a stock exc"ange 7etween trading mem7ers directly* Off2market
trades result in transfers from one 7eneficiary account to anot"er 7eneficiary account and
7etween a 7eneficiary account and t"e "ouse account of a Partici#ant.
Intra2(P Transfers%
Inter (P2Transfer
34
T"e Selling client will su7mit a re.uest to t"e Partici#ant in
M:orm LN for transferring 7alances from its account to anot"er
account and T"e 7uying client will su7mit a re.uest in t"e
M:orm N for transferring 7alances to its own account*
T"e Partici#ant will c"eck for t"e signature of t"e client in t"e
forms* If t"ere is a signature difference, t"e Partici#ant will
ensure t"e identity of t"e client
@"ere t"e re.uests #ertain to intra2(P transfer, t"e Partici#ant
will matc" t"e re.uests manually
If, for a de7it aut"ori;ation given 7y a selling client, t"ere exists
a corres#onding credit aut"ori;ation given 7y a 7uying client,
t"e Partici#ant will enter t"e re.uest in (P as an intra2(P
transfer and t"e (P will generate an instruction num7er for
t"e re.uest*
Transfer takes #lace automatically on t"e execution date entered
as #art of t"e instruction if t"e selling clients account "as
sufficient 7alance as on t"e execution date*
If on t"e execution date t"e selling clients account does not
"ave enoug" 7alance, t"e status of t"e instruction c"anges to
=overdue* Suc" an instruction will get triggered if t"e account
gets sufficient 7alance 7efore t"e end of t"e 7usiness day, else it
will 7e marked as closed at t"e end of t"e day*
T"e Selling client will su7mit a re.uest to t"e Partici#ant in
M:orm LN
for transferring 7alances from its account to anot"er account and
T"e 7uying client will su7mit a re.uest in t"e :orm for
transferring 7alances to its own account*
36
On recei#t of t"e re.uest, t"e Partici#ant will verify t"at t"e
form is duly filled in and t"at t"e signature of t"e client as on t"e
form matc"es wit" t"e s#ecimen availa7le in its records*
If t"e signatures are different t"e Partici#ant will ensure t"e
identity of t"e client*
If t"e target Partici#ants (P Id is different from its own (P Id,
t"e Partici#ant will enter t"e re.uest in t"e (P as an inter2(P
transfer and t"e (P will generate an instruction num7er for
t"e same*
(etails of t"e re.uest are released to t"e ( 7y t"e (P on t"e
execution date mentioned in t"e re.uest* T"e clients free
"olding is 7locked to t"e extent of delivery at t"e time of release
of instruction to t"e (*
If on t"e execution date t"e selling clients account does not
"ave enoug" 7alance, t"e status of t"e instruction c"anges to
=overdue* Suc" an instruction will get triggered if t"e account
gets sufficient 7alance 7efore t"e end of t"e 7usiness day, else it
will 7e marked as closed at t"e end of t"e day*
Transfer is initiated 7y t"e ( if t"e de7it instruction t"us
released to t"e ( is matc"ed 7y a com#lementary credit
instruction coming to t"e ( from t"e counter2#artys
Partici#ant*
@"en t"e transfer is effected 7y t"e ( and intimated to t"e
(P, it will de7it t"e selling clients concerned 7locked
"oldings and u#date t"e status of t"e re.uest*
Status of t"e re.uest is automatically u#dated in t"e (P and
may 7e c"ecked 7y .uerying on t"e re.uest details*
4. T!(SMISSI%( %$ SECU!ITIES
Transmission of securities can 7e categorised into two #arts %
T,ans6*ss*on of se/.,*t*es - *n t5e e:ent of -eat5 of an9 of t5e Ho*nt 5ol-e,s7 in w"ic"
case, t"e ot"er existing 5oint "olders can get t"e securities transmitted in t"eir favour 7y
#roducing t"e deat" certificate* T"e existing 5oint "olders "ave to o#en a new account wit"
a Partici#ant*
;,o/e-.,e+
1. @"ere t"e Sole &older w"o "as securities "eld in its name is deceased, any
successor'claimant'legal "eir s"all 7e re.uired to make a re.uest for transmission in t"e
$o,6 % and furnis" any of t"e following legal documents%
vi;*, Pro7ate of @ill, Succession $ertificate, Letter of ,dministration, or any ot"er legal
document w"ic" may 7e re.uired along wit" an attested co#y of t"e (eat" $ertificate, to
t"ePartici#ant.
3* T"e Partici#ant will verify all t"e legal documents su7mitted 7y t"e legal
"eir'claimant'successor for t"eir aut"enticity* If satisfied a7out t"e aut"enticity of t"e
documents su7mitted, t"e Partici#ant will transmit t"e securities to t"e res#ective clients*
T,ans6*ss*on of se/.,*t*es - *n t5e e:ent of -eat5 of t5e sole 5ol-e,7 in w"ic" case,
t"e claimants'successors'legal "eirs can get t"e securities transmitted in t"eir favour 7y
su7mitting t"e relevant legal documents to t"e Partici#ant* T"e claimants'legal
"eirs'successors s"ould o#en an account wit" a Partici#ant to get t"e securities
transmitted in t"eir favour*
;,o/e-.,e +

1. In t"e event of any 5oint "olders demise, t"e ot"er 5oint "olders s"all "ave t"e
securities transmitted in t"eir favour only on furnis"ing a co#y of t"e deat" certificate
-duly attested'or in original/ t"roug" t"e Partici#ant* T"ey s"ould also make a
re.uest for transmission in t"e $o,6 %*
3* T"e Partici#ant will verify t"e documents and satisfy itself a7out t"e aut"enticity of
t"e Same
8* T"e securities will t"en 7e transmitted in t"e names of t"e ot"er account "olders*
8A
5. ;le-3e +
T"e (e#ositories ,ct, +660 #ermits t"e creation of #ledge against securities* Securities "eld in a
de#ository account can 7e #ledged or "y#ot"ecated against a loan, credit,or suc" ot"er facility
availed 7y t"e 7eneficial owner of suc" securities* :or t"is #ur#ose, 7ot" t"e #arties to t"e
agreement, i*e*, t"e #ledgor and t"e #ledgee must "ave a 7eneficiary account wit" >S(L*
&owever, 7ot" #arties need not "ave t"eir de#ository account wit" t"e same (P*
T"e nature of control on t"e securities offered as collateral determines w"et"er t"e transaction is
a #ledge *
If t"e lender -#ledgee/ "as unilateral rig"t -wit"out reference to 7orrower/ to a##ro#riate t"e
securities to "is account if t"e 7orrower -#ledgor/ defaults or ot"erwise, t"e transaction is called
a #ledge*
T"is will involve $reation of #ledge 7y #ledgor and confirmation of #ledge 7y #ledgee*
;,o/e-.,e fo, /,eat*on of =le-3e b9 t5e =le-3o,%
$onfirmation 9e.uest
,greement
8+
>S(L
Pledgees (P
Pledgee
Pledgors (P
Pledgor

Loan
83
T"e #ledgor will su7mit an instruction to its Partici#ant to
initiate a #ledgere.uest in t"e (P 7y indicating t"e o#tion
=create a #ledge in t"e #ledge $o,6 &* T"e #ledgor will
indicate t"erein, t"e agreement num7er, closure date of t"e #ledg
-t"is date is indicative of t"e duration of #ledge/, #ledgees
details, and t"e details of securities to 7e #ledged
T"e Partici#ant will c"eck for t"e com#leteness of t"e form* T"e
Partici#ant "as to ensure t"at sym7ols like =2=, P= , Q, =R=, =S,
and =% s"ould not 7e t"e first c"aracter of t"e agreement num7er
and t"at t"e securities re.uested to 7e #ledged exist in t"e
#ledgors account* If not so, t"e Partici#ant will return t"e same
to t"e #ledgor for rectification
If t"e form is com#lete in all res#ects, t"e Partici#ant will acce#t
t"e form for #rocessing and issue an acknowledgment for t"e
same to t"e #ledgor
T"e Partici#ant will t"en enter t"e details of t"e re.uest in t"e
(P and t"e (P will generate a #ledge instruction num7er
for t"e re.uest
T"e Partici#ant will t"en verify'release t"e order to >S(L*
Securities to t"e extent of t"e instruction are de7ited from t"e
free or locked2in 7alances and credited as #ledged 7alances of
t"e #ledgor* T"e Partici#ant s"all write t"e #ledge instruction
num7er on t"e #ledge form and intimate t"e same to t"e #ledgor
T"e details of t"e #ledge are electronically communicated to t"e
(P of #ledgees Partici#ant t"roug" t"e ( for confirmation
;,o/e-.,e fo, /onf*,6at*on of /,eat*on of =le-3e b9 t5e =le-3ee
88
T"e #ledge re.uest will 7e dis#layed on t"e (P of #ledgees
Partici#ant
T"e #ledgees Partici#ant will furnis" t"e details of t"e #ledge
7re.uests received for confirmation to t"e #ledgee t"roug" t"e
re#ort generated 7y t"e (P
T"e #ledgee will su7mit an instruction to its Partici#ant to
acce#t're5ect t"e #ledge re.uest 7y indicating t"e o#tion
=confirm t"e creation of #ledge in t"e #ledge'"y#ot"ecation
:orm @
T"e Partici#ant will c"eck for t"e com#leteness of t"e form* If
t"e form is incom#lete, t"e Partici#ant will return t"e form to t"e
#ledgee for rectification
If t"e form is com#lete in all res#ects, t"e Partici#ant will acce#t
t"e form for #rocessing and issue an acknowledgment for t"e
same to t"e #ledgee
T"e Partici#ant will com#are t"e details on t"e form wit" t"at of
t"e details as s"own 7y t"e (P against t"e #ledge instruction
T"e Partici#ant will execute t"e order for acce#ting're5ecting t"e
#ledge re.uest in t"e (P as #er t"e instructions given in t"e
In case of re5ection 7y t"e #ledgee, t"e Partici#ant will enter t"e
re5ection reason in t"e (P as s#ecified in t"e form
T"e acce#tance're5ection of #ledge closure confirmation is
electronically communicated to t"e (P of t"e #ledgors
,cce#tance of t"e closure of #ledge will a##ear in t"e (P of
t"e #ledgors Partici#ant and t"e #ledgees Partici#ant as a status
c"ange* Status of t"e #ledge instruction will c"ange to MPartially
$losedN or M$losed, SettledN and t"e securities acce#ted for
closure will 7e de7ited from t"e #ledged 7alances of t"e #ledgor
and credited to its free'locked2in 7alances
In:o/at*on of ;le-3e o, *n:o/at*on
T"e #ledge so created can also 7e invoked if t"ere is a default* If t"e #ledgor defaults in
disc"arging "is o7ligation under t"e agreement, t"e #ledgee may invoke t"e #ledge* T"is
"as to 7e done after taking t"e necessary ste#s under t"e terms of t"e agreement wit" t"e
#ledgor and t"e Bye2Laws of >S(L and rules and regulations framed 7y SEBI*
Invocation order


>otice
Procedure for invocation of #ledge 7y t"e #ledgee%
8C
In case of re5ection 7y t"e #ledgee, t"e 7ookings #erformed at
t"e time of initiation of creation of t"e #ledge instruction will
7e reversed and t"e securities will 7e de7ited from t"e #ledged
7alances of t"e #ledgor and credited to its free'locked2in
7alances* T"e reasons for re5ection are dis#layed in t"e (P of
t"e #ledgors Partici#ant
T"e #ledgors Partici#ant cannot cancel t"e #ledge order after
confirmation of creation of t"e #ledge'"y#ot"ecation 7y t"e
#ledgee
T"e #ledgees Partici#ant cannot confirm t"e creation of #ledge
after t"e closure date
T"e #ledgee will su7mit an instruction to its Partici#ant to
initiate a #ledge invocation 7y indicating t"e o#tion =invoke t"e
#ledge'"y#ot"ecation in t"e #ledge :orm @
>S(L
Pledgees (P
Pledgee
Pledgors (P
Pledgor
8)
T"e Partici#ant will c"eck for t"e com#leteness of t"e form* If
t"e form is incom#lete, t"e Partici#ant will return t"e form to t"e
#ledgee for rectification
If t"e form is com#lete in all res#ects, t"e Partici#ant will acce#t
t"e form for #rocessing and issue an acknowledgment for t"e
same to t"e #ledgee
T"e Partici#ant will com#are t"e details on t"e form wit" t"at of
t"e details as s"own 7y t"e (P against t"e #ledge instruction
num7er
T"e Partici#ant will enter t"e invocation re.uest details in t"e
(P against t"e #ledge instruction num7er as #er t"e
instructions given in t"e form and verify'release t"e instruction
to >S(L
In t"e case of invocation of a #ledge, t"e securities are
transferred from t"e #ledged 7alances of t"e #ledgor to t"e
#ledgees 7eneficial owner account* T"e intimation of t"e same
travels to t"e #ledgors Partici#ant t"roug" ( and t"e status of
t"e #ledge is c"anged to Mclosed, invokedN
Locked2in securities cannot 7e invoked 7efore t"e lock2in
release date
6. !EMTE!I2ISTI%( %$ SECU!ITIES+
9ematerialisation is t"e #rocess 7y w"ic" a client can get its electronic "oldings converted
into #"ysical certificates* T"e client "as to su7mit t"e rematerialisation re.uest to t"e
Partici#ant wit" w"om it "as an account* T"e Partici#ant enters t"e re.uest in its system
w"ic" de7its t"e clients "oldings to t"at extent automatically* T"e Partici#ant releases t"e
re.uest to >S(L and sends t"e re.uest form to t"e Issuer'9<T agent* T"e Issuer'9<T agent
t"en #rints t"e certificates, des#atc"es t"e same to t"e client and simultaneously
electronically confirms t"e acce#tance of t"e re.uest to >S(L*
;!%CE'U!E +
80
T"e client will su7mit a re.uest to t"e Partici#ant in t"e :orm &
for rematerialisation of "oldings in its account
On recei#t of t"e re.uest form, t"e Partici#ant will verify t"at
t"e form is duly filled in and issue to t"e client, an
acknowledgment sli#, signed and stam#ed
T"e Partici#ant will verify t"e signature of t"e client as on t"e
form wit" t"e s#ecimen availa7le in its records
If t"e signatures are different t"e Partici#ant will ensure t"e
identity of t"e client
If t"e form is in order t"e Partici#ant will enter t"e re.uest
details in its (P* @"ile entering t"e details, if it is found t"at
t"e clients account does not "ave enoug" 7alance, t"e
Partici#ant will not entertain t"e re.uest
81
T"e Partici#ant will intimate t"e client t"at t"e re.uest cannot 7e
entertained since t"e client does not "ave sufficient 7alance
If t"ere is sufficient 7alance in t"e clients account, t"e
Partici#ant will enter t"e re.uest in t"e (P and t"e (P will
generate 9ematerialisation 9e.uest >um7er -99>/
T"e 99> so generated is entered in t"e s#ace #rovided for t"e
#ur#ose in t"e 9ematerialisation re.uest form
(etails recorded for t"e 99> s"ould 7e verified 7y a #erson
ot"er t"an t"e #erson w"o entered t"e data* T"e re.uest is t"en
released to t"e ( 7y t"e Partici#ant
T"e ( forwards t"e re.uest to t"e Issuer'9<T agent
electronically
T"e Partici#ant will fill t"e aut"orisation #ortion of t"e re.uest
form
T"e Partici#ant will t"en des#atc" t"e re.uest form to t"e
Issuer'9<T agent
T"e Issuer'9<T agent acce#ts t"e re.uest for 9ematerialisation,
#rints and des#atc"es t"e certificates to t"e client and sends
electronic confirmation to t"e (
T"e ( downloads t"is information to t"e (P and t"e status
of t"e 9ematerialisation re.uest is u#dated in t"e (P
T"e Partici#ant must inform t"e client a7out t"e c"anges in t"e
client account following t"e acce#tance of t"e re.uest
7. $!EEGI(4 %$ CC%U(TS+
, client may re.uest t"at its account 7e fro;en 7y deactivating it* T"e Partici#ant "as a facility in
t"e (P to free;e an account* T"e account is fro;en for any transaction t"ereafter, until it is
reactivated on a re.uest from t"e client* ,n account may 7e fro;en for de7its or for 7ot" de7its and
credits de#ending on t"e c"oice of t"e account "older*
;!%CE'U!E+
84
T"e client will su7mit a re.uest to t"e Partici#ant in t"e M$o,6
;E for free;ing its account
On recei#t of t"e re.uest form, t"e Partici#ant will verify t"at
t"e form is duly filled in and issue to t"e client an
acknowledgment sli# signed and stam#ed
T"e Partici#ant will verify t"e signature of t"e client as on t"e
form wit" t"e s#ecimen availa7le in its records
'E$!EEGI(4 %$ ( CC%U(T+
, client w"ose account is fro;en may re.uest its Partici#ant to defree;e its account 7y
9eactivating it* T"e Partici#ant "as t"e facility in t"e (P to defree;e an account* T"e account
is reactivated and transactions are allowed on t"e account t"ereafter
;,o/e-.,e+


86
If t"e signatures are different t"e Partici#ant will ensure t"e
identity of t"e client
If t"e re.uest form is in order, t"e Partici#ant will c"ange t"e
status of t"e clients account from CCTIVEE to
CSUS;E('E' $%! 'E#ITE or CSUS;E('E' $%! 22E
de#ending on t"e c"oice of t"e client, from t"e date mentioned
7y t"e client on t"e form* T"e Partici#ant will enter t"e reason
for c"ange in status as Mre.uest from t"e clientN
T"e Partici#ant will intimate t"e c"ange in status to t"e client
T"e client will su7mit a re.uest to t"e Partici#ant in t"e form
vide M$%!M ;E for defree;ing its account
On recei#t of t"e re.uest form, t"e Partici#ant will verify t"at
t"e form is duly filled in and issue to t"e client, an
acknowledgment sli#, signed and stam#ed
T"e Partici#ant will verify t"e signature of t"e client as on t"e
form wit" t"e s#ecimen availa7le in its records* In case of
signature difference t"e Partici#ant will ensure t"e identity of
t"e client
If t"e re.uest form is in order, t"e Partici#ant will c"ange t"e
status of t"e clients account to CCTIVEE, on t"e date
mentioned 7y t"e client on t"e form* T"e Partici#ant will enter
t"e reason for c"ange in status as C,e@.est f,o6 t5e /l*entE

S/5e-.le of C5a,3es fo, 'ena 2aI6* 'e6at //o.nt
CA
T"e Partici#ant will intimate t"e c"ange in status to t"e client
S,. (o (at.,e of 'e=os*to,9 /t*:*t*es !e:*se- !ates <.e.f 1-07.2010
+ ,ccount aintenance c"arges 9s* 8AA'2 #er annum #aya7le u#front
,$ once #aid will not 7e refunded
3 (emat 9s* 3'2 #er certificate wit" a minimum of 9s*
+A'2 #lus actual courier c"arges wit" a
minimum of 9s* 3)'2
8 9emat 9s*3A'2 #er certificate or 9s* +A #er +AA s"ares
#art t"eir of w"ic" ever is "ig"er* #lus actual
courier c"arges wit" a minimum of 9s*3)'2
C $ustody $"arges >il for listed < 9s*3'2 #er .uarter for unlisted
securities "eld in eac" ISI> no*
) Transaction $"arges%
a/ (e7it Transaction
-arket and off arket and Inter
(P transfer /
+/ :or 9egular ,ccounts ot"er t"an (e7t
instruments 'Fovt Securities A*A8AH of
market value wit" minimum of 9s*3A'2 #er
instruction and maximum of 9s*C)A'2#er
instruction*

3B In case of $learing em7ers
a/ Transfer from $ ,'$ to $$ ,'$ 9s* 1*)A
#er transaction*

7/ $$ ,'$ to $ ,'$% *A+)H of market value
wit" in 9s* +)AA'2 #er .uarter max* 9s*
8AAAA'2 #er .uarter*
c/ $ ,'$ to $lient ,'$% 9s* 1*)A#er
transaction*
d/ Inter settlement c"arges % A*A+)H of market
value min* 9s* +)'2 #er transaction
7/$redit transaction >il
c/$ommercial #a#ers' $ertificate of
(e#osits , IBO9 linked #a#ers
(e7t instruments ' Fovt Securities% A*A30H of
market value wit" in* 9s*3A'2 and ax* 9s*
3)A'2 #er instruction*
0 a/ Pledge $reation 9s* )A'2 #er Instruction' ISI>
7/ Pledge $reation confirmation 9s* )A'2 #er Instruction' ISI>
c/ Pledge $losure 9s* )A'2 #er Instruction' ISI>
d/ Pledge $losure confirmation 9s* )A'2 #er Instruction 'ISI>
e/ Pledge Invocation 9s* +AA'2 #er Instruction
1 Ot"er c"arges if any :or same day #ay2in +)AH of regular
transaction c"arges wit" a minimum of 9s*
)A'2 and maximum of 9s, 1)A'2 #aya7le
-u#front/*
4 ,ccount :ree;ing and defree;ing
c"arges
9s* )A'2 #er instruction
C+
%t5e,s+-
+/ 9s* 3A'2 #er statement #lus courier c"arges for ,dditional statement*
3/ 9s* 3)'2 or actual c"arges, w"ic"ever is "ig"er for sending ' delivering t"e re5ected
(emat s"ares returned 7y t"e registrar*
8/ $"e.ue 7ouncing c"arges 9s* +AA'2 #er $"e.ue >ormal $"e.ue 9eturn $"arges
C/ 9s* 8A'2 #er failed de7it instructions*
)/ ,ctual $ourier c"arges for any communication to $lient at "is re.uest*
0/ Interest T 3CH #*a* on delayed #ayment of 7ills*
1/ Service Tax a##lica7le on all c"arges as #revailing from time to time*
!EC%MME('TI%( (' SU44ESTI%(S $%! IM;!%VEME(T
%$ SE!VICES+

Mont5l9 J K.a,te,l9 State6ents
ont"ly < Uuarterly Statements to customers needs to 7e delivered on time* $om#liments were
given to current services #rovided 7y (ena 7ank for t"e same* :urt"er it was made clear t"at
t"ese statements would also 7e send via email*
?el= 'es0
&el# (esk to serve customers 7etter, needs to 7e set u# at $a#ital arket 7ranc"*
4,eet*n3 C.sto6e,s
Freeting $ustomers wit" a Smile*
&eb S*te I6=,o:e6ent
In #resent scenario, customers ex#ects Uuick services w"ic" can 7e #rovided wit" t"e "el# of
internet faciliites*$om#anyGs we7site #lays an im#ortant role to #rovide .uick and convenient
services to customers* (ownload section for (emat Services to 7e made availa7le for t"e #erson
w"o visits (ena BankGs we7site* (ownload Section must include all t"e forms w"ic" are
necessary for customers*
$o,6s 6ent*one- belo< s5o.l- be 6a-e a:a*lable t5,o.35 <ebs*te +
+/ ,'c O#ening from*
3/ Transmission :orm
C3
8/ ,nnexure @ -for Pledge/
C/ SS alert :acility :orm
)/ ,'c $losing :orm
%nl*ne Ma,0et T,ansfe, +
$urrently (ena Bank doesnt offer Online Trading :acilities* It S"ould Introduce Online
Trading for availing delivery instruction facilities online instead of issuing #"ysical (IS
w"ic" could also reduce t"e cost of #a#er and errors in #rocessing delivery instructions*
Clea,*n3 Me6be, //o.nt +
(ena Bank S"ould avail t"e $learing em7er ,'c account w"ic" will lead to ex#ansion
of o#erations and also would "ave com#etitive advantage over its com#etitor*
Ca=*tal Ma,0et In-*/ato, +
To get t"e latest news relating to scri#t, u#dates on markets i*e Sensex and >ifty arket
indicator can 7e set u# in t"e form of T*! or indicator s"owing all BSE and >SE stock
inside t"e $a#ital market 7ranc"* $ustomers w"o visit (ena Bank for franking services
or for de#ositing (elivery instruction Sli#s can also 7e ke#t well informed a7out market
news t"roug" t"is device* T"is would "el# 7ank to attract more customers towards t"em*
In/ent*:es s/5e6e s"ould 7e introduced for to# #erformer for selling (emat a'c or for
ac"ieving t"e given target on time*
To increase our customer 7ase we s"ould a##roac" to t"e customers w"o "ave closed
t"eir (emat accounts due to non2availa7ility of online facilities* T"ey s"ould 7e well
informed a7out our online im#lementation #rogram and ot"er facilities t"at 7ank is
#roviding or going to #rovide in future*
33,ess*:e Ma,0et*n3 +
(ena Bank S"ould use effective marketing mediums like television, news#a#er,
maga;ines etc to increase its market s"are* It can #u7lis" its advertisement, arrange for
#u7lic relation activities, demonstrations in #u7lic etc for successfully 7uilding #u7lic
image*
C8
==o*nt so6e ne< Cle,*/al staff*
$urrently (ena Bank -$a#ital arket Branc"/ is facing s"ort off 328 clerical Staff
w"ic" increases t"e 7urden on existing em#loyee and &am#ers t"e .uality of
work*
CC