Demat Services by Banks

T.Y.
BBI (SEM-V) DEMAT SERVICES BY BANKS
PROJECT REPORT
ON
DEMAT SERVICES BY BANKS
BACHELOR OF COMMERCE IN BANKING AND INSURANCE
(SEMESTER V)
Under the Guidance of
PROF. REYANA VALEJA
Submitted
In Partial Fulfillment of the requirement for the Award of the

degree of Bachelor of commerce in Banking and insurance
Submitted by,
PRATAP DHANAJI CHAVHAN
ROLL NO. 1728007
SHRI SIDH THAKURNATH COLLEGE OF ARTS &

COMMERCE
ULHASNAGAR 421 004
UNIVERSITY OF MUMBAI 2017-18.
1
T.Y.BBI (SEM-V) DEMAT SERVICES BY BANKS
DECLARATION
I, PRATAP DHANAJI CHAVHAN student of TYBCBI (Bachelor of

Commerce in Banking and Insurance Management) hereby declare
that I have completed the Project on DEMAT SERVICES BY BANKS
in the academic year 2017-18.
The information submitted is true and original to the best of my
knowledge.
PRATAP D CHAVHAN.
{T.Y.BBI}
2
ACKNOWLEDGEMENT
My project is a result of the inspiring and thoughtful guidance

and supervision of my project guide PROF. REYANA VALEJA I am
deeply indebted to her whose help, time, support, inspiration,
stimulating suggestions and encouragement helped me in all the
times of research and writing of this report.
This project has widened my horizon to various areas under
general knowledge regarding the practical and real aspects of
DEMAT SERVICES BY BANKS".
I whole heartedly thank all the concerned people at college as
well as at university level, who have given me the chance for preparing
this valuable project.
I would further like to thanks our Principal Sir Dr. J.C.
Purswani for giving me an opportunity to complete our Project
Last but not least, this Project has definitely helped me to achieve
something which will be useful to us in near future and hence I am
thankful to all persons who have helped in knowledge.
3
EXECUTIVE SUMMARY
DEMAT SERVICES BY BANKS
Objective:
My prime objective is to know various kinds of policies covered
under insurance sector in India and its continuous development since
then.
Sub-objective:
To view the establishment of the insurance system in India and also
the development after Globalization, Liberalization and privatization.
Methodology: Data
Books- BRITANNICA ENCYCLOPEDIA, India, Ireland
News paper- The Economic Times; Times of India
Findings:
Studying the fundamentals of general insurance policies of
miscellaneous concept in Indian scenario and challenges at world
leveraging in insurance sector, as a platform of sharing high risk also
principles of general insurance plays an important role in determining
underwriting contract.
Learning:
Miscellaneous contract based on certain principles of insurance,
which should be, consider while dealing with miscellaneous contract.
Also found system of underwriting gives a risk management tools by
parting with their risk handed.
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SR. NO. PARTICULAR PAGE NO.

1. INTRODUCTION 6-7
2. NSDL AND CDSL 8-11
3. BENEFITS OF DEMAT SERVICES 12
4 WHY SHOULD AN INVESTOR OPEN 13-16

A DEMAT A/C
5 DEMATERIALIZATION PROCESS AND 17-25

PROCEDURE
6 DEMAT SERVICES PROVIDED BY 26-45

ICICI BANK
7 CORPORATE BENEFIT 46-63
8 REDRESSAL OF DEMAT HOLDERS 64
9 CONCLUSION 70
10 BIBLIOGRAPHY 71
INDEX
INTRODUCTION:
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Dematerialization or
DEMAT in short, is the process by which the
physical share certificates (share certificate in
paper form) are converted to an equivalent
number of securities in electronic form. The
situation is somewhat similar to replacing paper
money with an electronic bank account.
Conversion of physical certificates to electronic form benefits investors
immensely. Dematting of shares eliminates risks associated with bad
deliveries, postal delays, handling problems, loss in transit, forgery,
counterfeiting, loss due to fire, theft, mutilation, etc. Investors also do not
have to pay stamp duty on transfers of shares and they can be transferred
instantaneously. Also, brokers charge a lower brokerage fee for selling
dematerialized share since the risk of bad delivery is minimized.
Investors also receive other benefits such as bonus and rights directly
credited to their accounts, thus reducing a great del of paper work and
associated delays. Lastly, the difficulty and disadvantage of trading odd
lot shares is also eliminated, as the market lot for dematerialized is just
one share!
What is Dematerialization?
Dematerialization or Demat is a process whereby your securities like

shares, debentures etc, are converted into electronic data and stored in
computers by a Depository.
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What is a Depository?
Depository functions like a
securities bank, where the dematerialized physical
securities are traded and held in custody. This
facilitates faster and low cost settlement. Depository
is much like a bank and performs many activities that
are similar to a bank. Following table compares the two.
Bank Depository
Holds funds in accounts Holds securities in account
Transfers funds between accounts Transfers securities between

accounts
Transfers without handling money Transfers without handling securities
Safekeeping of money Safekeeping of securities
Dematerialization or demat is a process to convert the

securities held in physical form into an electronic record form or to
directly allot securities in electronic record form. These electronic records
of securities are shown as "electronic balances" in the demat account of
investors. Any investor (Beneficial Owner or BO) can open a demat
account through a depository participant (DP). DP provides a link on one
hand between the BO, Company and CDSL and on the other hand
between the BO, the BO's broker and the Stock Exchange. CDSL
publishes from time to time an updated list of DP's registered with it.
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NSDL AND CDSL
At present there are two depositories in India, National Securities

Depository Limited (NSDL) and Central Depository Services Limited
(CDSL). NSDL is the first Indian depository; it was inaugurated in
November 1996. NSDL was set up with an initial capital of US$28mn,
promoted by Industrial Development Bank of India (IDBI), Unit Trust of
India (UTI) and National Stock Exchange of India Ltd. (NSEIL). Later,
State Bank of India (SBI) also became a shareholder.
The other depository is Central Depository Services (CDS). It is
still in the process of linking with the stock exchanges. It has registered
around 20 DPs and has signed up with 40 companies. It had received a
certificate of commencement of business from SEBI on February 8, 1999.
In order to facilitate transfers between investors having accounts in the
two existing depositories in the country the Securities and Exchange
Board of India has asked all stock exchanges to link up with the
depositories. The NSDL and CDS have signed an agreement for inter-
depository connectivity.
What is a DP?
NSDL carries out its activities through various functionaries called
business partners who include Depository Participants (DPs)
Who can be a DP?
Public Financial Institutions.
Scheduled banks.
RBI Approved Foreign banks operating in India.
State financial corporations.
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Institutions engaged in providing financial services, promoted

by any of the institutions mentioned above either jointly or
severally.
Custodians of securities who are registered with SEBI.
Clearing Corporations or Clearing Houses of Stock Exchanges.
Stock Brokers registered with SEBI.
Non Banking Finance Companies.
Investors surrenders defaced certificate along with Dematerialisation

Request Form (DRF) to his DP.
1. DP intimates Depository of the request through the system.
2. DP submits the certificate with DRF to registrar.
3. Registrar confirms the Demat from Depository.
4. Registrar validates the request, updates records & informs the
Depository.
5. Depository credits the DP a/c & informs DP.
6. DP updates the investors a/c & informs the investor.
Trading in dematerialized shares results in substantial savings for the

investors.
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Following tables gives an idea about these savings.

Savings for a person who buy shares for long term investment
(On a purchase of Rs10000)
Item Physical Depository Savings

(Rs) (demat) (RS) (Rs)
Brokerage 75-100 50-75 25-50
*Stamp Duty 50 - 50
Postal Charges 10-30 - 10-30
Company Objection 10-30 - 10-30
(Courier etc.)
Settlement charges - 5-10 -(5-10)
#Custody (5 years) - 10-50 -(10-50)
Total 35-100
Stamp duty of 0.5%
Custody charge of 0.05%- 0.1%
Savings for an investor who sells dematerialized shares

(For a sale of Rs10000)
Item Physical Depository (demat) Savings

(Rs) (Rs) (Rs)
*Brokerage 75-100 50-75 25-50
Company Objection 10-30 - 10-30
(courier, etc.)
Settlement charges - -(5-10) -(5-10)
Total 25-75
Sub-Brokers:
Sub-Brokers have two options:
1. Arrange to deliver the securities directly from the pool account of
main broker to the beneficial owner account of the buying clients.
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2. Arrange to deliver the securities from the pool account of the main broker
to beneficial owner account of the sub-broker kept for trading purpose and
then forward the same to buying client.
CM POOL A/C
Client A A/c
Client B A/c
Client C A/c
Client D A/c
Sub Brokers Beneficiary A/c
BENEFITS OF DEMAT SERVICES.
A safe, convenient way to hold securities;

Immediate transfer of securities;
Reduction in paperwork involved in transfer of securities;
No stamp duty on transfer of securities;
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Reduction in other transaction cost such as postage, courier, Xerox;

delivery, fake securities, delays, thefts, etc.;
No odd lot problem, even one share can be sold;
Nomination facility;
Change in address recorded with DP gets registered with all
companies in which investor holds securities electronically.The
investor did not correspond with each company separately.
Transmission of securities is done by DP eliminating
correspondence with company
Automatic credit into demat account when new share are issued on
account of bonus, split consolidation, merger etc.
Investors can even freeze or lock their accounts for any given
period of time, if so desired. Account can be frozen for debits or for
credits or for both.
Why Should an Investor Open a Demat Account?
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The CDSL system incorporates a number of distinct

features which provide BOs a convenient, dependable and secure
depository services at affordable cost.
Convenience:
1. Wide DP Network:
CDSL has over 275 DPs offering services from over 100
cities/towns across the country and thus providing investors a
wide choice for selecting a DP, depending on his locational and
other conveniences. Many more DPs are expected to get
registered with CDSL shortly.
2. On-line DP Services:
CDSL DPs provide on-line depository services from over 500

branches. All these branches are electronically connected to
CDSL thereby taking the depository services to the door-step of
investors. DP branches facilitate quicker execution of demat
instructions.
3. Availability of Wide Spectrum of Securities:
The equity shares of over 5000 companies are available for

dematerialisation on CDSL. CDSL extends demat facilities
practically for all categories of securities which include bonds,
debentures, commercial papers, government securities and
certificates of deposit.
4. Competitive Fees Structure:
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CDSL's fee is very reasonable and competitive, which makes it

possible for DPs to offer demat services to investors at
affordable cost. CDSL DPs are not required to pay any custody
or ISIN fees to CDSL.
5. Internet Access:
Through CDSL's unique internet facility "electronic access to

securities information" -. "Easi", a BO by registering himself
through his DP (who in turn will have to be registered with
CDSL for use of this facility) can know and even print
statements of his demat account. The BO can also know the
status of his previous 7 days transactions at any time by logging
into easi. BO gets a unique facility of knowing the daily
valuation of the securities held in their demat account, at the
previous day's closing price on the BSE.
Dependability:
1. On-line Information to Users:
With the CDSL's centralised database architecture; on-line

depository services are available to BOs with up-to-the-minute
status of his BO accounts.
2. Safety of data:
Even if any system-related problems develop at the DPs end, it

does not affect the BOs interest in any way as the CDSL
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database is maintained centrally. The DP can also avail of the

facility of contingency terminals available at CDSL's Mumbai
office for executing instructions.
3. Audit and inspection:
CDSL conducts regular audit of its DPs to ensure compliance of

the stringent operational and regulatory requirements.
4. Helpdesk:
CDSL's prompt and courteous helpline facility is available to

DPs and investors to obtain any clarifications and guidance.
5. Always meeting user's requirements:
Continuous updation of procedures and processes in tune with

the evolving market practices is another hallmark of the CDSL's
system.
Security:
1. Computer Systems:
CDSL has installed state-of-the-art computer system, data

storage devices, communication networks which ensure the
security and integrity of all data uninterruptedly. All data at
CDSL is auto mirrored separately and also transmitted to a
Disaster Recovery Site which is located at a different place
away from the main site.
2. System Access:
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As the system does not provide for dial-up access, only

authorised users can access CDSL system. In other words, only
a person at DP end who has been pre-authorised by CDSL can
access the CDSL system.
3. Unique BO Account Number:
Each BO in the CDSL system is allocated a unique account

number. This avoids wrong transfer of securities in the event the
transferor's account number is keyed-in wrongly at the DP end.
4. Insurance Cover:
CDSL has obtained adequate insurance cover for any unlikely

loss occurring to a BO due to the negligence at CDSL and/or its
DP.
DEMATERIALIZATION PROCESS AND

PROCEDURE:
Opening a Depository Account.
Investors, both individuals and non-individuals, have a
choice to open a demat account with any CDSL DP.
Individual investors could be Indian residents or NRIs. Non-
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individual BO includes Corporates, FIs, FIIs, Mutual

Funds, Trusts etc. Under two way fungibility of ADR/GDR,
non-residents can also open a demat account with a CDSL
DP.
A BO should consider fee structure, locational convenience
and the track record of the DP before selecting a DP for
opening his BO account.
More than one demat account can be opened in identical
names with the same or different DPs with the same
depository and/or with both the depositories.
A demat account can be maintained even with 'nil' balance as
there is no requirement of holding any minimum-security
balance in a demat account.
If securities are already held in joint names, the demat
account should be opened in the order of names in which the
securities are held. If the securities are held by an individual
jointly with different persons, separate demat accounts will
have to be opened for each such combinations. However, if
the same persons hold securities in different order of their
names, one single demat account in names of all these
persons (not exceeding 3 persons) would be sufficient,
provided the facility of transposition-cum-demat is used.
At the time of opening a demat account or anytime
thereafter, individuals having a BO account in a single or
joint name/s, a nomination can be made. In the unfortunate
event of demise of one of the joint holders, the securities can
be transmitted in the names of the surviving holders. But, in
the event of demise of the sole holder or all the joint holders,
the securities can be transmitted in the name of the nominee.
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A resident Indian can nominate an NRI or another resident

Indian and similarly an NRI can nominate a resident Indian
or another NRI. Non-individuals including
Documents required to be submitted at the time of

opening a CDSL demat account:
Individual Investors:
An application in the prescribed form duly completed.

Certified copy of an election-ID card / passport / ration card
/PAN card or in the absence of these documents, an introduction
by an existing account holder of the DP giving the introducer's
name, address, and contact number.
A certified copy of birth certificate and guardian's name, in case
of a minor.
A passport size photograph of each of the applicants with
his/their signature/s put across the photograph/s
In case of any attestation by a Magistrate / Notary Public /
Special Executive Magistrate, the name, address and telephone
number of the Magistrate/Notary Public/Special Executive
Magistrate.
A copy of the power of attorney, if desired. And agreement in
the prescribed form duly executed.
Corporate investors:
An application in the prescribed form duly completed.
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A certified copy of the Memorandum and Articles of

Association of the company.
A certified true copy of the board resolution authorising opening
of demat account and listing out the names of the officials
authorised by the board to act as authorised signatory(ies)
Names, designation of the authorised signatories with specimen
sign.
A copy of power of attorney duly executed.
In case of attestation by any Magistrate/Notary, Public/Special
Executive Magistrate, their name, address and telephone
number.
Agreement in the prescribed form duly executed.
ADDITIONAL REQUIREMENTS FOR SOME

CATEGORIES OF INVESTORS
BO Category Additional Requirement
Non Resident Indian In case of a NRI opening BO a/c singly or jointly
with another NRI and/or resident Indian, a
nationals or persons
declaration by the first or sole NRI applicant who
is eligible to invest on repatriable basis in terms
of Indian origin(NRI)
of FEMA notification no. 20/2000-RB dated
03/05/2002 together with a proof of residence
outside India.
HUF Name of the 'karta', if the account is opened in
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the name of a HUF.

Trust A certified copy of the trust deed along with the
list of authorised signatories with specimen
signatures.
Partnership firm The account has to be opened in the names of the
partners.
Proprietorship firm The account should be opened in the name of the
sole proprietor.
Clearing Members A certified copy of SEBI registration along with a
(CM) conduct certificate from each of the exchanges
where the CM is a member/registered.
F. I. Investors and A Certified copy of SEBI/RBI registration.
Overseas Corporate
Bodies
On Opening of The Demat Account, A DP Would

Provide To The BO A/C Holder The Following :
A copy of the signed agreement.
Issues "BO-ID" (i.e. Beneficial Owner Identification Number
or. demat account number). This BO-ID should be quoted in all
future correspondence with the DP, Issuer Companies and/or
their Registrar & Transfer agents or CDSL.
Pre-printed instruction slips for affecting various types of
transactions viz. form for dematting physical holdings,
transaction slips, etc. CDSL has one single debit instruction slip
both for 'on-market' and 'off-market' transactions.
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BOs Should Carefully Note The Following :
BOs may consider issuing one time instruction to their DPs for
getting securities in the demat account automatically credited to
their account. Purchased securities are credited to the BO
account after payout of the securities by the clearing
house/corporation of the stock exchange. Securities purchased
on any of the stock exchanges connected to CDSL can be
directly received in the BO account. CDSL currently has
connectivity with 16 stock exchanges.
For sale of securities in demat form, after the broker confirms
the trade, the BO should immediately issue debit instruction to
his DP using a debit instruction slip.
For maintaining the cut-off time for submitting delivery
instructions for trades done on the stock exchange (on-market
trades) as per SEBI requirement, delivery instructions need to
be issued latest by 24 hours before the pay-in time of the
exchange where transaction has been done. Any delay in issuing
instructions to the DP might result in non-delivery of
shares/securities resulting in auctioning of such securities and
consequent loss to the investor. This is more so in T+2
settlement cycle.
Any change in address and/or bank account should be intimated
to DP together with supporting documents as evidence.
While accepting the Delivery Instruction (DI) slip book issued
by the DP, Bo should ensure that his BO-ID is pre-stamped on
all the pages along with the serial number. The DI book should
be kept safely. BOs should not issue to anyone blank DI slips
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duly signed. BOs should also strike out the empty space, if any,
in the DI slip, before submitting to DP.
Fees:
CDSL does not charge any fee directly to the beneficial account
holder but collects the depository fees for debit and pledge
transactions in any BO account from the concerned DP. The
charges indicated by DPs are generally is inclusive of CDSL fee, if
any.
Redressal Of Investor Grievances:
In case of any unresolved grievance with your DP, please contact
the compliance officer of your DP or Investor Relations Officer.
Disclaimer:
This brochure contains information, which is subject to change
without prior notice and cannot be the basis for any claims or
demand or cause of action by anyone against CDSL or its DPs.
CDSL's demat services are extended through its agents called
Depository Participants (DP). The DP is the link between the
investor and CDSL. An investor who opens a demat account
with a DP can utilise the services offered by CDSL. While the
DP processes the instructions of the investor, the account and
records thereof is maintained with CDSL. A DP is thus a
"service centre" for the investor. DSLs system is based on
centralised database architecture with on-line connectivity with
DPs. Because of this centralised architecture, the cost for setting
up a DP outfit under CDSL system is significantly lower.
Similarly, the recurring costs to be incurred by a CDSL-DP in
terms of maintaining back-ups and the related data storage are
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minimal. This enables a CDSL-DP to offer depository services

to investors at an attractive price and at the same time achieve
break-even faster at much lower volumes. The centralised
architecture also allows CDSL-DP to make available to the
investors a to-the-minute status of their account and
transactions. DSL-DPs can also set up branches with direct
electronic connectivity with CDSL.
Any Individual eligible to acquire and hold securities in his
name can open a demat account in the CDSL system through a
registered DP of CDSL of his choice. While choosing his DP
the individual may take into consideration the service standards,
charges and convenience of location.
Some basic facts for the demat accounts
Number of Accounts :
More than one demat accounts can be opened in the similar /
identical name and order with the same DP or different DPs.
Minimum Account Balance :
There is no requirement of holding minimum-security balance
in a demat account; you can maintain zero balance in your
account. Ready availability of account enhances your
transaction making ability.
Nomination :
Individuals holding beneficial accounts on their own behalf
either singly or jointly have the facility of making nomination.
(Non-individuals including societies, trusts, body corporate,
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partnership firms, kartas of HUF, holders of power of attorney

however, cannot nominate). In the event of the death of one of
the joint holders, the securities will be transmitted in the names
of the surviving holders. If the sole or all the joint holders are
deceased, the shares will be transmitted in the name of the
nominee.
Statement of Account:
A periodical statement of holdings and transactions is provided
by DP. This can also be asked for from the DP.
Credit Confirmation:
In order to receive all the credits coming to demat account
automatically, a one time standing instruction can be given to
the DP at the time of opening your account.
Change of Address:
For any change of address, if any, communication to your DP in
writing is sufficient. The DP will ensure that the change is
incorporated for all securities held in your demat account. You
need not write to all the companies separately.
Points To Be Noted for Opening a Demat A/C
Obtain and submit the duly completed account opening form to the
DP.
Provide to DP a copy of your passport or driving license or voter-ID
card or ration card for establishing your identity and as a proof of
address.
Execute the DP-Investor agreement to be made available by DP.
Collect your unique account number (BO-ID) from your DP.
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Collect pre-printed slips both for effecting dematerialisation as well

as delivery of securities.
Understand the cut-off timings from DP for depositing delivery
instructions for trades done by you on the stock exchange.
DEMAT SERVICES PROVIDED BY

ICICI BANK
A Depository is like a bank where securities are held in electronic

(dematerialised) form. In India, there are two Depositories -National
Securities Depositories Limited (NSDL) and Central Depository Services
Limited (CDSL).
Under the Depositories Act, investors can avail of the services of the
Depositories through Depository Participants (DP) such as ICICI Bank.
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DPs are like bank branches wherein shares in physical form need to be
deposited for converting the same to electronic (demat) form.
ICICI Bank Demat Services boasts of an ever-growing customer base of

over 11.5 lacs account holders. In their continuous endeavor to offer best
of the class services to their customers they offer the following features:
E-Instructions:
Customers can transfer securities 24 hours a day, 7 days a week through

Internet & Interactive Voice Response (IVR) at a lower cost. Now with
Speak to transfer, customers can also transfer or pledge instructions
through banks customer care officer.
Consolidation Demat Account:
Dematerialise physical shares in various holding patterns and

consolidate all such scattered holdings into primary demat account at
reduced cost.
Digitally Signed Statement:
Receive account statement and bill by email.
Corporate Benefit Tracking:
Track dividend, interest, bonus through account statement.
Mobile Request:
Accesses demat account by sending SMS to enquire about Holdings,

Transactions, Bill & ISIN details.
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Mobile Alerts:
Receive SMS alerts for all debits/credits as well as for

any request which cannot be processed.
Dedicated customer care executives specially trained at call

centre, to handle all their queries.
Countrywide network of over 235 branches, you are never
far from an ICICI Bank Demat Services outlet.
Countrywide network of over 235 branches, you are never far from an
ICICI Bank Demat Services outlet.
Account Opening
Please write to ICICI Bank or visit any of their service

centres to open an account.
There is no fee for opening a DP account with ICICI.
However, a nominal fee will be levied towards services, as
per their tariff. Customers can choose between Standard Rate
Card or Frequent Trader Rate Card as per theiur trading
volume. Or if you wish to hold your Bonds in Demat form
you can choose Bond Rate Card.
Account Opening Form to Open Securities Account
Resident Non Corporate Account Opening Form

Resident Corporate Account Opening Form
NRI Account Opening Form
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Declaration Cum Undertaking Form for NRI Repatriable

Account
Checklist for Filling NRI Demat Account Opening Form
Submission of Passport and Valid Visa Copy is mandatory for NRI

Customers for opening a Depository Participant (DP) Account with effect
from 7th May 2007
Account Opening Form to open Commodities Account in

NSDL
Resident Non Corporate Account Opening Form
Resident Corporate Account Opening Form
Clearing Member Account Opening Form
Note: The DP Client Agreement form should be franked with stamp duty
applicable to the state mentioned in the correspondence address. DP
account number will be intimated to customers by e-mail if the mail-id is
written on the application form or by Courier or by post.
Mode of Investment :
Portfolio Investment Scheme (PINS)
Portfolio Investment Scheme (PINS) is a scheme of the Reserve Bank of India

(RBI) under which the Non Resident Indians (NRIs) and Person of Indian Origin
(PIOs) can purchase and sell shares and convertible debentures of Indian
Companies on a recognized stock exchange in India by routing all such
purchase/sale transactions through their account held with a Designated Bank
Branch. The Designated Bank maintains a record of all investments done under
PINS (PINS portfolio).
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Non PINS
Any investment other than under PINS is Typically, this includes:
Subscription to Primary market offerings (IPOs)
Investments made when resident in India.
Investments in Mutual funds
Investments in derivatives
Gifts and Inheritance
Procedure for Demat
Form
Submit a completely filled up Demat Request Form (DRF) in triplicate for each ISIN
along with defaced physical securities. We have provided you with one blank
Dematerialisation Request Form (DRF). Additional forms are available at any of the
ICICI Bank branches offering Demat Services.
Filling up the form
Ensure that security mentioned on the certificates is eligible for Demat. For
being eligible for demat, the company has to sign up with NSDL. You can
check eligibility on www.icicibank.com or ask the nearest Branch.
Use a separate DRF for each security having a unique International Security
Identification Number (ISIN). Verify the certificates carefully and mention the
correct ISIN. In case two or more sets of certificates of the same security have
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different ISIN (this is possible in case of partly paid up shares and non-pari
passu shares), use separate DRFs for each ISIN. However, you can
dematerialise multiple folio nos. of the same pattern of holders relating to the
same ISIN under a single DRF.
Submit certificates under lock-in under separate DRF. Do not mix the same
with free securities. In case of locked-in securities, fill up the lock-in reason &
lock-in release date on the DRF. Amongst lock-in securities belonging to the
same ISIN but having different lock-in release dates or lock-in reason, make
separate DRF requests.
Demat requests received from client(s) with name(s) not matching exactly
with the name(s) appearing on the certificates merely on account of initials not
being spelt out fully or put after or prior to the surname, can be processed.
However, this is possible only if the signature(s) of the client(s) on the DRF
tallies with the specimen signature(s) available with the Issuer or its Registrar.
For example, the shareholder may have opened the depository account in the
name of Sushil Ramesh Shah but his name on the share certificate may appear
as S. R. Shah or Sushil R Shah etc.
The combination and the order of holders names on DRF and as printed on
the Certificates should be identical with that in the DP account.
For example, if the shares are in the name of X, Y (X as first holder and Y and
second holder) it cannot be dematerialised in the account of either X or Y
alone. Also if the shares are in the name of X, they cannot be dematerialised in
the account of X, Y (X as first holder and Y as second holder).
However, where the combination of holders is the same in the certificates and
in the demat account, and the difference is only in the order in which the name
of the holders appear on the share certificates and in the demat account,
dematerialisation is possible. Here, you have to submit a Transposition
Request Form along with the DRF. The form is also available at the nearest
Branch.
The DRF must be signed by all the account holders and should be in the same
order. The signature on the DRF should match with the specimen signature
with ICICI Bank. If the signature differs, you should sign the DRF in the
presence of the Branch Officer. If you have a doubt that the signature on the
30
DRF may not match with that registered with the Registrar, you can get the
signature on the DRF attested by your banker.
The details of certificates such as the folio no., certificate no., & distinctive no.
must be filled up correctly on the DRF.
Submitting the form
You must deface the certificates by putting a stamp or by writing Surrendered

for Dematerialisation. However defacing should be done only after checking
the eligibility of security, as defaced securities cannot be sold in physical form.
If defacing has been done by mistake then you should send the same to
registrar for replacement.
*NSDL Business Rule 11.1.7. :
(The Participant shall ensure that the certificates submitted for

dematerialisation are marked by the Client (customer) with the words
Surrendered for Dematerialisation.)
Certificates should not be mutilated or defaced in such a way that the material
information is not readable.
Ensure that the certificates are attached in the same order as mentioned in the
DRF.
You should submit the DRF in triplicate. You can submit the DRF at any
ICICI Bank branch. The acknowledgement slip at the bottom of the form will
be stamped and handed over to you after verification by the ICICI Bank
official.
Credit in the Demat Account
31
The defaced shares along with the DRF are sent by ICICI Bank to the registrar
who will then credit the customers account. The normal time taken for credit
of shares to the account after confirmation by the Registrar is about 30 days.
However the time taken would vary from one registrar to another over which
ICICI Bank has no control.
To check whether your account has been credited, you can refer to the
transaction statement (Refer # 12, below). The same will be reflected in
pending demat balance on receiving your request. After dematerialisation, the
same will be reflected under free balance. Alternatively you can use the web
(register on www.icicibank.com), phone us or visit the ICICI Bank branch. In
case your account does not get credited within a month of submission, you can
either phone us or send an email to customer.care@icicibank.com
In case there is a delay beyond 40 days, if you so wish, ICICI Bank can give
you the registrars name and telephone number as well as your Demat Request
Number (DRN).
Rejection of Demat Requests
Your request may get rejected for various reasons either at the Central
Processing Office of ICICI Bank or by the Registrar. Dematerialisation is done
by the Registrar only when it is satisfied of genuineness of securities &
ownership status.
On a rejection, the securities are sent back to you stating the reason for the
rejection.
You can resubmit the certificates for dematerialisation after resolving the
reason for the rejection. Please resubmit on a fresh DRF. Do not use the same
DRF on which the objection was made.
Transmission-cum-Demat
32
In case of certificates held jointly, on the death of any one or more of the joint
holder(s) mentioned on the certificate, the surviving joint holder(s) can get the
name(s) of the deceased deleted from the physical certificate(s) and get the securities
dematerialised in the DP account of the surviving holder(s) by submitting the
following documents along with the DRF:
A copy of the death certificate duly notarised

A copy of the Succession certificate duly notarised or an order of a court of
competent jurisdiction where the deceased has not left a Will or
A copy of the Probate or Letter of Administration duly notarised.
Sale / Delivery of Securities
Securities transactions can be settled in demat form for the

transactions done on stock exchanges connected to NSDL. At
present, NSE, BSE, CSE, DSE, LSE, BgSE, OTCEI, MSE, ISE
& ASE are connected to NSDL. Trading in dematerialised
securities is done through your broker just like trading in physical securities.
Sell dematerialised securities
You can sell your dematerialised securities in any of the stock exchanges
linked to NSDL through a broker of your choice.
You need to give a delivery instruction to your DP for debit of your
depository account and credit of your brokers clearing member account.
You receive payment from the broker for the sale in the same manner you
would receive payment for a sale in the physical mode.
Buy dematerialised securities
You can purchase securities in any of the stock exchanges connected to

NSDL through a broker of your choice and make payment to your broker.
Make sure you tell your broker you want only demat shares.
Broker receives credit in his clearing account with his DP on the day of
payout. He can immediately transfer these securities to your depository
account, provided your account is already active.
33
Broker gives instructions to his DP to debit his clearing member account and
credit your depository account.
Delivery of securities
To deliver securities in electronic form, you have to authorise the DP to

transfer balances from your account.
You must give a debit authorisation to ICICI Bank in the booklet of

instruction slips provided to you. The slip should be given physically at the
nearest Branch.
(You can also register for the e-Instruction facility to submit transfer
instructions through Internet / IVR (Interactive Voice Response System) on
Phone and with Speak to Transfer through our Phone Banking Officer )
In the instruction slip, you have to mention the counter-party account
details. The counter-party account may be within the same DP (Intra-DP
transfers) or with a different DP (Inter-DP transfers) within NSDL or with
another depository - CDSL (Inter Depository Transfers). For transfers
within NSDL, a TIFD (transfer instruction for delivery) is required. For
transfers to a CDSL account, an IDT (inter-depository transfer instruction)
is required.
Getting instruction slips (TIFD/IDT booklets)
You are provided a Personalized TIFD booklet at the time of opening the
account. You will need to use slips from this booklet for all your transfers.
For IDT (Inter Depository Transfer slips), request for the same in writing to
the nearest Branch. The request should be signed in presence of the Branch
Officer. Ensure you use slips allotted to your demat account only as per
business rules of NSDL.
Please do not use someone elses slip since that will not be accepted by the
system and also cannot be processed as per business rules of NSDL.
Please do not give your blank slip to anyone as this may lead to frauds and
associated complications. If you lose your booklet, report the same in
writing (under signature of all account holders) to the nearest Branch
immediately.
If you are nearing exhaustion of all slips in the booklet, you can request for
34
reissue of a new booklet by visiting nearest bank branch. Submit the request
on the requisition slip present in your existing booklet. Where you are
unable to present the request on the requisition slip, you can submit a letter.
However, the letter should be signed in presence of the Branch Officer You
can also register for the Internet Banking and Phone Banking facilities to
submit the request on Internet / Phone.
The booklet will be couriered to you and will reach you within a week from the
date of submitting the request.
On receiving your booklet, verify that your DPID, DP Account No. and name is
present on all slips including the Requisition slip.
In emergencies where you have exhausted your TIFD/IDT booklet and cannot
wait for the time required to fulfill your request for a new booklet, you can also
get TIFD / IDT slips issued across the counter for emergency use.
For getting an emergency slip from your branch:
You have to personally visit your home branch
-
You have to request for the slip on the prescribed form available at the branch.
-
TIFD / IDT issued in such a manner are valid only for immediate use.
Filling up an instruction slip (TIFD/IDT)
The request should be filled up in the appropriate slip issued to you. For
transferring securities to an account within NSDL, use TIFD slips. For
transferring securities from an account within NSDL to an account with CDSL,
use IDT slips. There are two common types of accounts within NSDL -
beneficiary accounts (opened by the normal investors) and clearing member pool
accounts (opened by brokers). Accordingly there are two types of transfers
possible with TIFDs. n instruction for transfer of security from a Beneficiary
Account to a Clearing Member Account (Brokers pool account) is termed as a
Market TIFD. This is for delivering securities to the broker for onward delivery to
the stock exchange towards fulfilling settlement obligations in respect of trades
done on a stock exchange (Market Trades).
Details are to be filled up only for Market Trades on a TIFD

slip.
35
CM-BP-ID:
This is the Clearing Member Business Partner ID of the Broker to whom the
securities are to be transferred. The CM-BP-ID is an 8 character code starting
with IN provided by NSDL to the clearing member. You should find this out
from your broker. Any incorrect entry can result in transfers to the wrong account.
CM Name:
This is the name of the Broker to whom the securities are to be transferred. This
is the market type on which the trade has been done by your broker. The stock
exchange has separate segments for each market type in which the orders are
matched e.g. Rolling, Rolling Odd Lot, etc. You should confirm this with your
broker.
Market Type:
This is the market type on which the trade has been done by your broker. The
stock exchange has separate segments for each market type in which the orders
are matched e.g. Rolling, Rolling Odd Lot, etc. You should confirm this with your
broker
Settlement No:
This is the settlement no. in which the trade has been done by your broker. This is
a 7-character code. Confirm this with your broker.
You should submit the slip latest by 4 p.m. on business day prior to the execution
date. TIFDs received after 4 p.m. will be accepted on Best Effort basis and ICICI
Bank does not undertake any liability for its non-execution. They may also attract
a late charge (Please refer the rate card). In case of market trades, also ensure that
the execution date is specified such that securities are transferred to the pool
account before the exchange pay-in deadline. Strike out the portion relating to Off
- Market Trades.
Details to be filled up only for Off-Market Trades on a TIFD

slip.
DP ID:
This is the Depository Participant ID with whom the target account (the account
to which the securities are to be transferred) is maintained. It is 8-character
starting with IN. You should find this from the target account holder. Incorrect
DP ID may result in transfer of securities to a wrong account.
36
DP Name:
This is the name of the Depository Participant with whom the target account is
maintained. You should find this from the target account holder. Please note that
this is not the name of the account holder.
Client ID:
This is the 8-digit account number of the target account. You should find this
from the target account holder. Any incorrect entry can result in transfers to the
wrong account.
Strike out the portion relating to Market Trades
Details to be filled up only in an IDT slip.
Depository ID: This is the Depository ID for CDSL. It is IN000026.

Client ID: This is the 16-digit account number of the target account (the account
to which the securities are to be transferred). You should find this from the target
account holder. Any incorrect entry can result in transfers to the wrong account.
Details to be filled up in both TIFD slips (for both Market

and Off-Market Trades) and IDT slips.
ISIN:
This is the International Security Identification Number (ISIN) of the security to
be transferred. This is a 12 character code starting with IN. You should confirm
this from your transaction statement and then fill up the same. You can also check
this on www.icicibank.com or from your nearest Branch or from your Broker. Be
careful in specifying the correct ISIN where a security has multiple ISINs.
Security Name:
This is the name of the security to be transferred.
Quantity:
This is the number of units of securities to be transferred. This is to be filled up
both in figures & in words in the space provided.
Total ISIN to be delivered:
This is the total number of ISINs to be delivered under the particular slip. Also
strike out the rows of ISIN details which are not used to avoid any tampering.
Execution Date:
This is the date on which the securities are to be transferred from your account. In
case of market trades, you should fill this up in consultation with your broker. In
37
case the execution date mentioned by you is a NSDL business holiday, the next
working day is taken to be the execution day.
You may issue the instruction well in advance of the date on which you want the
securities to be debited from your account. By giving a future dated instruction
you cover the risk against non-execution of instruction due to lack of time or last
minute rush.
You should submit the slip latest by 4 p.m. on business day prior to the
execution date. TIFDs received after 4 p.m. will be accepted on Best Effort
basis and ICICI Bank does not undertake any liability for its non-execution.
They may also attract a late charge (Please refer the rate card).
In case of market trades, also ensure that the execution date is specified such
that securities are transferred to the pool account before the exchange pay-in
deadline.
Signature:
The slip must be signed by all account holders as per the specimen registered
with ICICI Bank. In case of personalised booklets, the names of all holders are
preprinted. Mismatch in signature of even one of the joint holders results in the
rejection of the TIFD.
Submitting the form
You can submit the TIFD at any ICICI Bank branch. Take the acknowledgement
copy after stamping by the ICICI Bank official.
You may issue the instruction well in advance of the date on which you want the
securities to be debited from your account. By giving a future dated instruction
you cover the risk against non-execution of instruction due to lack of time or last
minute rush. You should submit the slip latest by 4 p.m. of the business day before
the execution date (i.e. there should be one clear working day gap between the
date of submission of the TIFD and the execution date).
Transfer instructions should not be submitted for execution day as holiday. If there
38
is a holiday in between, instruction should be submitted one day in advance.
Submitting TIFD / IDT through Internet
You have to first register for the e-Instruction facility by filling up

the prescribed form available at the branch. You can specify upto five
accounts to which you can transfer securities through Internet/Phone.
Login to www.icicibank.com using infinity user id and password
provided to you.
Click on required Demat account number appearing on My
Accounts page of www.icicibank.com
Holdings of the selected demat account will be displayed on the
next page.
The next page will display the target accounts linked with demat
account selected in 3.4.3. Select the target account as required by you and
click GO button.
Fill up the execution date, ISIN, Quantity and settlement number (If
required) on the next page and click on button Submit.
Next page will display all the details entered by you till now. Please
check the same and click on Back button if you wish to change the
same or on Confirm button if you want to proceed.
A reference number will appear on the next screen, Note the same
for future reference.
Submitting TIFD / IDT through IVR
You have to first register for the e-Instruction facility by filling up the
prescribed form available at the branch. You need to specify upto five
accounts to which you can transfer securities through Internet / Phone.
Call up our Phone Banking numbers Select Demat menu from all the
options read by IVR. Get yourself authenticated by entering DPID &
Demat a/c no. with TPIN provided to you.
Enter your demat account number.
Select the option to submit transfer instructions from Demat menu.
Next menu will read all the accounts linked to your Demat Account.
Press 1, 2 or 3 upto 5 select the Target Account Number.
If counter party selected in step 3.4.6 is a POOL account, the next
menu will read out various market types. Select the appropriate market
39
type.
Enter the last 3 digits of settlement number pertaining to that market
type.
System will ask for execution date. Enter the execution date in the
format dd-mm-yyyy (for example, to enter 5th June, 2003, enter
05062003). System will verify all the details and will proceed to the
next option if punched in details are correct.
System will directly come to step 3.5.8 from 3.5.4 if counter party
selected is not a pool account (i.e. the transfer is an Off Market for
Inter-Depository Transfer).
Enter the numeric digits of the ISIN.
Enter the quantity to be transferred.
System will read all the details entered by you along with available
quantity make appropriate choice by entering 1, 2, 3 or 4.
Submitting TIFD / IDT through Speak to Transfer
You have to first register for the e-Instruction facility by filling up the
prescribed form available at the branch. You need to specify upto five
accounts to which you can transfer your securities through Internet /
Phone.
Call up our Phone Banking numbers Select Demat menu from all the
options read by IVR. Get yourself authenticated by entering DPID &
Demat a/c no. with TPIN provided to you.
Select the option 5 of Speak to Transfer to submit transfer instructions
from Demat menu.
Our Phone Banking Officer will attend to you and will ask for the
information required for transferring your securities.
After confirmation from your side, Phone Banking Officer will give
TIFD Reference number for your completed transaction.
Debit in the Demat Account
There will be a debit in your account on the execution date specified in

the instruction. You can check the same in your transaction statement.
You can also check the same on www.icicibank.com or through IVR or
visit the nearest Branch. You will also receive an alert for the
40
success/failure of the transfer on SMS (registration form for Mobile

Alerts on www.icicibank.com
Failure to execute Instructions
An instruction can fail either at the Central Processing Office of ICICI Bank or at
NSDL.
A failure can happen at the Central Processing Office on account of signature
mismatch or if the TIFD slip is incomplete or not properly filled up. Please take
due care while filling up the TIFD. There can be a failure at NSDL if your account
does not have the required number of specified shares or problem with the target
a/c.
You will be intimated about the failure through a letter. On receipt of such
intimation, the customer should do the needful in terms of submitting a correctly
filled TIFD.
Purchase / Receipt of Securities
All purchase/ receipt of securities in your account is effected as per your

Standing instructions for Credit given to ICICI Bank to receive credits
automatically in your account. You normally give such a standing instruction in
the account opening form itself. You can give it later also by writing to the DP.
If you have not given a standing instruction for receiving credits, you are required
to give a specific receipt instruction for each credit in the prescribed form.
The date of credit will depend on your brokers instructions and ICICI Bank has
no control on the same.
To ensure proper credit in your account, please instruct your broker to

credit the shares to your account number with ICICI Bank. For this, give
your Demat account number and the ICICI Bank DP ID to the broker.
Please note that you must settle your money transaction independently
with the broker.
41
Rematerialisation
Rematerialisation is the process of converting the securities held in electronic

form in a demat account to an equivalent number of securities in physical form
(certificates) after debiting the same from the demat account.
Form
Submit a completely filled up Remat Request Form (RRF) in triplicate for each
ISIN. Forms are available at any of the ICICI Bank branches.
Filling up the form
Ensure that the RRF is completely filled up. Incomplete details may lead to
rejection of the remat request.
Use a separate RRF for each eligible security. Please ensure that name of the
security and the ISIN number is entered correctly.
Submit requests for balances under lock-in through a separate RRF. Do not mix
the same with free securities. Amongst lock-in securities belonging to the same
ISIN but having different lock-in release dates or lock-in reason, make separate
RRF requests.
You should mention the lot types whether Jumbo or Market Lot clearly. If the
same is not filled up then the registrar will send certificates in market lot.You
must have sufficient free balance in your account for the ISIN for which the RRF
is submitted.
The RRF must be signed by all the account holders and should be in the same
order. The signature on the RRF should match with the specimen signature with
ICICI Bank.
42
Submitting the form
You should submit the RRF in triplicate. You can submit the RRF at any ICICI
Bank branch. The acknowledgement slip at the bottom of the form will be
stamped and handed over to you after verification by the ICICI Bank official.
Receipt of Physical Shares
The RRF is forwarded to the registrar. On acceptance of the remat request by

the registrar, your account will be debited. The physical share certificate will
be sent directly to you by the registrar. You can also check the same on
www.icicibank.com or through IVR or phone us or visit the nearest Branch.
You will also receive an alert for the success/failure of your request on SMS
(registration form for Mobile Alerts on www.icicibank.com).
The normal time taken for receipt of the physical shares is within a period of
30 days. However the time taken would vary from one registrar to another
over which ICICI Bank has no control.
In case you do not receive the physical shares within a month of submission,
you can either phone us or send an email to customer.care@icicibank.com so
that we can check with the registrar.
In case there is a delay beyond 40 days, if you so wish, ICICI Bank can give
you the registrars name and telephone number as well as your Remat
Request Number (RRN).
Rejection of Remat Requests
Your request may get rejected for various reasons either at the Central Processing
Office of ICICI Bank or by the Registrar. On a rejection, you will be informed
about the reason for rejection of the request. You can submit a fresh request after
resolving the reason for the rejection.
43
Freezing /Defreezing
The client has an option to freeze his account in case he does not intend to
do any transaction in the near future. These helps in curbing unauthorised
use of demat account & prevention of frauds. Once freezed the account can
be defreezed only on the instruction of the account holders.
Following types of Freezing is possible:
Freezed for Debit: In this case any debit instruction cannot be passed
unless the account is defreezed. However the credit in the account will be
received provided a standing instruction for credit is given for the account.
Freezed for All: In this case no transfer to & from the account can be
done.
ISIN Freezing: In this case a specified ISIN can be freezed, blocking the
ISIN for debit.
Quantity Freezing: In this case a specified quantity of a specified ISIN
can be freezed, blocking the quantity for debit.
Defreezing of the account is required to enable the account again for transaction.
The request for freezing & defreezing must be submitted in the prescribed form.
Corporate Benefit - Dividend, Bonus or Rights Issue Merger or

44
acquisition:
In case the company in which a beneficial owner holds shares in demat form
announces any corporate benefits like bonus, dividend etc. the beneficial owner
will receive the same directly in his demat account or bank account depending on
the nature of the benefit.
Dividend:
The company/registrar takes a list of beneficial owners from NSDL as on the
record date/book closure date. Based on this list, company makes payment of
dividend. If the company is making the payment through ECS, the company
will directly credit the dividend to the bank account registered by the
beneficial owner with the DP under intimation to the beneficial owner. If the
company is making the payment through a cheque/DD, the bank details will
be printed on the dividend warrant. The mode of payment of dividend etc is
decided by the company itself.
Bonus:
The bonus securities on the eligible securities in the beneficial owners demat
account are automatically credited to the beneficial owners demat account by
the company/registrar under intimation to the beneficial owner. This will be
reflected in the transaction statement for the period. In respect of the physical
holdings, the customer will receive bonus securities in physical form.
Rights issue:
The beneficial owner will receive an option to subscribe for the eligible number
of securities from the company/registrar. These securities may be in physical
form or in electronic form in the customers demat account. The customer can
exercise the same in the normal course. While exercising the option (in respect
shares both in physical or electronic form), the customer may mention the
demat account in which the securities allotted are to be credited provided the
company is available for demat with NSDL. Alternatively, the customer can
also ask for the securities in physical form.
Merger or acquisition:
45
Securities in the beneficial owners demat account is automatically credited and

debited by the company/registrar as per pre-declared ration under intimation to
the beneficial owner. This will be reflected in the transaction statement for the
period.
Public Issue
When subscribing for shares in a public issue, you can request for
securities, if allotted, to be credited directly to your demat account and
quote your demat account for the purpose in the application form.
After allotment, the securities will be credited directly to your demat

account under an intimation to you from the company/registrar. Such
credit is done before the date of listing of the securities on a date
considered convenient by the company/registrar. However, if the
details of the demat account specified in the form are incorrect, the
securities will be allotted in physical form and certificates will be sent
to you.
SEBI has announced that the shares of all companies going in for
Public offer will have to be compulsorily settled in demat form by all
investors. It is therefore advantageous for an investor to prefer the
allotment in demat form, so that the shares have higher liquidity.
Nomination
You can make a nomination of your account in favour of any person by filing up
the nomination details in the account opening form. This is to enable the nominee
to receive the securities after the death of all the holder(s) of the demat account.
Nominees can be appointed by individuals only. Non-individuals including

society, trust, body corporate, partnership firm, karta of Hindu Undivided Family,
holder of power of attorney cannot nominate. Where a minor is appointed as a
nominee, the name and address of the guardian is also required to be obtained.
Where a nomination has not earlier been made or where an earlier nomination is
46
ought to be changed, you can submit a duly filled-in nomination form at the
nearest Branch. The account holder, nominee and two witnesses must sign this
form and the name, address and photograph of the nominee must be submitted.
In case of the death of the sole holder or all the joint holders, the nominee must
submit a duly filled-in transmission form and give the notarised copy of death
certificate and an affidavit in the prescribed format. After verifying these
documents, the securities will be transferred to the account of the nominee.
Transmission
Transmission of securities refers to the transfer of securities from an account to

another as a result of the death of the sole/any of the holders of the former
account. For this the latter need not approach each issuing company or its R & T
Agent. Only the DP of the former account needs to be approached. Here the
transfer may be done to:
Surviving holder(s)
If the former account is a joint holding account and there is at least one
survivor, the survivor(s) can request the DP for the securities to be transferred
to his/their demat account.
Nominee where a nomination has been made
If there is no survivor amongst the account holders and a nomination had been
made by the holder(s) earlier, the nominee can request the DP for the securities
to be transferred to his demat account.
In addition to the documents specified under Common Requirements below, an

Affidavit duly completed by the nominee in the format specified by NSDL and
attested by a notary/magistrate should be submitted by the claimant.
Legal heir where a nomination has not been made

If there is no survivor amongst the account holders and a no nomination had
been done by the holder(s) earlier, the legal heirs can request the DP for the
securities to be transferred to his demat account. In addition to the documents
specified under Common Requirements below, a true copy of the Succession
certificate or Probate or Letter of administration, should be submitted by the
47
claimant.
If any of the above legal documents is not available and if the market value of
the securities held by the deceased in the demat account does not exceed
Rs.100000/- then the legal heir(s) can submit the following to make a claim:
Letter of indemnity supported by a guarantee of an independent
surety on a non-judicial stamp paper of Rs.200/- as per the NSDL
format. The indemnity should be attested by a Notary/Magistrate.
Letter of surety duly completed by the surety as per NSDL format.
An affidavit-cum-verification on a non-judicial stamp paper of
Rs.100/- as per the NSDL format. It should be attested by a
Notary/Magistrate.
No objection letter(s) from all other legal heir(s), as per NSDL
format.
Common Requirements and Effect
No transaction charges will be levied for transfer of shares from the old account
to the account of the claimant.
If the demat account of the claimant does not exist, a new demat account will
need to be opened. If the claimant is having a demat account but with another
DP, a proof of the same is required from the other DP. (Client master from the
DPM).
The claimant only needs to approach the DP. He need not lodge a claim for
transmission separately with each issuing company or its R&T Agent. The
following documents should be submitted with the request:
i A copy of the death certificate duly attested by a notary or verified
) with the original by an authorised person of the ICICI Bank branch.
i An Off-market TIFD for the entire securities/ holdings for
i transmitting the shares.
)
Demat Account Statement
If there is a transaction in the previous 30 days. The customer is sent a

transaction statement.
48
If there is no transaction in the previous 30 days but more 90 days have passed
since ending date of the last statement sent to the customer, a quarterly statement
is sent if there are some holdings in the customers account.
Customers who have opted for transaction statement through e-mail will get
their statements by 1st week of next month. This is subject to at least one
transaction during the previous month, otherwise statement of holdings via email
will be sent on a quarterly basis. At the end of financial year, they will get a
physical transaction-cum-holding statement for the entire year by 25th of April.
In addition, you will receive a physical copy of the annual statement to assist
you in filing income tax returns.
The e-mail statement will be authenticated by a digital signature obtained from a

Certifying Authority under the Information Technology Act, 2000. This will
allow you to verify that the statement is sent by ICICI Bank only and that the
contents of the same have not been altered during transmission. Please note that
the statements are sent via standard email and are therefore only as secure as
standard email transmission through the Internet. Since the email transmission is
not encrypted, it is not necessarily protected from unauthorized access.
It may be noted that on being registered for receiving statements by e-mail, the
annual service charge will be lower by Rs. 50/- per annum starting from when it
is next due.
Customers, who have opted for the physical transaction statement, will get the
transaction statement, subject to a transaction during the previous month,
otherwise, statement of holdings will be sent on a quarterly basis, as per the
following schedule:
Within Mumbai limits, by the 15 of next month

Out of Mumbai region, by the 20 of next month
You can receive your account statement by e-mail and can also see the updated
statement on www.icicibank.com. For both these facilities, you have to first
register. In case of any discrepancies in your account statement, notify us
immediately.
Registration for Internet/Phone Access & e-instructions.
49 while reducing
To increase convenience to the customers
50

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T.Y.

BBI (SEM-V) DEMAT SERVICES BY BANKS

DEMAT SERVICES BY BANKS

BACHELOR OF COMMERCE IN BANKING AND INSURANCE

Under the Guidance of

PROF. REYANA VALEJA

In Partial Fulfillment of the requirement for the Award of the

PRATAP DHANAJI CHAVHAN

ROLL NO. 1728007

SHRI SIDH THAKURNATH COLLEGE OF ARTS &

ULHASNAGAR 421 004

UNIVERSITY OF MUMBAI 2017-18.

I, PRATAP DHANAJI CHAVHAN student of TYBCBI (Bachelor of

My project is a result of the inspiring and thoughtful guidance

DEMAT SERVICES BY BANKS

Books- BRITANNICA ENCYCLOPEDIA, India, Ireland

News paper- The Economic Times; Times of India

SR. NO. PARTICULAR PAGE NO.

4 WHY SHOULD AN INVESTOR OPEN 13-16

5 DEMATERIALIZATION PROCESS AND 17-25

6 DEMAT SERVICES PROVIDED BY 26-45

7 CORPORATE BENEFIT 46-63

8 REDRESSAL OF DEMAT HOLDERS 64

Dematerialization or Demat is a process whereby your securities like

Holds funds in accounts Holds securities in account

Transfers funds between accounts Transfers securities between

Safekeeping of money Safekeeping of securities

Dematerialization or demat is a process to convert the

NSDL AND CDSL

At present there are two depositories in India, National Securities

Institutions engaged in providing financial services, promoted

Investors surrenders defaced certificate along with Dematerialisation

Trading in dematerialized shares results in substantial savings for the

Following tables gives an idea about these savings.

Item Physical Depository Savings

Savings for an investor who sells dematerialized shares

Item Physical Depository (demat) Savings

BENEFITS OF DEMAT SERVICES.

A safe, convenient way to hold securities;

Reduction in other transaction cost such as postage, courier, Xerox;

Why Should an Investor Open a Demat Account?

The CDSL system incorporates a number of distinct

CDSL DPs provide on-line depository services from over 500

3. Availability of Wide Spectrum of Securities:

The equity shares of over 5000 companies are available for

4. Competitive Fees Structure:

CDSL's fee is very reasonable and competitive, which makes it

Through CDSL's unique internet facility "electronic access to

With the CDSL's centralised database architecture; on-line

Even if any system-related problems develop at the DPs end, it

database is maintained centrally. The DP can also avail of the

3. Audit and inspection:

CDSL conducts regular audit of its DPs to ensure compliance of

CDSL's prompt and courteous helpline facility is available to

5. Always meeting user's requirements:

Continuous updation of procedures and processes in tune with

CDSL has installed state-of-the-art computer system, data

As the system does not provide for dial-up access, only

3. Unique BO Account Number:

Each BO in the CDSL system is allocated a unique account

CDSL has obtained adequate insurance cover for any unlikely

DEMATERIALIZATION PROCESS AND

individual BO includes Corporates, FIs, FIIs, Mutual

A resident Indian can nominate an NRI or another resident