Read Time: 5 minutes

30th December, 2023

New requirement for All Off Mkt Transfers (Repeat 4)

Dear Business Associate,

With reference to CDSL Circular No. CDSL/OPS/DP/P OLCY/2023/745 dated December 22, 2023 and NSDL Circular No.
NSDL/POLICY/2023/0175 dated December 15, 2023, please note that effective from 30th December 2023, it will be
mandatory to Add Beneficiary first before punching request for any Off Market transfer including the Inter Depository
transfers. This is similar to the addition of beneficiary for E-Off Mkt transactions and addition of beneficiary for funds transfer
in Bank A/c.

Imp Note: Due to this new requirement, we are temporarily discontinuing E-Off Mkt facility for only Off Mkt
transfers from 30th December 2023, for a period of One Month and will communicate on restart of facility. However,
E-Off Mkt facility will be available for On Mkt transfers.

The detailed process to Add Beneficiary for shares transfer through DIS, is mentioned below:

➢ The seller client (Transferor) would attach a duly filled and signed (by all holders) ‘Registration Form’ (RF) in pre-
specified format along with DIS, during the Maker entry in back office for transfer of shares.
This is required ONE TIME for each beneficiary, until the beneficiary is added.

Click here for format of Beneficiary Registration Form_CDSL_NSDL

The above form is also available in:

Bizops > Information > Downloads > Beneficiary Registration Form_CDSL_NSDL

➢ DP will process the request to add beneficiary first.

➢ Once processed by DP, a link would be sent from the Depository (CDSL/NSDL) on the registered mobile number
and email id of the seller client (Transferor) for the verification of buyer account (Transferee) details.

➢ By clicking the said link, the seller client (Transferor) would be prompted to enter his / her PAN and / or 16 digits
BOID to confirm his / her identity.

➢ On successful identification, details of the buyer client(s) [Transferee(s)] would be displayed for verification.

➢ On verification, the seller client (Transferor) would be given an option to ‘OTP Authenticate’ or ‘Cancel’ the
registration.
 ➢ For OTP authentication, an OTP will be generated and sent by the Depository (CDSL/NSDL) on the registered
mobile number and email id of seller client (Transferor).

➢ The client has to mandatorily do this OTP authentication to add beneficiary. If not done, beneficiary will not be
added and DIS will not be processed further for transfer of shares.

➢ For every successful beneficiary registration, buyer account details (Transferee) would be stored as ‘Beneficiary’
under the demat account of seller client (Transferor). Registration of a buyer account (Transferee) under the seller
account (Transferor) will be a ONE TIME ACTIVITY.

➢ Seller clients (Transferor) will also be provided an option to ‘Delete’ the already added ‘Beneficiary’ account (s).

➢ This pre-requisite of adding beneficiary details will be applicable to ALL ‘OFF-MARKET’ REASON CODES
available, effective from 30th December 2023.

➢ Once the beneficiary is added, the DP will further process the DIS for transfer of shares. The process for transfer of
shares will be same as is currently, including the OTP authentication by client for transfer of shares.

➢ The Original Beneficiary Registration Form needs to be sent to HO along with DIS so as to reach DP within 7 days,
to avoid penalty and suspension of punching rights.

Since the Addition of Beneficiary is going to be a manual activity in DP initially, the TAT of DIS Execution will increase.
Hence, we request you to co-operate and avoid queries over phones and emails.

For further clarification, please write to query@motilaloswal.com or speak to your customer service executive.

Issued By: DP Department