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FAQs |
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If you have any queries that are not answered here, please call us or
write to us.
Please select a topic below to view the FAQs.
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Account Opening |
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Can I open more than one demat account with only one DP in identical names?
Yes. You can open more than one demat account in identical names. There is no restriction on the number of demat accounts you can open with the same/other DP's.
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Can a depository account be opened with four holder's names?
Yes, a depository account can be opened in the names of four holders but the account can be operated only for demateralisation of shares held in the same combination. No shares can be credited by purchase or transferred from any other account. Hence the standing instruction for credits will be 'N' for such accounts
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What are the different categories of accounts that can be opened under an individual demat account?
The different categories of accounts that can be opened under an individual demat account are Ordinary Resident, Hindu United Family (HUF) , Non Resident Indian - Repatriable, Non Resident Indian- Non Repatriable, Margin , Promoter, Others
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What are the different categories of accounts that can be opened under a corporate demat account?
The different categories of accounts that can be opened under a corporate demat account are Body Corporate, Bank, Financial Institution , Foreign Institutional Investor , Overseas Corporate Body & Others
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What is 'Standing Instruction' given in the account opening form?
In a bank account, credit to the account is given only when a 'paying in' slip is submitted together with cash/cheque. Similarly, in a depository account 'Receipt in' form has to be submitted to receive securities in the account. However, for the convenience of investors, facility of 'standing instruction' is given. If you say 'Yes' for standing instruction, you need not submit 'Receipt in' slip everytime you buy securities.
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Can I operate a joint account on "either or survivor" basis just like a bank account?
No. The demat account cannot be operated on "either or survivor" basis like
the bank account. It has to be operated by all the account holders.
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Can I add or delete names of accountholders (second or third accountholder) after opening the account ?
No. Names of the accountholders for a depository account cannot be changed. If you want to change name or add / delete an accountholder, you need to open a new account in the desired holding pattern (names) and transfer the securities to the newly opened account. The old account may be closed.
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Can someone else operate my demat account on my behalf on the basis of Power of Attorney?
Yes. If you authorise any person to operate your account by executing a power of attorney , A Notarised copy of POA submit it to your DP, that person can operate the account on your behalf. Ensure that the POA has the signature of both you being a Donor and the Donee. POA holder is also subject to KYC norms of the bank.
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Does the customer have to necessarily operate his demat account from the same branch where the account is opened?
No, an HDFC Bank customer can operate his demat account from any of the depository branches in India.
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What are the requirements for opening an individual demat account with HDFC bank?
Mandatory Requirements :-
- PAN Card copy for all the Applicant(s).
- Address proof for all the Applicant(s).
- Latest Photograph for all the Applicant(s) duly signed across to be affixed on the place provided in the account opening form.
- Cancelled cheque leaf for dividend Bank details.
- Customers could have/can open a savings/current account with HDFC Bank. OR
- Customers could pay an advance fee of Rs.2500/- for each demat account which will be adjusted against service charges.
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What are the requirements for opening a corporate demat account with HDFC bank?
Requirements:-
- PAN Card copy of the Company.
- Account opening form duly completed in all respects.
- Photographs of all the authorised signatories duly signed across to be affixed on the place provided in the application form..
- Self attested ID proof required for all the authorized signatories.
- Copy of Memorandum and Articles of Association duly attested by the Company Secretary / Director of the company.
- Board Resolution along with the name of the authorised signatories & their specimen signature on the company's letterhead stating that the company desires to open a demat account with HDFC bank and that the authorised signatories will be operating the said account as per the mode of operation given in the board resolution.
- DP Agreement to be executed on a stamp paper (value of stamp paper as per the place of execution of agreement)
- Tariff Sheet duly signed by all the authorised signatories.
- Debit Authorisation signed by the bank account holders as per the mode of operation in the board resolution for the bank account.
- Proof of address of the corporate: Document registered with ROC/ acknowledged copy of Income Tax return/ Bank statement/ Leave & License agreement/ Agreement for purchase of office premises.
- Introduction by existing account holder or by applicant's bank.
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What is a clearing member account and how is it different from a beneficiary account?
A registered member of any of the stock exchanges that have direct connectivity with the depositories holds a clearing member account or pool account. Pool account is used by the members to hold securities from clients and deliver them to clearing corporations. This account is also used to receive securities from the Clearing Corporations and onward distribution to clients.
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What are the requirements for opening a clearing member demat account with HDFC bank?
The requirements are the same as that of opening a corporate demat account. Additional documents required are:-
- SEBI certificate.
- Stock Exchange Letter.
In case the clearing member is shifting his account from another DP, then the closure letter acknowledged by the other DP is also required. Note :- Clearing members are permitted to open only one account per Stock Exchange.
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What are the requirements for opening a Limited Liability Partnership demat account with HDFC bank?
The requirements are the same as that of opening a corporate demat account. For corporate DR type account and for Individual DR type the requirements of Individual demat account is required. The following are the additional documents required are:-
- Standing Instruction can be ticked as "NO" (The customer has to give
specific receipt instruction for receiving securities issued upon cancellation
of DR).
- Declaration stating that this account is exclusively used for cancellation
of DR and no other securities will be held in this account.
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Can the existing corporate demat account be continued in case of a name change?
Yes, The following are the requirements :-
Letter requesting change of name signed by the authorized signatories.
Certified true copy of fresh certificate of Incorporation consequent upon change of name issued by the Registrar of Companies / Certificate of registration issued by SEBI / relevant Statutory Authorities as applicable.
Certified Board Resolution for change of name.
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Can the existing corporate demat account be continued in case of a name change?
No, a new demat account needs to be opened in the changed name, shares are to be transferred from the old account to the new account and the old account needs to be closed.
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What are the requirements for opening a NRI demat account with HDFC bank?
All the documents required as of Individual Demat Account. Additional documents
required are :
- Attested copy of the Passport Copy and Visa.
Declaration in the prescribed format or PIS approval copy (Portfolio Investment
Scheme by Authorised Bank).
Declaration stating he has complied and will continue to comply with FEMA Regulations.
- Savings Bank account has to be NRE/NRO as applicable.
Please note that if PIS approval is not given / applied then the standing instructions will be "N". For any further clarifications on Non-Resident demat accounts please get in touch with our NRI cell at nricentre@hdfcbank.com.
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What are the requirements for opening an HUF demat account?
The requirements are the same as that of opening an individual demat account except that the account will be opened in the name of the KARTA. No joint holding and nomination is permitted in this account. In addition the stamp of the KARTA should be affixed at all places signed by the KARTA.
PAN copy of both the HUF and Karta is required to be submitted. Also Coparcener’s declaration stating the name of the Karta and their relationship to the Karta is to be mentioned.
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What are the requirements for opening a demat account in the name of a minor?
The requirements are the same as that of opening an individual demat account
except that joint holder and nominee cannot be appointed. In addition photograph
of the minor and the guardian, proof of identity and address of the guardian
and the proof of age (copy of birth certificate) of the minor is required.
PAN card copy of both minor and Guardian to be provided.
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What are the two categories of trust accounts that can be opened?
The two categories of trust accounts are private and public (Registered) trust.
Private trust account is opened in the name of the trustees whereas public
trust account is opened in the name of the trust. |
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What are the requirements for opening a trust account?
The Requirements for opening a trust account are:
- Notarised Copy of Trust Deed.
- Attested copy of the trust resolution.
- Attested copy of the registration certificate (Public Trust Account) if the trust is registered under the Society Registration Act of 1850, Indian Public Trust Act of 1950 or Indian Trust act.
- Photographs of the trustees signed across.
- Income Tax Exemption Certificate (optional). However, in case of a company retirement trust (i.e. Provident Fund Trust, Pension Fund, Gratuity fund, Super-annuation fund) the demat account will be opened in the name of the trust.
- Proof of address of the Trust: Document registered with registration authority / acknowledged copy of Income Tax return/ Bank statement/ Leave & License agreement/ Agreement for purchase of office premises.
- Photo ID proof required for all the authorized signatories.
- PAN copy of the Trust.
- PAN coy of the Trustees, incase of an unregistered trust.
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Does the customer have to affix his photograph while opening a new demat account if he already has an existing demat account?
Yes, the customer has to affix his photograph every time he opens a demat account. He cannot give a cross reference of his existing demat account.
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Why should I give my bank account details at the time of account opening?
It is in your interest. Your bank account number will be mentioned on the
interest or dividend warrant, you are entitled to, so that such warrant cannot
be encashed by any one else. Further, a DP cannot open the account if bank
account number is not given. The account opening forms will be rejected, if
the dividend mandate column is not filled. Dividend mandate should be a valid
savings bank account ( i.e. the first holder in the demat account should be
a holder in the savings / current account and the account can belong to any
bank) and MICR code (9 digits) should be mentioned if credit is required through
Electronic Clearing Services (ECS). Also specimen / copy of the cheque leaf
to be provided to the DP.
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How can the holder/s change the existing mandate/bank details in his demat account?
The holder can change his existing mandate/bank details by submitting a request
letter mentioning the new bank account details duly signed by all the demat
account holders along with a copy of cheque leaf.
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What does MICR stand for?
MICR stands for Magnetic Ink Character Recognition
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Should the customer intimate the companies individually regarding the changes in bank details/mandate for the shares held his demat account?
No, the customer does not have to intimate the companies individually. When
the dividend is announced for a particular security, the depository (NSDL/CDSL)
will give all the details of the investors having electronic holdings of that
security as of record/book closure to the Issuer/Registrar. |
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How can the holder/s change the existing debit authorisation in his demat account?
The holder can change his existing debit authorisation by submitting a request
letter mentioning the new HDFC Bank savings / current account details duly
signed by the savings / current account holder/s.
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What is the procedure for effecting change of address in an individual demat account?
The change of address can be effected in an individual/HUF demat account on
submission of the following:-
- Duly completed Change of address form signed by all the demat account
holders/Karta.
- Copy of latest DP transaction statement.
- Proof of identity (Any one of the following) of the first holder in
the demat account.
- copy of Client's valid passport
- Driving Licence
- Election Id Card
- PAN Card with photograph
- Proof of new address (Any one of the following) of the first holder
in the demat account.
- Ration Card
- Copy of Landline telephone bill not more than 2 months old (not
WLL or Mobile bill)
- Electricity bill (not more than 2 months old)
- Bank passbook
- Leave and License Agreement
- Copy of Agreement for purchase of premises
- Bank attested account statement specifying new address
- Visit the branch personally or authorize a representative with an ID
card.
- Client or the representative has to sign once again in front of a DP
official.
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What is the procedure for effecting change of address in a corporate demat account?
The change of address can be effected in a corporate demat account on submission of the following:-
- Duly completed Change of address form signed by the authorized signatories as per the mode of operation with the rubber stamp of the company.
- Board Resolution confirming the change of address signed by the authorised signatories.
- Proof of address of the corporate (Document registered with ROC, acknowledged copy of Income Tax return/ Bank Statement/ Leave & Licence agreement/ Copy of Agreement for purchase of premises).
Latest transaction Statement of the demat account.
Authorised signatory to visit the DP and submit the request personally.
Authorised Signatory to sign once again infront of the DP official.
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Can I operate a joint account on "either or survivor" basis just like a bank account?
No. The demat account cannot be operated on "either or survivor" basis like the bank account.It has to be operated by all the account holders.
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Can I add or delete names of account holders (second or third account holder) after opening the account ?
No. Addition/Deletion of the names of the account holders for a depository account is not permissible. If you want to change name or add / delete an account holder, you need to open a new account in the desired pattern.
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Can I open an account in a single name for shares held in joint combination of names?
No. The demat account must be opened in the same combination in which the
securities are held in the physical form. E.g.; if one share certificate is
in the Joint name of Mr. A & Mr. B and another certificate is in the sole
name of Mr.A, two demat accounts will have to be opened , one in the joint
name of Mr. A & Mr. B and another in the sole name of Mr. A. However if
A & B hold a demat account and if the certificates are in the names of
B & A, the shares can be dematerialized in the demat account of A &
B. * Also refer to "Transposition" for more details.
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Do I have to keep any minimum balance of securities in my account?
No. There is no prescribed minimum balance. You can have zero balance in your
account. However asset holding charges will be levied for zero balance in
accounts.
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Can someone else operate my account on my behalf on the basis of a power of attorney?
Yes. If you authorize any person to operate your account by executing a power
of attorney and submit it to the bank, that person can operate the account
on your behalf. However if the POA is submitted at the time of account opening,
it is mandatory that the holder signs the account opening document.
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How can a demat account holder/s apply for a new delivery instruction booklet ?
The demat account holder/s can apply for a new delivery instruction booklet
by submitting a duly completed request letter signed by all the holders. The
booklet is despatched to the customer address.
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What is the procedure to be followed when a customer has lost/misplaced his slip/instruction booklet?
The customer has to immediately intimate the bank by submitting a letter mentioning
the details of the slip/booklet lost duly signed by all the holders and request
issuance of a fresh booklet. A "Stop Instruction" would be marked
against all the unused slips to avoid misuse of slips.
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Can I freeze my account? What is the procedure to be followed for freezing / defreezing a demat account?
Yes. The depository system provides the facility to freeze the depository
accounts for debits or for both debits and credits. In an account "freezed
for debits", no debits will be permitted from the account, till the time
it is defreezed. This is an additional security feature for the benefit of
the investors. For an account which is freezed for all operations, no credits
or debits will take place.There is an additional feature in NSDL system which
allows freeze of a particular ISIN or part quantity of an ISIN in an investor's
account.Please note that the Depository Participant cannot freeze a CDSL account
and such requests have to be sent to CDSL.For freezing an NSDL account ,the
first holder of the demat a/c has to personally come to the bank and submit
the freezing/defreezing request duly signed by all the account holders. In
case of freezing, the freezing date has to be mentioned i.e. the date from
which the freezing of the account is sought. (No need to mention freezing
end date as the NSDL sy stem does not provide for capturing the freezing "end
date"). On receipt of the request, the DP will verify that the form is
duly filled in, verify the signature/s of the client and thereafter if the
request form is in order the DP changes the status of the Client's account
from 'ACTIVE' to 'SUSPENDED FOR DEBIT' OR 'SUSPENDED FOR ALL', depending on
the choice of the client, from the date mentioned by the client on the form.However,
for defreezing we need the freezing "end date" i.e. the date from
which defreezing of the acoount is sought. If the request form is in order,
the DP changes the status of the client's account to 'ACTIVE' on the date
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Does the Depository Participant have the right to suspend a demat account?
The Depository Participant has the right to suspend a demat account in case
it receives an order to the effect from the Depository, Income Tax Dept.,
Court of law, any other regulatory body or for non payment of charges to the
Depository Participant. Once the account is suspended no transactions are
allowed in the account, but benefits arising due to any Corporate Action are
credited to the suspended account. The DP will intimate the client of suspension
of its account.
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What is the procedure to be followed if the customer wishes to change his existing signature recorded with the DP?
The customer has to give a request letter clearly defining his old and new
signature, proof of identity of the holder wishing to change the signature
and a specimen signature card with the new signature.
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What is the procedure to be followed if the customer wishes to change his existing signature but is unable to remember his old signature?
The customer has to give a request letter mentioning the facts, affidavit on Rs.100/- stamp paper, proof of identity of the holder wishing to change the signature
and a specimen signature card with the new signature.
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What is the procedure to be followed if the customer wishes to change his existing signature but is unable to sign due to old age/paralytic stroke?
The customer has to give a request letter mentioning the facts, affidavit on Rs.100/- stamp paper with the thumb impression duly attested by Gazetted
Officer/ Notary, Proof of identity of the holder wishing to change the signature
and a doctor's certificate. However, thumb impressions on subsequent instructions/
request have to be notorised before submitting the same to the Depository
Participant.
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Operations Dematerialisation |
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Why should the investor dematerialise his securities?
SEBI has mandated delivery of stocks only in the dematerialised form, hence
investors holding physical certificates may not be able to sell them at a
short opportunity. Physical holdings need to be maintained by Investors themselves
and protected from loss, theft, mutilation, fire etc. In case of Demat holdings
these worries of the Investors are taken over by Depository Participant (DP)
wherein holdings are maintained electronically by the DP in the Investors
Demat Account. Transfers of Demat Holdings is a simple process and can be
done by submission of a single page signed delivery instruction slip to the
DP. These transfers can also be done from the convenience of the Investors
home / office through the Internet. Demat Holdings are automatically received
in the Investors Demat Accounts. The Depository System in India has become
very popular and most brokers refuse to deal with physical holdings. |
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Can I dematerialise any share certificate?
An investor can dematerialize almost all security certificates as most Companies
have all their security types admitted with the Depository for Demat. However
only those certificates which are already registered in the Investors name
can be dematerialized to a Demat Account held in the same name combination.
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What is an ISIN?
ISIN (International Securities Identification Number) is an unique identification
number given to the security of an Issuer Company at the time of admitting
such security in the depository system by SEBI. This is common for both NSDL
and CDSL. |
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Should a separate Dematerialisation Request Form be filled for each ISIN?
Yes.
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Should a separate DRF be filled for locked-in and free securities?
Yes because the quantity of locked in securities requested for dematerialisation
would be tagged with the lockin release date on receipt of relevant credit
into the Investors Demat Account while free securities requested for dematerialisation
would be reflected as free balance on receipt of relevant credit and would
be transferable and saleable without any such restrictions.
Can I have part of my holdings in demat form and part of my holdings in the form of share certificates for the same security?
Yes. You can dematerialise part of your holdings for the same security. |
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Do my dematerialised securities have distinctive/ certificate numbers?
No, your dematerialised securities do not have any distinctive/ certificate
numbers. These shares are fungible which means that 100 shares of a security
are the same as any other 100 shares of that security.
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What are Market transactions?
Market transaction are transactions which are executed on the floor of the
exchange. In these transactions securities are transferred from a Beneficiary
account of an investor to a Clearing member account of a broker for ensuring
delivery of securities to the stock exchange and vice versa.
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How long will the dematerialisation process take?
NSDL has mandated 7 days & 15 days from the date of receipt of the DRF
for the DP & the Company / RTA respectively for processing an Investors
Demat request. The entire dematerialisation process would normally take about
30 days.
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If I have certificates belonging to the same security, in the same order of holders, do I have to open as many accounts as the number of folios?
No, you can choose to have all securities held by the same holders deposited
in a single Demat account. The combination of DP Id and the Client ID replaces
the folio number. |
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Can I dematerialise all my depository eligible securities through the same account?
Yes. You can choose to have all your securities deposited in a single account
provided the securities have the same holding pattern. |
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Can I as a sole holder of the share certificates add one more name as a joint holder at the time of dematerialising my share certificates?
No. However, if you want to transfer the ownership from your individual name
to a joint name, you can first open an account as the sole holder (account
A) and dematerialise the share certificates. Once done, you can then open
another depository account (account B) in which you are the first holder and
the other person is the second holder and make an off market transfer of the
dematerialized shares from the account A to account B. You will have to incur
a nominal charge on this transaction. Alternatively, the certificates can
be transferred to the joint ownership by the Company / RTA and then sent for
dematerialisation to account B
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Can I dematerialise shares, which are pledged with a bank, which is a DP as well?
Yes, you can with the permission of the bank.
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Can odd lot shares be dematerialised?
Yes. Odd lot share certificates can also be dematerialised.
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Can debt instruments and Government Securities be dematerialised in the same demat account?
Yes, debt instruments,bonds, mutual fund units, Government Securities can
also be dematerialised in the same demat account where equities are held.
However, for holding commodities, a separate Demat Account must be opened. |
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Is dematerialisation compulsory?
No. According to the Depositories Act, 1996, an investor has the option to
hold shares either in physical or in dematerialised form. .
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Is transmission cum transposition possible under the physical segment?
Yes.
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How do I demat shares with Pre Marital / Maiden names?
In such cases you need to submit a signed declaration requesting the Company
/ RTA to dematerialize physical certificates held in your maiden name to your
Demat Account held in your married name along with a Notarised / Attested
copy of your marriage certificate along with the DRF, when you give your shares
for dematting. |
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Will the investor get back the same certificates after rematerialisation?
The registrar will print new certificates with a new range of certificate
numbers. The investor will usually be allotted a new folio number; however,
if he already has an existing folio number he may be allotted the same. |
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What should the customer do when he has received a letter (option letter) from the company asking for his option as to whether he wants physical shares or dematerialised shares after transfer ?
As per a circular received from The Securities and Exchange Board of India
(SEBI) bearing reference SEBI/MRD/Cir-10/2004 dated February 10, 2004 the
facility of transfer-cum-demat has been withdrawn.
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What happens when a new demat account has been opened in the name of the surviving member(s) as a result of the death of one of the account holders in the old account but there are still certain physical shares held jointly in the name of the existing account holder(s) as well as the deceased yet to be dematerialised?
In this case, such shares could be dematerialised in the new demat account
of the surviving member(s) provided the surviving member(s) submit a Transmission
Cum Dematerialisation form duly signed by all the surviving holders and a
Notarised / Attested copy of the Death Certificate along with the DRF. The
attestation of the copy of the death certificate should be done by a Gazetted
Officer.
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Can the DRF be rejected? What are the reasons for rejection?
Yes, DRFs can be rejected by your DP or the Company / RTA. The reasons for
rejection may be Signature mismatch, Incorrect holders name, Certificate details
mismatch between certificate & DRF, Call Paid receipt not attached, Wrong
formats used, Old defunct certificates surrendered for demat etc. The rejected
DRFs can be collected from the submitting branch or can be sent to the Investors
address registered for their demat account.
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What is the action to be taken in case the DRF is rejected due to "Signature Mismatch"
If the DRF is rejected by the Company / RTA due to "Signature Mismatch",
then either the holders need to sign as per their signatures recorded with
the Company / RTA as well as with their DP or their signatures would have
to be Notarised / Attested by their Bankers. In addition to the above, the
Investors may attach one of the following documents: Attested copy of the
passport / driving license / PAN card / election Id card to avoid further
rejections. |
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What is transposition?
Transposition is the change in order of names in which the certificates are
issued. |
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What is transposition cum demat?
Transposition cum demat facility enables the customer to transpose names of
the joint holders in desired order along with the process of dematerialisation
of certificates. For e.g. If A & B hold a demat account and if the certificates
are in the names of B & A, the shares can be dematerialised in the demat
account of A & B
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What procedure should be followed by the customer for transposition cum dematerialisation request?
The customer should submit duly completed transposition form along with the
demat request form (DRF) and the share certificates.
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Can lock in shares be dematerialised?
Yes.
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Can partly paid up shares be dematerialised?
Yes, provided there is a separate ISIN allotted to the partly paid security. |
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Can electronic holdings be converted back in certificate form?
Yes, it can be done through 'Rematerialisation' which is the term used for
converting electronic holdings back into physical certificates. The client
should submit his request in a Remat Request Form (RRF) to his DP. The DP
will then forward the request to the Depository after verifying that he has
the necessary securities in his account. Depository in turn will intimate
the registrar who will print the certificates and despatch the same to the
investor.
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DP@NETebroking |
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Is DP on Net accessible only by the first holder of the demat account?
Yes. The Customer Id of the first holder in the demat account must be mentioned
on the application form.
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Is there a separate login/Password for DP on Net?
No, there is no separate login/Password for DP on Net. The customer has to
use his Net Banking login/Password to access the demat account.
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How can a new password be regenerated?
A new password can be regenerated by using any of the below channels:
1. By calling the nearest PhoneBanking Numbers or
2. By walking into the nearest HDFC Bank ATM or
3. By sending a SMS request "IPIN" to 5676712 or
4. By walking into the nearest HDFC Bank branch and filling in the application form.
Your NetBanking IPIN will be couriered to your recorded mailing address available with the Bank. Also the customer has option to generate the instra IPIN facility on line using the HDFC Bank Net Banking option .
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How does the Insta IPIN facility work ?
Insta IPIN is the facility of online resetting of NetBanking password (IPIN). Following are the steps that need to be followed for online resetting your NetBanking IPIN :
1. Click on the link 'Insta IPIN'
2. Input your Customer ID number and confirm
3. Post inputting the Customer ID details; you will be shown a list of HDFC
Bank Debit cards that are linked to the Customer ID
4. You will be asked to select any one of the linked cards
5 . Post card selection you will be asked to input your ATM PIN & Expiry Date.
You will then be asked to reset your NetBanking password (IPIN) and confirm
the same.
6. Post successful resetting of IPIN, you will be asked re-login into NetBanking using the new password.
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Is DP on Net a free facility?
Yes.
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Is DP on Net accessible to all the customers?
It is accessible to only those customers having a Banking relationship with
HDFC Bank. The customer Id of the first holder of demat account should be
registered for NetBanking to enable him to opt for DP on Net facility.
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What is the basic difference between registering for Ebrok and DP@Net?
If a customer is registered for DP@Net then he is able to view / down load
his demat account balance (with previous day market value,) transaction statement
by logging in HDFC Bank site. The customer will not be able to execute any
transactions on the net. However, if the customer is registered for Ebrok
then he is able to execute his transactions by logging on the ebroker's site.The
main advantage of e broking is that the customer need not submit a physical
slip to the Depository Participant. All his transactions are executed over
the net. |
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What is the procedure for Ebrok registration?
The customer has to submit the required forms with an approved Ebrok intermediary . |
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Where does the customer have to contact in case he wishes to change his password or inquire on other related queries pertaining to Ebrok account?
The customer has to contact the Ebrok intermediary for any queries pertaining to Ebrok account.
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General |
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What is Dematerialisation (demat)?
It is the process of converting securities held in physical form (certificates)
to an equivalent number of securities in electronic form and crediting the
same to the investor's demat account. Dematerialised securities do not have
any certificate numbers or distinctive numbers and are dealt only in quantity
i.e. the securities are fungible. |
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What is Rematerialisation (remat)?
It is the process of conversion of securities from electronic form to physical
form.
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Who is an Issuer (Company/ Registrar & Transfer agent)?
An Issuer would be a Company who issues securities in the physical or electronic
form. Some Issuers outsource their work related to issuance of securities,
dematerialisation and record keeping to Registrar and Transfer Agents (RTA).
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What is an ISIN? Will different securities issued by the same Issuer will have same ISIN?
ISIN (International Securities Identification Number) is a unique number given
to every security, which is admitted into depository system for dematerialisation.
The Securities and Exchange Board of India issues these numbers. Different
securities issued by the same issuer will have different ISINs i.e. Equity
will have one ISIN and Debt of the same company will have a different ISIN.
Also different debt instruments will have different ISINs.
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Can there be a mix up of securities of different companies held in one demat account?
Different securities, even if of the same issuer, are given a separate ISIN
to identify each one of them and each ISIN is maintained and accounted for
separately, within an account. Therefore there is no question of any mix up
at DP's end.
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What are Market transactions?
Market transaction are transactions which are executed on the floor of the
exchange. In these transactions securities are transferred from a Beneficiary
account of an investor to a Clearing member account of a broker for ensuring
delivery of securities to the stock exchange and vice versa. |
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What are Off market transactions?
When securities are transferred from the beneficiary account of one investor
to that of another, and the transaction does not get routed through the stock
exchange, it is an off-market transaction. |
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What is meant by Pledge of securities?
Beneficiary Account holders who do not want to sell their shares but wish
to avail of advances against dematerialised shares can take loans by marking
pledge/lien against those shares. There are two parties involved under pledge,
Pledgor (borrower) and Pledgee (lender). Certain set procedures need to be
followed in case of a pledge transaction. |
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How many Depositories are there in India? Who regulates them?
There are two depositories in India - National Securities Depository Limited
(NSDL) and Central Depository Services (India) Limited (CDSL) . SEBI is the
regulating authority and it governs the functioning of both the Depositories.
- The National Securities Depository Limited (NSDL) is an organization
established to provide electronic depository facility for securities traded
in the Equity and the Debt market. NSDL has been registered by Securities
Exchange Board of India (SEBI) on June 7, 1996 as India's first depository
to facilitate settlement of securities in dematerialized form. NSDL had
commenced its operations on November 6, 1996.
- Central Depositories Services (India) Ltd. (CDSL) was the second depository
to be granted the commencement certificate by SEBI on 08.02.1999. CDSL
was inaugurated on 15.07.1999.
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Can all DP's access all investor account details?
No. A DP cannot access the investor accounts of any other DP.
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Nomination |
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What is the procedure for nomination?
The nomination form duly filled-in should be submitted either at the time
of account opening or later. The account holder, nominee and two witnesses
must sign this form and the name, address and photograph of the nominee must
be submitted.
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How many nominees can be appointed?
Only one person can be nominated irrespective of the fact whether the demat
account is held singly/jointly.
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Can the nominee be changed?
Yes, the account holder can change the nomination anytime by simply filling
up the nomination form once again and submitting it to the Depository Participant.
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
joint holders, all joint holders must sign.
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Who cannot nominate?
Non-individuals including societies, trusts, body corporates, partnership
firms, Kartas of Hindu Undivided Family, minor, holders of power of attorney
cannot avail of nomination.
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Can a minor be nominated?
A demat account holder can nominate a minor, represented by one guardian.
However the guardian should not be a holder of the same demat account . |
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Can an NRI be appointed as nominee?
Both resident Indians as well as NRI's can nominate an NRI, subject to exchange
control regulations in force from time to time. Similarly, an NRI can nominate
a resident Indian or another NRI.
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Trading Corporate Benefits |
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What happens when there is a corporate action announced?
Depositories will give the list of beneficial owners as on record date to
the registrars/issuers so that the corporate benefits can be distributed.
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How will I confirm that bonus/rights entitlement is credited into my account?
An allotment advice will be sent by the issuer/ their Registrar & Transfer
(R & T) agent for bonus/ rights entitlement. The transaction statement
sent by the DP, will show the bonus/ rights credit into the account. The quantity
shown in the advice and the transaction statement should match.
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How will I receive dividend/interest, if any, on the securities I am holding?
Depositories give the issuer/ R & T agent of the security for which dividend
has been announced, a list of beneficial owners as of the record/ book closure
date. Based on this list provided by the Depositories, the issuer/ R &
T agent will forward a dividend warrant or directly credit your bank account
(specified by you in the Demat Account Opening Form) depending on the mode
of disbursement chosen by the company.
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If I have holdings in dematerialised form, will the bonus/ rights issue against this be in the same form?
The bonus/rights issue against holding in dematerialised form can be either
in the physical/dematerialised form as per the choice of the investor. If
no choice is given, then by default the securities will be issued in the form
they are currently held. Thus if you hold some shares in physical form and
some others in demat, you will receive the bonus/rights shares in both the
forms in proportion to the holdings in each form. |
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If I have holdings in physical form, can the bonus/ rights issue against this be in the dematerialised form?
Yes, if you choose to receive this non-cash corporate action in dematerialised form, they will be credited to your depository account. Please note that this facility will be available only in case of those companies linked up with Depository.
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Trading Depository Statements |
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When will I receive the Transaction Statements?
Billing cum Transaction Statements will be sent to all depository accounts
holders who have transacted in the relevant month. |
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I am an investor and I rarely do transactions in my depository account. Do I receive any statement?
Quarterly Holding statements are sent to all Depository accounts holders who
have not done any transaction in the relevant quarter. |
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When will the transaction statement reflect my purchase/sale of shares?
The Billing Cum Transactions statement will reflect the actual Debit or Credit
of the holdings in the Demat account and has no bearing to the Contract Date
of the Sale/Purchase. |
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To which address are Depository statements sent?
The Depository statements are sent to the correspondence address furnished
at the time of opening the account.
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Are there any provisions in the internet, where I can view my transaction/holdings?
Depository Account holders who have registered for the dp-on-the-net facility can view their current holdings along with the market value. Transactions can be viewed for only last one year. However the date range should not exceed 10 days. You can also download latest Holding statement as well as Transaction statement for the last 03 months. To avail of the DP-on-the-net facility you should be registered for the Netbanking facility.
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Trading Pledging |
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Can I pledge dematerialised securities?
Yes. In fact, pledging dematerialised securities is easier and more advantageous
as compared to pledging physical securities. |
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What should I do if I want to pledge electronic securities?
The procedure is as follows:
- ? Both, the person wishing to pledge his securities (pledgor) as well
as the lender (pledgee) must have depository accounts in the same depository.
- ? Pledgor must initiate the pledge by submitting to us the details of
the securities to be pledged in the standard format.
- ? The pledgee should confirm the request through his DP.
- ? Once this is done the securities are pledged and the securities will
be lying in the pledgor’s account.
Please note that all financial transactions between the pledgor and the pledgee
are handled outside the depository system.
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How can I close the pledge after repayment of my loan?
After you have repaid your loan, you can request for a closure of pledge by
issuing written instructions in the prescribed standard format. The pledgee
on receiving the repayment will instruct his DP to confirm the closure of
the pledge or instruct his DP to close the pledge unilaterally without awaiting
for any instruction from the pledgor. |
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Who will receive corporate action benefits on the pledged securities?
Even after the securities are pledged, the pledgor continues to remain the
beneficiary holder of those securities and will receive benefits of a corporate
action, if any.
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Can locked-in securities be pledged?
Yes. Locked-in securities can be pledged.
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Can I dematerialise shares which are pledged with a bank?
Yes, you can dematerialise securities that are pledged with a bank.Prior permission of the pledgee bank with which the securities have been pledged is required.The pledgee must be ready to dematerialise the securities in its custody.
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How is a pledge invoked?
In case of default by the pledgor, the pledgee can unilaterally invoke the
pledge by issuing instructions to his (pledgee's) DP in the prescribed standard
format. On execution of this instruction, the securities are transferred from
the pledgor’s demat account into the pledgee's demat account. This does
not require any confirmation from the pledgor. |
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Are all securities pledgeable?
All securities other than Government Securities can be pledged.
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Trading Public Offer |
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Is it possible for me to get securities allotted to me in public offerings directly in dematerialised form?
Yes. In fact, in the public issue application form of depository eligible
companies, there will be a provision for you to indicate the manner in which
you want the securities allotted to you. All you have to do is to mention
your demat account details i.e. DPId , DP Name, Client Id and the names of
the account holders and any allotment due to you will be credited into your
account.
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What is the advantage of getting allotment in demat form?
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. |
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If I am allotted securities in dematerialised form, but the details regarding my beneficiary account are incomplete/ wrong, will I get physical delivery of allotted securities?
Yes, securities would in such a case be dispatched in the physical form.
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If I am allotted securities in dematerialised form, when will I get the electronic credit in my account?
If securities are allotted in the dematerialised form, these would be credited to your account any day between allotment date and listing date, at the discretion of the company.
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How will I come to know that my application for public issue in electronic form has been accepted?
The issuer company/ their R & T agent will forward you the allotment advise giving the number of shares allotted in dematerialised form.
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Trading Settlement |
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What is 'execution date' given in the delivery instruction form?
Execution date is the date on which securities will be actually debited from
the client's demat account. Execution date can be same day or any future date.
The system will debit the client's demat account only on the execution date
mentioned on the delivery instruction slip. Please note that Off Market instruction
with same day execution and On Market instructions received after 4.00 p.m
for next day Pay-in will be accepted and processed at customer’s risk
and responsibility.
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What happens if the execution day given in the instruction is a NSDL business holiday?
In case the execution day is a NSDL business holiday, the next working day is taken to be the execution day.
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What benefit do I get by giving delivery instruction form with a future execution date?
By giving a future dated instruction you cover the risk against non-execution
of instruction due to lack of time or last minute rush.
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What is the current rolling settlement cycle ?
With effect from 1st April,2003 SEBI has mandated a T+2 settlement cycle i.e
a trade executed on the floor of the exchange on Day T will have to be settled
on Day T+2
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How do clients who have sold through the clearing member deliver securities?
The clearing member shall have to provide particulars such as clearing account
number (CM BP Id), Market type and the settlement number to the client. The
client will authorize his Participant to transfer securities from his account
to the clearing member's pool account. The clearing member shall give an authorization
to the Participant to accept credit into his account.
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How does the broker deliver securities to the Clearing Corporation (CC) in case of a delivery obligation?
The broker will be receiving delivery obligations from the Clearing Corporation.
He has to instruct his Participant by submitting a instruction slip in the
prescribed standard format and deliver the securities to the Clearing Corporation
before the pay-in for the settlement.
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How does the broker receive securities from the Clearing Corporation ?
The Clearing Corporation will inform Depositories of the receipt entitlement
of the broker who in turn will credit his clearing member pool account to
that extent on payout.
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How does the broker deliver securities to clients who have bought the same?
After the broker receives credit in his clearing member pool account, he will
be able to transfer securities to client's accounts for purchase made through
him. He has to instruct his DP to debit his clearing member pool account to
that extent stating his client's demat account number and the DP-Id of the
client's participant.
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What happens when the broker finds that his client has not delivered the depository shares he has sold?
If the client does not deliver the shares he has sold, the broker could either
deliver the securities himself, honour the commitment to the market and settle
the matter subsequently with the client or purchase the securities from the
auction and settle the trade.
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Can I buy and sell shares through Depository services of HDFC Bank ?
No. Shares can be bought and sold only through a stockbroker. A DP helps in
delivering the shares against a sell transaction or receiving the shares for
a buy or purchase transaction.
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Can I deliver dematerialised securities against obligation in physical segment in all stock exchanges?
Yes. SEBI has permitted dematerialised securities to be delivered against
obligations in the physical segment at the stock exchanges connected to the
depository.
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Is the facility of delivering dematerialised securities in the physical segments of the stock exchanges, available only for those securities that are to be compulsorily sold in the demat segment of stock exchanges by institutions?
No. Dematerialised securities of all the companies that are eligible for dematerialisation
can be delivered against obligations in the physical segment. This also applies
to delivery against auction of securities in the physical segment
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What is the procedure for receipt of securities in demat form in case of purchase of securities?
Purchaser of securities can give a one time standing instruction to his DP
for receiving securities in his account. This standing instruction can be
given at the time of opening of account or later. Alternatively an investor
may choose to issue separate receipt instruction every time he makes any purchase
of securities. |
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What is an 'Inter Depository' transaction?
Any transaction between two clients not having demat accounts with the same
depository is termed as an 'Inter Depository' transaction. |
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Is it possible to transfer Debt Market Security?
Yes, the Debt Market Security can be transferred as a normal transaction.
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PLEASE NOTE THAT ALL FINANCIAL TRANSACTIONS BETWEEN A TRANSFEROR AND TRANSFEREE OF SECURITIES ARE HANDLED OUTSIDE THE DEPOSITORY SYSTEM.
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Charges |
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What would be the charges for account closure and securities transfer due to account closing?
The charges would be as per the schedule of charges, agreed by you at the time of account opening or any subsequent changes therein.
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Transmission |
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What is Transmission?
Transmission of securities arises as a result of the death of the sole/any
one joint demat account holders. Consequently the securities lying in the
demat account of the deceased are transferred to the demat account of the
surviving holders in the same order. If the demat account of the surviving
holders does not exist in the same order then a new demat account will need
to be opened. The main advantage in transmission of dematerialised holdings
is that the transmission formalities for all securities held with a DP can
be completed in one go, unlike in the case of physical certificates, where
the claimant will have to interact with each issuing company or its R &
T agent. |
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What is the procedure for transmission to surviving holder(s) / nominee in case of the death of the account holder?
In case of the death of the joint holder, the surviving holder/s should hold
a demat account in the same name and order.
For e.g. in a demat account held by A,B and C if B dies then the account should
be held/opened in the name of A and C only for transmission to happen.The
surviving holders must submit the following :
- duly filled-in transmission form
- Original death certificate OR a notarised copy of death certificate.
- Attested copy of the client master list of the account of the surviving
holders in case the account is held with another DP.
In case of death of the sole holder , two possibilities arise
With Nominee- The requirements apart from those detailed above are:
- Nominee should have a demat account in sole name
- Duly filled transmission form.
- Death certificate in original or a notarised copy of the same
- Affidavit (in the prescribed format) on Rs 100/- stamp paper
- Indemnity (in the prescribed format) on Rs 300/- stamp paper
- Identity documents of Nominee.These could be - copy of the PAN card,Voter's
Identity card,Driving license,passport After verifying these documents,
DP will transmit the securities to the account of the nominee.
Without Nominee - There are two scenarios: Value of Securities in the
demat account of the deceased is less than Rs.1 lakh.The documents required
are:
- Nominee should have a demat account in sole name
Duly filled transmission form
- Death certificate in original or a notarised copy of the same
- Affidavit (in the prescribed format) on stamp paper of Rs.100/-
- Indemnity (in the prescribed format) on stamp paper of Rs.300/-
- Identity documents of the nominee.These could be - copy of the PAN
card,Voter's Identity card,Driving license,passport
Value of securities in the demat account of the deceased is more than Rs.1
lakh.The documents required are:
- Duly filled transmission form
- Death certificate in original or a notarised copy of the same.
- Succession certificate or letter of Administration or Probated copy
of the will
For Investors queries and redressal of complaints, please write to dphelp@hdfcbank.com
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Disclaimer:
Whatever have been stated above are in the good interest of the Investor / Demat Applicants / holders to provide a brief picture about the depository system. You are requested go through the guidelines of the depositories before taking any further action. For detailed guidelines, you are requested to approach your nearest HDFC Bank branch. HDFC Bank will not be responsible for any misunderstanding / act based on the above. Also HDFC Bank might ask for additional information / documentation than what has been stated above to process your application / instruction.
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