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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.
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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 and 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?
There are two options available to open a demat account with our bank:
- 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:-
- Account opening form duly completed in all respects.
- Photographs of all the authorised signatories duly signed across to be affixed on the reverse of the specimen signature card.
- 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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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, securities are to be transferred from the old account to the new account and the old account needs to be closed.
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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)
- 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 of the 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 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:
- 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.
- 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 alongwith 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 transacation 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 Licence 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 infront 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 held in NSDL only.
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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 preferable 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 couriered for Mumbai customers and dispatched to the respective branches for Non Mumbai customers.
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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 mentioned by the client on the form.
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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.20/-, 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 20/- 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 dematerialised form.Hence an investor holding physical certificates will not be able to sell them at an opportunity.Depositing securities with the Depository will give an investor a freedom from the worries of loss of share certificates through theft, mutilation, fire, etc. When he sells his shares, the paperwork required will be reduced to a minimum. Investors will also prefer to buy shares, which are already in the depository mode. Thus, he will increasingly find it easy to sell shares whenever he wishes to. In addition, as the depository system becomes popular, brokers will be increasingly reluctant to deal with physical shares.
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Can I dematerialise any share certificate?
An investor can dematerialize only those certificates which are already registered in his name and belonging to the list of securities admitted for dematerialisation at NSDL /CDSL. The investor will have to maintain accounts in the respective depository where the scrips are admitted for demat.
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What is an ISIN?
ISIN (International Securities Identification Number) is an 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 locked in securities are identified by a different ISIN as they cannot be sold before a particular date advised by the company. Free securities are transferable and saleable without any such restrictions.
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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?
The 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 deposited in a single 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 should first open an account as the sole holder (account A) and dematerialise the share certificates. You should 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 shares from the account A to account B. You will have to incur a charge on this transaction. Alternatively, the certificates can be transferred to the joint ownership and then sent for dematerialisation.
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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.
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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 certified true copy of the 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 ?
In cases where the customer has received Option letters instead of physical shares in his name, he can submit this option letter along with DRF for Dematerialisation. Here it should be ensured that the option letter is submitted at least 10 business days prior to the date of expiry of the option letter.
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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) submits a Transmission Cum Dematerialisation form duly signed by all the surviving holders and a notarised/certified true copy of the Death Certificate along with the DRF. The certification of the copy of the death certificate should preferably be done by an entity other than the Depository Participant.
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Can the DRF be rejected? What are the reasons for rejection?
Yes, DRF can be rejected. The reasons for rejection (not limited to) are Signature mismatch, Incorrect holders name, Shares not received as per DRF, Received quantity does not match with the quantity mentioned in DRF, DRF sent to wrong registrar, rejection due to technical reasons i.e. wrong account numbers, DRF not signed by all holders, duplicate certificates have been issued, fake certificates, court order prohibiting transfer etc.
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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 due to "Signature Mismatch", then either the holders need to sign as per their signatures recorded with the registrar as well as with their DP or the signatures have to be notarised/attested (preferably by an entity other than the Depository Participant). In addition to the above, the customer may also 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 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 submitting the form at the retail branch where the customer holds the savings/current account.
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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 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 his demat account balance, 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 a Depository and who is a Depository Participant?
A Depository can be compared to a bank. Just as a Bank holds cash in your account and provides services related to transactions of cash, a depository holds securities in electronic form and provides services related to transaction of securities. A depository interacts with clients through Depository Participant (DP) with whom the client has to maintain an account. Thus an investor who wishes to avail of Depository Services has to open a demat account with a depository participant.
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What are the benefits of opening a demat account?
The benefits of opening a demat account are as follows:
- SEBI has made it compulsory for trades in almost all listed scrips to be settled in demat mode.
- It is safe and convenient way to hold securities compared to holding securities in the physical form.
- No stamp duty is levied on transfer of securities held in demat form
- Instantaneous transfer of securities enhances liquidity i.e. fast settlement cycles.
- It eliminates delays, thefts, and subsequent misuse of certificates.
- Change of name, address, mandate, registration of power of attorney, transmission etc can be effected across companies by a single instruction to the DP.
- Each share is a market lot for the purpose of transactions.
- Any number of securities can be transferred/delivered with one instruction. Therefore paperwork and signing of multiple transfer deeds is done away with.
- It facilitates taking advances against securities.
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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)?
Issuer means any entity making an issue of securities.
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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) Limited (CDSL)SL. (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 of (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?
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