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Depository - FAQ's
DEPOSITORY
What is a Depository?
What is the Depository System?
How can I Deal with the Depository directly?
What are the obligations of a Depository?
What is NSDL?
Tell me about the Insurance Policy by NSDL?
What is CDSL?
How does the Depository curtail Forgeries / Fakes in Duplicate Distinctive Numbers?
Top
DEPOSITORY PARTICIPANT
Who is a Depository Participant?
What is a DP ID No?
Top
ACCOUNT OPENING
Why is it necessary to open a Depository Account?
Where do I open the Depository Account?
What are the formalities that are required to be completed to open a Depository Account?
Are applications for account opening to be collected at NSDL?
How do I open an Account with Aditya Birla Money DP?
Can my account with my DP be viewed by any other Depository Participant?
How many holders are possible?
What are the maximum number of Accounts that I can open?
Can I open a Second Account with a second Depository Participant?
How confidential is the information in my account.?
How do I Nominate more than one person ?
How do I avail Nomination Facility ?
Do Depository Accounts have Nominee Facility?
How is account confidentiality maintained?
What are the types of Accounts that can be opened by a client?
What are the RBI Approvals for NRI’s?
How do I open a HUF Account?
How do I open an Account of a Partnership Firm?
What are the formalities that are required to be completed to open a Corporate Account?
What is the Participant-Client Agreement?
What is a Beneficiary ~ Non House?
What is a Beneficiary ID No?
What are the details relating to Joint Holders ?
How do I open an account for Holdings in different Combinations?
Must I have to open an account with my Broker's Depository Participant ?
Why does a Broker have only one Clearing Member Pool Account?
How do we open a Clearing Member Account?
What is a CMBP ID?
Can a Broker hold his personal shares in his Clearing Member Pool Account?
How do I operate my Account?
What is a standing instruction?
When does my account get credited?
What is a client master list?
How safe is your account?
What are the formalities to be completed for closing your account?
Top
DEMATERIALISATION
What is meant by Dematerialisation?
Why should I buy shares in the demat form?
How do I benefit by selling demat shares ?
What is meant by Companies in compulsory Demat ?
Which are the Companies in Compulsory Demat?
What if I hold shares of Companies not in Demat?
Is it true that Demat is not compulsory?
Can physical AND Demat shares be held for a company?
In Demat do I need a Transfer Deed?
How do I Demat my Shares?
What is a DRF ?
What is Defacing of Shares?
How long would it take my account to be credited when I submit my shares for dematerialisation?
Are there Distinctive Numbers & Certificate Nos. in Demat Shares?
Why dematerializing, can a sole holder add a Joint Holder?
What are the various reasons for Rejections in Demat?
Top
REMATERIALISATION
What is meant by rematerialisation?
Does the NSDL issue fresh certificates in Remat?
What are the rules for Odd lot Rematerialisation?
What are the rules for stamp duty in Remat ?
How to remat my securities?
Top
TRADING AND SETTLEMENT
What is a market/Off market transaction?
What are Transaction Slips?
What is Electronic Credit?
What is RECEIPT IN instruction?
What is Electronic Debit?
What is a Delivery Instruction Slip?
Can dematerialized shares be traded in all Stock Exchanges?
Can I go to my DP to Trade in Securities?
What are the rules relating to The Benami Transaction (Prohibition) Act, 1989?
How do I transfer shares from one account to another?
What if wrong Debit-Credits take place in my account?
Can I square off in dematerialized Trading?
What is an auction?
When is the Occurrence of Auction?
What is a Settlement?
What is a Settlement number?
How many types of settlement are there?
What is Rolling settlement?
What is T + 5 in Settlement?
What is Settlement deadline?
What is Late Window?
What if the execution day given in the instruction is an NSDL Business Holiday?
Top
PLEDGING
What is a Pledge?
Where can I pledge my shares?
What are the rules for Pledge Of Locked-in Securities?
How can I Pledge / Hypothecate Shares?
Can I dematerialize shares which are Pledged with a Bank if the Bank is also a DP?
How to revoke pledged/hypothecated shares?
What happens after the closure of my loan with the Bank in case of a Pledge?
What is Pledge Invocation?
Top
CHANGE/CORRECTION OF ACCOUNT DETAILS
How do I go about Change in Address?
How do I go about Change in Bank Account?
How do I go about Change in Nomination?
How do I go about Change in Signature?
How do I go about Change of Name?
How do I change my status in the account after opening?
What is Transmission?
What are the formalities for Transmission?
Can successors claim the shares upon the Death / Expiry of a Holder?
Top
ELECTRONIC IPO
What is an IPO allotment?
How do I receive electronic credit in an IPO?
When are allotments credited in an IPO Allotment?
Is it compulsory for companies to make IPO allotments only in the demat form?
Is there any preferences in allotment in an IPO,if I hold shares in the physical or the electronic form?
Will NSDL open my account if I do not have one, for my allotment in an IPO?
Top
CORPORATE ACTION
What is a Corporate Action?
How does Corporate action take place?
Why is a Bank Account necessary?
Bonus
Dividend
Rights Issue
Book Closure Dates
Top
ISIN
What is ISIN?
Why are there different ISIN ‘s for different scrips?
How are Partly-paid and Fully-paid shares to be recognized in the depository?
Top
STATEMENT OF HOLDING/ TRANSACTION
What is a Statement of Holding?
When do I get the Statement of Holding?
What is the Transaction Statement?
When do I receive the Transaction Statement?
How can I use the Internet ~ View Transactions & Statement of Holdings?
How do I read my transaction statement?
Top
GENERAL
What is BENPOS?
What are the formalities for Freezing /Unfreezing of an Account ?
What is a Lock in Period?
How do I calculate Capital gains?
What is Securities Lending?
How do I pay my bills?
What is a Depository?
A Depository is a Company where the shares of an individual are held in the
electronic form, at the request of the shareholder.This eliminates the physical
form of holding. The National Securities Depository Limited (NSDL) was promoted
by IDBI, UTI, SBI and NSE. The Central Securities Depository Limited (CDSL) was
promoted by BSE .
What is the Depository System?
Your money may be held in the form of liquid cash at your home or may be
deposited in a bank. The bank holds your funds in the electronic form and
subsequently debits or credits the account. Depending on your issuance of
cheques or deposit of cheques. The advantages of safety and convenience of
dealing with a Bank overweigh the reasons for holding liquid cash in your
home.Your financial assets such as Equity Shares may be compared to the above
example.You may hold physical share certificates in your home and be exposed to
the various risks of lack of safety, mutilation, loss etc.Alternatively, you
may deposit your shares in an organization called a Depository, which holds
your shares in the electronic form. The advantages of the Depository System can
be further compared with physical shares as below :
The risk of loss, mutilation is common for physical certificates and completely
removed in electronic shares. Handling of a large number of physical
certificates is ended in the Depository mode. In the electronic segment, there
are no bad delivers as in physical segment. There is no stamp duty payable in
electronic shares compared to the duty of 0.50% in the physical segment while
transferring ownership. In loans against shares, banks usually charge a lower
interest rate and margin money than in the physical share certificates.
Settlements in the Stock Exchanges has commenced in the electronic segment and
has proven to be far more efficient and convenient compared to physical shares.
How can I Deal with the Depository directly?
You cannot deal with the Depository directly. However, if you have any
unresolved grievances against your DP, you can make a complaint to the
Depository at the below mentioned address.
What are the obligations of a Depository?
The Depository is obligated to maintain the Client Holdings, enable demat and
remat of eligible securities, disbursement of corporate benefits,effect
settlement of securities traded on the exchanges as well as Off-market trades
through book entry transfers, provide for Pledging/Hypothecation of eligible
securities.
What is NSDL?
National Securities Depositories Limited is a Depository promoted by UTI, IDBI,
SBI & NSE who hold the securities in electronic form on behalf of the
beneficiary holder.
Tell me about the Insurance Policy by NSDL?
Shares in the electronic segment are 100 percent secure. The agreement between
you and the DP indemnifies you against misuse of your electronic holdings by
any party, in any manner whatsoever. You may legally invoke such indemnity and
be 100 percent compensated.A comprehensive Insurance Policy has been taken by
NSDL which covers your DP account so as to protect you against any losses,
breach of security etc.
What is CDSL?
Central Depositories Securities Limited is a Depository promoted by BSE.
How does the Depository curtail Forgeries / Fakes in Duplicate Distinctive Numbers?
Physical share certificates with duplicate distinctive numbers are essentially
forged certificates. The R&T would identify and reject the certificates.The
concerned Stock Exchanges are informed of the details.
Who is a Depository Participant?
Depository Participant (DP) is an organisation that acts as an Agent of the
Depository and interacts with the investor.A DP is responsible for maintaining
your securities account and operating it only under your written instructions.
The Depositories Acts mandates that investors can use Depository facilities
only through DP’s. The distribution channel and geographical spread of the DP’s
offices allows you to access the Depository at a low cost.
What is a DP ID No?
It is an identification number given to a DP similar to a client ID.
Why is it necessary to open a Depository Account?
A Depository Account should be opened with a DP if you intend to hold your
securities in the electronic form and also if you intend to trade in the
electronic form.
Where do I open the Depository Account?
The Depository Account must be opened by you with a Depository Participant. A
list of names and addresses of all Authorized DP’s is available with the NSDL
and CDSL and you may meet any of these DP’s place and make a choice at your
based on your comfort and convenience.
What are the formalities that are required to be completed to open a Depository Account?
To open a Depository Account, you have to submit the duly filled in Account
Opening form along with the relevant documents.
Are applications for account opening to be collected at NSDL?
No. The Account Opening form must be collected only from a DP.The Account
Opening form can be collected from any of the Aditya Birla Money Offices.The forms may be
submitted and you may collect the acknowledgement across the table.
How do I open an Account with Aditya Birla Money DP?
The account opening form may be collected from Aditya Birla Money or downloaded from the
Internet.If your shares are in joint name, open your account in the same order
of the names.For combination of joint names, you must open separate accounts
for each combination.You can open multiple accounts with the same DP.Submit
photographs of the account holders along with their bank accounts nos.Sign the
agreement with Aditya Birla Money DP.For NRI’s, RBI Reference Number and Approval Date must
be provided.Submit your physical shares for demat and await credit to your DP
account.
Can my account with my DP be viewed by any other Depository Participant?
No. Your DP can only access their own clients' information. They cannot access
the client information of any other DP.
How many holders are possible?
The maximum number of holders possible are 3.
What are the maximum number of Accounts that I can open?
You may open more than one account with the same DP.
Can I open a Second Account with a second Depository Participant?
Yes. You have the choice of opening accounts with more than one DP.
How confidential is the information in my account?
The information of your holdings in the account is completely confidential.
This is similar to your account balance in a bank.
How do I Nominate more than one person?
As per the latest Company’s Act Amendment, only one person can be nominated.
How do I avail Nomination Facility?
Fill in the relevant columns in the application.
Do Depository Accounts have Nominee Facility?
No. NSDL allows the DP and the investor to capture details of the Nominee.
How is account confidentiality maintained?
Your account confidentiality is maintained, since only your DP has access to
the information in your account.
What are the types of Accounts that can be opened by a client?
Individual accounts can be opened by Ordinary Resident, HUF, NRI ~ Repatriable
and NRI Non-Repatriable. Corporate Accounts can be opened by Body Corporate,
Banks, Trusts, Financial Institutions, Foreign Institutional Investors,
Overseas Commercial Banks etc.
What are the RBI Approvals for NRI’s?
If you are an NRI, the RBI permission is required for NRI’s depending on the
category as given below :
| S.NO |
Category of your Account |
Sale or Purchase |
Remarks |
| 1 |
Primary Market ~ Allotment |
Purchase |
No RBI permission is required for allotment on repatriable basis. |
| 2 |
Primary Market |
Sale |
On repatriable basis RBI permission is required.
|
| 3 |
Secondary Market |
Sale or Purchase |
Repatriable or Non-repatriable basis.RBI permission is required and is valid
for 5 years. |
How do I open a HUF Account?
An account can be opened in the name of HUF in a similar way to individual
account and mentioning the account category as HUF. However, Kartha of HUF will
sign the application, agreement and all transactions under the account.
How do I open an Account of a Partnership Firm?
An account cannot be opened in the name of the firm. It has to be opened in the
name of any of the Partner as an Individual account only.
What are the formalities that are required to be completed to open a Corporate Account?
The procedure to be followed in order to open a Corporate account is quite
similar to the opening of an account by an individual, but in addition to that
you also have to submit the Memorandum of Association (MOA) as well as the
Board Resolution for authorized signatories in case of a limited and private
limited firms.
What is the Participant-Client Agreement?
The Participant ~ Client Agreement is a bipartite one to be signed by each
joint holder and the DP at the time of account opening on a non-judicial stamp
paper of Rs.10/-. A Beneficiary Account No. is generated by the DP and given to
you for all future reference.
What is a Beneficiary ~ Non House?
A beneficiary having an account with a Depository Participant other than the
Depository Participant himself.
What is a Beneficiary ID No?
Each beneficiary is allotted an ID No. generated by DP by which a beneficiary
is identified. This is similar to your Bank A/c No. or the Folio No.
What are the details relating to Joint Holders?
The DP will open the account only in the ORDER OF THE JOINT HOLDERS.
How do I open an account for Holdings in different Combinations?
For shares held by Joint Holders(different combinations), a separate account
must be opened for each such combination. This is so since ownership was
originally vested in that particular unique combination.
Must I have to open an account with my Broker's Depository Participant ?
No. There is absolutely no compulsion for you to open an account with the same
DP as that of your Broker.There is no loss in operational efficiency, as
claimed by some Brokers.However, some DPs offer concessions in fees if the
Broker as well as his Clients are dealing through him.
Why does a Broker have only one Clearing Member Pool Account?
The Clearing House deals with ONLY ONE designated account for pay-in and
pay-out with the Broker.This single account allows you to know to which account
securities must be delivered and received from.One Clearing Member Pool Account
is opened per card / Stock Exchange to settle trades in the Dematerialised
form.
How do we open a Clearing Member Account?
An application has to be made to the Depository with a request to the
Depository directly also.
What is a CMBP ID?
A CMBP ID is a Clearing Member Broker Pool Account. The broker opens this
account in order to use this account as a clearing house for all the clients
for whom he is the broker and the unique identification number given to this
account is known as the CMBP ID.
Can a Broker hold his personal shares in his Clearing Member Pool Account?
No. The CMPA is to be used only for clearing purposes, as this is a temporary
and in transition Account.Securities in this account are not eligible for
corporate actions, Bonus, Dividends, Rights etc.Thus, the Broker must open a
separate account for his own investments.
How do I operate my Account?
In the operation of your account, your DP can act on your written instructions
only. Make sure always that pre-signed instructions are not given by you to
anyone. This is like a pre-signed and blank cheque.
What is a standing instruction?
A standing instruction is an instruction given by the client, in order to
receive credit into his account.
When does my account get credited?
Your account would be credited with shares that you have freshly dematerialised
or have purchased recently.The credit will be confirmed to you in the
fortnightly Statement of Transactions sent by your DP
What is a client master list?
A client master list is a statement, which gives the complete details of the
client as well as the account which he has opened.
How safe is your account?
Your account is completely safe with your DP since nobody has access to your
account except your DP and the DP will operate your account only on instruction
from you.
What are the formalities to be completed for closing your account?
In order to close your account, you need to fill in an Account Closing form and
submit the same to your DP.
What is meant by Dematerialisation?
Dematerialisation is a process in which you can convert physical share
certificates into electronic shares.Shares should have been transferred in your
name / joint names before sending it for dematerialisation.
Why should I buy shares in the demat form?
The single biggest reason over buying shares in the physical form is that demat
shares credited to your account within 2 to 3 days after the end of the
settlement. This is unlike the average 30 to 40 days taken in receiving back
physical shares from the R&T Agent and sometimes with objections.Further,
possibility of loss or theft of the certificates is eliminated.This is in
addition to the 0.50% stamp duty savings, which works out to Rs.50 for transfer
of shares worth of Rs.10,000
How do I benefit by selling demat shares?
Brokers have no fear of bad delivery while selling demat shares. Due to this,
they offer lower brokerage to you.As bad deliveries are eliminated shares are
not returned due to objections, resulting in saving of costs and follow up.
What is meant by Companies in compulsory Demat?
Only share certificates in these companies can be dematerialized by the
investor.Shares must be registered in your name to allow for
dematerialisation.Shares delivered by your Broker on Purchase (known as street
name deliveries) cannot be dematerialized.
Which are the Companies in Compulsory Demat?
List Attached.
What if I hold shares of Companies not in Demat?
You may approach the company and request them to sign up with NSDL Vigorously
follow up as Demat is in your favour.
Is it true that Demat is not compulsory?
Yes. You have the option to hold shares either in the physical OR in the
dematerialized form.This is as per the Depositories Act, 1996.However, when you
buy shares you may receive delivery in the demat form as per the option of the
seller.
Can physical AND Demat shares be held for a company ?
Yes. You may dematerialize only a part of your holdings.
In Demat do I need a Transfer Deed?
No, there is no need for a Transfer deed in order to get your share
certificates dematerialised.
How do I Demat my Shares?
In order to demat your shares/certificates, you have to fill in a
Dematerialisation Request Form in triplicate alongwith the relevant details and
submit the same to your DP alongwith the certificates to be dematerialised. The
combination of names in the shares must be same as that in the account.
What is a DRF?
In order to get your shares converted from the physical to the electronic form,
you have to submit your certificates alongwith a request form asking for the
conversion. This request form is called a DRF or a Demat Request Form.
What is Defacing of Shares?
When the certificates are surrendered for demat they are to be canceled at the
face of the certificate by putting a stamp " Surrendered for Demat " so that
the certificate cannot be traded. This process of affixing the "Surrendered for
Demat" stamp on the shares is known as defacing of shares.
How long would it take my account to be credited when I submit my shares for dematerialisation?
Your account will be credited typically in 15 days.
Are there Distinctive Numbers & Certificate Nos. in Demat Shares?
No. Dematerialized shares do not have any distinctive or certificate
numbers.The shares are in FUNGIBLE ~ 100 shares of a company are the same as
any other 100 in that company.
Why dematerializing, can a sole holder add a Joint Holder?
No. At this point, ownership cannot be transferred from an individual name to a
joint name.To do this, you should first open a Depository Account as the sole
holder and dematerialize the shares.You should open another Depository Account
in the joint names (AB).Now make an off-market transaction from account A to
account AB.The DP will charge a nominal amount for this transaction.As an
alternate, the certificate can be sent for transfer in the joint names AB and
then surrendered for demat with the DP.
What are the various reasons for Rejections in Demat?
Fake Certificate, Signature difference, Third Party Claim, Court Cases are the
reasons as to why a demat request is rejected by R&T Agent.
What is meant by rematerialisation?
Rematerialisation is a process in which you can convert your electronic holding
into physical share certificates
Does the NSDL issue fresh certificates in Remat?
In the rematerialisation process, a request goes from the DP to the R&T
Agent through the NSDL for the remat. The R&T Agent will process the
request, print and then despatch the new share certificates directly to
you.Thus, the NSDL does not issue or handle share certificates.
What are the rules for Odd lot Rematerialisation?
There is no concept, any longer, of a market lot in the electronic segment .
Thus, you may remat your odd lot shares at any time.This would be done in
exactly the manner as you would remat you market lot shares.
What are the rules for stamp duty in Remat?
The Depository is the registered holder in the Company’s records.In a remat,
transfer from the Depository to you will NOT be liable to a levy of Stamp Duty.
This is as per the Depositories Act. However, the Depository will charge
nominal charges for this process.
How to remat my securities?
For Remat of Securities, you have to submit a Remat Request Form (RRF)to the DP
mentioning the relevant details for the rematerialization process to take
place.
What is a market/Off market transaction?
A market transaction is a sale or purchase in which a broker is involved and an
off market transaction is a sale or purchase in between two clients and in
which a broker is not involved.
What are Transaction Slips?
A transaction slip is a debit or credit instruction slip endorsed by you
submitted to your DP for execution.
What is Electronic Credit?
Electronic Credit is the process of crediting of your account through demat or
if you purchase some shares in the electronic form.
What is RECEIPT IN instruction?
When you purchase shares in the electronic segment, the payment will be made to
your Broker and to now receive the credit of the purchased shares in your DP
account, you must give instructions to your Broker as well as your DP by way of
a RECEIPT IN instruction.This instruction effectively credits the purchased
electronic shares in your DP account.
What is Electronic Debit?
Electronic Debit is the process of debiting of your DP account through remat or
if you sell some shares in the electronic form.
What is a Delivery Instruction Slip?
A Delivery Instruction Slip (DIS) is an instruction given by the client to the
DP to debit the holdings of the client.
Can dematerialized shares be traded in all Stock Exchanges?
No. These can be traded only at those Exchanges that have connectivity with
NSDL and only Exchanges which have a SEBI approved settlement guarantee system
are connected to NSDL.Presently, only NSE, BSE and CSE have this facility.
Can I go to my DP to Trade in Securities?
No. The DP is only an agent of the depository to facilitate settlements in
trades.You must approach a registered member of a stock exchange to buy and
sell shares.How can I purchase or sell dematerialised sharesYou must instruct
your Broker to complete the purchase transaction in the dematerialised form and
confirm to you.You must then ensure that your Broker sends a matching
instruction to your DP to transfer the purchased shares to your account.This is
the same procedure for Sale of shares.
What are the rules relating to The Benami Transaction (Prohibition) Act, 1989?
The rightful and registered owner of your dematted shares is the Depository.
Purchase / Sale or Trading in these shares would be considered as Benami
transactions.However, the Benami Transactions (Prohibition) Act, 1989 have been
modified to exclude Securities held by :~ A Depository as a Registered owner ~
A DP as an Agent of the Depository.
How do I transfer shares from one account to another?
In order to transfer the holding in your account, you need to submit a delivery
instruction slip in case of a pattern differentiation, and you need to close an
account and transfer the shares in case there is no pattern differentiation of
the holders name of the debiting and crediting accounts.
What if wrong Debit-Credits take place in my account?
If wrong debit-credits takes place in your account, you can inform your DP and
your DP will inform the relevant DP or the client who has also been wrongly
debited or credited and if it receives confirmation from that particular DP or
the client, it will reverse the transaction, and if your DP does not receive
any confirmation it will then inform NSDL of the same.
Can I square off in dematerialized Trading?
Yes. Trades can be squared off within the weekly settlement cycle of a Stock
Exchange, in the physical segment.Trades can be squared off within the same
day, in the exclusive Demat segment.
What is an auction?
An auction is a public sale of your shares to the highest bidder.
When is the Occurrence of Auction?
Subsequent to a sale trade made by your broker, the scrip number traded are
required to be delivered to the exchange, through your broker pool account.
Failure to deliver the shares before the deadline time period will result in
default and your shares will be auctioned.
What is a Settlement?
A settlement period is the period, when the business is done in an exchange.
There are different types of settlement with different exchanges
What is a Settlement number?
The settlement number is a unique number given to each settlement period of a
particular exchange in order to differentiate that settlement from all the
other settlements of that particular exchange.
How many types of settlement are there?
The following are the types of settlements
-
Rolling odd lot
-
Company objection
-
Physical
-
Auction rolling
-
Rolling market lot
-
Bad delivery
-
Auction physical
-
3D market
-
Institutional
-
Inactive
What is Rolling settlement?
Rolling settlement is a type of settlement in which the settlement date for
that particular exchange is not taken into account for settlement, but the
shares should be delivered to the stock exchange within a fixed time after the
trade has been executed. For e.g.: a T+5 type of settlement would indicate that
the shares should be submitted to the stock exchange within 5 bussiness working
days after the trade has been executed
What is T + 5 in Settlement?
T + 5 in settlement means that the delivery of shares to the stock exchange
should take place within 5 business working days after the trade has been
executed
What is Settlement deadline?
The settlement deadline is the time by which the trades for that particular
settlement should be executed.
What is Late Window?
Late window is a concept in which the trades are executed a little later than
the settlement time for that exchange, although the DP does charge a late fee
for executing the trades in this mode.
What if the execution day given in the instruction is an NSDL Business Holiday?
In such a case, the next working day is taken to be the execution day.
What is a Pledge?
If you wish to take a loan from a Bank against the security of your physical
share, the certificate must be physically lodged with the Bank.This action is
called a Pledge.In electronic holding also you can pledge the shares by making
a request with your DP in favour of any Bank.
Where can I pledge my shares?
You can pledge your shares in a bank which is a DP or a client of a DP.
What are the rules for Pledge Of Locked-in Securities?
Locked-in shares can be pledged with a Lendor (such as a Bank) for a
loan.However, the pledge cannot be closed or invoked before the lock-in release
date.
How can I Pledge / Hypothecate Shares?
First of all the Bank granting the loan should be a DP or a Client of a DP.You
may submit the written Pledge instruction to your DP.The Pledged quantity is
blocked in your DP Account by the Bank electronically.The loan is now available
for use by you.
Can I dematerialize shares which are Pledged with a Bank if the Bank is also a DP?
Yes. You may, with the permission of the Bank.
How to revoke pledged/hypothecated shares?
To revoke pledged/hypothecate shares, you need to submit a pledge revocation
form to the DP asking for the revocation of your pledged securities.
What happens after the closure of my loan with the Bank in case of a Pledge?
Upon closure of your loan with the Bank, the Pledge is closed in your DP
account by the Bank directly.Those released shares in your DP account are once
again available to you as free balances.
What is Pledge Invocation?
When a pledgee does not repay the loan amount the shares pledged with the Bank
can be transferred in their favour. This is similar to the physical shares
being transferred in the name of the lendor in the event of a default.Who will
receive the corporate actions like dividends, bonus etc in Pledged shares . You
continue to remain the beneficial holder of pledged shares. You will continue
to receive the Dividends, Bonus and all other Corporate actions.
How do I go about Change in Address?
For changing your address. you have to write to your DP asking for a change of
address, mentioning your client ID as well as the address to which you want to
change it to and sign the letter.
How do I go about Change in Bank Account?
For changing your bank details, you have to write to your DP asking for a
change in your bank details, mentioning your client ID as well as your changed
bank details and sign the letter
How do I go about Change in Nomination?
For a change of Nomination, you have to submit the duly filled in relevant form
to the DP asking for a change in Nominee.
How do I go about Change in Signature?
For changing your signature, you have to submit an affidavit to the DP asking
for a change in signature.
How do I go about Change of Name?
Once an account is opened , you cannot change the name .However, if you want to
have an account in a different combination , you can open another account with
your DP.
How do I change my status in the account after opening?
A change in status is not possible after opening your account. In order to have
a different status, you need to open a new account.
What is Transmission?
Transmission is a process in which the holdings of a client are transferred to
the joint holder and the nominee in the event of the client’s death or expiry
and if the joint holder/nominee is available.
What are the formalities for Transmission?
In case of death of a holder, the balances can be transferred in favour of the
joint holder if available or the nominee in case of no joint holder. The joint
holder or the nominee is required to fill in the transfer form and execute an
indemnity for the purpose.
Can successors claim the shares upon the Death / Expiry of a Holder?
A transmission request form is available with the DP.A single form should
suffice for transmission of shares of all the companies held by the
deceased.The successors must submit the request form with all supporting
documents.On confirming validity, the DP will transfer shares of all the
companies in a single action to the Depository Account of the Successor.
What is an IPO allotment?
Allotment of shares in a new issue is known as IPO Allotment.
How do I receive electronic credit in an IPO?
In the IPO application form, fill up the option for electronic allotmentProvide
your Client Account No. and DP Identification No.If allotted, shares will be
credited to your DP Account.Your fortnightly Statement of Holding sent through
post, will indicate the credit
When are allotments credited in an IPO Allotment?
Allotments in an IPO are credited directly to your account on any day between
the allotment date and the date of listing.This is at the discretion of the
company.
Is it compulsory for companies to make IPO allotments only in the demat form?
No. It is not.However, the laws are expected to change whereby it would be
compulsory for issues more than Rs.10 crores.
Is there any preferences in allotment in an IPO,if I hold shares in the physical or the electronic form?
No. The basis of allotment in an IPO is independent of the form of the shares
in physical or electronic. Thus, no one can receive any preference in
allotment.
Will NSDL open my account if I do not have one, for my allotment in an IPO?
No. In such an instance, physical shares will be issued by default.A Depository
account can be opened only by the beneficiary holder or by the Power of
Attorney.
What is a Corporate Action?
Any action taken by the company for its shareholders is known as a Corporate
Action. For e.g. Declaration of Bonus/Rights Issue, Dividend etc
How does Corporate action take place?
Corporate action takes place when the company issues a dividend or a share.
Why is a Bank Account necessary?
A Bank Account is necessary if you want to get your bank account credited
whenever there is some corporate action like dividends etc.
BONUS
How will I receive Bonus Shares?
Usually Bonus shares will be credited directly to your account by the
Depository.You may however exercise your choice and receive the bonus / rights
shares in either demat or physical form. Please inform the company of your
choice.If you have the existing shares in physical form, the bonus may be
issued in the demat form, as per your request to the company.Your statement of
transaction, sent every 15 days by the DP, will show the bonus credit in your
account by default
How do I receive fractional part of Bonus?
The fractional part of bonus will be paid to you in cash by the Company.The
remaining whole part will be credited to your account.
DIVIDEND
How do I receive my Dividend?
The Company / R&T Agent will forward Dividend payment to you through a physical
warrant, as in the normal course.NSDL, which has the names of the beneficiary
owners as on the Record Date, gives the list to the Company / R&T Agent the
list of beneficial owners.NSDL does not handle cash corporate actions such as
Dividend and Interest.
RIGHTS ISSUE
How do I receive Rights Offers?
The Company / R&T Agent will mail the rights form directly to you.These forms
will be mailed to all shareholders of the company whether in the physical or
electronic segments.You cannot receive Demat shares in case of rights without
having a Depository Account.The statement of transaction, sent every 15 days by
the DP, will show the rights credit in your account.
BOOK CLOSURE DATES
How will I know about Book Closure Dates?
The DP will have the book closure dates of all the scripts, so you can contact
the DP for the book closure dates.
What is ISIN?
ISIN stands for International Security Identification Number. The ISIN number
and name of the company must be necessarily mentioned in the DRF. This ensures
that the security in the DRF is same as the one you want to dematerialise.
However, the exact code number of any ISIN is available with Aditya Birla Money DP, and your
Dealing Officer at a Aditya Birla Money office would be glad to fill in your DRF.
Why are there different ISIN ‘s for different scrips?
There are different ISIN (International Securities Identification number
different scripts in order to have a unique method of identifying each script.
In order to differentiate each and every script from all the other scripts.
How are Partly-paid and Fully-paid shares to be recognized in the depository?
In the depository, partly paid shares are given a separate ISIN number and so
are the fully paid shares. Thus, they are completely separate entities and are
distinguishable as they are traded separately on the Stock Exchanges.When
partly paid shares are fully paid up on payment of the Call Monies, the R&T
Agent will electronically convert those into fully paid shares. What is a
Statement of Holding? A Statement of Holding is a statement, which gives the
details of the holding in the clients account i.e. the scripts that are there
in your account and the quantity in each script on that particular day.
What is a Statement of Holding?
A Statement of Holding is a statement, which gives the details of the holding
in the clients account i.e. the scripts that are there in your account and the
quantity in each script on that particular day.
When do I get the Statement of Holding?
The DP shall print and despatch the Account holding statement to the client
once in every month.
What is the Transaction Statement?
The details of the purchase / sale made by you during a period is given in a
statement and this statement is called the Transaction Statement.
When do I receive the Transaction Statement?
The transaction statement is like a Bank Passbook.It shows all transactions
done by you within a fortnight.If there are no transactions, the statement is
sent to you every quarter giving details of your holding.
How can I use the Internet ~ View Transactions & Statement of Holdings?
Go to Registration / Transaction.
How do I read my transaction statement?
The transaction statement can be read as follows:
‘By’ denotes a credit into your account for e.g.: By Demat … means that these
shares have been credited into your account due to dematerialisation of
securities.
| Fee schedule effective from 11-NOV-2009 |
| FEE HEAD |
Ordinary Demat Account |
Demat Account with SPEED-e Password Facility |
Demat Account with SPEED-e Smart Card Facility |
| Stationery Charges |
Rs.25/- |
Rs.25/- |
Rs.25/- |
| Advance Deposit (Exclusive DP Account) |
Rs.1000/- |
Rs.1000/- |
Rs.1000/- |
| Transaction Fee (for debit to client account) for market
trades-ASCILCM |
Rs.22.50/- per instruction or
|
Rs.22.50/- per instruction or
|
Rs.22.50/- per instruction or
|
| Transaction Fee (for debit to client account) for market
trades of other CM and off-market trades. |
Rs.22.50/- per instruction
|
Rs.22.50/- per instruction or |
Rs.22.50/- per instruction or |
| Normal Maintenance Fee Scheme |
Rs.336 per Annum |
Rs.336 per Annum |
Rs.336 per Annum |
| Advance Maintenance Fee Scheme |
1 Year |
Rs.300 per Annum |
Rs.300 per Annum |
Rs.300 per Annum |
| 2 Years |
Rs.550 per Annum |
Rs.550 per Annum |
Rs.550 per Annum |
| 3 Years |
Rs.750 per Annum |
Rs.750 per Annum |
Rs.750 per Annum |
| Pledge Creation |
Rs.28/- per instruction |
Rs.28/- per instruction |
Rs.28/- per instruction |
| Pledge invocation/Closure/Confirmation |
Rs.16.50 /- Per isin |
Rs.16.50 /- Per isin |
Rs.16.50 /- Per isin |
| Demat Charges |
Rs.5.60/- per certificate plus Rs40/- courier charges |
Rs.5.60/- per certificate plus Rs40/- courier charges |
Rs.5.60/- per certificate plus Rs40/- courier charges |
| Remat Charges |
Rs.11.20/- per certificate plus Rs.40/- courier charges |
Rs.11.20/- per certificate plus Rs.40/- courier charges |
Rs.11.20/- per certificate plus Rs.40/- courier charges |
| Smart card kit |
N.A |
N.A |
Rs.7500/-(Shipment charges) |
| Account Freezing |
Nil |
Rs.125/- |
Rs.125/- |
| Courier charges |
Rs.15/- |
Rs.15/- |
Rs.15/- |
| Interest on outstanding |
18% per annum |
18% per annum |
18% per annum |
Note: Incase of any additional statement other than the normal fortnightly
transaction statement Rs.10 per statement will be charged.
What is BENPOS?
Beneficiary Position giving the details of holding in the Beneficiary Account
is downloaded by the Depository to the companies on a periodical basis.
What are the formalities for Freezing / Unfreezing of an Account ?
If you are likely to be out of station for a long time, you may instruct Aditya Birla Money
DP to freeze your account.This is a method to prevent misuse and tampering.To
freeze your account, simply issue a written instruction letter to the effect to
your DP.Your account will be unfrozen when you once again issue a written
instruction to the DP.
What is a Lock in Period?
The shares cannot be transferred from the holders name for a fixed period
mentioned on the face of the certificate.
How do I calculate Capital gains?
You can Calculate Capital gains by the following method:
For example, you have two scripts, script A and script B : Quantity of script A
* Price of script A=X Quantity of script B * Price of script B =Y Then , value
of the holding = X+Y Capital Gains =Value of the holding at the end of a
period-Value of the holding at the end of the previous period
What is Securities Lending?
Securities lending in a concept in which a client can raise a loan for his
securities directly from the DP itself and not go to a bank and pledge these
securities.
How do I pay my bills?
You can pay your bills either by Cheque or DD.
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