The Kalupur Commercial Co-operative Bank Limited is the first Ahmedabad based Co. Operative bank to work as a Depository Participant (DP) of National Securities Depository Limited (NSDL). It now offers to its customers a whole range of Depository services through 24 branches.

::::::::::: DEPOSITORY SYSTEM

The Concept of Depository

The Government of India enacted the Depositories Act in August 1996 NSDL was inaugurated as the first depository in India on November 8, 1996 which is promoted by IDBI, UTI, SBI and NSE to provide electronic depository facilities for securities trade. 

Benefits of Depository System 

• Bad deliveries, and all risks associated with physical certificates, such as loss, theft, etc. is eliminated as in the Depository system, physical securities are converted into electronic book entries.
• Reduction in handling huge volumes of paper for Brokers, Custodian, Stock Exchanges, Banks, etc.
• Settlement of trade is faster and free of problems, thus enabling a higher frequency of portfolio turnover.
• Transfer of shares is relatively inexpensive, speedy and does not involve the Transfer Deeds and Stamp Duty payment. Besides this, brokerage charged by brokers is also less as chances of bad delivery is almost eliminated.
• Faster disbursement of Corporate benefits like Rights, Bonus, etc.
• The problem of odd lot is totally eliminated as the market lot for transaction in Depository mode has been fixed as one share.
• Periodic status reports to investors on their holdings and transactions, leading to better controls.

::::::::::: KALUPUR BANK AS A DEPOSITORY (DP) PARTICIPANT

National Securities Depository Limited (NSDL) carries out its Depository functions through a network of "Depository Participants" (DPs) who actually conduct business with the investors. The depository system functions very much like the banking system. Just like in a Bank one can open an account and deposit / withdraw transfer money, similarly one can open a securities account with a Depository Participant (DP), withdraw securities and instruct the DP to deliver / receive securities.

Services provided by Kalupur Bank as a DP

Bank is providing demat services to their saving / current account holder wherein the client will have to maintain minimum / adequate balance specified by the bank from time to time.

::::::::::::::OPENING OF DEMAT ACCOUNT

The client needs to fill up specified form and execute a "Client - Participant Agreement with the DP (Kalupur Bank). Demat account can be opened either singly or with one or more joint applicants. Any number of accounts can be opened with the DP or with different DPs. With opening of account the client gets identification number called "Client ID". At the time of opening accounts, "in person" verification needs to  be carried out for all the holders.

The following documents are required for opening of a Depository account: -

Common documents for Individuals and Corporates -

• Account opening form duly filled in along with photographs.

• Agreement along with schedule ‘A’  (rate structure) signed by all the joint holders

• Debit authorization for debiting charges duly signed by savings account holders of the Bank.

• In case of individuals, proof of identity & address is compulsory for all joint holders as detailed below.**As per (annexure 1)

• PAN card is compulsory for all the categories of accounts. In case of individuals / NRIs, all joint holders should submit copy of PAN card. Original PAN card is required for our verification.

• Copy of MICR cheque should also be given.

• In case of individuals, a beneficial owner should make a nomination in favour of any person by filling up the prescribed nomination form.   

Annexure 1

• Proof of Identity (POI):

  • Passport

  • Voter ID Card

  • Driving License

  • PAN card with photograph

  • Identity card/document with applicant’s Photo, issued by

    • Central/State Government and its Departments,

    • Statutory/Regulatory Authorities,

    • Public Sector Undertakings,

    • Scheduled Commercial Banks,

    • Public Financial Institutions,

    • Colleges affiliated to Universities (this can be treated as valid only till the time the applicant is student),

    • Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council etc., to their Members and

    • Credit cards/Debit cards issued by Banks.

• Proof of Address

  • Ration card

  • Passport

  • Voter ID Card

  • Driving License

  • Copy of bank passbook verified by D.P.

  • Bank statement should not be more than two quarters old as on the receipt of account opening form. Bank statement should be on bank's letter head duly stamped & signed by bank officials.  

  • Verified copies of

    • Electricity bills (not more than two months old),

    • Residence Telephone bills (not more than two months old) and

    • Leave and License agreement / Agreement for sale.

  • Self-declaration by High Court & Supreme Court judges, giving the new address in respect of their own accounts.

  • Identity card /document with address, issued by

    • Central/State Government and its Departments,

    • Statutory/ regulatory Authorities,

    • Public Sector Undertakings,

    • Scheduled Commercial Banks,

    • Public Financial Institutions,

    • Colleges affiliated to universities (this can be treated as valid only till the time the applicant is a student) and

    • Professional Bodies such as ICAI, ICWAI, Bar Council etc, to their Members.

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Additional requirements for Corporate Account -

• MOA and AOA duly certified along with Board Resolution to open and operate the account.

• Copy of form no: 18 in case of change of address duly attested by a director.

• Copy of form no. 32 in case of resignation & new appointment of new director duly attested by a director.

• Certificate from present banker regarding satisfactory conduct of the current account.

• Copy of PAN card

• Address & Identity Proofs of directors.

• Copy of MICR cheque

For further information, please contact Demat Department. Ph No: 40014171 to 174

::::::::::: RATE STRUCTURE FOR DEPOSITORY SERVICES

• Fee schedule based on existing NSDL charges and is subject to change at the sole discretion of the bank.
• All charges will be payable monthly. Charges will be debited to the saving/current Account of the party.
• Service Tax will be levied separately as per the rules in force.
• The Value of transactions will be in accordance with the rate provided by NSDL.



::::::::::: DEMATERIALISATION OF SECURITES  

Demat is a process by which the physical certificates are taken back by the Company/Registrar and actually destroyed and the physical stock is converted into electronic entries in the depository system. This facility can be availed of after opening securities account with the DP .

Procedure involved in case of dematerialisation

• Investor surrenders defaced certificates marked 'Surrendered for Dematerialisation" along with Dematerialisation Request form (DRF) to the DP.
• The DP intimates NSDL of the request and forwards the concerned certificate(s) to the registrar for the purpose of Dematerialisation.
• Registrar confirms the dematerialisation request from NSDL.
• Registrar validates the request, updates records & informs NSDL.
• NSDL in turn updates its records and informs DP of such dematerialisation.
• Thus the Investor's account gets credited
• Registrar may reject demataisation request for any objection /reasons.

Guidelines for Demat Service                     

::::::::::: REMATERIALISATION OF SECURITIES

Rematerialisation is process of converting your electronic holdings in to share certificates in paper form.

Procedure involved in case of rematerialisation .

• Investor submits Rematerialisation Request Form (RRF) to DP.
• DP intimates NSDL of the request and submits RRF to the registrar.
• NSDL confirms Rematerialisation request to the registrar.
• Registrar updates accounts .and prints certificates & informs NSDL .
• NSDL updates account and Informs the same to the DP.
• Registrar dispatches certificates to the investor.

::::::::::::::::REPURCHASE OF SECURITIES

Repurchase is process of getting NAV based realisation of a particular script in the list of securities.

Procedure involved in case of repurchase.

• Investor submits Repurchase  Request Form (RRF) to DP.
• DP intimates NSDL of the request and submits RRF to the registrar.
• NSDL confirms Repurchase request to the registrar.
• Registrar updates accounts .and prints cheque on basis of NAV of a particular security.
• NSDL updates account and Informs the same to the DP.
• Registrar dispatches cheque to the investor.

::::::::::: MARKET AND OFF MARKET TRANSFERS

Settlement of Trades is faster and free of problems. The role of Kalupur Bank would be to carry out clients' instructions for the movement of securities on sale or purchase..

Procedure involved when you sell shares

• The investor places an order with the broker to sell shares, who in turn gives a contract note to the investor.
• Investor instruct the Depository Participant by way of a "Delivery Instruction slip by Clients". To debit the account with the number of shares sold.
• The shares in turn will move from the clients account to the broker's Clearing Member (CM) account. The broker's CM account thus gets credited.
• At the time of settlement Broker transfers securities from his CM account to Clearing corporation or Clearing House (CC/CH) by way of "Delivery-Out Instructions by CM for Pay- in" slips". Thus the broker's account gets debited.
• On the day of pay out investor will get cheque from his broker. 

Procedure involved when you buy shares

• The investor places an order with the broker to purchase shares who in turn gives a contract note to the investor.
• At the time of settlement, the broker makes payment to CC/CH via the Clearing Bank.
• The CC/CH then releases shares to the Broker's CM account.
• The broker gives the DP "Delivery Instructions by Clearing Member on Pay-out" slips to debit the CM account and in turn the investor's account gets credited.

In case of off Market trades

In case when shares are transfered to other account, the client will give the DP " Delivery Instructions slip " to debit the account by filling the details in the box marked as "For Off-Market trades".

**The client can give standing instructions for credit wherein the shares purchased will get credited automatically into the account.



::::::::::: PLEDGE

The pledgor (borrower) can pledge their dematerialised shares held in electronic form by making an application to the DP. The securities lying in the beneficiary account of the pledgor (borrower) can be pledged In favour of the pledgee (lender / bank).

Procedure involved when shares are Pledged

• For Initiation of the Pledge
  • The Pledgor (Borrower) will give DP instructions as to Creation of Pledge as laid down in Annexure W
  • Similarly the Pledgee (Lender) will give instructions to his DP as to Confirm the Creation of Pledge as laid down in Annexure W
  • On receipt of instructions from both the Pledgor (Borrower) and Pledgee (Lender) through their DPs, the Depository (NSDL) will create the Pledge.
• For Closure of the Pledge:
  • The Pledgor (Borrower) will give DP instructions as to Closure of Pledge as laid down in Annexure W
  • Similarly the Pledgee (Lender) will give instructions to his DP as to Confirm the Closure of Pledge as laid down in Annexure W
  • On receipt of instructions from both the Pledgor (Borrower) and Pledgee (Lender) through their DPs, the Depository (NSDL) will close the Pledge
  • Pledgee can also initiate unilateral closure of pledge in which no action is required to be taken by the pledgor.
• Invocation of Pledge : 
  • In case where pledgor fails to repay the amount borrowed, pledgee may instruct his DP to invoke the pledge. Pledgee's (lender/Beneficiary) account will be credited with the share, who, in turn will sell off shares to set of borrower account.

Statement of transactions cum holdings.

Kalupur Bank as a DP will hold securities in its custody (in electronic form) on behalf of its clients. The client will be provided a statement which will give details about the transaction done in the account as well as securities held by the client in the securities account on a monthly bases. If there is no transaction in the account, the statement would be provided once in a quarter.

Freezing / Locking of investors accounts

Securities account can be freezed /locked for any given period of time as a security measure. During this period, no debits can be made to the clients account. This additional facility is given just to avoid any unauthorised operations of the account. The client may freeze particular ISIN (Company). Particular quantity of ISIN or whole account.

Receipt of Corporate benefits / IPO

In case of any rights / bonus issues, the distribution of share entitlements will be done in electronic form by NSDL on basis of information provided by the company. In case of public issues the client can receive allotment of shares in the demat account. In case of monetary benefits when a company announces dividend, NSDL will provide the details of all persons having electronic holdings of that particular company and the company will disburse the dividend to such holders by sending them dividend warrants directly or though ECS.



::::::::::: D-MAT  Services at a glance

1. Services at Branches

Following demat services are provided by our branches

• Account opening
• Acceptance of demat request forms
• Issuance of delivery Instruction slips
• Acceptance of delivery Instruction slips
• Modification in account details.

:::::::: Demat facility is  Available at following branches 

1. Anand

2. Anandnagar

3. Ashram Road (Head Office)

4. Bareja

5. Baroda

6. Bavla

7. Bopal

8. Drive-in Road

9. Isanpur

10. Kalupur

11. Madhupura

12. Maninagar

13. Nava Wadaj

14. Panchvati

15. Patrakar Colony

16. Sanand

17. S.M. Road

18. Sola Road

19. St.Xavier's Road

20. Stadium Road

21. Swastik

22. Usmanpura

23. Vasna

24. Vastrapur

25. Bodekdev
    

2. Services through Telephone/Internet.

Customer can avail 24 hours demat balance services through Tele-demat & IDeAS.

Tele - Demating Services : Through this service customers can receive their   demat account balances on Telephone No.s : 079-27582035,  079-27582036. 

IDeAS : Client can view holding with valuation and the transactions for a period of past 30 days. Client can select the period upto 30 days from the current date, to view the transactions. Print out of the screen can also be taken. Client can also download the transaction statement on a monthly basis. Further, IDeAS also gives the facility to download digitally signed monthly transaction statement for a period of 12 months.

To avail this facility, log on to http://speed-e.nsdl.com

SMS : Customers have to register their mobile numbers with demat dept. On debit / credit of shares in their account they will receive SMS. This will be much more helpful in case of IPO allotment, bonus and right issues. Further, SMS aleart is also sent for failed instructions, overdue instructions, change of mobile number, change of address, change of financial details, Credit/Debit of mutual fund limits.

For grievance relating to 'Demat Services' please contact:

demat.grievance@kalupurbank.com

Guidelines for Demat Sevice