..:: PRINT

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

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

The concept of Depository

The Government of India enacted the Depositories Act in August 1996, thus pioneering the concept , of Depositories and entering the age of paperless settlement of securities. 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 traded in equity and debt markets. 

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 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 depository participant

The client has to open a saving / current account with the Bank (need not open a new account if already having account with the bank) wherein the client will have to maintain minimum/adequate balance specified by the bank from time to time.

::::::::::: OPENING OF SECURITIES ACCOUNTS

The client needs to fill up specified form and execute a "Client -Participant Agreement" with the DP(Kalupur Bank). Securities 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 an account the client will get identification number called "Client ID".

The following documents are required for opening a Depository account

For Individuals , Corporate & Clearing Members

• Account opening form duly filled along with photographs.
• Agreement along with Schedule" A' (rate structure) signed on all pages to be stamped .
• Savings/Current account opening form (existing holders need not open a new account).
• Debit authorisation for debiting charges duly signed in connection to depository account.
• In Case of individuals, for proof of Identity & address,  a copy of voter’s ID card or driving license or passport is required. Additionally for proof of address, a copy of ration card or bank passbook is to be submitted, if required.  Originals will also be required for the above, which will be returned after verification.

Additional requirements for Corporate

• MOA and AOA duly certified along with Board Resolution for Corporate
• 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.

Additional requirements for Clearing Members

• SEBI Certificate for Clearing Member, Stock Exchange letter also required.
• Clearing Member ID (CM) received from Clearing Corporation.
• Partnership deed and list of partners and their addresses on the Firm's letterhead in case of Clearing Member is a partnership firm.

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

::::::::::: 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

::::::::::: 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.

::::::::::: 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.
• Instruct the Depository Participant by way of a "Delivery Instruction by Clients" slips
  (Annexure- L)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" , (Annexure -S). Thus the broker's account gets debited.

Procedure involved when you buy shares

• The investor places an order with the broker to purchase shares who in turn gives a contract not 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
  (Annexure T) to debit the CM account and in turn the investor's account gets credited.
•  The investor gives the DP "Receipt Instructions" slips (Annexure M) to credit the securities account for the shares purchased.

In case of-Market trades

In case when shares are sold the client will give the DP " Delivery Instructions by clients" slips (Annexure L) to debit the account by filling in details in box marked as "For Off-Market trades".

In case when shares are purchased., the client will give the DP " Receipt Instructions" slips (Annexure M) to credit the account by filling in details in box marked as'' T o be filled in if Deliverer is a Client

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

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

The pledger (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 pledger (borrower) can be pledged In favor of the pledgee (lender / bank).

Procedure involved when shares are Pledged

• For Initiation of the Pledge
  • The Pledger (Borrower) will give DP instructions as to Creation of Pledge as laid down in (Annexure W)
  • Similarly the Pledgee (Lender) will give DP instructions as to Confirm the Creation of Pledge as laid down in (Annexure W)
  • On receipt of instructions from both the Pledger (Borrower) and Pledgee (Lender) through their DPs the Depository (NSDL) will create the Pledge.
• For Closure of the Pledge
  • The Pledger (Borrower) will give DP instructions as to Closure of Pledge as laid down in (Annexure W)
  • Similarly the Pledgee (Lender) will give DP instructions as to Confirm of the Closure of Pledge as laid down in (Annexure W)
  • On receipt of instructions from both the Pledger (Borrower) and Pledgee (Lender) through their DPs the Depository (NSDL) will close the Pledge

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 transactions done in the account as well as securities held by the client in the securities account on a regular basis.

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.

Receipt of Corporate benefits

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 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.

New public issues

In case of fresh public issue it is possible to get allotment of shares in electronic form. Applicants will have to mention their Client ID Number and the name of the DP in the application form. In such, case shares allotted will be credited directly to the securities account of the client. It is therefore evident that, depository is a much more safe, user friendly, reliable, quick, cost saving mode of holding and transacting securities. We therefore request you to seriously evaluate this option. We are always available to you for any assistance or clarifications with a view to serve you in a better way.

1. Services at Branches

Bank provides various services like

• Account opening for new demat accounts
• Acceptance of demat request forms
• Issuance of delivery slips
• Acceptance of delivery slips for market & off market trades.

::::::::::: AT FOLLOWING BRANCHES D-MAT FACILITY  is AVAILABLE

1     Kalupur Branch

2     S.M.Road Branch

3     Patrakar Colony Branch

4     Sola Road Branch

5     Panchvati Branch

6     Drive in Road Branch

7     Vasna Branch

8     Maninagar Branch

9     Bapunagar Branch

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 079-27541076,079-27541248,       079-27582035,  079-27582036. 

[Linkv to Tele banking/ Tele - Demating.]

IDEAS : IDEA  is a service which gives customers internet based demat account balances & transaction for last five days. This service is avail with at par charches with NSDL,  Rs. 10/- per quater per Account. ( http://speed-e.nsdl.com)