NSDL system provides the facility to freeze the depository accounts for any debits or for both, debits and credits. In an account which is “freeze for debits”, no debits will be permitted from the account, till the time it is unfreeze.
Learn More What precautions does NSDL take to protect the data in its depository system?The data carries a high importance in the NSDL depository system. NSDL has taken necessary steps to protect the transmission and storage of data. The data is protected from unauthorized access, manipulation and destruction. The following back up practices are adopted to protect the data: Local Back up Remote Back up Disaster Recovery Site In …
Learn More What will happen if my DP goes bankrupt or stops operation?In a rare event of your DP going bankrupt or closing the operations, the interests of the investors will be fully protected. In such a situation, the investors will be given an option of either transferring the securities to a new DP or they may rematerialise the securities.
Learn More What security do I have if the only proof of my holdings in the depository is merely a piece of paper indicating my account balance?No transaction can be effected in your account without your written authorization. Further, if you are away for a long time, you have the facility of freezing your account wherein only credits into your account will be allowed and no debit will be possible.
Learn More What happens if I lose my Transaction Statement?You should inform your DP and obtain a duplicate Transaction Statement.
Learn More What is to be done if there are any discrepancies in my transaction statement?In case of any discrepancy in the transaction statement, you can contact your DP. If the discrepancy cannot be resolved at the DP level, you should approach NSDL. NSDL also sends out a statement of holdings to a few clients of DPs, picked at random. In case the balance in your account as indicated by …
Learn More At what frequency will I receive my Transaction Statement from my DP?You will receive a Transaction Statement from your DP once in a quarter. If you have done any transaction during the quarter, you will receive the statement within fifteen days of the transaction.
Learn More How will I know that my DP has updated my account after each transaction?Your DP will give you a Transaction Statement periodically, which will detail your current balances and the various transactions you have done through the depository account. If you so desire, your DP may provide Transaction Statement at intervals shorter than the stipulated ones, probably at a cost.
Learn More How will the distribution of bonus shares for pledged shares happen?The software in NSDL has been modified to handle distribution of bonus entitlements through Automatic Corporate Action (ACA) Module. This works as follows : The holdings as of the record date / book closure, (including those holdings which are pledged) are considered for computing bonus entitlements. At the time of effecting the credit of bonus …
Learn More Who will receive dividend on the pledged securities?Pledgor will continue to receive dividend on the pledged securities. The pledge will get the benefits only if pledge is invoked and on record date the shares are in the pledge’s account.
Learn More Can I change the securities offered in a pledge?Yes; if the pledge [lender] agrees, you may change the securities offered in a pledge.
Learn More What should I do if I want to pledge electronic securities?The procedure is as follows : Both you (pledgor) as well as the lender (pledge) must have depository accounts. You have to initiate the pledge by submitting to your DP the details of the securities to be pledged in a standard format. The pledge has to confirm the request through its DP. It is suggested …
Learn More How will the investor confirm that bonus/rights entitlement is credited into the account?An allotment advice will be sent by the Issuer/ its R&T agent for bonus/ rights entitlement. The Transaction Statement given by the DP, will also show the bonus/ rights credit into the account. The quantity shown in the advice and statement of transaction should match.
Learn More How would I get my bonus shares or other non-cash entitlements?The concerned company obtains the details of beneficiary holders and their holdings from NSDL. Your entitlement will be credited by the company directly in your NSDL depository account.
Learn More How would I get my dividend / interest or other cash entitlements?The concerned company obtains the details of beneficiary holders and their holdings from NSDL. The payment to the investors will be made by the company through the ECS (Electronic Clearing Service) facility or by issuing warrants on which your bank account details are printed. The bank account details will be those which you would have …
Learn More What is the importance of record dates to me?In case the securities bought by you are yet to be transferred into your account by your broker before the book closure / record date, you will not be entitled to receive corporate benefits such as dividend or bonus since your name will not figure in the list of beneficial owners. Hence, you must ensure …
Learn More What benefit do I get by giving delivery instruction with a future execution date?By giving a future dated instruction the risk of non execution of instruction due to lack of time or last minute rush is covered.
Learn More What is ‘execution date’ given in the delivery instruction form?Execution date is the date on which securities will be actually debited from your account. The execution date written on the delivery instruction has to be entered by the DP, in the DPM system [computer]. DPM system will record the date and will debit your account only on that date. You may issue the instruction …
Learn More What precautions do I need to observe with respect to Delivery Instruction Slips [DIS]?The following precautions are to be taken :- Ensure and insist with your DP to issue DIS book; do not accept loose slips. Ensure that DIS numbers are pre-printed and DP takes acknowledgment from you for the DIS booklet issued to you. Ensure that your account number [client id] is pre-stamped. If your account is …
Learn More What are T+2 rolling settlement cycles and when delivery is to be given to a broker?In case of T+2 rolling settlements, the trades taking place on each trading day are required to be settled on the third day following the date of trade. For example trades of Monday will be settled on Thursday morning. In this example, if you have sold securities, you need to make sure that the securities …
Learn More What settlement details are required on the delivery instruction slip?On every stock exchange, various settlements are effected every day such as daily settlement, auction settlement etc. Each of these settlements is identified by combination of a market type and a settlement number. You are required to mention the appropriate settlement details on the delivery instruction slip while transferring the shares to your broker’s account. …
Learn More What do you mean by ‘Market Trades’ and ‘Off Market Trades’?Any trade settled through a clearing corporation is termed as a ‘Market Trade’. These trades are done through stock brokers on a stock exchange. ‘Off Market Trade’ is one which is settled directly between two parties without the involvement of clearing corporation. The same delivery instruction slip can be used either for market trade or …
Learn More How can I purchase dematerialized securities?For receiving Demat securities you may give a one-time standing instruction to your DP. This standing instruction can be given at the time of account opening or later. Alternatively, you may choose to give separate receipt instruction every time some securities are to be received. The transactions relating to purchase of securities are summarized below …
Learn More What is the procedure for selling dematerialized securities?The procedure for selling dematerialized securities is very simple. After you have sold the securities, you would instruct your DP to debit your account with the number of securities sold by you and credit your broker’s clearing account. This delivery instruction has to be given to your DP using the delivery instruction slips given to …
Learn More Can my electronic holdings be converted back into certificates?Yes. If you wish to get back your securities in physical form, all you have to do is to request your DP for Rematerialisation of the same. ‘Rematerialisation’ is the term used for converting electronic holdings back into certificates. Your DP will forward your request to NSDL, after verifying that you have the necessary balance. …
Learn More How long does the dematerialization process take?Dematerialization will normally take about 30 days.
Learn More Can I dematerialize any share certificate?You can dematerialize only those certificates that are already registered in your name and are in the list of securities admitted for dematerialization at NSDL. All the scripts included in S&P, CNX, NIFTY and BSE SENSEX have already joined NSDL. This list has more than 4,300 companies and is steadily growing. You can get an …
Learn More What do you mean by dematerialization?Dematerialization is the process by which physical certificates of an investor are converted to an equivalent number of securities in electronic form and credited in the investor’s account with its DP. In order to dematerialize certificates; an investor will have to first open an account with a DP and then request for the dematerialization of …
Learn More What is the procedure for transmission in case of Joint Accounts?In the event of death of one of the joint holders, the securities will be transmitted to the surviving holder(s) on submission of Transmission Form and notarized copy of the death certificate of the deceased joint holder to the DP. For transmission of securities, the account of the surviving holder(s) must be in the same …
Learn More What would happen if no nomination is made for the account?In case nomination is not made by the sole account holder, the securities would be transmitted to the account of legal heir(s), as may be determined by an order of the competent court. However in cases where the value of securities to be transmitted is less than Rs. 1,00,000/- the DP may process the request …
Learn More What is the procedure for transmission of securities to the nominee in case of the death of the sole account holder?In case of the death of the sole holder, for the purpose of transmission of securities, the nominee has to submit a duly filled-in transmission form, notarized copy of death certificate and an affidavit in the prescribed format to the DP. After verifying these documents and if found in order, the DP will transmit the …
Learn More What does transmission mean in relation to Demat accounts?Transmission is the process by which securities of a deceased account holder are transferred to the account of the surviving joint holder(s)/nominee/legal heirs of the deceased account holder. Process of transmission in case of dematerialized holdings is more convenient as the 13 transmission formalities for all securities held in a Demat account can be completed …
Learn More Can the nominee be changed?Yes, the nomination can be changed anytime by the account holder/s by simply filling up the nomination form once again and submitting it to the DP.
Learn More What is the procedure for nomination?The nomination form duly filled-in should be submitted to the DP 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. If nomination was not made at the time of account opening, it …
Learn More Can a NRI be a nominee?Yes, NRI can be a nominee subject to the exchange control regulations in force from time to time.
Learn More Can separate nomination be made for each security held in a depository account?No. Nomination can be made account wise and not security wise.
Learn More Can a minor be a nominee?Yes, a minor can be a nominee. In such a case, the guardian will sign on behalf of the nominee and in addition to the name and photograph of the nominee, the name, address and the photograph of the guardian must be submitted to the DP.
Learn More Can there be more than one nominee?No, only one nomination can be made for one depository account.
Learn More Who can be a nominee?Only an individual can be a nominee. A nominee shall not be a society, trust, body corporate, partnership firm, karta of Hindu Undivided Family or a power of attorney holder.
Learn More Can a minor nominate?No, a minor cannot nominate either directly or through its guardian.
Learn More Can a NRI nominate?Yes, NRI can nominate directly. But, the power of attorney holder cannot nominate on behalf of NRI.
Learn More Can joint holders nominate?Yes. Nomination is permitted for accounts with joint holders. But, in case of death of any of the joint holder(s), the securities will be transmitted to the surviving holder(s). Only in the event of death of all the joint holders, the securities will be transmitted to the nominee.
Learn More Who can nominate?Nomination can be made only by individuals holding beneficiary accounts either singly or jointly. Non-individuals including society, trust, body corporate, partnership firm, karta of Hindu Undivided Family, holder of power of attorney cannot nominate.
Learn More Can I close my Demat account with one DP and transfer all securities to my account with another DP?Yes. You can submit account closure request to your DP in prescribed form. Your DP will transfer all your securities, as per your instruction, and close your Demat account.
Learn More What should I do if my address is changed? Do I need to write to each company separately?In case your address is changed, you only need to inform the new address to your DP(s). When DP enters the new address in the depository computer system, it will be automatically conveyed to all companies in which you hold shares.
Learn More Can I add or delete names of account holders (second or third account holder) after opening the account?No. Names of the account holders for a depository account cannot be changed. If you want to change name or add / delete an account holder, 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.
Learn More 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.
Learn More 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’ …
Learn More Can I change details of my bank account?Yes. Since in the depository system monetary benefits on your security balances are paid as per the bank account details provided by you at the time of account opening , you must ensure that any subsequent change in bank account details is informed to your depository participant.
Learn More Why should I give my bank account details at the time of account opening?It is for protection of 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 encased by any one else. Further, a DP cannot open the account if bank account number is not given.
Learn More 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 your DP, that person can operate the account on your behalf.
Learn More What do I do if I have physical certificates with the same combination of names, but the sequence of names is different? I.e. some certificates with husband as first holder and wife as second holder and other set of certificates with wife as first holder and husband as the second holder?In this case you may open only one account with husband and wife as the account holders and lodge the security certificates with different order of names for dematerialization in the same account. You will fill-up an additional form called “transposition cum Demat” form. This would help you to effect change in the order of …
Learn More Can I open a single account for securities owned in different ownership patterns such as securities owned individually and securities owned along-with my wife ?No. The Demat account must be opened in the same ownership pattern in which the securities are held in the physical form. e. g. if one share certificate is in your individual name and another certificate is jointly held in your and your wife’s name, two different accounts would have to be opened.
Learn More Do I have to keep any minimum balance of securities in my account with my DP?No. The depository has not prescribed any minimum balance. You can have zero balance in your account.
Learn More Am I restricted to having account with only one DP?No. There are no restrictions on the number of DPs you can open accounts with. Just as you can have savings or current accounts with more than one bank, you can open accounts with more than one DP.
Learn More Can I open more than one account with the same DP?Yes. You can open more than one account with the same DP. There is no restriction on the number of accounts you can open with a DP.
Learn More What should I do when I want to open an account with a DP?You can approach any DP of your choice and fill up an account opening form. At the time of opening an account, you have to sign an agreement with the DP in a NSDL prescribed standard agreement, which details you r and your DP ’s rights and duti e s. You have to submit the …
Learn More What are the facilities offered by NSDL?NSDL offers following facilities : Dematerialization i.e., converting physical certificates to electronic form. Rematerialisation i.e., conversion of securities in Demat form into physical certificates. Facilitating repurchase / redemption of units of mutual funds. Electronic settlement of trades in stock exchanges connected to NSDL. Pledging/hypothecation of dematerialized securities against loan. Electronic credit of securities allotted in …
Learn More What are the benefits of participation in a depository?The benefits of participation in a depository are : Immediate transfer of securities. No stamp duty on transfer of securities. Elimination of risks associated with physical certificates such as bad delivery , fake securities etc. Reduction in paperwork involved in transfer of securities. Reduction in transaction cost. Nomination facility. Change in address recorded with DP …
Learn More How can I avail the service of a depository?A depository interfaces with the investors through its agents called Depository Participants (DPs). If an investor wants to avail the services offered by the depository, the investor has to open an account with a DP. This is similar to opening an account with any branch of a bank in order to utilize the bank’s services. …
Learn More What is a depository?A depository can be compared to a bank. A depository holds securities (like shares, debentures, bonds, Government Securities, units etc.) of investors in electronic form. Besides holding securities, a depository also provides services related to transactions in securities.
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