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 any DP?
The account opening form may be collected from any DPs office 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 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.
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.
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.
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.
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 any DP?
The account opening form may be collected from any DPs office 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 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.
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.
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.
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.
