Annexure-A
Towards making Indian Securities Market - Transparent, Efficient, & Investor friendly by providing safe, reliable, transparent and trusted record keeping platform for investors to hold and transfer securities in dematerialized form.
A Depository is an organization which holds securities of investors in electronic form. Depositories provide services to various market participants - Exchanges, Clearing Corporations, Depository Participants (DPs), Issuers and Investors in both primary as well as secondary markets. The depository carries out its activities through its agents which are known as Depository Participants (DP). Details available on the link CDSL and NDSL .
(1) Basic Services
| Sl.No | Brief about the Activity/Service | Expected Timelines for processing by the DP after receipt of proper documents |
|---|---|---|
| 1. | Dematerialization of securities | 7 days |
| 2. | Rematerialization of securities | 7 days |
| 3. | Mutual Fund Conversion/Destatementization | 5 days |
| 4. | Re-conversion/Restatementisation of Mutual fund units | 7 days |
| 5. | Transmission of securities | 7 days |
| 6. | Registering pledge request | 15 days |
| 7. | Closure of demat account | 2 days |
| 8. | Settlement Instruction | For T+1 day settlements, Participants shall accept instructions from the Clients, in physical form up to 4 p.m. (in case of electronic instructions up to 6.00 p.m.) on T day for pay-in of securities. For T+0 day settlements, Participants shall accept EPI instructions from the clients, till 11:00 AM on T day Note: ‘T’ refers ‘Trade Day’ |
(2) Depositories provide special services like pledge, hypothecation, internet-based services etc. in addition to their core services and these include
| Sl.No | Type of Activity/Service | Brief about the Activity/Service |
|---|---|---|
| 1. | Value Added Services |
Depositories also provide value added services such as:
|
| 2. | Consolidated Account statement (CAS) | CAS is issued 10 days from the end of the month (if there were transactions in the previous month) or half yearly (if no transactions). |
| 3. | Digitalization of services provided by the depositories |
Depositories offer below technology solutions and e-facilities to their demat account holders through DPs: |
(1) The Process of investor grievance redressal
| Sl.No | Type of Activity/Service | Brief about the Activity/Service |
|---|---|---|
| 1. | Investor Complaint/Grievances |
Investor can lodge complaint/grievance against the Depository/DP in the following ways:
a. Electronic mode -
(iii) Emails to designated email IDs of Depository [email protected] and [email protected] The complaints/ grievances lodged directly with the Depository shall be resolved within 21 days. |
| 2. | Online Dispute Resolution (ODR) platform for online Conciliation and Arbitration |
If the Investor is not satisfied with the resolution provided by DP or other Market Participants, then the Investor has the option to file the complaint/ grievance on SMARTODR platform for its resolution through by online conciliation or arbitration. https://smartodr.in/login |
| 3. | Steps to be followed in ODR for Review, Conciliation and Arbitration |
|
| Sl.No | Type of special circumstances | Timelines for the Activity/Service |
|---|---|---|
| 1. |
| Client will have a right to transfer all its securities to any other Participant of its choice without any charges for the transfer within 30 days from the date of intimation by way of letter/email. |
This document contains the contents pertaining to the qualifier CDSL and NDSL in the Investor Charter main document. The same is to be made available by the Depositories on their websites and web-links to the same is to be provided for incorporation in the Investor Charter.
a. Basic Services Demat Account (BSDA):
The facility of BSDA with limited services for eligible individuals was introduced with the objective of achieving wider financial inclusion and to encourage holding of demat accounts. No Annual Maintenance Charges (AMC) shall be levied, if the value of securities holding is upto Rs. 4,00,000. For value of holdings more than Rs. 4,00,000 but upto Rs. 10,00,000, AMC not exceeding Rs 100 is chargeable.
b. Transposition cum dematerialization:
In case of transposition-cum- dematerialisation, client can get securities dematerialised in the same account if the names appearing on the certificates match with the names in which the account has been opened but are in a different order. The same may be done by submitting the security certificates along with the Transposition Form and Demat Request Form.
c. Linkages with Clearing System:
For actual delivery of securities to the clearing system from the selling brokers and delivery of securities from the clearing system to the buying broker.
CAS is issued 10 days from the end of the month (if there were transactions in the previous month) or half yearly (if no transactions).
a. E-account opening:
Account opening through digital mode, popularly known as “On-line Account opening”, wherein investor intending to open the demat account can visit DP website, fill in the required information, submit the required documents, conduct video IPV and demat account gets opened without visiting DPs office.
b. Online instructions for execution:
Internet-enabled services like Speed-e (NSDL) & Easiest (CDSL) empower a demat account holder in managing his/her securities ‘anytime-anywhere’ in an efficient and convenient manner and submit instructions online without the need to use paper. These facilities allows Beneficial Owner (BO) to submit transfer instructions and pledge instructions including margin pledge from their demat account. The instruction facilities are also available on mobile applications through android, windows and IOS platforms.
c. e-DIS / Demat Gateway:
Investors can give instructions for transfer of securities through e-DIS apart from physical DIS. Here, for on-market transfer of securities, investors need to provide settlement number along with the ISIN and quantity of securities being authorized for transfer. Client shall be required to authorize each e-DIS valid for a single settlement number / settlement date, by way of OTP and PIN/password, both generated at Depositories end. Necessary risk containment measures are being adopted by Depositories in this regard.
d. e-CAS facility:
Consolidated Account Statements are available online and could also be accessed through mobile app to facilitate the investors to view their holdings in demat form.
e. Miscellaneous services:
Transaction alerts through SMS, e-locker facilities, chatbots for instantaneously responding to investor queries etc. have also been developed.
Dos and Don’ts for Investors
https://docs.google.com/document/d/1CiSh4SVDZ7zRNA-ApfAkhsUfiMTWZropi3anJA4bQVERights of investors
https://docs.google.com/document/d/1sIZho-J1xXoX3xVd2I4CCtLVtL5veAp-lgIDWUAjt54Responsibilities of Investors
https://docs.google.com/document/d/1WSYxwPFcjJkVZxWuTO09CvH4CslHj0YVG-UFrOl-lSIInvestors Complaints Data
https://sheet.zohopublic.in/sheet/published/rrt8q4b57633ad4864adabe47f9962f70ca81Code of Conduct for Depositories
https://docs.google.com/document/d/1c2xicIhYuqQLgnNSX6haaayqFlRsu6MLvGfq5_8QLxgCode of Conduct for Participants
https://docs.google.com/document/d/1ieQHHJNvHn4tYNWzoIfm3Y175D_IvUPuibtJ_LC3J1k