90,34,714 Demat Accounts as of January 17, 2009 75,07,906 Active Demat Accounts as of 09 Feb 2008 72,95,772 Active Demat

Accounts as of 26 Jan 08 91,36,197 Demat Accounts as of April 4, 2009 83,07,341 Demat Accounts as of 7 Jun 08 Investor Accounts (Active with PAN) 1,03,04,513 DP Service Centres 11,746 Demat Custody Value 5,981,643 (Rs. crore) US$1,273 billion

Demat account allows you to buy, sell and transact shares without the endless paperwork and
delays. It is also safe, secure and convenient. What is demat account? Demat refers to a dematerialised account. Just as you have to open an account with a bank if you want to save your money, make cheque payments etc, you need to open a demat account if you want to buy or sell stocks. So it is just like a bank account where actual money is replaced by shares. You have to approach the DPs (remember, they are like bank branches), to open your demat account. Lets say your portfolio has 100 of Satyam, 200 of IBM and 120 of TCS shares. All these will show in your demat account. So you dont have to possess any physical certificates showing that you own these shares. They are all held electronically in your account. As you buy and sell the shares, they are adjusted in your account. Just like a bank passbook or statement, the DP will provide you with periodic statements of holdings and transactions. Is a demat account a must? Nowadays, practically all trades have to be settled in dematerialised form. Although the market regulator, the Securities and Exchange Board of India (SEBI), has allowed trades of upto 500 shares to be settled in physical form, nobody wants physical shares any more. So a demat account is a must for trading and investing. Why demat? The demat account reduces brokerage charges, makes pledging/hypothecation of shares easier, enables quick ownership of securities on settlement resulting in increased liquidity, avoids

confusion in the ownership title of securities, and provides easy receipt of public issue allotments. It also helps you avoid bad deliveries caused by signature mismatch, postal delays and loss of certificates in transit. Further, it eliminates risks associated with forgery, counterfeiting and loss due to fire, theft or mutilation. Demat account holders can also avoid stamp duty (as against 0.5 per cent payable on physical shares), avoid filling up of transfer deeds, and obtain quick receipt of such benefits as stock splits and bonuses.

Demat Benefits
The benefits are enumerated below:

A safe and convenient way to hold securities; Immediate transfer of securities; No stamp duty on transfer of securities; Elimination of risks associated with physical certificates such as bad delivery, fake securities, delays, thefts etc.; Reduction in paperwork involved in transfer of securities; Reduction in transaction cost; No odd lot problem, even one share can be sold; Nomination facility; Change in address recorded with DP gets registered with all companies in which investor holds securities electronically eliminating the need to correspond with each of them separately; Transmission of securities is done by DP eliminating correspondence with companies; Automatic credit into demat account of shares, arising out of bonus/split/consolidation/merger etc. Holding investments in equity and debt instruments in a single account.

Demat Conversion
Converting physical holding into electronic holding (dematerialising securities) In order to dematerialise physical securities one has to fill in a DRF (Demat Request Form) which is available with the DP and submit the same along with physical certificates one wishes to dematerialise. Separate DRF has to be filled for each ISIN Number. The complete process of dematerialisation is outlined below:

Surrender certificates for dematerialisation to your depository participant.

Depository participant intimates Depository of the request through the system. Depository participant submits the certificates to the registrar of the Issuer Company. Registrar confirms the dematerialisation request from depository. After dematerialising the certificates, Registrar updates accounts and informs depository of the completion of dematerialisation. Depository updates its accounts and informs the depository participant. Depository participant updates the demat account of the investor.

Demat FAQs
What is a Depository? A depository is an organisation which holds securities of investors in electronic form at the request of the investors through a registered Depository Participant. It also provides services related to transactions in securities. How is a depository similar to a bank? It can be compared with a bank, which holds the funds for depositors. A Bank Depository Analogy is given in the following table:
BANK Holds funds in an account Facilitates transfer without having to handle money Facilitates safekeeping of money DEPOSITORY Hold securities in an account Facilitates transfer of ownership without having to handle securities Facilitates safekeeping of securities

How many Depositories are registered with SEBI? At present two Depositories viz. National Securities Depository Limited (NSDL) and Central Depository Services (I) Limited (CDSL) are registered with SEBI. Who is a Depository Participant? A Depository Participant (DP) is an agent of the depository through which it interfaces with the investor. A DP can offer depository services only after it gets proper registration from SEBI. Banking services can be availed through a branch whereas depository services can be availed through a DP. What is the minimum net worth required for a depository? The minimum net worth stipulated by SEBI for a depository is Rs.100 crore.

How many Depository Participants are registered with SEBI? As on 31/03/2006, total of 538 DPs are registered with SEBI. A list of DPs and their addresses can be downloaded from SEBI website. Is it compulsory for every investor to open a depository account to trade in the capital market? As per the available statistics at BSE and NSE, 99.9% settlement takes place in demat mode only. Therefore, in view of the convenience in settlement through demat mode, it is advisable to have a beneficiary owner (BO) account to trade at the exchanges. How can services of a depository be availed? To avail the services of a depository an investor is required to open an account with a depository participant of any depository. Why should an investor give his bank account details at the time of account opening? It is for the protection of investors interest. The bank account number will be mentioned on the interest or dividend warrant, so that such warrant cannot be encashed by any one else. Further, cash corporate benefits such as dividend, interest will be credited to the investors account directly through the ECS (Electronic Clearing Service) facility, wherever available, by the company. Can an investor change the details of his bank account? Yes. Since in the depository system monetary benefits on the security balances are paid as per the bank account details provided by the investor at the time of account opening, the investor must ensure that any subsequent change in bank account details is informed to the DP. What should be done if the address of the investor changes? Investor should immediately inform his/her DP, who in turn will update the records. This will obviate the need of informing different companies. Can multiple accounts be opened? Yes. An investor can open more than one account in the same name with the same DP and also with different DPs. Does the investor have to keep any minimum balance of securities in his/her accounts? No. Is it necessary to have account with the same DP as broker has? No. Depository / DP can be chosen by investor as per convenience irrespective of the DP of the broker. Can an investor open a single account for securities owned in different ownership patterns such as securities owned individually and securities owned jointly with others? 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 the individual name and another certificate is jointly with somebody, two different accounts would have to be opened.

What is required to be done if one has physical certificates with the same combination of names, but the sequence of names is different i.e. some certificates with A as first holder and B as second holder and other set of certificates with B as first holder and A as the second holder? In this case the investor may open only one account with A & B as the account holders and lodge the security certificates with different order of names for dematerialisation in the same account. An additional form called Transposition cum Demat form will have to be filled in. This would help you to effect change in the order of names as well as dematerialise the securities. Can an investor 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. Can someone else operate the account on behalf of the BO on the basis of a power of attorney? Yes. If the BO authorises any person to operate the account by executing a power of attorney and submit it to the DP, that person can operate the account on behalf of the BO. Can addition or deletion of names of accountholders is permitted after opening the account? No. The names of the account holders of a BO account cannot be changed. If any change has to be effected by addition or deletion, a new account has to be opened in the desired holding pattern (names) and then transfer the securities to the newly opened account. The old account may be closed. Can an investor close his demat account with one DP and transfer all securities to another account with another DP? Yes. The investor can submit account closure request to his DP in the prescribed form. The DP will transfer all the securities lying in the account, as per the instruction, and close the demat account. What would be the charges for account closure and securities transfer due to account closing? SEBI vide Circular No. MRD/DoP/Dep/Cir-22 /05 dated November 09, 2005 advised that with effect from January 09, 2006, no charges shall be levied by a depository on DP and consequently, by a DP on a Beneficiary Owner (BO) when a BO transfers all the securities lying in his account to another branch of the same DP or to another DP of the same depository or another depository, provided the BO Account/s at transferee DP and at transferor DP are one and the same, i.e. identical in all respects. In case the BO Account at transferor DP is a joint account, the BO Account at transferee DP should also be a joint account in the same sequence of ownership. All other transfer of securities consequent to closure of account, not fulfilling the above-stated criteria, would be treated like any other transaction and charged as per the schedule of charges agreed upon between the BO and the DP. Whether investors can freeze or lock their accounts? Investors can freeze or lock their accounts for any given period of time, if so desired. Accounts

can be frozen for debits (preventing transfer of securities out of accounts) or for credits (preventing any movements of hindrances into accounts) or for both. What is dematerialisation? Dematerialisation is the process by which physical certificates of an investor are converted to an equivalent number of securities in electronic form and credited into the investors account with his/her DP. What is an ISIN? ISIN (International Securities Identification Number) is a unique identification number for a security. Can odd lot shares be dematerialised? Yes, odd lot share certificates can also be dematerialised. Do dematerialised shares have distinctive numbers? Dematerialised shares do not have any distinctive numbers. These shares are fungible, which means that all the holdings of a particular security will be identical and interchangeable. What is Standing Instruction given in the account opening form? In a bank account, credit to the account is given only when a pay 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 for standing instruction, you need not submit Receipt in slip everytime you buy securities. If you are particular that securities can be credited to your account only with your consent, then do not say yes [or tick ] to standing instruction in the application form. Is it possible to give delivery instructions to the DP over Internet and if yes, how? Yes. Both NSDL and CDSL have launched this facility for delivering instructions to your DP over Internet, called SPEED-e and EASI respectively. The facility can be used by all registered users after paying the applicable charges. Is it possible to get securities allotted in public offering directly in the electronic form? Yes, it is possible to get securities allotted to in Public Offerings directly in the electronic form. In the public issue application form there is a provision to indicate the manner in which an investor wants the securities allotted. He has to mention the BO ID and the name and ID of the DP on the application form. Any allotment made will be credited into the BO account. How are cash corporate benefit such as dividend / interest received? The concerned company obtains the details of beneficiary holders and their holdings as on the date of the book closure / record date from Depositories. The payment to the investors will be made by the company through the ECS (Electronic Clearing Service) facility, wherever available. Thus the dividend / interest will be credited to your bank account directly. Where ECS facility is not available dividend / interest will be given by issuing warrants on which your bank

account details are printed. The bank account details will be those which you would have mentioned in your account opening form or changed thereafter. How would one receive non-cash corporate benefit such as bonus etc.? The concerned company obtains the details of beneficiary holders and their holdings as on the date of the book closure / record date from depositories. The entitlement will be credited by the company directly into the BO account. Who should be contacted in case of discrepancies in corporate benefits? In case of discrepancies in corporate benefits, one can approach the company / its R&T Agent. Can one pledge dematerialised securities? Yes. In fact, pledging dematerialised securities is easier and more advantageous as compared to pledging physical securities. What should one do to pledge electronic securities? The procedure to pledge electronic securities is as follows:

Both investor (pledgor) as well as the lender (pledgee) must have depository accounts with the same depository; Investor has to initiate the pledge by submitting to DP the details of the securities to be pledged in a standard format ; The pledgee has to confirm the request through his/her DP; Once this is done, securities are pledged. All financial transactions between the pledgor and the pledgee are handled as per usual practice outside the depository system.

How can one close the pledge after repayment of loan? After one has repaid the loan, one can request for a closure of pledge by instructing the DP in a prescribed format. The pledgee on receiving the repayment will instruct his DP accordingly for the closure of the pledge. Can one change the securities offered in a pledge? Yes, if the pledgee [lender] agrees, one may change the securities offered in a pledge. Who would receive the corporate benefits on the pledged securities? The securities pledged are only blocked in the account of pledgor in favour of the pledgee. The pledgor would continue to receive all the corporate benefits. How does one know that the DP has updated the account after each transaction? The DP gives a Transaction Statement periodically, which will detail current balances and various transactions made through the depository account. If so desired, DP may provide the Transaction Statement at intervals shorter than the stipulated ones, probably at a cost. At what frequency will the investor receive his Transaction Statement from his DP? DPs have to provide transaction statements to their clients once in a month, if there are transactions and once in a quarter, if there are no transactions.

Moreover, DPs can provide transaction statement in electronic form under digital signature subject to their entering into a legally enforceable arrangement with the BOs to this effect. What is to be done if there are any discrepancies in transaction statement? In case of any discrepancy in the transaction statement, one can contact his/her DP. If the discrepancy cannot be resolved at the DP level, one should approach the Depository. Whom should one contact in case of any investor complaint / problem / query? In case of any investor complaint / problem / query one may first contact his DP. If DP is unable to solve the complaint / problem / query one should approach concerned depository. If one is not satisfied one may approach SEBI. One may also approach SEBI directly. What is Lending and Borrowing of Securities? If any person required to deliver a security in the market does not readily have that security, he can borrow the same from another person who is willing to lend as per the Securities Lending and Borrowing Scheme. Can lending and borrowing be done directly between two persons? No. Lending and borrowing has to be done through an Approved Intermediary registered with SEBI. The approved intermediary would borrow the securities for further lending to borrowers. Lenders of the securities and borrowers of the securities enter into separate agreements with the approved intermediary for lending and borrowing the securities. Lending and borrowing is effected through the depository system. Can I lend the securities lying in my account? Yes. You can lend your securities through Approved Intermediaries registered with SEBI. How would I lend my demat securities? You may enter into an agreement with the approved intermediary to be a lender under this scheme. After that, you may lend securities any time by submitting lending instruction to your DP. How would I get back the securities lent by me? Intermediary may return the securities at any time or at the end of the agreed period of lending. Intermediary has to repay the securities together with any benefits received during the period of the loan. How would I receive the corporate benefits which would accrue on these securities during the period of lending? The benefits will be given to the Intermediary/borrower. However, whenever the securities are being returned / recalled. Intermediary/borrower will return the securities together with benefits received. Who can nominate? Nomination can be made only by individuals holding beneficiary accounts either singly or

jointly. Non-individuals including society, trust, body corporate, karta of Hindu Undivided Family, holder of power of attorney cannot nominate. 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. What is transmission of demat securities? Transmission is the process by which securities of a deceased account holder are transferred to the account of his legal heirs / nominee. Process of transmission in case of dematerialised holdings is more convenient as the transmission formalities for all securities held in a demat account can be completed by submitting documents to the DP, whereas in case of physical securities the legal heirs/nominee/surviving joint holder has to independently correspond with each company in which securities are held. In the event of death of the sole holder, how the successors should claim the securities lying in the demat account? The claimant should submit to the concerned DP an application Transmission Request Form (TRF) along with the following supporting documents

In case of death of sole holder where the sole holder has appointed a nominee : Notarised copy of the death certificate In case of death of the sole holder, where the sole holder has not appointed a nominee : Notarised copy of the death certificate

Any one of the below mentioned documents

Succession certificate Copy of probated will Letter of Administration

The DP, after ensuring that the application is genuine, will transfer securities to the account of the claimant. The major advantage in case of dematerialised holdings is that the transmission formalities for all securities held with a DP can be completed by interaction with the DP alone, unlike in the case of physical share certificates, where the claimant will have to interact with each Issuing company or its Registrar separately. If my depository account is with NSDL/CDSL, can I receive my securities from an account holder having account with the other depository in India? Yes. Inter depository transfers are possible. Where can an NRI/PIO open a demat account? NRI/PIO can open a demat account with any Depository Participant [DP] of NSDL. The

NRI/PIO needs to mention the type [NRI as compared to Resident] and the sub-type [Repatriable or Non-Repatriable] in the account opening form collected from the DP. Does an NRI need any RBI permission to open a demat account? No permission is required from RBI to open a demat account. However, credits and debits from demat account may require general or specific permissions as the case may be, from designated authorised dealers. If NRI/PIO desires to make investments under different schemes, can he hold all such securities in a single demat account? No. Securities received against investments under Foreign Direct Investment scheme (FDI), Portfolio Investment scheme (PIS) and Scheme for Investment on non repatriation basis have to be credited into separate demat accounts. Investment under PIS could be on repatriation or non repatriation basis. Investment under FDI scheme is on repatriation basis. Does an NRI require RBI permission for dematerialiation/rematerialisation of securities? No special permission is required. Holding securities in demat only constitutes change in form and does not need any special permission. However, only those physical securities which already have the status as NR Repatriable / NR- Non-Repatriable can be dematerialised in the corresponding Depository Accounts. Can securities purchased under repatriable and non-repatriable category be held in a single demat account? No. An NRI must open separate demat accounts for holding repatriable and non-repatriable securities. In case a person who is resident in India becomes a non-resident, will he/she be required to change the status of his/her holding from Resident to Non-Resident? As per section 6(5) of FEMA, NRI can continue to hold the securities which he/she had purchased as a resident Indian, even after he/she has become a non resident Indian, on a nonrepatriable basis. In case a non-resident Indian becomes a resident in India, will he/she be required to change the status of his/her holding from Non-Resident to Resident? Yes. It is the responsibility of the NRI to inform the change of status to the designated authorised dealer branch, through which the investor had made the investments in Portfolio Investment Scheme and the DP with whom he/she has opened the demat account. Subsequently, a new demat account in the resident status will have to be opened, securities should be transferred from the NRI demat account to resident account and then close the NRI demat account. Can NRIs invest in shares, debentures and units of mutual funds in India? NRIs are permitted to make direct investments in shares/ debentures of Indian companies/ units of mutual fund. They are also permitted to make portfolio investments i.e. purchase of share / debentures of Indian Companies through stock exchange. These facilities are granted both on repatriation and non-repatriation basis.

Can an NRI purchase securities by subscribing to public issue? What are the permissions/approvals required? Yes. The issuing company is required to issue shares to NRI on the basis of specific or general permission from GoI/RBI. Therefore, individual NRI need not obtain any permission. Does an NRI require any permission to receive bonus/rights shares? No. What is Portfolio Investment Scheme? Under this scheme, NRIs are permitted to acquire shares/debentures of Indian companies or units of domestic Mutual Funds through the stock exchange(s) in India. Investment can be made both on repatriation or non-repatriation basis. For making investment on repatriation basis, it will be necessary to make payments by way of inward remittance or by debit to the NRE / FCNR account of the NRI / PIO. Investment on non-repatriation basis can also be made by way of inward remittance or by debit to the NRE / FCNR / NRO accounts. The sale proceeds of the repatriable investments can be credited to the NRE / NRO accounts of the NRI / PIO at the option of the investor, whereas the sale proceeds of non-repatriable investment can be credited only to NRO accounts. The sale of shares will be subject to payment of applicable taxes. What is the procedure for making applications for Portfolio Investment Scheme? The application is to be submitted to a designated branch of an authorised dealer in India in the prescribed form. No permission is required from RBI. What is a designated branch? Reserve Bank has authorised a few branches of each authorised dealer to conduct the business under Portfolio Investment Scheme on behalf of NRIs. These branches are the main branches of major commercial banks. NRIs will have to route their applications through any of the designated authorised dealer branches who have authorisation from Reserve Bank. Whether NRI can apply through more than one authorised dealer? No. NRI can select only one authorised dealer for the purpose of investment under Portfolio Investment Scheme and route the transactions through the branch designated by the authorised dealer. Can an NRI purchase or sell shares or convertible debentures on a stock exchange in India on repatriation or non-repatriation basis under portfolio investment scheme? NRIs / PIOs can purchase / sell shares / convertible debentures of Indian companies on Stock Exchanges under the Portfolio Investment Scheme. The rules relating to this scheme are as given below:

Shares purchased under PIS on Stock Exchange shall be sold on stock exchanges only. Prior approval of RBI is required if such shares are proposed to be transferred either by way of gift or under private arrangement to a non-resident/ resident. These trades can be done only through a registered broker on a recognised stock exchange

NRI shall designate a branch of an authorised dealer and route all his/her transactions through this branch of the authorised dealer. NRI takes delivery of the shares purchased and gives delivery of shares sold. NRI shall abide by the directions given by RBI/SEBI or such authority if the transaction results in the breach of ceilings stipulated for NRI holding in the company/scheme. The sale of shares will be subject to payment of applicable taxes.

An NRI or a PIO can purchase shares up to 5% of the paid up capital of an Indian company. All NRIs / PIOs (also the OCBs who had purchased shares under the earlier scheme) taken together cannot purchase more than 10% of the paid up value of the company. (This limit can be increased by an Indian company to 24% by passing a General Body resolution). Can a DP ask for RBI permission for executing instructions for purchase or sale? An individual NRI cannot purchase under PIS shares exceeding 5% of the paid up capital of a company. The onus of monitoring this limit is that of the designated authorised dealer. Shares purchased under PIS scheme can be sold only through a stock exchange. See the rules explained under Q.No. 19. No permission is required from RBI to purchase or sell under Portfolio Investment Scheme. Can an NRI nominate or be nominated in depository account? Whether such nominee can be person resident in India? Yes. What type of bank account details is to be given at the time of account opening and subsequently [by way of change of details]? The following bank accounts may be given:

For non-repatriable - NRO [dividend/interest is repatriable] For repatriable - NRE

The above details recorded by the DP in the demat account may be used by the Issuer to directly credit dividend or interest. (Dividend/interest received on Investments made on repatriation and non repatriation basis under Portfolio Investment Scheme is not an eligible credit to NRE (PIS) Account and NRO (PIS) Account respectively).

Demat Options
Banks score over others Around 200 depository participants (DPs) offer the demat account facility. A comparison of the fees charged by different DPs is detailed below. But there are three distinct advantages of having a demat account with a bank quick processing, accessibility and online transaction.

Generally, banks credit your demat account with shares in case of purchase, or credit your savings accounts with the proceeds of a sale on the third day. Banks are also advantageous because of the number of branches they have. Some banks give the option of opening a demat account in any branch, while others restrict themselves to a select set of branches. Some private banks also provide online access to the demat account. So, you can check on your holdings, transactions and status of requests through the net banking facility. A broker who acts as a DP may not be able to provide these services.

Fees Comparison
ICICI BANK Ltd Account opening Advance/Deposit Account Maintenance Demat Remat Transaction (Debit) Pledge Creation Pledge Creation confirmation Pledge Closure Pledge Closure confirmation Pledge Invocation Failed instruction charges Other charges; if any Remarks STATE BANK OF INDIA Account opening Advance/Deposit Account Maintenance Demat Remat Transaction (Debit) NIL NIL 250 FOR INDIVIDUALS 750 FOR CORPORATE Rs 125/-FOR SBP STAFF and PENSIONERS Rs 3/-per certificate min Rs 10/-NO CHARGES FOR DEMAT OF SBI SHARES Rs 15/- PER CERTIFICATE For individuals a/cs Rs 20/-per trade.for institutional 0.02%of the value min Rs25/-Max Rs500/-per trade.for off-market Rs30/-per trade for individuals . Rs 50/-per ISIN NIL NIL Rs.500/- payable yearly in advance (non-refundable) Rs.35/- per demat request form and Rs.2/- for each certificate Rs.20/- for remat request form and depository charges extra 0.04% of the transaction value subject to minimum of Rs.15/Rs.50/- per request depository charges extra Rs.50/- per transaction Rs.50/- per transaction Rs.50/- per transaction Rs.50/- per transaction Rs.20/- per instruction (inclusive of depository charges) NIL

Pledge Creation

Pledge Creation confirmation Pledge Closure for cancellation of pledge Pledge Invocation Failed instruction charges Other charges; if any Remarks HSBC Account opening Advance/Deposit Account Maintenance Demat Remat Transaction (Debit) Pledge Creation Pledge Creation confirmation Pledge Closure Pledge Closure confirmation Pledge Invocation Failed instruction charges Other charges; if any KARVY STOCK BROKING Ltd Account opening Advance/Deposit Account Maintenance Demat Remat Transaction (Debit) Pledge Creation Pledge Creation confirmation Pledge Closure Pledge Closure confirmation Pledge Invocation Failed instruction charges Other charges; if any

Rs 50/-per ISIN Rs 50/-per ISIN .Agreement charges Rs 100/-.Additional Statement of holding Rs 10/Service Taxes Extra.SERVICE CHARGES ARE SUBJECT TO REVISION BYTHE BANK AFTER GIVING THIRTY DAYS NOTICE NIL NIL Rs. 750 per annum for customers who maintain a Savings/Current account with HSBC in India.** NIL INR 100/- PER CERTIFICATE Upto 10 ISIN NIL WITHIN HSBC INR 50/- FOR THIRD PART PLEDGE NIL NIL WITHIN HSBC INR 50/- FOR THIRD PART PLEDGE NIL NIL WITHIN HSBC NIL NIL Rs 250/- Per Annum Rs 3/- per Certificate + Courier Charges Rs 25/a) a fee of Rs 20/- for every 100 securities or part thereof ; or b) a flat fee of Rs 20/- per certificate whichever is higher Upto Rs 50 000 - Rs 20/- > Rs 50 000 - Rs 50/Rs 25/NIL Rs 25/NIL Rs 25/-

ABN AMRO BANK Account opening Advance/Deposit Plan A (Individual account) and Plan B (Corporate) = Rs. 100 (Stamp Paper Charges) Plan A (Individual account) = Rs. 2000 if client does not have bank account with us. Plan B (Corporate) = Rs. 5000 if client does not have bank account with us. Plan A (Individual account) = Rs. 450 per anum Plan B (Corporate) = Rs. 250 per month Plan A (Individual account) = Rs 2.50 per certificate Plan B (Corporate) Rs.3 per Certificate; Min Rs.100 Plan A (Individual account) = Rs. 20 per certificate. Plan B (Corporate) =Rs. 100 + Depository Actuals Plan A (Individual account) = 0.04%(minimum Rs.25) per instruction. Plan B (Corporate- Equity) = 0.04% (Min Rs 75/-)per instruction and (Corporate- Debt)0.04% (Min Rs 75/- Max Rs 750) per instruction Plan A (Individual account) = 0.04% (min Rs 50) per instruction. Plan B (Corporate) =0.02% Min Rs.50 per trxn Plan A (Individual account) = 0.04% (min Rs 50) per instruction. Plan B (Corporate) =0.02% Min Rs.50 per trxn Plan A (Individual account) = 0.04% (min Rs 50) per instruction. Plan B (Corporate) =0.02% Min Rs.50 per trxn Plan A (Individual account) = 0.04% (min Rs 50) per instruction. Plan B (Corporate)=0.02% Min Rs.50 per trxn Plan A (Individual account) and Plan B (Corporate) = 0.04% (min Rs 100) per instruction

Account Maintenance Demat Remat Transaction (Debit)

Pledge Creation Pledge Creation confirmation Pledge Closure Pledge Closure confirmation Pledge Invocation Failed instruction charges Other charges; if any KOTAK SECURITIES Ltd Account opening Advance/Deposit Account Maintenance Demat

CDSL charges are chargeable extra at actuals Remarks CDSL charges are chargeable extra at actuals

NA NA Individual Rs. 30/- pm Corporate Rs 50/- pm Individual Rs.3/- per certificate plus RS. 25/- per request Corporate:Rs.3/- per certificate plus RS. 25/- per request

Remat Transaction (Debit)

Individual 0.04% of the value of securities Minimum Payable Rs. 15/Corporate 0.04% of the value of securities Minimum Payable Rs. 15/Individual :- 0.04% of the value of securities Minimum Rs. 23/- for sell transactions Corporate :- 0.04% of the value of securities Minimum Rs. 23/- for sell transactions Individual 0.05% of the value of securities Minimum Rs 30/-Corporate 0.05% of the value of securities Minimum Rs 30/Individual 0.05% of the value of securities Minimum Rs 30/-Corporate 0.05% of the value of securities Minimum Rs 30/Individual 0.05% of the value of securities Minimum Rs 30/- Corporate 0.05% of the value of securities Minimum Rs 30/Individual 0.05% of the value of securities Minimum Rs 30/- Corporate 0.05% of the value of securities Minimum Rs 30/Individual 0.04% of the value of securities Minimum Rs 30/- Corporate 0.04% of the value of securities Minimum Rs 30/NIL NIL NIL

Pledge Creation Pledge Creation confirmation Pledge Closure Pledge Closure confirmation Pledge Invocation Failed instruction charges Other charges; if any Remarks

RELIANCE CAPITAL Ltd Account opening Advance/Deposit Account Maintenance Demat Remat Transaction (Debit) Pledge Creation Pledge Creation confirmation Pledge Closure Pledge Closure confirmation NIL NIL Rs. 50/- For Individual HUF Trust (Additional Rs. 100/- p.a. for transaction statement in physical form) Rs. 1000/- for NRI Foreign National Corporate Others Rs. 20/- per request extra Rs. 2/- for each certificate

Pledge Invocation Failed instruction charges Other charges; if any Remarks

Rs. 20/- per certificate Rs. 25/- per DIS Rs. 12/- for Internet Online Trading through Reliance Securities Limited NIL

SHAREKHAN Ltd Account opening Advance/Deposit Account Maintenance Demat Remat Transaction (Debit) Pledge Creation Pledge Creation confirmation Pledge Closure Pledge Closure confirmation Pledge Invocation Failed instruction charges Other charges; if any NIL NIL Rs.300/- p.a Rs. 5 per certificate Min Rs. 35 per request Rs. 35 per certificate for every hundred securities 0.03 % of the value of Transaction. Min Rs. 30 0.02 % of the value of the Transaction. Min Rs. 50 NIL NIL NIL NIL NIL NIL

CITI BANK Account Opening Annual Maintenance Charge Dematerialization Rematerialisation Transfer In (Credits) -On Market -Off Market NIL NIL NIL NIL Rs. 50 per request Rs. 50 per request

Transfer Out (Debits) - On Market - Off Market Custody Charges

* received before cut off time 0.05% (minimum. Rs. 18) 0.05% (minimum. Rs. 18) NIL

Transaction cum Holding Statement - Monthly (only if there have been transactions in the a/c during the month) NIL - Quarterly Pledge Creation Pledge Closure Pledge Invocation NIL NIL 0.02% NIL

Fees Involved
NOW to the crux the cost of opening and holding a demat account. There are four major charges usually levied on a demat account: Account opening fee, annual maintenance fee, custodian fee and transaction fee. All the charges vary from DP to DP. Account-opening fee Depending on the DP, there may or may not be an opening account fee. Private banks, such as ICICI Bank, HDFC Bank and UTI Bank, do not have one. However, players such as Karvy Consultants and the State Bank of India do so. But most players levy this when you re-open a demat account, though the Stock Holding Corporation offers a lifetime account opening fee, which allows you to hold on to your demat account over a long period. This fee is refundable. Annual maintenance fee This is also known as folio maintenance charges, and is generally levied in advance. Custodian fee This fee is charged monthly and depends on the number of securities (international securities identification numbers ISIN) held in the account. It generally ranges between Rs 0.5 to Rs 1 per ISIN per month. DPs will not charge custody fee for ISIN on which the companies have paid one-time custody charges to the depository. Transaction fee The transaction fee is charged for crediting/debiting securities to and from the account on a monthly basis. While some DPs, such as SBI, charge a flat fee per transaction, HDFC Bank and ICICI Bank peg the fee to the transaction value, subject to a minimum amount. The fee also differs based on the kind of transaction (buying or selling). Some DPs charge only for debiting

the securities while others charge for both. The DPs also charge if your instruction to buy/sell fails or is rejected. In addition, service tax is also charged by the DPs. In addition to the other fees , the DP also charges a fee for converting the shares from the physical to the electronic form or vice-versa. This fee varies for both demat and remat requests. For demat, some DPs charge a flat fee per request in addition to the variable fee per certificate, while others charge only the variable fee. For instance, Stock Holding Corporation charges Rs 25 as the request fee and Rs 3 per certificate as the variable fee. However, SBI charges only the variable fee, which is Rs 3 per certificate. Remat requests also have charges akin to that of demat. However, variable charges for remat are generally higher than demat. Some of the additional features (usually offered by banks) are: Some DPs offer a frequent trader account, where they charge frequent traders at lower rates than the standard charges. Demat account holders are generally required to pay the DP an advance fee for each account which will be adjusted against the various service charges. The account holder needs to raise the balance when it falls below a certain amount prescribed by the DP. However, if you also hold a savings account with the DP you can provide a debit authorisation to the DP for paying this charge. Finally, once you choose your DP, it will be prudent to keep all your accounts with that DP, so that tracking your capital gains liability is easier. This is because, for calculating capital gains tax, the period of holding will be determined by the DP and different DPs follow different methods. For instance, ICICI Bank uses the first in first out (FIFO) method to compute the period of holding. The proof of the cost of acquisition will be the contract note. The computation of capital gains is done account-wise.

How many accounts?

If your shares are held in joint names, be sure to open the account in the same order of names. If X, Y and Z jointly hold 100 shares in a company and have three share certificates all listing X, Y and Z as the first, second and third holders respectively, one account will suffice. For different combinations of names, open separate accounts for each combination. If the three certificates are held as XYZ, YXZ and ZYX, three accounts are necessary. There is no limit to the number of accounts you can open. There is no limit to the number of DPs you can have accounts with. You can even open a multiple-sign demat account, which can be operated by multiple holders, like a joint savings bank account. You can open a demat account even before you acquire your first security.

List of Depositories

Following are the list of depositories registered, Companies who have signed agreements with NSDL.
R & T Agent In-House CIL Securities Limited Intime Share Services Private Limited Bigshare Services Pvt. Limited MCS Limited Intime Share Services Limited CB Management Services Limited Integrated Enterprises (India) Limited Pinnacle Finance Limited MCS Limited Intime Share Services Ltd. Integrated Enterprises (India) Limited Sharepro Services Sharepro Services Pinnacle Finance Limited Pinnacle Finance Limited Tata Consultancy Services Ltd Integrated Enterprises (India) Limited KARVY Consultants Limited MCS Limited MCS Limited

Company Name ACC Limited APR Limited Action Financial Services (India) Limited Adam Comsof Limited Advani Oerlikon Limited Alok Textile Industries Limited Alsthom Limited American Remedies Limited Anagram Finance Limited Apcotex Lattices Limited Aplab Ltd. Apple Credit Corporation Limited Apple Finance Limited Aptech Limited Arvind Mills Limited Arvind Polycot Limited Asea Brown Boveri Limited Ashok Leyland Finance Limited Ashok Leyland Limited Asian Hotels Limited Asian Paints (India) Limited

Astra-IDL Limited Atul Limited BASF India Limited BPL Engineering Limited BPL Limited BPL Refrigeration Limited BPL Sanyo Utilities and Appliances Limited BSES Limited Bajaj Auto Finance Limited Bajaj Auto Limited Bajaj Hindustan Limited Ballarpur Industries Limited Balmer Lawrie & Company Limited Balrampur Chini Mills Ltd Bank Of Baroda Bank Of India Bank of Rajasthan Bata India Limited Best & Crompton Engg. Limited Bharat Earth Movers Limited Bharat Electronics Limited Bharat Heavy Electricals Limited Bharat Petroleum Corporation Limited Binani Industries Limited Birla Corporation Limited

Alpha Systems Private Limited Pinnacle Finance Limited Tata Consultancy Services Limited KARVY Consultants Limited KARVY Consultants Limited Alpha Systems Pvt. Ltd. Alpha Systems Pvt. Ltd. In-House In-House In- House In-House RCMC Share Registry Pvt. Limited MCS Limited In House KARVY Consultants Limited PCS Industries Limited Karvy Consultants Limited MCS Limited Coimbatore Capital Market Services Ltd KARVY Consultants Limited Alpha Systems Private Limited KARVY Consultants Limited In-House MCS Limited ABC Computers Private Limited

Birla Global Finance Limited Birla-Horizons International Limited Blow Plast Limited Bongaigaon Refinery & Petrochemicals Limited. Britannia India Limited Burroughs Wellcome (India) Limited CMC Limited CRISIL Cadbury India Limited Canbank Mutual Fund Unit Canstar CG Carborundum Universal Limited Castrol India Limited Century Extrusions Ltd. Century Textiles and Industries Limited Chambal Fertilisers and Chemicals Limited Cheminor Drugs Limited Cholamandalam Cazenove Scheme Chola MI 98 Cholamandalam Investment and Finance Company Limited Cipla Limited Clariant (India) Limited Coates Viyella India Limited Coates of India Limited Cochin Refineries Limited Colgate Palmolive (India) Limited

MCS Limited Karvy Consultants Limited Spectrum Corporate Services Limited SRG Infotech (India) Limited Sharepro Services MCS Limited MCS Ltd. KARVY Consultants Limited Sharepro Services Bigshare Services Pvt. Limited KARVY Consultants Limited Sharepro Services ABC Computers Private Ltd. MCS Limited MCS Limited Bigshare Services Pvt. Limited Computer Age Management Services Ltd KARVY Consultants Limited Spectrum Corporate Services Limited IIT Corporate Services limited Alpha Systems Private Limited ABC Computers Pvt. Ltd. Data Software Research Co Ltd Sharepro Services

Consolidated Fibres and Chemicals Limited Container Corporation of India Limited Coromandel Fertilisers Limited Corporation Bank Crompton Greaves Limited Cummins India Limited Cybertech Systems and Software Limited DGP Windsor India Limited DLF Cement Limited DSQ Software Ltd. Dabur India Limited Dena Bank Digital Equiptment (India) Limited Dr. Reddys Laboratories Limited Dwarikesh Sugar Industries Limited E I H Limited E Merck India Limited E.I.D Parry Limited Eicher Limited Eicher Motors Limited Electrosteel Castings Limited Elgi Equipments Ltd. Emco Transformers Limited Epic Enzymes, Pharmaceuticals & Industrial Chemicals Ltd.

CB Management Services Ltd. Alankit Assignments Limited KARVY Consultants Limited KARVY Consultants Limited Sharepro Services Intime Share Services Limited Intime Share Services Pvt. Limited Spectrum Corporate Services Limited KARVY Consultants Limited MCS Ltd. MCS Limited PCS Industries Limited TCS Limited Bigshare Services Pvt. Limited MCS Limited ABC Computers Pvt. Ltd. Sharepro Services KARVY Consultants Limited MCS Limited MCS Limited C B Management Services Limited Intime Share Services Pvt. Ltd. Intime Share Services Pvt. Limited Intime Share Services Pvt. Ltd.

Esab India Ltd. Escort Mutual Fund Escorts Finance Limited Escorts Limited Essar Oil Limited Essar Shipping Limited Essar Steel Limited Essel Packaging Limited Eternit Everest Limited Eveready Industries India Limited Excel Industries Limited Exide Industries Ltd. Finolex Cables Limited Finolex Industries Limited Garware Wall Ropes Ltd. Garware Polyester Limited Gas Authority of India Limited George Williamson (Assam) Limited Glaxo India Limited Global Telesystems Limited Global Trust Bank Limited Godrej Soaps Limited Goodricke Group Limited Grasim Industries Limited Great Eastern Shpg. Co. Limited

Computech Sharecap Limited KARVY Consultants Limited Alankit Assignments Limited Alankit Assignments Limited MCS Limited Data Software Research Co Ltd Data Software Research Co Ltd Sharepro Services MCS Limited ABC Computers Private Limited Intime Share Services Private Limited CB Management Services Ltd. MCS Ltd. MCS Limited MCS Limited Spectrum Corporate Services Limited MCS Limited CB Management Services Limited MCS Limited Intime Share Services Pvt. Limited Aarthi Consultants Pvt. Limited Computech Sharecap Limited CB Management Services Limited MCS Limited Sharepro Services

Greaves Ltd. Gujarat Alkalies and Chemicals Limited Gujarat Ambuja Cements Limited Gujarat Gas Company Limited Gujarat Industries Power Company Limited Gujarat Mineral Development Corpn Limited Gujarat Narmada Valley Fertilizers Company Limited Gujarat State Fert.& Chemicals Limited HCL Infosystems Ltd. HDFC Bank Limited HDFC Limited HMT Limited HUDCO (15% Infrastructure Bonds) HUDCO (SeriesVIII,Series IX(a) & Series IX(b) Hero Honda Motors Limited Himatsingka Seide Limited Hind Lever Chemicals Limited Hindalco Industries Limited Hindustan Inks and Resins Limited Hindustan Lever Limited Hindustan Motors Limited Hindustan Oil Explorations Company Limited Hindustan Organic Chemicals Limited Hindustan Petroleum Corporation Limited Hindustan Zinc Limited

Sharepro Services MCS Limited Sharepro Services MCS Limited MCS Limited MCS Limited MCS Limited MCS Limited Alankit Assignments Ltd. MCS Limited In-House Alpha Systems Private Limited MAS Services Limited RCMC Share Registry Ltd. MCS Limited KARVY Consultants Limited In-House MCS Limited Intime Share Services Pvt. Limited In-House MCS Limited Intime Share Services Pvt.Limited Sharepro Services MCS Limited SRG Infotech (India) Limited

Hoechst Marion-Roussel Limited Hoganas India Limited Hotel Leelaventure Limited I G Petrochemicals Limited IBP Co. Limited ICI India Limited ICICI Banking Corporation Limited ICICI Limited IDBI IFCI Limited IPCL ITC Agro Tech Limited ITC Badrachalam Paperboards Limited ITC Limited ITI Limited ITW Signode India Limited India Foils Limited India Securities Limited Indian Aluminium Company Limited Indian Oil Corporation Limited Indian Rayon and Industries Limited Indian Shaving Products Limited Indo Gulf Fert. & Chem. Corp. Limited Indo Rama Synthetics (India) Limited

MCS Limited SRG Infotech (India) Limited Sharepro Services Bigshare Services Pvt. Limited ABC Computers Private Limited C B Management Services Limited I-Serv I-Serv KARVY Consultants Limited MCS Limited MCS Limited Sathguru Management Consultants Pvt. Ltd. In-House In House Alpha Systems Pvt. Limited. Bigshare Services Pvt. Limited ABC Computers Private Limited Data Software Research Co Ltd ABC Computers Private Limited Bigshare Services Pvt. Limited MCS Limited MAS Services Limited In-House MCS Limited

IndusInd Bank Limited Industrial Oxygen Limited Infosys Technologies Limited Ingersoll-Rand (India) Limited Integrated Enterprises (India) Ltd. Isibars Limited Ispat Alloys Limited Ispat Industries Limited JBF Industries Limited JM Basic Fund Jain Irrigation Systems Limited Jindal Iron & Steel Co. Limited Jindal Photo Films Limited Jindal Strips Limited Jindal Vijayanagar Steel Limited Jyoti Structures Limited K. G. Denim Limited Kesoram Industries Limited Kirloskar Oil Engines Limited Kirloskar Pneumatic Company Limited Knoll Pharmaceuticals Limited Kolar Information Technologies Limited Kopran Limited Kotak Mahindra Finance Limited Krishna Filaments Limited

Spectrum Corporate Services Limited Sharepro Services KARVY Consultants Limited Tata Share Registry Limited In House Intime Share Services Pvt. Limited Computech International Limited Computech International Ltd Intime Share Services Pvt. Limited Computer Age Management Services Ltd Bigshare Services Pvt. Limited KARVY Consultants Limited MCS Limited MCS Limited KARVY Consultants Limited Bigshare Services Pvt. Limited Coimbatore Capital Market Services Ltd Unoasia Investment Banque Limited Intime Share Services Private Limited Sharepro Services Sharepro Services Bigshare Services Pvt. Limited Bigshare Services Pvt. Limited Karvy Consultants Limited Intime Share Services Pvt. Limited

Krishna Texport Industries Limited L & T Limited L.G.Balkrishnan & Bros. Limited LIC Housing Finance Limited Lloyds Finance Limited Lloyds Steel Industries Limited Lupin Chemicals Limited Lupin Laboratories Limited Madras Cements Limited Madras Refineries Limited Mahanagar Telephone Nigam Limited Maharashtra Scooters Limited Mahindra & Mahindra Limited Malvika Steel Limited Manali Petrochemical Limited Mangalam Cement Limited Mangalore Refinery and Petrochemicals Limited Marico Industries Limited Max India Limited Merind Limited Milton Plastics Limited Morarka Finance Limited Morepen Laboratories Limited Morgan Stanley Growth Fund

Bigshare Services Pvt. Limited Sharepro Services Cameo Share Registry Limited MCS Limited Bigshare Services Pvt. Limited Bigshare Services Pvt. Limited Intime Share Services Private Limited Intime Share Services Private Limited Coimbatore Capital Market Services Limited KARVY Consultants Limited Alankit Assignments Limited In House Sharepro Services Alankit Assignments Limited Cameo Share Registry Limited MAS Services Limited MCS Limited KARVY Consultants Limited MAS Services Limited Intime Share Services Pvt. Limited Intime Share Services Private Limited MCS Limited MAS Services Limited KARVY Consultants Limited

Motor Industries Company Limited Mukand Ltd. NIIT Limited Nahar Exports Ltd. Nahar Fibres Ltd. Nahar Industrial Enterprises Limited Nahar International Limited Nahar Spinning Mills Limited Nahar Sugar and Allied Industries Limited Narmada Cement Company Limited National Aluminium Company Limited National Organic Chemical Industries Ltd. Navneet Publications (India) Limited Nestle (India) Ltd. Nicholas Piramal India Limited Nilkamal Plastics Limited Nirma Limited Novartis India Limited OTIS Elevator Company (India) Limited Oil & Natural Gas Corporation Onward Technologies Limited Orchid Chemicals & Pharmaceuticals Ltd Oriental Bank of Commerce Oswal Agro Mills Limited Oswal Chemicals and Fertilizers Limited

Alpha Systems Private Limited In-house Alankit Assignments Limited Alankit Assignments Ltd. Alankit Assignments Ltd. Alankit Assignments Limited Alankit Assignments Limited Alankit Assignments Limited Alankit Assignments Limited IIT Corporate Services Limited In-House Mafatlal Consultancy Services (I) Ltd Intime Share Services Pvt. Limited MCS Ltd. Amtrac Mgt Services Limited Intime Share Services Pvt. Limited Sharepro Services Sharepro Services IIT Corporate Services Limited MCS Limited Intime Share Services Private Limited Integrated Enterprises (India) Limited SRG Infotech (India) Limited In-House In-House

PSI Data Systems Limited Parke-Davis (India) Limited Parrys Confectionery Limited Pentafour Software And Exports Limited Pfizer Limited Philips India Limited Pidilite Industries Limited Piramal Holdings Limited Praj Industries Limited Precot Mills Ltd. Prism Cement Limited Proctor & Gamble India Limited Punjab Tractors Limited Punjab Wireless Systems Limited RCF Limited RPG Cables Limited Raasi Cement Limited Rain Calcining Limited Ranbaxy Laboratories Limited Raymond Limited Reckitt & Colman of India Ltd. Reliance Capital Limited Reliance Industrial Infrastructure Limited Reliance Industries Limited Reliance Petroleum Limited

KARVY Consultants Limited Intime Share Services Pvt. Limited KARVY Consultants Limited KARVY Consultants Limited Tata Consultancy Services Ltd Sharepro Services Tata Share Registry Limited Amtrac Mgt Services Limited PCS Industries Limited Intime Share Services Pvt. Ltd. KARVY Consultants Limited MCS Limited MCS Limited Alankit Assignments Limited Spectrum Corporate Services Limited Alpha Systems Private Limited Karvy Consultants Ltd. Karvy Consultants Limited KARVY Consultants Limited MCS Limited CB Management Services Ltd. Spectrum Corporate Services Limited Spectrum Corporate Services Limited KARVY Consultants Limited KARVY Consultants Limited

Rhone Poulenc (India) Limited Rolta India Limited SPIC Electronic and System Limited SSI Limited Sabero Organics Gujarat Limited Sanghi Polyesters Limited Satyam Computers Limited Saw Pipes Limited Sesa Goa Limited Shasun Chemicals & Drugs Limited Shree Cements Limited Shree Digvijay Cement Company Ltd. Shree Krishna Petro Yarns Limited Shree Krishna Polyester Limited Siemens Limited Silverline Industries Limited Smithkline Beecham Consumer Healthcare Limited Smithkline Beecham Pharmaceuticals (India) Limited Sonata Software Limited Sony Corporation Limited Soundcraft Industries Limited

Sharepro Services Sharepro Services Cameo Share Registry Limited Data Software Research Co. Limited Intime Share Services Pvt. Limited CIL Securities Limited KARVY Consultants Limited MAS Services Pvt. Limited. Intime Share Services Pvt. Limited Integrated Enterprises (India) Limited KARVY Consultants Limited MCS Ltd. Bigshare Services Pvt. Limited Bigshare Services Pvt. Limited MCS Limited Spectrum Corporate Services Limited MCS Limited MCS Limited Karvy Consultants Limited Bigshare Services Private Limited Bigshare Services Pvt. Limited

Southern Petrochemical Industries Corporation Limited Cameo Share Registry Limited Standard Industries Limited State Bank of India Steel Authority of India Limited IIT Corporate Services Limited MCS Limited In-House

Sterling Tools Limited Sterlite Industries (India) Limited Sun Pharmaceutical Industries Limited Sundaram Clayton Limited Surya Roshni Limited Swaraj Engines Limited Synthetics & Chemicals Limited TISCO Limited TVS Suzuki Limited Tamilnadu Newsprint and Papers Limited Tamilnadu Petroproducts Limited Tata Chemicals Limited Tata Engineering and Locomotive Company Limited Tata Finance Limited Tata Infotech Limited Tata Tea Limited Tata Timken Limited The Andhra Valley Power Supply Company Ltd. The Bishnauth Tea Company Limited The Bombay Burmah Trading Corporation Limited The Bombay Dyeing & Mfg. Co. Ltd. The Dhampur Sugar Mills Limited The Federal Bank Limited The Fertilisers and Chemicals Travancore Ltd The Indian Card Clothing Company Limited

MAS Services Limited PCS Industries Limited Intime Share Services Pvt. Limited MCS Limited MAS Services Private Limited MCS Limited MCS Limited Tata Share Registry Limited MCS Limited KARVY Consultants Limited Cameo Share Registry Limited Tata Share Registry Limited Tata Share Registry Limited Tata Share Registry Limited Tata Share Registry Limited Tata Share Registry Limited ABC Computers Private Limited Tata Share Registry Ltd. CB Management Services Limited Sharepro Services Sharepro Services Alankit Assignments Limited Integrated Enterprises (India) Limited Sharepro Services Sharepro Services

The Indian Hotels Company Limited The Jammu and Kashmir Bank Limited The Morarjee Goculdas Spg. & Wvg. Co. Limited The Premier Automobiles Limited The Shipping Corporation of India Limited The Supreme Industries Limited The Tata Hydro-Electric Power Supply Company Ltd. The Tata Power Company Ltd. The United Western Bank Limited Thermax Limited Thomas Cook (India) Limited Timex Watches Limited Titan Industries Limited Titanor Components Limited Tourism Finance Corporation of India Limited Tube Investments of India Limited UTI Bank Ltd. UTI Grandmaster Unit Scheme 1993 UTI Mastergain 92 UTI Mastergrowth 93 UTI Masterplus 91 UTI Mastershare 86 UTI Unit 64 Scheme United Phosphoros Limited Universal Cables Ltd.

Intime Share Services Pvt. Limited KARVY Consultants Limited Amtrac Mgt Services Limited Spectrum Corporate Services Limited Intime Share Services Pvt. Limited Bigshare Services Pvt. Limited Tata Share Registry Ltd. Tata Share Registry Ltd. IIT Corporate Services Limited MCS Limited Tata Share Registry Limited MCS Limited Tata Share Registry Limited SRG Infotech (India) Limited Computech International Limited KARVY Consultants Limited Karvy Consultants Limited. M. N. Dastur & Co. Limited Datamatics Financial Services Limited M. N. Dastur & Co. Limited Datamatics Financial Services Limited M. N. Dastur & Co. Limited MCS Limited Sharepro Services Intime Share Services Pvt. Ltd.

Usha (India) Limited Usha Beltron Limited Usha Ispat Limited V.I.P. Industries Limited Vashisti Detergents Limited Videsh Sanchar Nigam Limited Voltas Limited Vysya Bank Limited Wartsila NSD India Limited Weizmann Limited Williamsom Magor & Co. Limited Wipro Limited Wockhardt Limited Woolworth India Limited Zee Telefilms Limited Zuari Industries Limited

Alankit Assignments Limited ABC Computers Private Limited Alankit Assignments Limited Spectrum Corporate Services Limited Sharepro Services Mafatlal Consultancy Services (I) Ltd Tata Share Registry Limited Bigshare Services Pvt. Limited KARVY Consultants Limited Bigshare Services Pvt. Limited CB Management Services Limited KARVY Consultants Limited Computer Age Management Services Ltd ABC Computers Private Limited Sharepro Services Intime Share Services Pvt. Limited

Nomination Facility
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. 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 eventof death of all the joint holders, the securities will be transmitted to the nominee.

Can a NRI nominate? Yes, NRI can nominate directly. But, the power of attorney holder can not nominate on behalf of NRI. Can a minor nominate? No, a minor can not nominate either directly or through its guardian. Who can be a nominee? Only an individual can be a nominee. A nominee shall not be asociety, trust, body corporate, partnership firm, karta of Hindu Undivided Family or a power of attorney holder. Can there be more than one nominee? No, at present only one nomination can be made for one depository account. 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. Can separate nomination be made for each security held in adepository account? No. Nomination can be made account wise and not security wise. Can a NRI be a nominee? Yes, NRI can be a nominee subject to the exchange control regulations in force from time to time. What is the procedure for appointing a nominee? The nomination form (format provided as annexure on pageno. 31) duly filled-in should be submitted to the DP either atthe 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 can be made subsequently by submitting the nomination form. Can the nominee be changed? Yes, the nomination can be changed anytime by the accountholder/s by simply filling up the nomination form once againand submitting it to the DP.

Opening an account
Steps involved in opening a demat account First an investor has to approach a DP and fill up an account opening form. The account opening form must be supported by copies of any one of the approved documents to serve as proof of identity (POI) and proof of address (POA) as specified by SEBI. Besides, production of PAN card in original at the time of opening of account has been made mandatory effective from April 01, 2006. All applicants should carry original documents for verification by an authorized official of the depository participant, under his signature. Further, the investor has to sign an agreement with DP in a depository prescribed standard format, which details rights and duties of investor and DP. DP should provide the investor with a copy of the agreement and schedule of charges for their future reference. The DP will open the account in the system and give an account number, which is also called BO ID (Beneficiary Owner Identification number). The DP may revise the charges by giving 30 days notice in advance. SEBI has rationalised the cost structure for dematerialisation by removing account opening charges, transaction charges for credit of securities, and custody charges vide circular dated January 28, 2005. Further, SEBI has vide circular dated November 09, 2005 advised that with effect from January 09, 2006, no charges shall be levied by a depository on DP and consequently, by a DP on a Beneficiary Owner (BO) when a BO transfers all the securities lying in his account to another branch of the same DP or to another DP of the same depository or another depository, provided the BO Account/s at transferee DP and at transferor DP are one and the same, i.e. identical in all respects. In case the BO Account at transferor DP is a joint account, the BO Account at transferee DP should also be a joint account in the same sequence of ownership. Rights
1. You can open more than one depository account in the same name with single DP/ multiple DPs. 2. No minimum balance is required to be maintained in a depository account. 3. You can give a one time standing instruction to your DP to receive all the credits coming to your depository account automatically.

Procedure
1. Fill account opening form (available with your DP). 2. Give your DP the duly filled account opening form with introduction documents as may be required. 3. Sign agreement with DP (agreement will state rights & obligations of both parties). The agreement will contain the fee structure of your DP. Your DP would give you a copy of this signed agreement for your record. 4. DP would give you Client Id no. (account no.) once your depository account is opened. This Client Id no. alongwith your DP Id no.forms a unique combination. Both these nos. should be quoted in all your future correspondence with DP/NSDL/ Issuing company/their registrar & transfer (R&T) agent . 5. Your DP would give you pre-printed instruction slips for depository services viz., dematerialisation, delivery instruction for trades, etc..Preserve these carefully. 6. Your DP would give you a list of deadlines for giving instructions for various depository activities viz., transfer for effecting sale, purchase,etc.. If not, check with the DP.

Points To Remember
1. You may choose your DP based on your evaluation of their reputation, service standards, charges, other conveniences, etc. 2. Open depository account with the same holding pattern as there on existing physical securities. You will need to open separate accounts for every different combination of holding pattern. Eg.: If 100 securities of company ABC & 200 securities of company PQR are registered in the name of X as first holder & Y as second holder, one account in name of X as first holder & Y as second holder is sufficient. Whereas, if 100 securities of company ABC are registered in the name of X as first holder & Y as second holder & 200 securities of company PQR are registered in the name of Y as first holder & X as second holder, you will need to open two accounts, one in the name of X as first holder & Y as second holder and the second in the name of Y as first holder and X as second holder. 3. Account opening procedure should typically take 2-5 days. 4. In case of holdings of a partnership firm, the account should be opened in the name of the partner(s). 5. In case of holdings of a HUF, the account should be opened in the name of the Karta. 6. In case of a minor, the depository account should be opened in the name of the minor and the guardian?s name should be mentioned. The guardian will sign as signatory on behalf of the minor. For selling the securities of the minor, a court order should be obtained. 7. In case of any difficulties, contact your DP.

Pledging
What should I do if I want to pledge electronic securities? The procedure is as follows:

Both you (pledgor) as well as the lender (pledgee) must have depository accounts with the same depository; You have to initiate the pledge by submitting to your DP thedetails of the securities to be pledged in a standard format; The pledgee has to confirm the request through its DP. It is suggested that after creation of the pledge request, you may inform the pledgee and request him to confirm the request; Once this is done, your securities are pledged

All financial transactions between the pledgor and the pledgee are handled as per usual practice outside the depository system How can I close the pledge after repayment of my loan? After you have repaid your loan, you can request for a closureof pledge by instructing your DP in a prescribed format. The pledgee on receiving the repayment will instruct its DP accordingly for the closure of the pledge. Whether pledgee account can be in a different DP? Yes. The pledgee can have an account with a different DP ofNSDL. Can I change the securities offered in a pledge? Yes; if the pledgee (lender) agrees, you may change the securities offered in a pledge. Who will receive dividend on the pledged securities? Pledgor will continue to receive dividend on the pledged securities. The pledgee will get the benefits only if a pledge is invoked and on record date the shares are in the pledgees account. 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 shares, thesystem checks whether pledge is still open or closed.

Where pledge orders are not closed / invoked or partially closed / invoked, the bonus entitlements in such cases are credited to the pledgors account with pledge marked in favour of the pledgee. If the pledge is closed/invoked fully, the bonus entitlements will be credited to the pledgors account as free balances.

Rematerialisation
The process of converting electronic holdings (demat shares) back into Physical Certificates is called Rematerialisation. If one wishes to get back his securities in the physical form one has to fill in the RRF (Remat Request Form) and request his DP for rematerialisation of the balances in his securities account. The process of rematerialisation is outlined below:

One makes a request for rematerialisation. Depository participant intimates depository of the request through the system. Depository confirms rematerialisation request to the registrar. Registrar updates accounts and prints certificates. Depository updates accounts and downloads details to depository participant. Registrar dispatches certificates to investor.

Required Documents
The extent of documentation required to open a demat account may vary according to your relationship with the institution. If you plan to open a demat account with a bank, a savings account holder has an edge over the non-account holder. In fact, banks usually offer additional incentives to customers who open a demat account with them. Along with the application form, your photographs (with co-applicants) and proof of identity/residence/date of birth have to be submitted. The DPs also ask for a DP-client agreement to be executed on non-judicial stamp paper. Here is a broad list (you wont need all of them though):

PAN card Voters ID Passport Ration card Drivers license Photo credit card Employee ID card Bank attestation IT returns

Electricity/ Landline phone bill

While they only ask for photocopies of the documents, they will need the originals for verification. You will have to submit a passport size photograph on which you sign across.

What is Demat?
Whats a demat account? Demat refers to a dematerialised account. Just as you have to open an account with a bank if you want to save your money, make cheque payments etc, you need to open a demat account if you want to buy or sell stocks. So it is just like a bank account where actual money is replaced by shares. You have to approach the DPs (remember, they are like bank branches), to open your demat account. Lets say your portfolio has 100 of Satyam, 200 of IBM and 120 of TCS shares. All these will show in your demat account. So you dont have to possess any physical certificates showing that you own these shares. They are all held electronically in your account. As you buy and sell the shares, they are adjusted in your account. Just like a bank passbook or statement, the DP will provide you with periodic statements of holdings and transactions. Rights Dematerialisation of your holdings is not mandatory. You can hold your securities either in demat form or in physical form. You can also keep part of your holdings (in the same scrip) in demat form & part in physical form. However, a select list of securities announced by SEBI can be delivered only in demat form in the stock exchanges connected to NSDL. Procedure
1. Fill demat request form (DRF) (obtained from DP with whom your depository account is opened). 2. Deface the share certificate(s) you want to dematerialise by writing across Surrendered for dematerialisation. 3. Submit the DRF & share certificate(s) to DP. DP would forward them to the issuer / their R&T Agent . 4. After dematerialisation, your depository account with your DP, would be credited with the dematerialised securities.

Points To Remember
1. Only securities admitted by NSDL can be dematerialised. The list is available with your DP. 2. Only securities registered in the name of the account holder can be dematerialised.

3. Dematerialisation is normally completed within 15 days after the share certificates have reached the issuer/ their R&T Agent. Thus it may take you a month from the date you hand over shares, to receive demat credit. 4. Dematerialisation would be done only when the issuer / their R&T Agent is satisfied of genuineness of securities & ownership status. 5. All the joint holders should sign the DRF. 6. The pattern of holding in the DRF should match the pattern of holding on the share certificate & the pattern in which account is opened. 7. Demat requests with name(s) not matching exactly with the name(s) appearing on the certificates merely on account of initials not being spelt out fully or put after or prior to the surname, would be processed, provided the signature(s) of the client(s) on the DRF tallies with the specimen signature(s) available with the issuer/ their R & T agent. 8. If the signature in the DRF does not match with the signature available with the issuer/ their R & T agent, the issuer/ their R & T agent may at the time of demat confirmation, ask for additional documentation (like bank attestation/ notarisation, etc.) to prove that the certificate belongs to the person who forwarded the DRF. 9. In case there is any problem in processing the DRF, contact your DP and if he cannot resolve the problem you may contact NSDL.

Dematerialisation
Dematerialisation is the process by which a client can get physical certificates converted into electronic balances. An investor intending to dematerialise its securities needs to have an account with a DP. The client has to deface and surrender the certificates registered in its name to the DP. After intimating NSDL electronically, the DP sends the securities to the concerned Issuer/ R&T agent. NSDL in turn informs the Issuer/ R&T agent electronically, using NSDL Depository system, about the request for dematerialisation. If the Issuer/ R&T agent finds the certificates in order, it registers NSDL as the holder of the securities (the investor will be the beneficial owner) and communicates to NSDL the confirmation of request electronically. On receiving such confirmation, NSDL credits the securities in the depository account of the Investor with the DP.

Features:

Holdings in only those securities that are admitted for dematerialisation by NSDL can be dematerialised. Only those holdings that are registered in the name of the account holder can be dematerialised. Names of the holders of the securities should match with the names given for the demat account. If the same set of joint holders held securities in different sequence of names, these joint holders by using ' Transposition cum Demat facility' can dematerialise the securities in the same account even though share certificates are in different sequence of names. e.g., If there are two share certificates one in the name of X first and Y second and another in the name of Y first and X second, then these shares can be dematerialised in the depository account which is in any name combination of X and Y i.e., either X first and Y second or Y first and X second. Separate accounts need not be opened to demat each share certificate. If shares are in the name combinations of X and Y, it cannot be dematerialised into the account of either X or Y alone. Check the demat performance of the companies whose shares are to be given for dematerialisation. Demat requests received from client (registered owner) with name not matching exactly with the name appearing on the certificates merely on account of initials not being spelt out fully or put after or prior to the surname, can be processed, provided the signature of the client on the Dematerialisation Request Form (DRF) tallies with the specimen signature available with the Issuers or its R & T agent. A client may, in the normal course, receive demat confirmation in about 30 days from the date of submission of demat request to the DP.

There are special processes for Securities issued by Government of India and simultaneous transmission and demat.

Procedure:

The client (registered owner) will submit a request to the DP in the Dematerialisation Request Form for dematerialisation, along with the certificates of securities to be dematerialised. Before submission, the client has to deface the certificates by writing "SURRENDERED FOR DEMATERIALISATION". The DP will verify that the form is duly filled in and the number of certificates, number of securities and the security type (equity, debenture etc.) are as given in the DRF. If the form and security count is in order, the DP will issue an acknowledgement slip duly signed and stamped, to the client. The DP will scrutinize the form and the certificates. This scrutiny involves the following : o Verification of Client's signature on the dematerialisation request with the specimen signature (the signature on the account opening form). If the signature differs, the DP should ensure the identity of the client. o Compare the names on DRF and certificates with the client account. o Paid up status o ISIN (International Securities Identification Number) o Lock - in status o Distinctive numbers In case the securities are not in order they are returned to the client and acknowledgment is obtained. The DP will reject the request and return the DRF and certificates in case: o A single DRF is used to dematerialise securities of more than one company. o The certificates are mutilated, or they are defaced in such a way that the material information is not readable. It may advise the client to send the certificates to the Issuer/ R&T agent and get new securities issued in lieu thereof. o Part of the certificates pertaining to a single DRF is partly paid-up; the DP will reject the request and return the DRF along with the certificates. The DP may advise the client to send separate requests for the fully paid-up and partly paid-up securities. o Part of the certificates pertaining to a single DRF is locked-in, the DP will reject the request and return the DRF along with the certificates to the client. The DP may advise the client to send a separate request for the locked-in certificates. Also, certificates locked-in for different reasons should not be submitted together with a single DRF In case the securities are in order, the details of the request as mentioned in the form are entered in the DPM (software provided by NSDL to the DP) and a Dematerialisation Request Number (DRN) will be generated by the system. The DRN so generated is entered in the space provided for the purpose in the dematerialisation request form. A person other than the person who entered the data is expected to verify details recorded for the DRN. The request is then released by the DP which is forwarded electronically to DM (DM - Depository Module, NSDL's software system) by DPM. The DM forwards the request to the Issuer/ R&T agent electronically. The DP will fill the relevant portion viz., the authorisation portion of the demat request form. The DP will punch the certificates on the company name so that it does not destroy any material information on the certificate. The DP will then despatch the certificates along with the request form and a covering letter to the Issuer/ R&T agent. The Issuer/ R&T agent confirms acceptance of the request for dematerialisation in his system DPM (SHR) and the same will be forwarded to the DM, if the request is found in order. The DM will electronically authorise the creation of appropriate credit balances in the client's account. The DPM will credit the client's account automatically. The DP must inform the client of the changes in the client's account following the confirmation of the request. The issuer/ R&T may reject dematerialisation request in some cases. The issuer or its R&T Agent will send an objection memo to the DP, with or without DRF and security certificates depending upon the reason for rejection. The DP/Investor has to remove reasons for objection within 15 days of receiving the objection memo. If the DP fails to remove the objections within 15 days, the issuer or its R&T Agent may reject the request and return DRF and accompanying certificates to the DP. The DP, if the client so requires, may generate a new dematerialisation request and send the securities again to the issuer or its R&T Agent. No fresh request can be generated for the same securities until the issuer or its R&T Agent has rejected the earlier request and informed NSDL and the DP about it.

Bye-Law 9.2 : Dematerialisation

Accounts/Transactions by Book Entry
9.1 Account Opening 9.1.1. The Depository shall keep accounts separately in respect of each Participant. The Depository shall keep a record of each Client's account which shall be updated on a daily basis.. 9.1.2. The Participant shall maintain separate accounts in respect of each Client and its own account. The Participant shall intimate the balances held in its own account and Client account to Depository on a daily basis. 9.1.3. Any prospective Client who wishes to avail the services of the Depository will have to open an account with the Depository through a Participant. 9.1.4. The Client will have to make an application for this purpose to the Participant in the format specified under the Business Rules. 9.1.5. The Client will be required to enter into an agreement with the Participant in accordance with the provisions of Chapter 6 of these Bye Laws. 9.1.6. Once the application has been accepted by the Participant, the applicant will be issued a Client account number. 9.2 Dematerialisation 9.2.1. 9.2.2. Credit of securities into the Depository shall be made either on account of dematerialisation of physical securities or on the fresh issue of securities in the dematerialised form. A Client may convert his physical holdings of securities into dematerialised form by making an application to the Participant in a Dematerialisation Request Form (hereinafter referred to as DRF) in the form prescribed under the Business Rules along with the relevant security certificates. The Participant shall forward the DRF so received, along with the security certificates, to the Issuer or its Registrar & Transfer Agent after electronically registering such request with the Depository. Such DRF shall be forwarded by the Participant not later than seven days of accepting the same from its Client The Depository will electronically intimate, on a daily basis, all dematerialisation requests to the respective Issuer or its Registrar & Transfer Agent The Issuer or its Registrar & Transfer Agent shall verify the validity of the security certificates as well as the fact that the DRF has been made by the person recorded as a member in its Register of Members. After verification as aforesaid, the Issuer or its Registrar & Transfer Agent shall intimate the Depository authorising an electronic credit for that security in favour of the Client. On receipt of such intimation, the Depository shall cause necessary credit entries to be made in the account of the Client concerned. No credit of any securities to the accounts of any Client shall be made unless the Depository has received an intimation from the Issuer or its Registrar & Transfer Agent or its agents as set out in Bye Law 9.2.6 above. Where the Issuer or its Registrar & Transfer Agent rejects any dematerialisation request, it shall electronically intimate the Depository regarding such rejection within a period of fifteen days. On the Issuer or its Registrar & Transfer Agent intimating to the Depository in the manner specified in Bye Law 9.2.8 above, the Issuer or its Registrar & Transfer Agent shall return the DRF along with the relevant security certificates unless the reasons for such rejections are:i. the security certificates are stolen or; ii. the security certificates are fake or; iiiI. in the event of an order from a court or a competent statutory authority prohibiting the transfer of

9.2.3.

9.2.4. 9.2.5. 9.2.6.

9.2.7.

9.2.8. 9.2.9.

such securities or; iv. in case duplicate certificates have been issued in respect of the securities with the same distinctive numbers. 9.2.10. In the event of an intimation being received by the Depository from Issuer or Registrar & Transfer Agent to credit the account of the Client with securities which do not match with the details of the Client or Participant, the balance shall be held in suspense account and shall be reconciled as provided in 9.7.1. 9.2.11. In the event of any person making a claim to the securities that are held in the name of the Client with the Depository after the same are so registered, such claim must be settled amongst the Participants, Clients and Issuer or its Registrar & Transfer Agent. 9.2.12. The Issuer or its Registrar & Transfer Agent giving intimation as set out in Bye Law 9.2.6 above, represents and warrants to the Depository that such securities exist and are validly issued and is entitled/or has full authority to transfer such securities with the Depository in the name of the Client. 9.2.13. If a Client is desirous of dematerialising the shares sent for transfer, then it may do so as per the provisions of the Guidelines for dematerialisation of shares sent for transfer issued by the Securities and Exchange Board of India and in the manner laid out in the Business Rules. In such a case, for the purpose of Bye Laws 9.2.2 and 9.2.3 above, in lieu of security certificates the letter issued by the Issuer or its Registrar & Transfer Agent in accordance with the said guidelines shall be submitted by the Client to the Participant for forwarding it to the Issuer or its Registrar & Transfer Agent 9.3 Account Freezing 9.3.1. The Participant shall freeze the account of a Client maintained with him on written instructions received by the Participant in that regard from the Client concerned in the form specified under the Business Rules. 9.3.2. The Participant shall freeze the account of a Client on written instructions received by him in this regard from the Depository pursuant to the orders of the Central or State Government, Securities and Exchange Board of India or any order passed by the court, tribunal, or any statutory authority in this regard. Provided further that the frozen account shall be released on instructions from the Client in the case of Bye Law 9.3.1 above and the orders of the relevant authority in the case of Bye Law 9.3.2 above. 9.3.3. The Depository shall freeze the account of a Participant to the extent the securities are held in the Participants name:i. on the orders of the Central or State Government or the Securities and Exchange Board of India or any court or tribunal or any statutory authority in this regard; ii. on the orders passed by the Disciplinary Action Committee on disciplinary grounds to that effect set out in Chapter Error! Reference source not found. of the Bye Laws relating to Disciplinary Action; iii. if the Participant becomes insolvent, bankrupt or in case of a body corporate, being wound up. Provided further that the frozen account may be released on instructions of the relevant authority in the case of Bye Law 9.3.3 above. 9.4 Rematerialisation 9.4.1. A Client may withdraw its security balances with the Depository at any point of time by making an application to that effect to the Depository through its Participant. 9.4.2 9.4.3 9.4.4 A Participant holding its own securities in the Depository may withdraw its security balances with the Depository by making an application to that effect to the Depository. The Client shall make the request for withdrawal of the balance in his account in the Rematerialisation Request Form (hereinafter referred to as RRF) as specified in the Business Rules. On receipt of the RRF, the Participant shall check whether sufficient free relevant security balance is

available in the account of the Client. If there is sufficient balance, the Participant shall accept the said RRF and block the balance of the Client to the extent of the rematerialisation quantity and electronically intimate the request to the Depository. 9.4.5 9.4.6 9.4.7 On receipt of the request referred to in Bye Law 9.4.4 above, the Depository shall block the balance of the Participant to the extent of rematerialisation quantity in Depository system. The Depository will intimate electronically all such accepted rematerialisation applications to the Issuer or its Registrar & Transfer Agent on a daily basis. The Participant shall forward the RRF to the Issuer or its Registrar and Transfer Agent within seven days of accepting such request from the Client. The Issuer or its Registrar & Transfer Agent after validating the RRF will confirm electronically to the Depository that the RRF has been accepted. Thereafter the Issuer or its Registrar and Transfer Agent shall despatch the share certificates arising out of the rematerialisation request within a period of thirty days from receipt of such Rematerialisation Request Form. On receipt of such acceptance from the Issuer or its Registrar and Transfer Agent, the Depository shall remove the balances from the respective Participant's account and the Participant shall remove the balance from the respective Client's account.

9.4.8

9.5

Account Closure 9.5.1 A Client wanting to close an account shall make an application, in the format specified to that effect in the Business Rules to the Participant. 9.5.2 The Client may close its account if no balances are standing to its credit in the account. In case any balances exist, then the account may be closed in the following manner:i. by rematerialisation of all its existing balances in its account; and / or; ii. by transferring its security balances to its other account held either with the same Participant or with a different Participant. 9.5.3 The Participant shall ensure that all pending transactions as well as suspended accounts have been adjusted before closing such account. After ensuring that there are no balances in the Client account, the Participant shall execute the request for closure of the Client's account.

9.6

Transfer of Balances 9.6.1 The Participant shall not execute any debit or credit in the account of the Client without authorisation from such Client. 9.6.2 The mode and the form of authorisation shall be specified in the Business Rules. 9.6.3 Where there is transfer of balance from the Client of one Participant to the Client of another Participant, both the delivering and the receiving Participant must enter instructions for delivery and receipt respectively. After the instructions are matched in the Depository system, such transfer shall be executed in the Participant 's account in the Depository and the Participant shall in turn execute such transfer in the Client's account. 9.6.4 In the event of a Participant ceasing to be a Participant for the Depository, the Client of that Participant may, either request for rematerialisation of securities or request for the transfer of balances in its account with another Participant. 9.6.5 The Depository may on receipt of a court order transfer the balances standing in the Participant 's account to another Participant account.

9.7

Securities held in Suspense. 6.7.1 The Depository may place any balance of relevant securities in a suspense account held with the

Depository if it is unable to effect or give credit of a security to the account of a Participant and/or the Client as a result of incorrect electronic intimation received from the Issuer or its Registrar & Transfer Agent. Such balances shall be reconciled within a period of fifteen days failing which the Depository shall authorise the Issuer or its Registrar and Transfer Agent to issue physical securities to the concerned investors. 9.8 Corporate Benefits. 9.8.1 The Issuer or its Registrar & Transfer Agent shall intimate the Depository of the corporate actions which would herein mean and include any action taken by the Issuer relating to prescribing dates for book closures, record dates, dates for redemption or maturity of security, dates of conversion of debentures, warrants, call money dates and such other action from time to time. 9.8.2 On receiving the intimation as stated above, the details of the holdings of the Clients shall be provided electronically by the Depository to the Issuer and / or its Registrar and Transfer Agent as of relevant cut off date for the purpose of corporate actions and distribution of corporate benefits. 9.8.3 The Issuer or its Registrar and Transfer Agent shall distribute dividend, interest or other monetary benefits directly to the eligible beneficial owners on the basis of the list provided by the Depository. Provided however that the Issuer or its Registrar and Transfer Agent may opt to distribute the dividend, interest or other monetary benefits to the eligible beneficial owners through the Depository with the concurrence of the Depository. 9.8.4 The Issuer or its Registrar & Transfer Agent may, if the benefits are in the form of securities, distribute such benefits to the Clients through the Depository provided that:i. the newly created security is an eligible security; ii. the concerned Client has consented to receive the benefits through the Depository. 9.8.5 In such case, the Issuer or its Registrar and Transfer Agent shall provide allotment details of all Clients to the Depository. 9.8.6 On receipt of allotment details, the Depository shall cause necessary credit entries to be made in the account of the Client concerned. 9.8.7 The Clauses 9.8.1 to 9.8.6 shall not apply in case of Government securities issued by a State or the Central Government. Provided however that, the payment of interest or the principal amount or any amount in respect of Government Securities shall be in accordance with the terms of issue of Government Securities 9.9 Pledge and Hypothecation. 9.9.1 If a Client intends to create a pledge on a security owned by him, he shall make an application in this regard in the form specified in the Business Rules to the Depository through the Participant, who has his account in respect of such securities. The pledgor and the pledgee must have an account in the Depository to create a pledge. However, the pledgor and the pledgee may hold an account with two different Participants. The Participant after satisfaction that the securities are available for pledge shall make a note in its records, of the notice of pledge, and forward the application to the Depository. The Depository, after receiving confirmation from the Participant of the pledgee through an application made by the pledgee to the Participant in the form specified in Business Rules in this regard, shall within fifteen days of the receipt of the application create and record the pledge and send an intimation of the same to the Participants of pledgor and pledgee. On receipt of the intimation under Bye Law 9.9.4 above, the Participants of both the pledgor and the pledgee shall inform the pledgor and the pledgee respectively of the entry of creation of the pledge. 9.9.6. If the Depository does not create the pledge, it shall within fifteen days of the receipt of application

9.9.2 9.9.3 9.9.4

9.9.5 9.9.6

under Bye Law 9.9.1 send alongwith the reasons, an intimation to the Participants of the pledgor and the pledgee 9.9.7 The pledgor or pledgee may request cancellation of the entry of pledge made under Bye Law 9.9.4 by making an application in the form specified in this regard in the Business Rules to the Depository through its Participant. The Participant shall make a note in its records, of the cancellation of the entry of pledge and forward the request to the Depository The Depository, after receiving prior confirmation from the Participant of the pledgee through an application made by the pledgee to the Participant in the form specified in Business Rules in this regard, shall cancel the entry of pledge made under Bye Law 9.9.4 and send an intimation of the same to the Participants of pledgor and pledgee.

9.9.8 9.9.9

9.9.10 The pledgee may invoke the pledge made under Bye Law 9.9.4, subject to the provisions of the pledge document, by making an application in the form specified in this regard in the Business Rules, to the Depository through its Participant. 9.9.11 The Participant shall make a note in its records, of the request of invocation of the entry of pledge and forward the request to the Depository. 9.9.12 The Depository, on receipt of a request under Bye Law 9.9.11, shall invoke the pledge and amend its record accordingly to register the pledgee as a beneficial owner of the securities and shall thereafter, send intimation of the same to the Participants of the pledgor and the pledgee. 9.9.13 On receipt of the intimation under Bye Law 9.9.12 above, the Participants of both the pledgor and the pledgee shall inform the pledgor and the pledgee respectively of the invocation of pledge. 9.9.14 i. If the Client intends to create a hypothecation on the securities owned by him, he may do so in accordance with the provisions of Bye Laws 9.9.1 to 9.9.13. ii. The provisions of Bye Law 9.9.1 to 9.9.13 shall mutatis mutandis apply in such cases of hypothecation except in so far as Bye Law 9.9.4, the Depository shall invoke the entry of hypothecation made under Bye Law 9.9.4 after receiving confirmation from the Participant of the hypothecator through an application made by the hypothecator to the Participant in the form specified in this regard in the Business Rules. 9.9.15 No transfer of security in respect of which a notice or entry of pledge or hypothecation is in force shall be effected by a Participant without the prior concurrence of the pledgee or the hypothecatee as the case may be. 9.10 Transmission of Securities. 9.10.1 NSDL shall effect the transmission of security balances of any Client due to death, lunacy, bankruptcy, insolvency or by any other lawful means other than transfer. 9.10.2 In case where the deceased was one of the jointholders in the Client account, the surviving Client(s) shall be the person(s) recognised by NSDL as having any title to the security balances in that joint Client account. 9.10.3 In case where the deceased was a sole holder of the Client account, his legal heir(s) or the legal representative(s) shall be the only person(s) recognised by NSDL as having any title to the security balances in that sole Client account. 9.10.4 Such surviving joint holder(s) or legal heir(s) or legal representative(s) shall be required to produce such evidence and follow the procedures prescribed in the Business Rules for the purpose of transmission of security balances in their favour. 9.11 Transmission of Securities in case of Nomination. 9.11.1 In respect of every account, the Beneficial Owner(s) ("Nominating Person(s)") may nominate any person ("Nominee") to whom his securities shall vest in the event of his death in the manner prescribed under

the Business Rules from time to time. 9.11.2 The securities held in such account shall automatically be transferred in the name of the Nominee, upon the death of the Nominating Person, or as the case may be, all the Nominating Persons subject to the other Bye Laws mentioned hereunder. 9.11.3 A minor may be nominated to the interest in an account under these Bye Laws, provided the Nominating Person(s) follow(s) such requirements as may prescribed under the Business Rules, including without limitation, provision of the name and address of the guardian of such minor to the Participant and the Depository 9.11.4 Beneficial Owner(s) may substitute or cancel a nomination at any time. A valid nomination, substitution or cancellation of nomination shall be dated and duly registered with the Participant in accordance with the Business Rules prescribed therefor. The closure of the account by the Nominating Person(s) shall conclusively cancel the nomination. 9.11.5 A Nominee shall not be entitled to exercise any right conferred on Beneficial Owners under these Bye Laws, upon the death of the Nominating Person(s), unless the Nominee follows the procedure prescribed in the Business Rules for being registered as the Beneficial Owner of the securities of the Nominating Person(s) in the books of the Depository. 9.11.6 A nominee shall on the death of the Nominating Person(s) be entitled to elect himself to be registered as a Beneficial Owner by delivering a notice in writing to the Depository, along with the certified true copy of the death certificate issued by the competent authority as prescribed under the Business Rules. Subject to scrutiny of such election, the securities in the Account shall be transmitted to the account of the Nominee held with any depository. 9.11.7 Notwithstanding anything contained in any other disposition and/or nominations made by the Nominating Person(s) under any other law for the time being in force, for the purposes of dealing with the securities lying to the credit of deceased Nominating Person(s) in any manner, the Depository shall rely upon the last nomination validly made prior to the demise of the Nominating Person(s). The Depository shall not be liable for any action taken in reliance upon and on the basis of nomination validly made by the Nominating Person(s). 9.11.8 The Depository shall, on receipt of notice or on obtaining intimation about the death of the nominating person(s), issue a notice requiring the person recorded as a Nominee in its records to make an election to have the beneficial ownership of the relevant securities registered in the name of such Nominee. Further, the Depository shall take such action including suspending any transaction in the account of the Nominating person(s) for debits, till such time the requirements of the notice are complied with. 9.12 Dematerialisation of Government Securities. 9.12.1 Credit of securities into the Depository shall be made on account of dematerialisation of physical securities or on account of transfer from Subsidiary General Ledger (SGL) accounts maintained by other eligible entities or on fresh issue of securities in dematerialised form. 9.12.2 A Client may convert his physical holding of securities into dematerialised form by making an application to the Participant in the Dematerialisation Request Form (DRF-GS) along with relevant security certificate and Form of transfer prescribed by RBI as contained in the Business Rules. 6.12.3 A Client may transfer his holdings in dematerialised form held in an SGL account with other eligible entity by making an application to the Participant in the Dematerialisation Request Form (DRF-GS) as prescribed under the Business Rules along with SGL transfer documents as prescribed under Rule 7 of P.D. Rules of RBI duly executed by the other eligible entity from whose SGL account the transfer is sought. 9.12.4 The Participant shall forward the DRF-GS and the documents so received, along with the security certificates, wherever applicable, to the Depository after electronically registering such a request in the DPM. Such DRF-GS shall be forwarded by the Participant to the Depository not later than seven days of accepting the same from its Client. 9.12.5 The Depository shall cause the necessary credit entries to be made in the account of the Client concerned, after obtaining prior approval from RBI for conversion of physical securities into SGL balances

or for transfer of balances from SGL account maintained by other eligible entities, as the case may be. 9.12.6 Where any dematerialisation request is rejected by RBI, the Depository shall electronically intimate the Participant regarding such rejection within a period of seven days. 9.12.7 On receipt of rejection of the dematerialisation request, the Depository shall return the DRF along with the relevant security certificates and documents submitted by the Client unless the reasons for such rejections are:- a) the security certificates lodged by the Client are reported to be stolen; b) the security certificates are reported to be forged or fake; c) an order from a court or a competent statutory authority restraining the Depository from doing so; d) any other reason which in the opinion of RBI, that it would not be proper to return the security certificates. 9.13 Withdrawal of Government securities from the Depository. 9.13.1 A Client or a Participant holding its own securities in the Depository may withdraw the same and seek physical certificate or seek transfer to an SGL account of other eligible entity by making an application to that effect to the Depository in the Rematerialisation Request Form (hereinafter referred to as RRF-GS) as specified in the Business Rules.. 9.13.2 On receipt of the RRF-GS, the Participant shall check whether sufficient free relevant security balance is available in the account of the Client. If there is sufficient balance, the Participant shall accept the said RRF-GS and block the balance of the Client to the extent of the requested quantity and electronically intimate the request to the Depository. 9.13.3 On receipt of the request referred to in Bye Law 9.13.2 above, the Depository shall block the balance of the Participant to the extent of rematerialisation quantity in Depository system. 9.13.4 The Participant shall forward the RRF-GS to the Depository within seven days of accepting such request from the Client. The Depository shall forward the rematerialistion request to RBI in the form prescribed by RBI. 9.13.5 In case the request was for physical certificates, the Depository shall receive from RBI the physical certificates in its name and execute a form of transfer as prescribed by RBI in favour of the Client. The Depository shall confirm the acceptance of RRF-GS electronically and forward the physical certificates along with the form of transfer to the Client directly. 9.13.6 In case the request was for transfer to an SGL account with other eligible entity, the Depository shall confirm the acceptance of RRF electronically to the Participant, after obtaining approval from RBI. 9.13.7 On receipt of such confirmation from RBI as mentioned in Clause 9.13.5 and 9.13.6 above, the Depository shall remove the balances from the respective Participant's account and the Participant shall remove the balances from the respective Client's account. 9.14 Securities Lending. 9.14.1 Any entity having an account with a Participant in the Depository, desirous to lend or borrow securities, may do so in the manner laid down under SEBI (Stock Lending Scheme), 1997 or any amendment thereof and under the Business Rules.

Demat account
The term "demat", in India, refers to a dematerialised account for individual Indian citizens to trade in listed stocks or debentures in electronic form rather than paper, as required for investors by the Securities and Exchange Board of India (SEBI).[1] In a demat account, shares and securities are held electronically instead of the investor taking physical possession of certificates. A demat account is opened by the investor while registering with an investment broker (or sub-broker). The demat account number is quoted for all transactions to enable electronic settlements of trades to take place.

Access to the demat account requires an internet password and a transaction password. Transfers or purchases of securities can then be initiated. Purchases and sales of securities on the demat account are automatically made once transactions are confirmed and completed.
]Advantages

of demat

A demat account also helps avoid problems typically associated with physical share certificates, for example: delivery failures caused by signature mismatch, postal delays and loss of certificate during transit. Further, it eliminates the risks associated with forgery and due to damaged stock certificates. Demat account holders also avoid stamp duty (as against 0.5 per cent payable on physical shares) and filling up of transfer deeds. Demat account holders usually obtain quicker receipts of benefits like stock splits and bonuses. The other advantage is the ability access stocks, bonds, ETFs, IPO, Gold ETF, etc. all in one place. Its like one centralized investment account from where you can access and maintain investment products.
[edit]Indian

market scenario

The capital market in India has seen an unprecedented boom in the last 15 years, in terms of number of stock exchanges, listed companies, trade volumes, market intermediaries, and investor population. However, this surge in activity created many initial problems to the large volumes of paperwork. Large volumes of trading, clearing and settlements using only paper-based instruments were beset with problems that threatened the very survival of World's capital market.
[edit]Goal

of Demats System

India adopted the Demat System for electronic bookkeeping, wherein shares and securities are represented and maintained electronically, thus eliminating the troubles associated with paper shares. After the introduction of the depository system by the Depository Act of 1996, the process for sales, purchases and transfers of shares became significantly easier and most of the risks associated with paper certificates were mitigated.
[edit]Demat

benefits

The benefits of demat are enumerated[by whom?] as follows: Easy and convenient way to hold securities Immediate transfer of securities No stamp duty on transfer of securities Safer than paper-shares (earlier risks associated with physical certificates such as bad delivery, fake securities, delays, thefts etc. are mostly eliminated) Reduced paperwork for transfer of securities Reduced transaction cost No "odd lot" problem: even one share can be sold Change in address recorded with a DP gets registered with all companies in which investor holds securities eliminating the need to correspond with each of them separately. Transmission of securities is done by DP, eliminating the need for notifying companies. Automatic credit into demat account for shares arising out of bonus/split, consolidation/merger, etc. A single demat account can hold investments in both equity and debt instruments. Traders can work from anywhere (e.g. even from home). Benefit to the company The depository system helps in reducing the cost of new issues due to lower printing and distribution costs. It increases the efficiency of the registrars and transfer agents and the secretarial department of a company. It provides better facilities for communication and timely service to shareholders and investors. Benefit to the investor The depository system reduces risks involved in holding physical certificates, e.g., loss, theft, mutilation, forgery, etc. It ensures transfer settlements and reduces delay in registration of shares. It ensures faster communication to investors. It helps avoid bad delivery problems due to signature differences, etc. It ensures

faster payment on sale of shares. No stamp duty is paid on transfer of shares. It provides more acceptability and liquidity of securities. Benefits to brokers It reduces risks of delayed settlement. It ensures greater profit due to increase in volume of trading. It eliminates chances of forgery or bad delivery. It increases overall trading and profitability. It increases confidence in their investors.
[edit]Depository

Participant (DP)

Main article: Depository participant A depository (in simple terms) is an institution holding a pool of pre-verified shares held in electronic mode that offers efficient settlement of transactions. A Depository Participant (DP) is an intermediary between the investor and the depository. A DP is typically a financial organization like a bank, broker, financial institution, or custodian acting as an agent of the depository to make its services available to the investors. Each DP is assigned a unique identification number known as DP-ID. As of March 2006, there were a total of 538 DPs registered with SEBI.
[edit]Demat

conversion

Converting physical records of investments into electronic records is called "dematerialising" of securities. In order to dematerialise physical securities, investors must fill in a Demat Request Form (DRF), which is available with the DP and submit the same along with physical certificates. Every security has an ISIN (International Securities Identification Number). A separate DRF must be filled for each ISIN. The complete process of dematerialisation is outlined below:

The investor surrenders the certificates for dematerialisation to the DP. DP updates the account of the investor.

[edit]Demat

options

There are many hundreds of Depository Participants (DPs) offering the Demat account facility in India as of September 2011. A comparison of the fees charged by different DPs is detailed below. There are a few distinct advantages of having a bank as a DP. Having a Demat account with a bank DP, usually provides quick processing, accessibility, convenience, and online transaction capability to the investor. Generally, banks credit the Demat account with shares in case of purchase, or credit a savings account with the proceeds of a sale, on the third day. Banks are also advantageous because of the number of branches they have. Some banks give the option of opening a demat account in any branch, while others restrict themselves to a select set of branches. Some private banks also provide online access to the demat account. Hence, the investors can conveniently check online details of their holdings, transactions and status of requests through their bank's net-banking facility. A broker who acts as a DP may not be able to provide these services.
[edit]Fees

involved

There are four major charges usually levied on a demat account: account opening fee, annual maintenance fee, custodian fee and transaction fee. Charges for all fees vary from DP to DP.
[edit]Account-opening

fee

Depending on the DP, there may or may not be an opening account fee. Private banks, such as HDFC Bank and AXIS Bank, do not have one. However, players such as Kotak Securities[2] ICICI Bank, Globe Capital, Karvy Consultants, Bajaj Capital Limited and State Bank of India do impose an opening fee. Most players levy this when re-opening a demat account. However, the Stock Holding Corporation offers a lifetime account opening fee, which allows the investor to hold on to his/her demat account for a long period. The fee is also refundable.
[edit]Annual

maintenance fee

This is also known as folio maintenance charges, and is generally levied in advance...

[edit]Custodian

fee

This fee is charged monthly and depends on the number of securities (i.e. ISINs) held in the account. It generally ranges between Rs 0.5 to Rs 1 per ISIN per month. DPs will not charge a custody fee for an ISIN on which the companies have paid one-time custody charges to the depository.
[edit]Transaction

fee

The transaction fee is charged for crediting/debiting securities to and from the account on a monthly basis. While some DPs, such as SBI, charge a flat fee per transaction, HDFC Bank and ICICI Bank peg the fee to the transaction value, which is subject to a minimum amount. The fee also differs based on the kind of transaction (buying or selling). Some DPs charge only for debiting the securities, while others charge for both. Some DPs also charge the investor even if the instruction to buy/sell fails or is rejected. In addition, service tax is also charged by the DPs. In addition to the other fees, the DP also charges a fee for converting the shares from the physical to the electronic form or vice-versa. This fee varies for both demat (physical-to-electronic) and remat (electronic-tophysical) requests. For demat transactions, some DPs charge a flat fee per request in addition to the variable fee per certificate, while others charge only the variable fee. For instance, Stock Holding Corporation has charged Rs 25 as the request fee and Rs 3 per certificate as the variable fee. However, SBI has charged only the variable fee, as Rs 3 per certificate. Remat requests also have charges akin to that of demat. However, variable charges for remat are generally higher than demat. Some of the additional features (usually offered by banks) are as follows. Some DPs offer a frequent-trader account, where they charge frequent traders at lower rates than the standard charges. Demat account holders are generally required to pay the DP an advance fee for each account that will be adjusted against the various service charges. The account holder needs to raise the balance when it falls below a certain amount prescribed by the DP. However, if the holders also hold a savings account with the DP, they can provide a debit authorisation to the DP for paying this charge. Finally, once choosing a DP, it would be prudent to keep all accounts with that DP, so that tracking ofcapital gains liability is easier. This is because when calculating capital gains tax, the period of holding will be determined by the DP, and different DPs follow different methods. For instance, ICICI Bank uses the first in first out (FIFO) method to compute the period of holding. The proof of the cost of acquisition will be the contract note. The computation of capital gains is done account-wise. Indian Banking System First, an investor has to approach a DP and fill up an account opening form. The account opening form must be supported by copies of any one of the approved documents to serve as proof of identity (POI) and proof of address (POA) as specified bySEBI. An investor must have his/her PAN card in original at the time of opening of the account (mandate effective from April 1, 2006). All applicants should carry original documents for verification by an authorized official of the depository participant, under his signature. Further, the investor has to sign an agreement with the DP in a depository prescribed standard format, which details rights and duties of investor and DP. DP should provide the investor with a copy of the agreement and schedule of charges for their future reference. The DP will open the account in the system and give an account number, which is also called BOID (Beneficiary Owner Identification number). The DP may revise the charges by giving 30 days notice in advance. SEBI has rationalised the cost structure for dematerialisation by removing account-opening charges, transaction charges for credit of securities, and custody charges vide circular dated January 28, 2005. Further, SEBI has vide circular dated November 9, 2005 advised that with effect from January 9, 2006, no charges shall be levied by a depository on DP and consequently, by a DP on a Beneficiary Owner (BO) when a BO transfers all the securities lying in his account to another branch of the same DP or to another DP of the same depository or another depository, provided the BO Account(s) at transferee DP and at transferor DP are one and the same, i.e. identical in all respects.[3] In case the BO Account at transferor DP is a joint account, the BO Account at transferee DP should also be a joint account in the same sequence of ownership.
[edit]Disadvantages

of Demat

Trading in securities may become uncontrolled in case of dematerialized securities. It is incumbent upon the capital market regulator to keep a close watch on the trading in dematerialized securities and see to it that trading does not act as a detriment to investors.

For dematerialized securities, the role of key market players such as stock-brokers needs to be supervised as they have the capability of manipulating the market. Multiple regulatory frameworks have to be conformed to, including the Depositories Act, Regulations and the various By-Laws of various depositories. Agreements are entered at various levels in the process of dematerialization. These may cause worries to the investor desirous of simplicity.

[edit]Transfer

of shares between DPs

To transfer shares, an investor has to fill one of two kinds of Depository Instruction Slip (DIS). The first check made is whether both Demat accounts are at the same depository. There are two depositories: (CDSL (Central Depository Securities Limited) and NSDL (National Securities Depository Limited)). If both demat accounts are not at the same depository, then an Inter Depository Slip (Inter DIS) has to be filled and submitted. Otherwise, an Intra Depository Slip (Intra DIS) has to be filled and submitted. For example:

If there is one Demat account with CDSL and the other Demat account with NSDL, then an Inter-DIS is needed. (In case the investor needs an Intra-DIS, the investor should check with the broker, since brokers usually issue an Intra-DIS). Now that the correct DIS has been determined, information pertaining to the transfer transaction has to be entered: scrip name, INE number, quantity in words and figures. Finally, the investor should submit that DIS to the broker with signatures. The transfer broker shall accept that DIS in duplicate and acknowledge receipt of DIS on duplicate copy.

The investor should submit the DIS when the market is open. Accordingly, date of submission of DIS and date of execution of DIS can be same or a difference of one day is also acceptable. The investor also has to pay the broker some charges for the transfer.
[edit]Security

recommendations

A Depository Instruction Slip (DIS) is almost like a cheque book, so it can be misused if issued blank. Hence, an investor should exercise sufficient caution while issuing a DIS slip. For example: an investor should deposit only a completely filled-in slip to the broker. Unfilled rows should be cancelled out so that they cannot be tampered with.

Dematerialisation of Government Securities 11.5.1. Every Client desirous of getting the physical securities converted into dematerialised form shall submit the securities to the Participant along with the Dematerialisation Request Form (DRF-GS) and the form of transfer prescribed by RBI. The specimen of the DRF-GS and the form of transfer prescribed by RBI are given in Annexure U and UA respectively. No dematerialisation request as provided in Rule 11.5.1 above, shall be entertained by the Participant other than from a registered holder of securities. Every Client desirous of transferring his holdings in dematerialised form held in an SGL account with other eligible entity, shall submit to the Participant SGL transfer documents as prescribed under Rule 7 of P.D.Rules of RBI duly executed by the other eligible entity along with the Dematerialisation Request Form (DRF-GS). The Participant shall ensure that the DRF-GS submitted by its Client is duly filled and signed. The Participant shall forward the DRF-GS to the Depository only after ascertaining that the face value of certificates annexed with the DRF-GS tallies with the face value of certificates mentioned on the DRF-GS.

11.5.2. 11.5.3.

11.5.4. 11.5.5.

11.5.6. 11.5.7.

The Participant shall also verify the details of the certificates submitted for dematerialisation with the details filled up in the corresponding DRF-GS. The Participant shall ensure that the certificates submitted for dematerialisation are endorsed on the reverse, in the space provided, with the words "Tendered for Cancellation and Credit to SGL A/C. No. BYSL0838 of National Securities Depository Limited, Mumbai" in the manner laid down in Annexure UB. The responsibility to ensure safety and security of the certificates submitted for dematerialisation will be on the Participant till the certificates are forwarded to the Depository. The Participant shall not deface or mutilate the certificates either by punching holes or by any other means. The Participant shall ensure that a separate DRF-GS is filled in by the Client for securities having distinct International Securities Identification Numbers [ISINs]. The Participant shall ensure that the Client submits a separate DRF-GS for each of its accounts maintained with the Participant. The securities requested for dematerialisation shall be credited to the accounts maintained with a Participant only when the pattern of holding in the account of the Client matches with the pattern of holding as per the security certificates. The explanation of such pattern of holding is given in Annexure F. Provided however that, in case of transfer of holdings from an SGL account with other eligible entity, credit may be allowed when the securities are in the name of the other eligible entity. In the case of securities which have been submitted for dematerialisation for which any objection memo has been received from the Depository, the Participant shall facilitate the correction of such objections on a timely basis. In case of issue of securities in electronic form, the account of the Client maintained with the Participants shall be credited with such securities issued only when the pattern of holdings of such account matches with the pattern of holding given in the allotment statement. The pattern of such holding has been explained in Annexure F.

11.5.8. 11.5.9. 11.5.10. 11.5.11. 11.5.12.

11.5.13.

11.5.14.