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NSDL

This document provides an overview of depository accounts and the account opening process. It discusses the different types of accounts available at a Depository Participant including beneficial owner accounts, house accounts, non-house accounts, clearing member accounts, and intermediary accounts. It then describes the documentation required to open individual and corporate client accounts, including KYC requirements and 'in-person' verification. The key steps to open a beneficiary account and features like zero balance and nomination are also summarized.

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1 INTRODUCTION TO DEPOSITORY
2 Functions of Financial Market Surplus Sector Deficit Sector House Holds (Savers) Corporate & Public Sector( Borrowers) Investable Funds Requirement of funds Borrows Funds and Issue Securities
3 Financial Market  FM is a Place where the securities are traded  FM Consists of Investors buyers and sellers of securities FM has No physical location for trade FM has no formal trading rules FM has no relationship & communication
4 Financial Market Organized Unorganized Money Market Capital Market Money lenders Primary Secondary Pan brokers Participants Commercial Bks RBI Issue new instruments Core of MM LIC in corporate sector Inter Bank GIC Call Money STCI Equity shares, Govt
5 Primary Market issues Securities through a prospectus in a retail market and there is no physical location.  Secondary market of securities is a market for trading the securities that have already been issued in the primary market.
6 Secondary Market  Place for trading securities already issued Consists registered Brokers/sub Brks of SE Consists 22 stock exchanges Has physical location/ trading floor Provides Liquidity to the initital buyers in PM Place for buying and selling securities Since 1995 trading is screen based Sale/purchase of securities can be made
7 Capital market participants Primary Market Secondary Market Financial Institutions Stock Exchange FII Stock Brokers Merchant Bankers R&T Agents Mutual Funds Custodians Depositories MF, FI, FII Individual Investors
8 Market Regulation Required for Smooth functioning of Capital Market  is an arena of players associated with economic growth Until 1992 the FM was highly segmented on various counts of regulation and administered prices
9 Capital Issue Control Act 1947 Restricted access to securities Market for issuers and Controlled pricing of Issues. Companies Act 1956 Controlled Issues, allotment &Transfer Disclosure to Public Securities contract Act 1956 Securities transaction regulation
10 To regulate, administer, control and bring under a single authority SEBI Act was passed in 1992. Objectives of SEBI- Improve market efficiency Enhance transparency Check unfair trade practices Bring CM to International standards Liberalize, regulate, develop Security Mkt
11 Present Situation in Secondary Market Screen Based trading Secondary Market has overcome geographical barriers Physical securities almost disappeared Settlement period has reduced to 2 days Investor friendly
12 Capital Market Intermediaries Merchant Bankers Credit rating agencies R & T Agents Stock brokers Custodians Mutual Funds Depositories Depository Participants Instruments
13 Capital Market Intermediaries Instruments Debentures-Convertible/Non- contble Bonds Equity/Preference shares Govt Securities Ware house Receipts Other Instruments
14 MILESTONES INMILESTONES IN INDIAN CAPITALINDIAN CAPITAL MARKETMARKET NSE NOV 1994 FIRST NATIONWIDE SCREEN BASED TRADING NSCCL JUN 1996 FIRST CLEARING CORP. OFFERING GUARANTEED SETTLEMENT (part of NSE, Inter Region Clearing) (Novation) NSDL NOV 1996 FIRST DEPOSITORY FACILITATING SCRIPLESS TRADING
15 MILESTONES IN SETTING UPMILESTONES IN SETTING UP OF NSDLOF NSDL DEPOSITORIES ORDINANCE SEPT 95 IDBI UTI NSE NSDL INCORPORATION DEC 95 SEBI REGULATIONS MAY 96 DEPOSITORIES ACT AUG 96 NSDL SEBI CERTIFICATION COMMENCEMENT CERTIFICATE INAUGURATION JUNE 96 OCT 96 NOV96
16 NSDL-NSDL- BANK--AN ANALOGYBANK--AN ANALOGY BANKBANK FundsFunds BANKBANK FundsFunds NSDLNSDL SecuritiesSecurities 1 Holds funds in accounts 1 Holds securities in accounts 2 Transfers funds between accounts 2 Transfers securities between accounts 3 Transfers without handling money 3 Transfers without handling securities 4 Safekeeping of money 4 Safekeeping of securities
17 BANKBANK FundsFunds BANKBANK FundsFunds NSDLNSDL SecuritiesSecurities NSDL- BANK-The differenceNSDL- BANK-The difference 1 Any one of the holders can sign instruction 1 All joint holders to sign instructions 2 Minimum Balance to be maintained 2 No minimum balance required 3 Entitled for interest 3 interest only by participating in stock lending 4 Use balance in the account 5 Nomination 4 Does not move balance in account with out account holders authorisation 5 Signature and photograph
18 CUSTOMER INTERFACECUSTOMER INTERFACE BANKBANK DCDC NSDLNSDL SecuritiesSecurities BRANCHBRANCH BRANCHBRANCHBRANCHBRANCH DPDP DPDP DPDP CUSTOMER INTERFACECUSTOMER INTERFACE CUSTOMER INTERFACECUSTOMER INTERFACE
19 LEGAL FRAMEWORKLEGAL FRAMEWORK Operation of DepositoryOperation of Depository • Depositories Act 1996 (Comp Act 1956, SEBI Reg, Demat Form) • SEBI (Depositories & Participants) Regulations 1996 • Bye Laws of NSDL - framed under Sec. 26 of the Depositories Act • Business Rules of NSDL
20 LEGALLEGAL FRAMEWORKFRAMEWORK (Key Features)(Key Features) • Option to the investor to hold securities either inOption to the investor to hold securities either in Physical or Dematerialized formPhysical or Dematerialized form • DEMATERIALISATION -- Physical to ElectronicDEMATERIALISATION -- Physical to Electronic • FUNGIBILITYFUNGIBILITY -- No distinctive numbers-- No distinctive numbers • REMATERIALISATION -- Electronic to PhysicalREMATERIALISATION -- Electronic to Physical • Client interfaceClient interface through Depository Participantsthrough Depository Participants • DP -DP - Agent of NSDLAgent of NSDL • Registered OwnerRegistered Owner ---- NSDLNSDL • Beneficial Owner --Beneficial Owner -- INVESTORINVESTOR
21 LEGAL FRAMEWORK (Key Features Contd.) • Free Transferability • Agreement between NSDL and DP • Agreement between Depository Participant and investor / Beneficial owner • NSDL enters into a Tripartite Agreement Between NSDL, Issuer and R&T Agent • Depository to indemnify losses for negligence D/DP
• Minimum net worth: Rs. 100 crore (Total assets minus total outside liabilities ) • Sponsors to hold at least 51% of equity capital in depository • No DP can hold more than 5% equity capital in depository • Foreign entity individually or collectively cannot hold more than 20% equity capital in Depository 22 SETTING UP OFSETTING UP OF DEPOSITORYDEPOSITORY
23  DEPOSITORY SERVICES  Account Opening  Dematerialisation & Rematerialisation  Delivery & Settlement of Securities  Benpos to Companies & Corporate Action  Pledge of Securities & Hypothecation  Internet Initiative
• NSDL • SPEED-e Services • Clients Simple Spice Ideas Steady • Submit Instruction • View Status of inst • Submit instruction through mobile password based, GPRS • Submission of POA based instruction for clients electronically (POA-to Broker, SB use Digital signature and send to DP • To view Balance and transactions in Demat 24
Steady • Securities Trading information Easy Access and Delivery • Generally used by Brokers, Custodians, Fund Manager. Transmission of trade information across market participants using smart card and digital signature 25
26 JOINING AS A DPJOINING AS A DP • Ten Eligible EntitiesTen Eligible Entities • SEBI net worth - 50 Lakh,SEBI net worth - 50 Lakh, NSDLNSDL requirement 300 Lakhrequirement 300 Lakh • For R & T Agents minimumFor R & T Agents minimum networth is Rs 10 crnetworth is Rs 10 cr • Depositories can fix a higher amountDepositories can fix a higher amount • Net worth certificate by a CANet worth certificate by a CA • Certificate is valid for 5 yearsCertificate is valid for 5 years
27 Any Entity SEBI 1 2 4 Desirous of DP 3 NSDL DP approv es Verifies & Recommend 30 days Issues Certificate Collects Security deposit/Insur ance Charge 5
28 www.nsdl.co.in 8 INVESTOR BROKER/ CLEARING MEMBER ISSUERISSUER INVESTOR CC/ CHCC/ CH DPDP DPDP System Linkage BROKER/ CLEARING MEMBER Electronic Link Electronic Link Electronic Link ElectronicLink
29 • Back-up Machine Level Back up Disaster back-up site Remote Site Back up • Alternative Connectivity • Insurance Cover • NCFM/NCDO qualified persons SAFETYSAFETY
30 BENEFITS TOBENEFITS TO INVESTORSINVESTORS • Eliminates bad deliveries • Effects transfer of securities immediately • Globally moving towards faster settlement cycles • No stamp duty for transfer of securities in the depository • Reduces transaction costs
31 BENEFITS TOBENEFITS TO INVESTORSINVESTORS (Contd.) • Reduces handling of huge volumes of paper • Eliminates all risks associated with physical certificates such as loss, theft, mutilation, forgery, etc. • Facilitates lending and borrowing • Transparency while trading
32 PROGRESS in 2009PROGRESS in 2009 • ParticipantsParticipants :: 280280 • Service CentersService Centers :: 10,985 • Demat ValueDemat Value :: US$1,198 billion.. • IssuersIssuers :: 7,7987,798 • Investor accountsInvestor accounts :: 1,00,62,274 (active)(active) • Stock ExchangesStock Exchanges connectedconnected :: 88 (NSE, BSE, CSE(NSE, BSE, CSE,, DSE, MSE, ASE, ISE, OTCEI)DSE, MSE, ASE, ISE, OTCEI) • Settlement in Demat formSettlement in Demat form :: 100%100%
ACCOUNT OPENING 33
TYPE OF ACCOUNTS • Beneficial Owner Account • House Account (Its own account/Investment) • Non-House Account • Clearing Member Account (settlement of trade) • Intermediary account (Lending and borrowing) 34
Type of Accounts at DP 35 Types of accounts BO Account CM Account Intermediary Account House Non House POOLDelivery Receipt Lending & Borrowing Margin Acct
WHAT DO THEY MEAN contd….. • Clearing Member- CM-To transfer securities – client to stock exchange (pay in) – receive securities from stock exchange (pay- -out) – Partnership firm can also open this account 36
Opening of a client Account (Non House) 37  Investor submits a/c opening form  Signs the DP -Client Agreement  DP to check : Proof of identity Proof of address
Documents for Verification A) For Individual Accounts 1) Some Proof of Identity Passport Voter ID card Driving license PAN card with photograph Identity card/document with applicant’s Photo, issued by - a) Central/State Government and its Departments 38
Documents for Verification 2) Some Proof of Address Ration card Passport Voter ID card Driving license Bank passbook / Bank statement Verified copies of a) Electricity bills (not more than two months old), b) Residence Telephone bills (not more than two months old) and c)Lease and License agreement / Agreement for sale. 39
Documents for Verification 2) Proof of Address contd...  Self-declaration by High Court & Supreme Court judges, giving the new address in respect of their own accounts  Identity card/document with address, issued by a) Central/State Government and its Departments b) Statutory/Regulatory Authorities c) Public Sector Undertakings d) Scheduled Commercial Banks e) Public Financial Institutions f) Colleges affiliated to Universities g) Professional Bodies such as ICAI, ICWAI, Bar Council etc., to their Members 40
Documents for Verification B) For Corporate clients Proof of Identity / Address • Memorandum & Article of Association, board resolution,list of authorised signatories alongwith specimen signatures & photograph. • Introduction by an existing account holder/client’s Bank • Documents registered with ROC • Acknowledged copy of Income Tax Return • Bank Statement 41
PERMANENT ACCOUNT NUMBER (PAN) MANDATORY • SEBI directive on PAN as a mandatory requirement for Demat accounts • PAN compulsory for all categories of clients • Verification from ITD website • NSDL facility for PAN verification • DP to affix ‘PAN verified’ stamp on photocopy of PAN card • Penalty for invalid PAN. 42
‘In-person’ verification • SEBI mandate of ‘In-person’ verification of non-body corporate clients at the time of account opening • ‘In-person’ verification to be carried out only by DP staff • the DP staff should establish the identity of the Client(s) (including guardian in case of minor account) by verifying the photograph(s) affixed in the account opening form as well as proof of identity document(s). 43
Beneficiary Account – Features...  Zero Balance  More than one account (same or different DP).  Names of account holders to be fully spelt out.  Mailing and communication address documents to be checked. 44
Beneficiary Account – Procedure... Minor - Guardian details, Date of Birth certificate/ Passport/Mark sheet of minor. Foreign Address and RBI approval dates -NRI /FII/ OCB accounts. FII /OCB – SEBI Registration details Details of Bank Account, MICR (9 Digit Code ) Details of Income Tax Permanent Account Number Nomination* details – Photograph & Signature  (*Only In case of Individuals) 45
Beneficiary Account Forms for joint Holders: Names of all joint holders with signature. Order of names should be same as appearing in the share certificates to be dematerialized. Supporting documents with photograph. PAN CARD IS MANDATORY FOR ALL HOLDERS. Communication will be made to first holder only  Sequence of name should be accordingly. Transmission cases - A new account. 46
Beneficiary Account - procedure.. DP-Client Agreement Standard Agreement - Non judicial stamp paper SEBI Approved document Part of NSDL Bye Laws Copy of the Agreement- to client DP charges -Schedule A Transaction Statement (Monthly/Quarterly) 47
Beneficiary Account - procedure.. Form for HUF : Name of Karta Form for Companies : operated by the person authorized by a resolution. Form for minors : Operated through a guardian. Required to give Birth certificate. 48
BO Account - Closure & Shifting Client submits a/c closing form to DP Balances in the account Rematerialize Transfer to another account Procedure to deal with pending Demat request 49
50 Opening of house A/C DP (operational) of NSDL Details on DPM (except client name and address) - generates Client Id. More than one house account No need to sign the agreement
51 Opening of CM A/C  CM submits following documents to DP  CM Id Allotment letter A/c opening form Photocopies of these documents and covering letter to NSDL Agreement with CM NSDL allots CM-BP ID
52 Opening of CM A/C contd...  DP opens a/c based on CM-BP Id  CM cannot open more than one A/c per stock exchange  Shifting of a/c from one DP to another is allowed.
53 Procedure for Shifting/Closure of CM A/C CM - Application for closure to old DP. Submits to NSDL :  A/c opening form  CM Id allotment letter - stock exchange  Application for shifting of CM A/c  Acknowledgment copy of Application for closure of a/c with old DP.
54 Procedure for Shifting/Closure of CM A/C DP forwards copies of documents to NSDL DP executes agreement with CM NSDL allots new CM-BP Id New Participant opens account based on new CM-BP Id Intimates NSDL. Old Participant closes the a/c - intimation from NSDL
55 Freezing of Accounts  Suspending further transactions - Dr. or both Dr. and Cr.  A/c or ISIN or Specific number of Securities in a/c  Mode of freeze instruction : Written instruction from client to DP Electronic request by client to DP / NSDL Orders received by DP / NSDL from Central or State Govt., SEBI, or any order by the court, tribunal, or any statutory authority. Request received by NSDL from DP / Client. Order of DAC / DP insolvent / winding up of Corporate
56 UnFreezing of Accounts  Reactivation of Account  Reverse steps Valid written instructions of client NSDL direction as per order of appropriate authority Electronic instruction by client onlyElectronic instruction by client only  (Speed-e - smart card user)(Speed-e - smart card user)  Clear notice of one dayClear notice of one day
Change of Address Clients/Authorised representative to visit DP office personally. Submit proof of Identity. Submit transaction statement received from DP Client (incl. Joint holders) to sign application for change of address. DP to verify signature with his records 57
Change of Signature Client to submit reasons for change of signature. New signature - attested by client’s banker. Submit proof of Identity and latest transaction statement. Client to affix signature in the presence of the officials of DP. DP to verify identity proof, photograph with his records and sign the documents. 58
Facility of standing instruction This facility is provided on the DPM for all types of accounts (except intermediary) in order to receive the securities into the account without giving a specific Receipt Instruction. The Participant should ensure that the field marked for this facility is ticked, in case the client wants to avail of the same. 59
60
61 PROCEDURE FOR DEMAT AT DP  Account with Depository Participant (DP)  Securities should be available for Dematerialization  Demat of physical securities or fresh issue  Demat Request Form (DRF)  Signed by all holders  ISIN - Each ISIN separate DRF  Pattern of Holdings with A/c  Certificate details are entered correctly  No of shares in DRF matches with  certificate and demat order  DP Authorisation  Separate DRF for free and locked in securities (ESOP)
62 PROCEDURE FOR DEMAT AT DP … contd.  Deface Certificates  Surrendered for Dematerialisation  Enter DP name, DP Id and Client Id  Punch Two Holes  Independent personnel  Capturing  Verify & Release (before EOD)  Demat Request Number (DRN)  DRF to contain DRN  Dispatch of DRF and Certificate within 7 days  Follow up for Confirmation and Correction of
63
64 PROCESSING AT ISSUER/RTA Inward of documents  Checking the documents, signatures etc.  Verify genuineness of Certificates  Pending Court order, prohibitory order etc.  Processing only on receipt of request of both in Electronic & physical certificates  Process DRF as Normal Transfer  Seller folio - Client (who wishes to demat)  Buyer folio - NSDL  Update ROM  Confirm Electronic request  Destruction of certificates
65 REJECTION OF DEMAT REQUEST  Signature mismatch  Signature of the 1st/2nd/3rd holder(s) not present  Mismatch between share qty received and DRF qty  Certificates sent are fake  Certificates sent are reported stolen  Duplicate certificates already issued  Old defunct certificates surrendered for demat.  Forfeited securities surrendered for demat.  Forged Endorsement on Certificate  Incorrect Holder(s) name / Pattern  Certificate details mismatch
66 REJECTION OF DEMAT REQUEST (Contd.) DRF sent to incorrect registrar  Certificate(s) not received within 30 days  Court injunction pending  Demat request initiated under wrong ISIN  Allotment / Call Payment receipt not attached  Security Certificates recd not available for Demat Deb/warrant certs recd instead of share certs  Transposition Form not submitted.  Transmission Form/Death Certificate not submitted  Investor request for rejection and a/c closure.
67  Shares under Stop Transfer  Changes in DP ID/Client ID on certs not authorized  Mismatch of DP ID/ Client ID on certificates  DRF not signed/ stamped by DP  Miscellaneous REJECTION OF DEMAT REQUEST (Contd.)
68 TRANSPOSITION CUM DEMAT SCHEME  Facility given to demat shares in same account  Investor submits to DP the : -  DRF  Transposition form  Share certificates  Dispatch of DRF and Transposition form  Verify and confirm the demat request by Issuer/RTA
69 DP Client Issuer/RTA DRF + physical Certificat e 1 7 Statement of Holding 2 6Status Intimation Confirmation / Rejection 5 Demat module Demat Request 4 8 Objecti on memo 3 Certificate + DRF + DRN DEMATERIALISATIO
70 REMATERIALISATIO N Conversion of electronic shares to physical  Rematerialisation Request Form (RRF)  DP makes electronic request  Remat Request Number (RRN)  DP to verify the details, Pattern of holdings etc.  Shares blocked in the account  Issuer/RTA gets electronic request  RRF sent to Issuer/RTA  No. of shares reduced from NSDL folio  Client folio created - certificates printed  Electronic request is confirmed  Physical certificates couriered to client  Signature on RRF - for future transfers
71  Incomplete or incorrect RRF  RRF details mismatch  RRF not received by registrar  Rejected due to ACA REJECTION OF REMAT REQUEST
72 DP Client Issuer/RTA 1 2 6Status Intimation Confirmation / Rejection 5 4 7 3 Remat Order RRF + RRN Remat Request Printed Certificates RRF REMATERIALISATIO
73 Trading And Settlement
74 TRADING & SETTLEMENT(BSE)TRADING & SETTLEMENT(BSE) M T W TH F S S M T W TH F S S M T WM T W TH F S S M T W TH F S S M T W Mixed/ Unified (Physical) Segment Pay-in of Sec & Funds Pay- out of Fund & Sec Trading Period =5 days (Squaring-up within 5 days) Trading Period Settlement
Rolling Settlement 75 Rolling Settlement T+2Rolling Settlement T+2 (NSE)(NSE) M T W TH F M T W TH FM T W TH F M T W TH F 2 3 4 5 8 9 10 11 122 3 4 5 8 9 10 11 1211 TD 1TD 1 SD 1SD 1 Trading Period = 1 dayTrading Period = 1 day (Squaring up = Intra day)(Squaring up = Intra day) AuctionAuction TradingTrading AuctionAuction Pay-in &Pay-in & Pay-OutPay-Out
Rolling Settlement 76 Rolling Settlement T+2Rolling Settlement T+2 (BSE)(BSE) M T W TH F S S M T W TH FM T W TH F S S M T W TH F 2 3 4 5 6 7 8 9 10 11 122 3 4 5 6 7 8 9 10 11 1211 TD 1TD 1 SD 1SD 1 Trading Period = 1 dayTrading Period = 1 day (Squaring up = Intra day)(Squaring up = Intra day) AuctionAuction TradingTrading AuctionAuction Pay-in &Pay-in & Pay-OutPay-Out
77 ACCOUNT TYPES  BENEFICIARY A/C -- HOUSE / CLIENT  CLEARING MEMBER A/C -- POOL A/C -- DELIVERY A/C RECEIPT A/C INTERMEDIARY A/C
79 TYPES OF TRANSFERS OFF-MARKET SOURCE OR TARGET IS NOT CM MARKET SOURCE OR TARGET IS CM
TYPES OF TRANSFERS • Off-Market Transfers  Client - Client • Market Transfers  Client - CM (Sell)  CM - CC (Pay-In) & CC - CM (Pay-Out)  CM - Client (Buy)  Inter-Settlement  CM - CM (Pool to Pool)  Inter Depository Transfer 80
Off-Market Trf - Client to Client Source Target 81 Instruction Client Delivery Instrn by Clients Account Client Standing Instrns OR Receipt Instrns Client Account to another Client Account Movement Special Remarks Special Care for off-market If value > Rs. 5 lac, extra care
Clearing Member Account 82 PAY-in Pay-out
Market Trf - Client to CM - Sell Source Target 83 Instruction CM Delivery Instrn by Clients Account Client Standing Instrns OR Receipt Instrn Client Account to Pool Account of CM Movement
84 PAY-IN TO CC NSDL CC DP DP DP DP CM - SELLERS CM - SELLERS
Market Trf - CC to CM - Pay-Out Source Target 85 Instruction CM Electronic Instrn. Account CC Automatic CC to Pool AccountMovement
MARKET TRADE - ELECTRONIC 86 CCCC CMCM CMCM SELLER SELLER BUYERBUYER NSDLNSDL DPDP DPDP
Internet Initiatives • Corporate Website - www.nsdl.co.in • SPEED - Securities Position Easy Electronic Dissemination • SPEED - e • IDeAS 88
SPEED-e • Eliminate Paper Instructions • Delivery of instruction over Internet • Freeze Facility • View status of instruction 89
Type of Users • Password Users • Smart Card / e–Token Users 90
Smart Card/ e-Token Users Features • Beneficial Owners, Brokers • Only Debit Transactions  to any other account • Account/ISIN/Qty Level Freeze • Multiple Levels of Authorisation 91
Security • High End Users Agreement between DP and User In line with Indian IT Law NSDL as CA and DP as RA • Low End Users Agreement between DP and User Safety through Pre-Notified Account (PNA) 92
PLEDGE OF PHYSICAL SHARES 93 PLEDGEE (Lender) PLEDGOR (Borrower) Agreement SHARES LOAN
Pledge / Hypothecation Module • PLEDGE OF PHYSICAL SHARES • WHAT CHANGES WITH DEMAT SHARES • PROCESS OF PLEDGE IN DEMAT SHARES 94
PHYSICAL Vs DEMAT 95  Possession of shares not with PLEDGEE, instead blocked in PLEDGOR’s a/c  PLEDGEE cannot transfer securities to its name as part of pledge -- can do so only in case of default ( invocation)  Agreement should also include Pledge or hypothecation, Account details, agreement number
Key Features • Pledge vs hypothecation • Pledgor & Pledgee to have demat accounts • Pledgor & Pledgee can have accounts with different DPs of NSDL • Commercial arrangement outside system • Blocked in pledgor’s account, but in control of pledgee • One ISIN per order -- use of agreement number 96
PLEDGE PROCESS 97 LOAN PLEDGEE (Lender) PLEDGOR (Borrower) AGREEMENT PLEDGOR’S DP REQUEST/ NSDL PLEDGEE’S DP CONFIRMATION
Pledge Closure (Normal) 98 PLEDGEE (Lender) PLEDGOR (Borrower) AGREEMENT PLEDGOR’S DP REQUEST NSDL PLEDGEE’S DP CONFIRMATION Repayment of Loan
Pledge Closure (Unilateral) 99 PLEDGEE (Lender) PLEDGOR (Borrower) REPAYMENT PLEDGOR’S DP NSDL PLEDGEE’S DP PLEDGE CLOSURE
PLEDGE INVOCATION 100 PLEDGEE (Lender) PLEDGOR (Borrower) NOTICE PLEDGEE’S DP INVOCATION ORDER NSDL PLEDGOR’S DP
POINTS TO REMEMBER (contd..) • Lock-in Securities Allowed -- Invocation Only After Lock-in Release • Partial Closure and Invocation Allowed • Holdings Statement of PLEDGOR Will Reflect Pledged Balances • Pledge Reports for PLEDGOR and PLEDGEE 101
Other Features • Execution date and Overdue • Unilateral Closure • Bonus on Pledged shares 102
103  Bank account details doesn’t form part of Pledge/ Hypothecation form.  NSDL does not charge its DPs for closing a pledge in the Depository system.  An Intermediary account is not required to be opened for the purpose of Pledge and Hypothecation.
104  The credit of pledged securities remains in the account of the Pledgor.  Locked in securities can be pledged.  In case of pledged balance in demat form, the corporate benefits will flow to the Pledgor.
105  In the Depository system, pledged securities are marked for the pledge and are blocked in the pledgors account.  For the purpose of pledging of securities, both the parties to agreement, i.e. the pledgor and the pledgee must have a beneficiary account with any DP of NSDL.  An instruction for unilateral closure of pledge can be given by Pledgee.
106  As per applicable statutes, a Depository is required to maintain at all times a networth of Rs. 100 crore.  What are the charges by NSDL to its DPs for creating a pledge in the Depository system : Rs. 25/- per instruction.  What are the remat charges levied by NSDL to its DPs : Rs. 10 per certificate.
Dematerialisation of Government Securities
Presentation SummaryPresentation Summary  How does the GSEC come intoHow does the GSEC come into existence?existence?  Present SystemPresent System  Policy Initiative of NSDLPolicy Initiative of NSDL  NSDL SystemNSDL System  Benefits of DematBenefits of Demat
Types of G-SecTypes of G-Sec  Central GovernmentCentral Government  State GovernmentState Government  Treasury Bills (T-Bills)Treasury Bills (T-Bills)
Forms of G-SecForms of G-Sec Physical CertificatesPhysical Certificates Subsidiary General Ledger (SGL):Subsidiary General Ledger (SGL): Investments made by the SGL entity on itsInvestments made by the SGL entity on its own account are held in SGL 1 account.own account are held in SGL 1 account. The SGL 2 (CSGL) account holds theThe SGL 2 (CSGL) account holds the investments of all the constituents of theinvestments of all the constituents of the SGL entity. This is maintained in bookSGL entity. This is maintained in book entry form at RBI.entry form at RBI.
PUBLIC DEBT OFFICE CENTERS(PDO) There are in all 14 PDO centers established by RBI in order to facilitate the dematerialization of government securities.
Participants in the MarketParticipants in the Market All Banks/Primary DealersAll Banks/Primary Dealers Financial InstitutionsFinancial Institutions Mutual FundsMutual Funds Corporate TreasuriesCorporate Treasuries PF / GF trusts & Pension FundsPF / GF trusts & Pension Funds NBFCs, Brokers and IndividualsNBFCs, Brokers and Individuals
Constraints of the Present System PDO registration is required to hold G-Sec in physicals Conversion from physical to SGL time consuming Trading concentrated at Mumbai PDO & only in SGL form Inter PDO transfers require attestation
Policy Initiative of NSDLPolicy Initiative of NSDL RBI permits NSDL to open ConstituentRBI permits NSDL to open Constituent SGLSGL RBI permits value free transferRBI permits value free transfer Central PF and Regional PFCentral PF and Regional PF commissioner permits PF Trusts tocommissioner permits PF Trusts to open account with NSDLopen account with NSDL Budget 2001- Retailing of G-Sec,Budget 2001- Retailing of G-Sec, Screen based Trading of G-Sec fromScreen based Trading of G-Sec from Jan 15, 2003Jan 15, 2003
NSDL UpdateNSDL Update NSDL SGL II maintained at PDO,NSDL SGL II maintained at PDO, MumbaiMumbai Primary dealers viz. ICMS, PNB Gilts,Primary dealers viz. ICMS, PNB Gilts, etc banks like HDFC Bank, Dena Bank.etc banks like HDFC Bank, Dena Bank. commenced the retailing through NSDLcommenced the retailing through NSDL As on date, 524 active G-Sec ISINs areAs on date, 524 active G-Sec ISINs are available in NSDL system.available in NSDL system. Individuals, PF Trusts already hold G-Individuals, PF Trusts already hold G- sec in demat, from various cities.sec in demat, from various cities. Presently T-Bills are not admitted inPresently T-Bills are not admitted in NSDLNSDL
IDENTIFICATIONIDENTIFICATION IN XX YYYY A ZZ CIN XX YYYY A ZZ C  1st & 2nd digits -‘IN’ stands for INDIA1st & 2nd digits -‘IN’ stands for INDIA  3rd & 4th digit Issuer type and State Code3rd & 4th digit Issuer type and State Code (start from 00 to 99)(start from 00 to 99)  YYYY for Year of Issue (Financial Year)YYYY for Year of Issue (Financial Year)  A for Security type ( 0 to 9 )A for Security type ( 0 to 9 )  ZZ for Serial No. of issue in the financial yearZZ for Serial No. of issue in the financial year
IssuerIssuer Central / StateCentral / State Loan codeLoan code 9800798007 Issuer Short NameIssuer Short Name Government of IndiaGovernment of India Date of MaturityDate of Maturity May 02, 2008May 02, 2008 Coupon RateCoupon Rate 12%12% Year of IssueYear of Issue 19981998 IN0019980047 98007 GOI 02MY08 12 FV RS 100 Central Government Loan
RBI, PDO NSDL DP 2 3 1 4 1. Initiate demat request to NSDL and fill & forward Form Of Transfer & Certificate to NSDL. 2. NSDL will submit Form Of Transfer & Certificate to RBI for transfer of securities to NSDL SGL II. 3. Credit confirmation by RBI. 4. Confirmation of demat request by NSDL, creating balances in demat account. Dematerialisation- Physical
Certificates not to be defaced. If the certificates are issued by PDO other than Mumbai PDO- Signature attestation by issuing PDO is necessary. Form of transfer on single sheet of paper Dematerialisation- Physical
Negotiated Dealing System of RBI. (NDS) DP1 DP2 NSDL Depository (SGL Entity) RBI NDS SGL Entity 1 (HDFC) SGL Entity 2 (PNB Gilts) SGL I A/c SGL I A/c SGL II A/c SGL II A/c SGL I A/c SGL II A/c
RBI, PDO NSDL DP 2 3 1 4 1. Initiate demat request through DP & NDS request through SGL entity 2. NSDL approves the NDS request. 3. PDO Mumbai, RBI settles the NDS transaction same day. NSDL SGL II A/C is credited. 4. Confirmation of DRN. Dematerialisation - VFT
Benefits Of DEMAT  Single demat account for maintaining various securities viz. PSU bonds, Government Securities (G-Sec), Corporate Debt etc.  Most of the trusts are already holding demat accounts for maintaining corporate debt instruments, PSU bonds. No additional documentation for maintaining G-Sec in these accounts. Transfer of G-Sec from existing CSGL accounts is seamless and can happen on same day.
 Periodic Transaction Statement simplifies compliance of prevailing investments guidelines and audit process for trusts.  Buying of security in smaller lot is possible. Settlement of fund and securities takes place on the same day and the risk of physical settlement is eliminated.  Lower cost of dematerialisation results in overall cost saving in terms of administrative charges for the trusts.
Interest & Redemption Payments RBI credits NSDL’s current a/c as on the due date i.e. interest payment due date. NSDL will consolidate the same as per the beneficiary positions as on record date. Issue RBI cheques to SGL entity, direct credits to the demat account holders having HDFC bank account and HDFC bank DDs to remaining beneficiaries.
An Update on GSEC As on October 24, 2008 No. of ISINs 532 Value in demat form Rs. 7804.53 cr. Number of holders 2478
OVERVIEW OF NCDO 126  Points To Be RememberedPoints To Be Remembered 
127  NSDL is a public limited company incorporated under the Companies Act, 1956.  NSE is a company under the Indian Companies Act, 1956.  The meaning of T + 2 rolling settlement is that settlement of trade takes place on the second working day from the date of trade.
128  What is the legal basis for free transfer of title between account holders in the Depository environment : The Depositories Act, 1996.  There are no custody charges levied by NSDL to its DPs.  The custody fee is payable by Issuer to NSDL on a yearly (financial year) basis.
129  When an investor opens an account with a DP, an agreement is signed between the investor and DP.  To buy or sell shares in electronic form, the investor has to have demat account with any DP of his choice.  The Dematerialisation Request Form (DRF) should be signed by all the joint account holders.
130  For an investor holding shares in demat form, dividend will be declared by the Issuer company.  A clearing member can dematerialise its own holdings in its beneficiary account  All dematerialised securities are mandatorily registered in the name of the Depository.
131  Can lock in securities be rematerialised? : Yes  In case of a rights issue, the rights issue form for securities held in demat form will be sent to the investor by : The Issuer/ its R and T Agent.  A trade that is cleared and settled without the participation of a stock exchange/clearing corporation is : Off Market Trade
132  The request for change of address in a demat account has to be signed by all the account holders.  The full form of SGL is Subsidiary General Ledger.  Information on book closure, record dates, dates for interest payment, etc is provided to NSDL by Issuer/its R and T Agent for the purpose of Corporate Action.
133  In case of Partnership Firm Demat account has to be opened in the name of Partners only.  Delivery Instruction Slip (DIS) for off market transfer of shares from a joint demat account should be signed by all the account holders.  NSDL acts as R and T Agent in case of government securities under NSDL SGL II?
134 More than20 custodians Citibank N. A. DBS Bank Ltd. India Deutsche Bank AG HDFC Bank Ltd Hongkong and Shanghai Banking Corporation Limited ICICI Bank Limited.
135 Securities lending is primarily used by short-sellers (approved intermediary) who borrow stocks from other investors to meet their obligations to the clearing house. Large institutional investors such as foreign institutional investors and mutual funds who hold shares for the long term have traditionally been lenders in the market.
136 GIR (General Index Register) No. was earlier being allotted by the Income Tax Deptt. for assessees but ever since the PAN system is in place GIR has become obsolate.
137 Dividend stripping is the purchase of shares just before a dividend is paid, and the sale of those shares after that payment, ie. when they go ex-dividend. This may be done either by an ordinary investor as an investment strategy, or by a company's owners or associates as a tax avoidance strategy.
138 PARI PASSU: The term is Latin and translates to "without partiality." For example, a secondary issue of shares that carry equal rights with existing shares are said to "rank pari passu." (equal footing) ACA: Auto corporate action. While converting securities from an old ISIN to new ISIN the securities lying in the CM pool account is also considered automatically for conversion.
139
140
NDS Seller of Govt Security Buyer of Govt Security 141 B BANK NDS Platform INFINET A BANK CCILPDO, RBI C/A RBI Members(NDS) Primary Dealers Banks SGL
Information • T+2 Rolling Settlement from April 2003 • MAPIN introduced from Nov 2004 • Market participant identification Number • MAPIN cards are unique ID number cards like PAN cards, issued by SEBI required for any investor who enters a transaction in the securities market of Rs 1 lakh or more. • NSC/KVP can be dematerialized from Oct 2003 142
• NSDL central system is known as DM and DP as DPM • Transaction first effected in Central system then updated at other points • Each system connected to NSDL system has its own database relating to its clients • No two business partners have direct linkage to each other in the NSDL system • Every transaction is recorded in NSDL as well as DP database 143
• NSDL Audit Financial reports from all its DPs once in a year and inspection of R&T Agent, Clearing corporation 144

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NSDL

  • 1.
  • 2.
    2 Functions of FinancialMarket Surplus Sector Deficit Sector House Holds (Savers) Corporate & Public Sector( Borrowers) Investable Funds Requirement of funds Borrows Funds and Issue Securities
  • 3.
    3 Financial Market  FMis a Place where the securities are traded  FM Consists of Investors buyers and sellers of securities FM has No physical location for trade FM has no formal trading rules FM has no relationship & communication
  • 4.
    4 Financial Market Organized Unorganized Money MarketCapital Market Money lenders Primary Secondary Pan brokers Participants Commercial Bks RBI Issue new instruments Core of MM LIC in corporate sector Inter Bank GIC Call Money STCI Equity shares, Govt
  • 5.
    5 Primary Market issuesSecurities through a prospectus in a retail market and there is no physical location.  Secondary market of securities is a market for trading the securities that have already been issued in the primary market.
  • 6.
    6 Secondary Market  Placefor trading securities already issued Consists registered Brokers/sub Brks of SE Consists 22 stock exchanges Has physical location/ trading floor Provides Liquidity to the initital buyers in PM Place for buying and selling securities Since 1995 trading is screen based Sale/purchase of securities can be made
  • 7.
    7 Capital market participants PrimaryMarket Secondary Market Financial Institutions Stock Exchange FII Stock Brokers Merchant Bankers R&T Agents Mutual Funds Custodians Depositories MF, FI, FII Individual Investors
  • 8.
    8 Market Regulation Required forSmooth functioning of Capital Market  is an arena of players associated with economic growth Until 1992 the FM was highly segmented on various counts of regulation and administered prices
  • 9.
    9 Capital Issue ControlAct 1947 Restricted access to securities Market for issuers and Controlled pricing of Issues. Companies Act 1956 Controlled Issues, allotment &Transfer Disclosure to Public Securities contract Act 1956 Securities transaction regulation
  • 10.
    10 To regulate, administer,control and bring under a single authority SEBI Act was passed in 1992. Objectives of SEBI- Improve market efficiency Enhance transparency Check unfair trade practices Bring CM to International standards Liberalize, regulate, develop Security Mkt
  • 11.
    11 Present Situation inSecondary Market Screen Based trading Secondary Market has overcome geographical barriers Physical securities almost disappeared Settlement period has reduced to 2 days Investor friendly
  • 12.
    12 Capital Market Intermediaries MerchantBankers Credit rating agencies R & T Agents Stock brokers Custodians Mutual Funds Depositories Depository Participants Instruments
  • 13.
  • 14.
    14 MILESTONES INMILESTONES IN INDIANCAPITALINDIAN CAPITAL MARKETMARKET NSE NOV 1994 FIRST NATIONWIDE SCREEN BASED TRADING NSCCL JUN 1996 FIRST CLEARING CORP. OFFERING GUARANTEED SETTLEMENT (part of NSE, Inter Region Clearing) (Novation) NSDL NOV 1996 FIRST DEPOSITORY FACILITATING SCRIPLESS TRADING
  • 15.
    15 MILESTONES IN SETTINGUPMILESTONES IN SETTING UP OF NSDLOF NSDL DEPOSITORIES ORDINANCE SEPT 95 IDBI UTI NSE NSDL INCORPORATION DEC 95 SEBI REGULATIONS MAY 96 DEPOSITORIES ACT AUG 96 NSDL SEBI CERTIFICATION COMMENCEMENT CERTIFICATE INAUGURATION JUNE 96 OCT 96 NOV96
  • 16.
    16 NSDL-NSDL- BANK--AN ANALOGYBANK--ANANALOGY BANKBANK FundsFunds BANKBANK FundsFunds NSDLNSDL SecuritiesSecurities 1 Holds funds in accounts 1 Holds securities in accounts 2 Transfers funds between accounts 2 Transfers securities between accounts 3 Transfers without handling money 3 Transfers without handling securities 4 Safekeeping of money 4 Safekeeping of securities
  • 17.
    17 BANKBANK FundsFunds BANKBANK FundsFunds NSDLNSDL SecuritiesSecurities NSDL- BANK-The differenceNSDL-BANK-The difference 1 Any one of the holders can sign instruction 1 All joint holders to sign instructions 2 Minimum Balance to be maintained 2 No minimum balance required 3 Entitled for interest 3 interest only by participating in stock lending 4 Use balance in the account 5 Nomination 4 Does not move balance in account with out account holders authorisation 5 Signature and photograph
  • 18.
  • 19.
    19 LEGAL FRAMEWORKLEGAL FRAMEWORK Operationof DepositoryOperation of Depository • Depositories Act 1996 (Comp Act 1956, SEBI Reg, Demat Form) • SEBI (Depositories & Participants) Regulations 1996 • Bye Laws of NSDL - framed under Sec. 26 of the Depositories Act • Business Rules of NSDL
  • 20.
    20 LEGALLEGAL FRAMEWORKFRAMEWORK (Key Features)(KeyFeatures) • Option to the investor to hold securities either inOption to the investor to hold securities either in Physical or Dematerialized formPhysical or Dematerialized form • DEMATERIALISATION -- Physical to ElectronicDEMATERIALISATION -- Physical to Electronic • FUNGIBILITYFUNGIBILITY -- No distinctive numbers-- No distinctive numbers • REMATERIALISATION -- Electronic to PhysicalREMATERIALISATION -- Electronic to Physical • Client interfaceClient interface through Depository Participantsthrough Depository Participants • DP -DP - Agent of NSDLAgent of NSDL • Registered OwnerRegistered Owner ---- NSDLNSDL • Beneficial Owner --Beneficial Owner -- INVESTORINVESTOR
  • 21.
    21 LEGAL FRAMEWORK (Key FeaturesContd.) • Free Transferability • Agreement between NSDL and DP • Agreement between Depository Participant and investor / Beneficial owner • NSDL enters into a Tripartite Agreement Between NSDL, Issuer and R&T Agent • Depository to indemnify losses for negligence D/DP
  • 22.
    • Minimum networth: Rs. 100 crore (Total assets minus total outside liabilities ) • Sponsors to hold at least 51% of equity capital in depository • No DP can hold more than 5% equity capital in depository • Foreign entity individually or collectively cannot hold more than 20% equity capital in Depository 22 SETTING UP OFSETTING UP OF DEPOSITORYDEPOSITORY
  • 23.
    23  DEPOSITORY SERVICES Account Opening  Dematerialisation & Rematerialisation  Delivery & Settlement of Securities  Benpos to Companies & Corporate Action  Pledge of Securities & Hypothecation  Internet Initiative
  • 24.
    • NSDL • SPEED-eServices • Clients Simple Spice Ideas Steady • Submit Instruction • View Status of inst • Submit instruction through mobile password based, GPRS • Submission of POA based instruction for clients electronically (POA-to Broker, SB use Digital signature and send to DP • To view Balance and transactions in Demat 24
  • 25.
    Steady • Securities Tradinginformation Easy Access and Delivery • Generally used by Brokers, Custodians, Fund Manager. Transmission of trade information across market participants using smart card and digital signature 25
  • 26.
    26 JOINING AS ADPJOINING AS A DP • Ten Eligible EntitiesTen Eligible Entities • SEBI net worth - 50 Lakh,SEBI net worth - 50 Lakh, NSDLNSDL requirement 300 Lakhrequirement 300 Lakh • For R & T Agents minimumFor R & T Agents minimum networth is Rs 10 crnetworth is Rs 10 cr • Depositories can fix a higher amountDepositories can fix a higher amount • Net worth certificate by a CANet worth certificate by a CA • Certificate is valid for 5 yearsCertificate is valid for 5 years
  • 27.
    27 Any Entity SEBI 1 2 4 Desirous ofDP 3 NSDL DP approv es Verifies & Recommend 30 days Issues Certificate Collects Security deposit/Insur ance Charge 5
  • 28.
    28 www.nsdl.co.in 8 INVESTOR BROKER/ CLEARING MEMBER ISSUERISSUER INVESTOR CC/CHCC/ CH DPDP DPDP System Linkage BROKER/ CLEARING MEMBER Electronic Link Electronic Link Electronic Link ElectronicLink
  • 29.
    29 • Back-up Machine LevelBack up Disaster back-up site Remote Site Back up • Alternative Connectivity • Insurance Cover • NCFM/NCDO qualified persons SAFETYSAFETY
  • 30.
    30 BENEFITS TOBENEFITS TO INVESTORSINVESTORS •Eliminates bad deliveries • Effects transfer of securities immediately • Globally moving towards faster settlement cycles • No stamp duty for transfer of securities in the depository • Reduces transaction costs
  • 31.
    31 BENEFITS TOBENEFITS TO INVESTORSINVESTORS (Contd.) •Reduces handling of huge volumes of paper • Eliminates all risks associated with physical certificates such as loss, theft, mutilation, forgery, etc. • Facilitates lending and borrowing • Transparency while trading
  • 32.
    32 PROGRESS in 2009PROGRESSin 2009 • ParticipantsParticipants :: 280280 • Service CentersService Centers :: 10,985 • Demat ValueDemat Value :: US$1,198 billion.. • IssuersIssuers :: 7,7987,798 • Investor accountsInvestor accounts :: 1,00,62,274 (active)(active) • Stock ExchangesStock Exchanges connectedconnected :: 88 (NSE, BSE, CSE(NSE, BSE, CSE,, DSE, MSE, ASE, ISE, OTCEI)DSE, MSE, ASE, ISE, OTCEI) • Settlement in Demat formSettlement in Demat form :: 100%100%
  • 33.
  • 34.
    TYPE OF ACCOUNTS •Beneficial Owner Account • House Account (Its own account/Investment) • Non-House Account • Clearing Member Account (settlement of trade) • Intermediary account (Lending and borrowing) 34
  • 35.
    Type of Accountsat DP 35 Types of accounts BO Account CM Account Intermediary Account House Non House POOLDelivery Receipt Lending & Borrowing Margin Acct
  • 36.
    WHAT DO THEYMEAN contd….. • Clearing Member- CM-To transfer securities – client to stock exchange (pay in) – receive securities from stock exchange (pay- -out) – Partnership firm can also open this account 36
  • 37.
    Opening of aclient Account (Non House) 37  Investor submits a/c opening form  Signs the DP -Client Agreement  DP to check : Proof of identity Proof of address
  • 38.
    Documents for Verification A)For Individual Accounts 1) Some Proof of Identity Passport Voter ID card Driving license PAN card with photograph Identity card/document with applicant’s Photo, issued by - a) Central/State Government and its Departments 38
  • 39.
    Documents for Verification 2)Some Proof of Address Ration card Passport Voter ID card Driving license Bank passbook / Bank statement Verified copies of a) Electricity bills (not more than two months old), b) Residence Telephone bills (not more than two months old) and c)Lease and License agreement / Agreement for sale. 39
  • 40.
    Documents for Verification 2)Proof of Address contd...  Self-declaration by High Court & Supreme Court judges, giving the new address in respect of their own accounts  Identity card/document with address, issued by a) Central/State Government and its Departments b) Statutory/Regulatory Authorities c) Public Sector Undertakings d) Scheduled Commercial Banks e) Public Financial Institutions f) Colleges affiliated to Universities g) Professional Bodies such as ICAI, ICWAI, Bar Council etc., to their Members 40
  • 41.
    Documents for Verification B)For Corporate clients Proof of Identity / Address • Memorandum & Article of Association, board resolution,list of authorised signatories alongwith specimen signatures & photograph. • Introduction by an existing account holder/client’s Bank • Documents registered with ROC • Acknowledged copy of Income Tax Return • Bank Statement 41
  • 42.
    PERMANENT ACCOUNT NUMBER(PAN) MANDATORY • SEBI directive on PAN as a mandatory requirement for Demat accounts • PAN compulsory for all categories of clients • Verification from ITD website • NSDL facility for PAN verification • DP to affix ‘PAN verified’ stamp on photocopy of PAN card • Penalty for invalid PAN. 42
  • 43.
    ‘In-person’ verification • SEBImandate of ‘In-person’ verification of non-body corporate clients at the time of account opening • ‘In-person’ verification to be carried out only by DP staff • the DP staff should establish the identity of the Client(s) (including guardian in case of minor account) by verifying the photograph(s) affixed in the account opening form as well as proof of identity document(s). 43
  • 44.
    Beneficiary Account –Features...  Zero Balance  More than one account (same or different DP).  Names of account holders to be fully spelt out.  Mailing and communication address documents to be checked. 44
  • 45.
    Beneficiary Account –Procedure... Minor - Guardian details, Date of Birth certificate/ Passport/Mark sheet of minor. Foreign Address and RBI approval dates -NRI /FII/ OCB accounts. FII /OCB – SEBI Registration details Details of Bank Account, MICR (9 Digit Code ) Details of Income Tax Permanent Account Number Nomination* details – Photograph & Signature  (*Only In case of Individuals) 45
  • 46.
    Beneficiary Account Forms forjoint Holders: Names of all joint holders with signature. Order of names should be same as appearing in the share certificates to be dematerialized. Supporting documents with photograph. PAN CARD IS MANDATORY FOR ALL HOLDERS. Communication will be made to first holder only  Sequence of name should be accordingly. Transmission cases - A new account. 46
  • 47.
    Beneficiary Account -procedure.. DP-Client Agreement Standard Agreement - Non judicial stamp paper SEBI Approved document Part of NSDL Bye Laws Copy of the Agreement- to client DP charges -Schedule A Transaction Statement (Monthly/Quarterly) 47
  • 48.
    Beneficiary Account -procedure.. Form for HUF : Name of Karta Form for Companies : operated by the person authorized by a resolution. Form for minors : Operated through a guardian. Required to give Birth certificate. 48
  • 49.
    BO Account -Closure & Shifting Client submits a/c closing form to DP Balances in the account Rematerialize Transfer to another account Procedure to deal with pending Demat request 49
  • 50.
    50 Opening of houseA/C DP (operational) of NSDL Details on DPM (except client name and address) - generates Client Id. More than one house account No need to sign the agreement
  • 51.
    51 Opening of CMA/C  CM submits following documents to DP  CM Id Allotment letter A/c opening form Photocopies of these documents and covering letter to NSDL Agreement with CM NSDL allots CM-BP ID
  • 52.
    52 Opening of CMA/C contd...  DP opens a/c based on CM-BP Id  CM cannot open more than one A/c per stock exchange  Shifting of a/c from one DP to another is allowed.
  • 53.
    53 Procedure for Shifting/Closure ofCM A/C CM - Application for closure to old DP. Submits to NSDL :  A/c opening form  CM Id allotment letter - stock exchange  Application for shifting of CM A/c  Acknowledgment copy of Application for closure of a/c with old DP.
  • 54.
    54 Procedure for Shifting/Closure ofCM A/C DP forwards copies of documents to NSDL DP executes agreement with CM NSDL allots new CM-BP Id New Participant opens account based on new CM-BP Id Intimates NSDL. Old Participant closes the a/c - intimation from NSDL
  • 55.
    55 Freezing of Accounts Suspending further transactions - Dr. or both Dr. and Cr.  A/c or ISIN or Specific number of Securities in a/c  Mode of freeze instruction : Written instruction from client to DP Electronic request by client to DP / NSDL Orders received by DP / NSDL from Central or State Govt., SEBI, or any order by the court, tribunal, or any statutory authority. Request received by NSDL from DP / Client. Order of DAC / DP insolvent / winding up of Corporate
  • 56.
    56 UnFreezing of Accounts Reactivation of Account  Reverse steps Valid written instructions of client NSDL direction as per order of appropriate authority Electronic instruction by client onlyElectronic instruction by client only  (Speed-e - smart card user)(Speed-e - smart card user)  Clear notice of one dayClear notice of one day
  • 57.
    Change of Address Clients/Authorisedrepresentative to visit DP office personally. Submit proof of Identity. Submit transaction statement received from DP Client (incl. Joint holders) to sign application for change of address. DP to verify signature with his records 57
  • 58.
    Change of Signature Clientto submit reasons for change of signature. New signature - attested by client’s banker. Submit proof of Identity and latest transaction statement. Client to affix signature in the presence of the officials of DP. DP to verify identity proof, photograph with his records and sign the documents. 58
  • 59.
    Facility of standinginstruction This facility is provided on the DPM for all types of accounts (except intermediary) in order to receive the securities into the account without giving a specific Receipt Instruction. The Participant should ensure that the field marked for this facility is ticked, in case the client wants to avail of the same. 59
  • 60.
  • 61.
    61 PROCEDURE FOR DEMATAT DP  Account with Depository Participant (DP)  Securities should be available for Dematerialization  Demat of physical securities or fresh issue  Demat Request Form (DRF)  Signed by all holders  ISIN - Each ISIN separate DRF  Pattern of Holdings with A/c  Certificate details are entered correctly  No of shares in DRF matches with  certificate and demat order  DP Authorisation  Separate DRF for free and locked in securities (ESOP)
  • 62.
    62 PROCEDURE FOR DEMATAT DP … contd.  Deface Certificates  Surrendered for Dematerialisation  Enter DP name, DP Id and Client Id  Punch Two Holes  Independent personnel  Capturing  Verify & Release (before EOD)  Demat Request Number (DRN)  DRF to contain DRN  Dispatch of DRF and Certificate within 7 days  Follow up for Confirmation and Correction of
  • 63.
  • 64.
    64 PROCESSING AT ISSUER/RTA Inwardof documents  Checking the documents, signatures etc.  Verify genuineness of Certificates  Pending Court order, prohibitory order etc.  Processing only on receipt of request of both in Electronic & physical certificates  Process DRF as Normal Transfer  Seller folio - Client (who wishes to demat)  Buyer folio - NSDL  Update ROM  Confirm Electronic request  Destruction of certificates
  • 65.
    65 REJECTION OF DEMATREQUEST  Signature mismatch  Signature of the 1st/2nd/3rd holder(s) not present  Mismatch between share qty received and DRF qty  Certificates sent are fake  Certificates sent are reported stolen  Duplicate certificates already issued  Old defunct certificates surrendered for demat.  Forfeited securities surrendered for demat.  Forged Endorsement on Certificate  Incorrect Holder(s) name / Pattern  Certificate details mismatch
  • 66.
    66 REJECTION OF DEMAT REQUEST(Contd.) DRF sent to incorrect registrar  Certificate(s) not received within 30 days  Court injunction pending  Demat request initiated under wrong ISIN  Allotment / Call Payment receipt not attached  Security Certificates recd not available for Demat Deb/warrant certs recd instead of share certs  Transposition Form not submitted.  Transmission Form/Death Certificate not submitted  Investor request for rejection and a/c closure.
  • 67.
    67  Shares underStop Transfer  Changes in DP ID/Client ID on certs not authorized  Mismatch of DP ID/ Client ID on certificates  DRF not signed/ stamped by DP  Miscellaneous REJECTION OF DEMAT REQUEST (Contd.)
  • 68.
    68 TRANSPOSITION CUM DEMAT SCHEME Facility given to demat shares in same account  Investor submits to DP the : -  DRF  Transposition form  Share certificates  Dispatch of DRF and Transposition form  Verify and confirm the demat request by Issuer/RTA
  • 69.
    69 DP Client Issuer/RTA DRF + physical Certificat e 1 7 Statement of Holding 2 6StatusIntimation Confirmation / Rejection 5 Demat module Demat Request 4 8 Objecti on memo 3 Certificate + DRF + DRN DEMATERIALISATIO
  • 70.
    70 REMATERIALISATIO N Conversion ofelectronic shares to physical  Rematerialisation Request Form (RRF)  DP makes electronic request  Remat Request Number (RRN)  DP to verify the details, Pattern of holdings etc.  Shares blocked in the account  Issuer/RTA gets electronic request  RRF sent to Issuer/RTA  No. of shares reduced from NSDL folio  Client folio created - certificates printed  Electronic request is confirmed  Physical certificates couriered to client  Signature on RRF - for future transfers
  • 71.
    71  Incomplete orincorrect RRF  RRF details mismatch  RRF not received by registrar  Rejected due to ACA REJECTION OF REMAT REQUEST
  • 72.
    72 DP Client Issuer/RTA 1 2 6Status Intimation Confirmation/ Rejection 5 4 7 3 Remat Order RRF + RRN Remat Request Printed Certificates RRF REMATERIALISATIO
  • 73.
  • 74.
    74 TRADING & SETTLEMENT(BSE)TRADING& SETTLEMENT(BSE) M T W TH F S S M T W TH F S S M T WM T W TH F S S M T W TH F S S M T W Mixed/ Unified (Physical) Segment Pay-in of Sec & Funds Pay- out of Fund & Sec Trading Period =5 days (Squaring-up within 5 days) Trading Period Settlement
  • 75.
    Rolling Settlement 75 Rolling SettlementT+2Rolling Settlement T+2 (NSE)(NSE) M T W TH F M T W TH FM T W TH F M T W TH F 2 3 4 5 8 9 10 11 122 3 4 5 8 9 10 11 1211 TD 1TD 1 SD 1SD 1 Trading Period = 1 dayTrading Period = 1 day (Squaring up = Intra day)(Squaring up = Intra day) AuctionAuction TradingTrading AuctionAuction Pay-in &Pay-in & Pay-OutPay-Out
  • 76.
    Rolling Settlement 76 Rolling SettlementT+2Rolling Settlement T+2 (BSE)(BSE) M T W TH F S S M T W TH FM T W TH F S S M T W TH F 2 3 4 5 6 7 8 9 10 11 122 3 4 5 6 7 8 9 10 11 1211 TD 1TD 1 SD 1SD 1 Trading Period = 1 dayTrading Period = 1 day (Squaring up = Intra day)(Squaring up = Intra day) AuctionAuction TradingTrading AuctionAuction Pay-in &Pay-in & Pay-OutPay-Out
  • 77.
    77 ACCOUNT TYPES  BENEFICIARYA/C -- HOUSE / CLIENT  CLEARING MEMBER A/C -- POOL A/C -- DELIVERY A/C RECEIPT A/C INTERMEDIARY A/C
  • 78.
    79 TYPES OF TRANSFERS OFF-MARKET SOURCEOR TARGET IS NOT CM MARKET SOURCE OR TARGET IS CM
  • 79.
    TYPES OF TRANSFERS •Off-Market Transfers  Client - Client • Market Transfers  Client - CM (Sell)  CM - CC (Pay-In) & CC - CM (Pay-Out)  CM - Client (Buy)  Inter-Settlement  CM - CM (Pool to Pool)  Inter Depository Transfer 80
  • 80.
    Off-Market Trf -Client to Client Source Target 81 Instruction Client Delivery Instrn by Clients Account Client Standing Instrns OR Receipt Instrns Client Account to another Client Account Movement Special Remarks Special Care for off-market If value > Rs. 5 lac, extra care
  • 81.
  • 82.
    Market Trf -Client to CM - Sell Source Target 83 Instruction CM Delivery Instrn by Clients Account Client Standing Instrns OR Receipt Instrn Client Account to Pool Account of CM Movement
  • 83.
    84 PAY-IN TO CC NSDL CC DPDP DP DP CM - SELLERS CM - SELLERS
  • 84.
    Market Trf -CC to CM - Pay-Out Source Target 85 Instruction CM Electronic Instrn. Account CC Automatic CC to Pool AccountMovement
  • 85.
    MARKET TRADE -ELECTRONIC 86 CCCC CMCM CMCM SELLER SELLER BUYERBUYER NSDLNSDL DPDP DPDP
  • 86.
    Internet Initiatives • CorporateWebsite - www.nsdl.co.in • SPEED - Securities Position Easy Electronic Dissemination • SPEED - e • IDeAS 88
  • 87.
    SPEED-e • Eliminate PaperInstructions • Delivery of instruction over Internet • Freeze Facility • View status of instruction 89
  • 88.
    Type of Users •Password Users • Smart Card / e–Token Users 90
  • 89.
    Smart Card/ e-TokenUsers Features • Beneficial Owners, Brokers • Only Debit Transactions  to any other account • Account/ISIN/Qty Level Freeze • Multiple Levels of Authorisation 91
  • 90.
    Security • High EndUsers Agreement between DP and User In line with Indian IT Law NSDL as CA and DP as RA • Low End Users Agreement between DP and User Safety through Pre-Notified Account (PNA) 92
  • 91.
    PLEDGE OF PHYSICALSHARES 93 PLEDGEE (Lender) PLEDGOR (Borrower) Agreement SHARES LOAN
  • 92.
    Pledge / HypothecationModule • PLEDGE OF PHYSICAL SHARES • WHAT CHANGES WITH DEMAT SHARES • PROCESS OF PLEDGE IN DEMAT SHARES 94
  • 93.
    PHYSICAL Vs DEMAT 95 Possession of shares not with PLEDGEE, instead blocked in PLEDGOR’s a/c  PLEDGEE cannot transfer securities to its name as part of pledge -- can do so only in case of default ( invocation)  Agreement should also include Pledge or hypothecation, Account details, agreement number
  • 94.
    Key Features • Pledgevs hypothecation • Pledgor & Pledgee to have demat accounts • Pledgor & Pledgee can have accounts with different DPs of NSDL • Commercial arrangement outside system • Blocked in pledgor’s account, but in control of pledgee • One ISIN per order -- use of agreement number 96
  • 95.
  • 96.
    Pledge Closure (Normal) 98 PLEDGEE (Lender) PLEDGOR (Borrower) AGREEMENT PLEDGOR’SDP REQUEST NSDL PLEDGEE’S DP CONFIRMATION Repayment of Loan
  • 97.
  • 98.
  • 99.
    POINTS TO REMEMBER(contd..) • Lock-in Securities Allowed -- Invocation Only After Lock-in Release • Partial Closure and Invocation Allowed • Holdings Statement of PLEDGOR Will Reflect Pledged Balances • Pledge Reports for PLEDGOR and PLEDGEE 101
  • 100.
    Other Features • Executiondate and Overdue • Unilateral Closure • Bonus on Pledged shares 102
  • 101.
    103  Bank accountdetails doesn’t form part of Pledge/ Hypothecation form.  NSDL does not charge its DPs for closing a pledge in the Depository system.  An Intermediary account is not required to be opened for the purpose of Pledge and Hypothecation.
  • 102.
    104  The creditof pledged securities remains in the account of the Pledgor.  Locked in securities can be pledged.  In case of pledged balance in demat form, the corporate benefits will flow to the Pledgor.
  • 103.
    105  In theDepository system, pledged securities are marked for the pledge and are blocked in the pledgors account.  For the purpose of pledging of securities, both the parties to agreement, i.e. the pledgor and the pledgee must have a beneficiary account with any DP of NSDL.  An instruction for unilateral closure of pledge can be given by Pledgee.
  • 104.
    106  As perapplicable statutes, a Depository is required to maintain at all times a networth of Rs. 100 crore.  What are the charges by NSDL to its DPs for creating a pledge in the Depository system : Rs. 25/- per instruction.  What are the remat charges levied by NSDL to its DPs : Rs. 10 per certificate.
  • 105.
  • 106.
    Presentation SummaryPresentation Summary How does the GSEC come intoHow does the GSEC come into existence?existence?  Present SystemPresent System  Policy Initiative of NSDLPolicy Initiative of NSDL  NSDL SystemNSDL System  Benefits of DematBenefits of Demat
  • 107.
    Types of G-SecTypesof G-Sec  Central GovernmentCentral Government  State GovernmentState Government  Treasury Bills (T-Bills)Treasury Bills (T-Bills)
  • 108.
    Forms of G-SecFormsof G-Sec Physical CertificatesPhysical Certificates Subsidiary General Ledger (SGL):Subsidiary General Ledger (SGL): Investments made by the SGL entity on itsInvestments made by the SGL entity on its own account are held in SGL 1 account.own account are held in SGL 1 account. The SGL 2 (CSGL) account holds theThe SGL 2 (CSGL) account holds the investments of all the constituents of theinvestments of all the constituents of the SGL entity. This is maintained in bookSGL entity. This is maintained in book entry form at RBI.entry form at RBI.
  • 109.
    PUBLIC DEBT OFFICE CENTERS(PDO) Thereare in all 14 PDO centers established by RBI in order to facilitate the dematerialization of government securities.
  • 110.
    Participants in theMarketParticipants in the Market All Banks/Primary DealersAll Banks/Primary Dealers Financial InstitutionsFinancial Institutions Mutual FundsMutual Funds Corporate TreasuriesCorporate Treasuries PF / GF trusts & Pension FundsPF / GF trusts & Pension Funds NBFCs, Brokers and IndividualsNBFCs, Brokers and Individuals
  • 111.
    Constraints of thePresent System PDO registration is required to hold G-Sec in physicals Conversion from physical to SGL time consuming Trading concentrated at Mumbai PDO & only in SGL form Inter PDO transfers require attestation
  • 112.
    Policy Initiative ofNSDLPolicy Initiative of NSDL RBI permits NSDL to open ConstituentRBI permits NSDL to open Constituent SGLSGL RBI permits value free transferRBI permits value free transfer Central PF and Regional PFCentral PF and Regional PF commissioner permits PF Trusts tocommissioner permits PF Trusts to open account with NSDLopen account with NSDL Budget 2001- Retailing of G-Sec,Budget 2001- Retailing of G-Sec, Screen based Trading of G-Sec fromScreen based Trading of G-Sec from Jan 15, 2003Jan 15, 2003
  • 113.
    NSDL UpdateNSDL Update NSDLSGL II maintained at PDO,NSDL SGL II maintained at PDO, MumbaiMumbai Primary dealers viz. ICMS, PNB Gilts,Primary dealers viz. ICMS, PNB Gilts, etc banks like HDFC Bank, Dena Bank.etc banks like HDFC Bank, Dena Bank. commenced the retailing through NSDLcommenced the retailing through NSDL As on date, 524 active G-Sec ISINs areAs on date, 524 active G-Sec ISINs are available in NSDL system.available in NSDL system. Individuals, PF Trusts already hold G-Individuals, PF Trusts already hold G- sec in demat, from various cities.sec in demat, from various cities. Presently T-Bills are not admitted inPresently T-Bills are not admitted in NSDLNSDL
  • 114.
    IDENTIFICATIONIDENTIFICATION IN XX YYYYA ZZ CIN XX YYYY A ZZ C  1st & 2nd digits -‘IN’ stands for INDIA1st & 2nd digits -‘IN’ stands for INDIA  3rd & 4th digit Issuer type and State Code3rd & 4th digit Issuer type and State Code (start from 00 to 99)(start from 00 to 99)  YYYY for Year of Issue (Financial Year)YYYY for Year of Issue (Financial Year)  A for Security type ( 0 to 9 )A for Security type ( 0 to 9 )  ZZ for Serial No. of issue in the financial yearZZ for Serial No. of issue in the financial year
  • 115.
    IssuerIssuer Central /StateCentral / State Loan codeLoan code 9800798007 Issuer Short NameIssuer Short Name Government of IndiaGovernment of India Date of MaturityDate of Maturity May 02, 2008May 02, 2008 Coupon RateCoupon Rate 12%12% Year of IssueYear of Issue 19981998 IN0019980047 98007 GOI 02MY08 12 FV RS 100 Central Government Loan
  • 116.
    RBI, PDO NSDL DP 2 3 1 4 1.Initiate demat request to NSDL and fill & forward Form Of Transfer & Certificate to NSDL. 2. NSDL will submit Form Of Transfer & Certificate to RBI for transfer of securities to NSDL SGL II. 3. Credit confirmation by RBI. 4. Confirmation of demat request by NSDL, creating balances in demat account. Dematerialisation- Physical
  • 117.
    Certificates not tobe defaced. If the certificates are issued by PDO other than Mumbai PDO- Signature attestation by issuing PDO is necessary. Form of transfer on single sheet of paper Dematerialisation- Physical
  • 118.
    Negotiated Dealing Systemof RBI. (NDS) DP1 DP2 NSDL Depository (SGL Entity) RBI NDS SGL Entity 1 (HDFC) SGL Entity 2 (PNB Gilts) SGL I A/c SGL I A/c SGL II A/c SGL II A/c SGL I A/c SGL II A/c
  • 119.
    RBI, PDO NSDL DP 2 3 14 1. Initiate demat request through DP & NDS request through SGL entity 2. NSDL approves the NDS request. 3. PDO Mumbai, RBI settles the NDS transaction same day. NSDL SGL II A/C is credited. 4. Confirmation of DRN. Dematerialisation - VFT
  • 120.
    Benefits Of DEMAT Single demat account for maintaining various securities viz. PSU bonds, Government Securities (G-Sec), Corporate Debt etc.  Most of the trusts are already holding demat accounts for maintaining corporate debt instruments, PSU bonds. No additional documentation for maintaining G-Sec in these accounts. Transfer of G-Sec from existing CSGL accounts is seamless and can happen on same day.
  • 121.
     Periodic TransactionStatement simplifies compliance of prevailing investments guidelines and audit process for trusts.  Buying of security in smaller lot is possible. Settlement of fund and securities takes place on the same day and the risk of physical settlement is eliminated.  Lower cost of dematerialisation results in overall cost saving in terms of administrative charges for the trusts.
  • 122.
    Interest & RedemptionPayments RBI credits NSDL’s current a/c as on the due date i.e. interest payment due date. NSDL will consolidate the same as per the beneficiary positions as on record date. Issue RBI cheques to SGL entity, direct credits to the demat account holders having HDFC bank account and HDFC bank DDs to remaining beneficiaries.
  • 123.
    An Update onGSEC As on October 24, 2008 No. of ISINs 532 Value in demat form Rs. 7804.53 cr. Number of holders 2478
  • 124.
    OVERVIEW OF NCDO 126 Points To Be RememberedPoints To Be Remembered 
  • 125.
    127  NSDL isa public limited company incorporated under the Companies Act, 1956.  NSE is a company under the Indian Companies Act, 1956.  The meaning of T + 2 rolling settlement is that settlement of trade takes place on the second working day from the date of trade.
  • 126.
    128  What isthe legal basis for free transfer of title between account holders in the Depository environment : The Depositories Act, 1996.  There are no custody charges levied by NSDL to its DPs.  The custody fee is payable by Issuer to NSDL on a yearly (financial year) basis.
  • 127.
    129  When aninvestor opens an account with a DP, an agreement is signed between the investor and DP.  To buy or sell shares in electronic form, the investor has to have demat account with any DP of his choice.  The Dematerialisation Request Form (DRF) should be signed by all the joint account holders.
  • 128.
    130  For aninvestor holding shares in demat form, dividend will be declared by the Issuer company.  A clearing member can dematerialise its own holdings in its beneficiary account  All dematerialised securities are mandatorily registered in the name of the Depository.
  • 129.
    131  Can lockin securities be rematerialised? : Yes  In case of a rights issue, the rights issue form for securities held in demat form will be sent to the investor by : The Issuer/ its R and T Agent.  A trade that is cleared and settled without the participation of a stock exchange/clearing corporation is : Off Market Trade
  • 130.
    132  The requestfor change of address in a demat account has to be signed by all the account holders.  The full form of SGL is Subsidiary General Ledger.  Information on book closure, record dates, dates for interest payment, etc is provided to NSDL by Issuer/its R and T Agent for the purpose of Corporate Action.
  • 131.
    133  In caseof Partnership Firm Demat account has to be opened in the name of Partners only.  Delivery Instruction Slip (DIS) for off market transfer of shares from a joint demat account should be signed by all the account holders.  NSDL acts as R and T Agent in case of government securities under NSDL SGL II?
  • 132.
    134 More than20 custodians CitibankN. A. DBS Bank Ltd. India Deutsche Bank AG HDFC Bank Ltd Hongkong and Shanghai Banking Corporation Limited ICICI Bank Limited.
  • 133.
    135 Securities lending isprimarily used by short-sellers (approved intermediary) who borrow stocks from other investors to meet their obligations to the clearing house. Large institutional investors such as foreign institutional investors and mutual funds who hold shares for the long term have traditionally been lenders in the market.
  • 134.
    136 GIR (General Index Register)No. was earlier being allotted by the Income Tax Deptt. for assessees but ever since the PAN system is in place GIR has become obsolate.
  • 135.
    137 Dividend stripping isthe purchase of shares just before a dividend is paid, and the sale of those shares after that payment, ie. when they go ex-dividend. This may be done either by an ordinary investor as an investment strategy, or by a company's owners or associates as a tax avoidance strategy.
  • 136.
    138 PARI PASSU: Theterm is Latin and translates to "without partiality." For example, a secondary issue of shares that carry equal rights with existing shares are said to "rank pari passu." (equal footing) ACA: Auto corporate action. While converting securities from an old ISIN to new ISIN the securities lying in the CM pool account is also considered automatically for conversion.
  • 137.
  • 138.
  • 139.
    NDS Seller of GovtSecurity Buyer of Govt Security 141 B BANK NDS Platform INFINET A BANK CCILPDO, RBI C/A RBI Members(NDS) Primary Dealers Banks SGL
  • 140.
    Information • T+2 RollingSettlement from April 2003 • MAPIN introduced from Nov 2004 • Market participant identification Number • MAPIN cards are unique ID number cards like PAN cards, issued by SEBI required for any investor who enters a transaction in the securities market of Rs 1 lakh or more. • NSC/KVP can be dematerialized from Oct 2003 142
  • 141.
    • NSDL centralsystem is known as DM and DP as DPM • Transaction first effected in Central system then updated at other points • Each system connected to NSDL system has its own database relating to its clients • No two business partners have direct linkage to each other in the NSDL system • Every transaction is recorded in NSDL as well as DP database 143
  • 142.
    • NSDL AuditFinancial reports from all its DPs once in a year and inspection of R&T Agent, Clearing corporation 144

Editor's Notes

  • #5 STCI:The Securities Trading Corporation of India DFHI: Discount and finance house of india
  • #13 MB: Intermediaries between the issuer’s and investors as underwriters for shares and debentures Merchant bankers are mandated by SEBI to manage the public issue as lead managers and open offers in take overs
  • #28 Client Due diligence process Financial intelligence unit FIU