A. Depository Services

What is a depository?

• A depository can be compared to a bank. A depository holds securities (like shares, debentures, bonds, Government Securities, units etc.) of investors in electronic form. Besides holding securities, a depository also provides services related to transactions in securities'

How can one avail the service of a depository?

• A depository interfaces with the investors through its agents called Depository Participants (DPs). If an investor wants to avail the services offered by the depository, the investor has to open an account with a DP. This is similar to opening an account with any branch of a bank in order to utilize the bank's services.
  
  
• Our Bank has now centralized DP operations (both for CDSL as well as NSDL) besides existing DPs, which are being planned to be migrated to central set up in a phased manner. The central Back-Office DP Operations (CBODPO) is at UTI Tower, Bandra Kurla Complex, Mumbai.
  
  
• Our Identified CBS Branches can now open & operate Demat accounts if they are linked to Central Back Office DP Operations (CBODPO) of the Bank situated at UTI Tower, Bandra Kurla Complex, Bandra (East), Mumbai

What are the benefits of a depository?

        The benefits of participation in a depository are :

• Immediate transfer of securities;
  
  
• No stamp duty on transfer of securities;
  
  
• Elimination of risks associated with physical certificates such as bad delivery, fake securities, etc.;
  
  
• Reduction in paperwork involved in transfer of securities;
  
  
• Reduction in transaction cost;
  
  
• Nomination facility;
  
  
• Facility to pledge the securities.
  
  
• Facility of trading in Odd lots.

What are the facilities offered by a Depository?

        A Depository offers the following facilities:

• Dematerialisation i.e., converting physical certificates to electronic form;
  
  
• Rematerialisation i.e., conversion of securities in demat form into physical certificates;
  
  
• Electronic settlement of trades in stock exchanges connected to .the Depository.
  
  
• Pledging/hypothecation of dematerialised securities against bank loan;
  
  
• Electronic credit of securities allotted in public issues, rights issue;
  
  
• Receipt of non-cash corporate benefits such as bonus in electronic form;
  
  
• Freezing of demat accounts, so that the debits from the account are not permitted;
  
  
• Nomination facility for demat accounts;
  
  
• Services related to change of address;
  
  
• Effecting transmission of securities;
  
  
• Account monitoring facility through Internet (CDSL: Easy ; NSDL : Speed-e).
  
  
• Submission of delivery instructions through Internet ("Easiest" of CDSL and "Speede" of NSDL)
  
  
• Other facilities viz. holding debt instruments in the same account, availing stock lending/borrowing facility, etc.

B. Account Opening

Who is a DP?

• A Depository like NSDL (National Securities Depository Limited) or CDSL (Central Depository Services Limited) provides its services to investors through its agents called depository participants (DPs). These agents are appointed by NSDL & CDSL with the approval of SEBI. According to SEBI regulations, amongst others, three categories of entities i.e. Banks, Financial Institutions and Members of Stock Exchanges registered with SEBI [brokers] can become DPs. An investor can get a list of DPs from NSDL's or CDSL's office.
  
  

• Our Bank has now centralized DP operations (both for CDSL as well as NSDL) besides existing DPs which are being planned to be migrated to central set up in a phased manner. The central Back-Office DP Operations (CBODPO) is at UTI Tower, Bandra Kurla Complex, Mumbai

How one can select a DP? Whether all DPs are same?

        One can simply select either any of our existing DPs or identified CBS branch (if it is authorized to              open Demat account) just like one selects a branch for opening a Savings Account. Some of the                  important factors for selection could be:

• Convenience - Proximity to the office/residence, business premises and working hours of DP.
  
  
• Services offered & speed of the same.
  
  
• Cost - The service charges levied by us are very competitive.

What should one do when he/she wants to open a Demat account with an identified CBS branch of our bank?

• He / she can approach either any identified CBS branch or existing DP of his/her choice and fill up an account opening form. At the time of opening an account, he / she has to sign an agreement with branch DP in a NSDL/CDSL prescribed standard agreement, which details his/her and DPs rights and duties. All investors have to submit following proof of identity and proof of addresses along with the prescribed account opening form.
  
  
• Proof of Identity: His/her signatures and photograph must be authenticated by an existing demat account holder with the same DP or by his/her bank. Alternatively, he/she can submit a copy of Passport, Voters Id Card, Driving License or PAN card with photograph.
  
  
• Proof of Address: He/she can submit a copy of Passport, Voters ID Card, Driving License or PAN card with photograph, ration card or bank passbook as proof of address.
  
  
• Passport-size photograph He/she must remember to take original documents to the DP for verification. He/she should remember to obtain a copy of the agreement and schedule of charges for his/her future reference.
  
  
• PAN Card (for all individuals; minors; HUF etc).

Can one open more than one (1) demat account with the same identified CBS branch or different DPs?

• Yes. One can open more than one account with the same identified CBS branch or DP. There is no restriction on the number of accounts one can open with our identified CBS branch/branches (linked to Central Back Office DP Operations i.e. CBODPO) or with any other DP.

Is an investor restricted to having Demat account with only one DP?

• No. There are no restrictions on the number of DPs one can open accounts with or the number of accounts one can open with a DP. Demat accounts are similar to bank accounts. Just as one can have savings or current accounts with more than one bank, one can open Demat accounts with more than one DP.

Can he / she open a single account for securities owned in different ownership patterns such as securities owned individually and securities owned along-with his /her wife/husband?

• 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 his individual name and another certificate is jointly held in his and his wife's name , two different accounts would have to be opened.

What one should do if he/she has physical certificates with the same combination of names, but the sequence of names is different? i.e. some certificates with husband as first holder and wife as second holder and other set of certificates with wife as first holder and husband as the second holder? (Example given below)

• In this case he/she may open only one account with husband & wife + daughter as the account holders and lodge the security certificates with different order of names for dematerialisation in the same account. He/she will fill-up an additional form called "Transposition cum Demat" form. This would help him/her to effect change in the order of names as well as dematerialize the securities.

Why should one give his/her bank account details at the time of account opening?

• It is for protection of Demat account holder's interest. His/her bank account number will be mentioned on the interest or dividend warrant he/she are entitled to so that such warrant cannot be encashed by any one else. Further, a DP cannot open the account if bank account number is not given. This account number is also useful for affording credit of dividend etc. through ECS.

Can he/she change details of his/her bank account?

• Yes. Since in the depository system monetary benefits on his/her security balances are paid as per the bank account details provided by him/her at the time of account opening, he/she must ensure that any subsequent change in bank account details is informed to the branch DP immediately.

What is 'Standing Instruction' given in the account opening form?

• In a bank account, credit to the account is given only when a 'paying-in' slip is submitted together with cash/cheque.
  
  
• Similarly, in a Demat 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 account holder says 'Yes' [or tick] for standing instruction at the time of opening Demat account, he/she need not submit 'Receipt in' slip every time he/she buys securities.

Can a Demat account holder 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. All the holders to the account must sign all documents (including Delivery Instructions) jointly.

Is it compulsory for every investor to open a Demat account to trade in the capital market?

• Since 99.5 % of the settlement at the stock exchanges is taking place in demat form, an investor buying securities would receive the securities in demat form only. Therefore, investors who actively buy and sell securities need to open a depository account to receive delivery of demat securities.
  
  
• According to the Depositories Act, 1996, an investor has the option to hold securities either in physical or electronic form. However, SEBI has notified that settlement of trades in listed securities should take place only in the demat mode. Although, trades up to 500 shares can be settled in physical form, physical settlement is virtually not taking place for the apprehension of bad delivery on account of mismatch of signatures, forgery of signatures, fake certificates etc.

What should the Demat account holder do if his/her address is changed? Does he / she need to write/send mail to each company separately?

• In case his/her address is changed, he/she only needs to inform the new address to the branch DP along with necessary proof of change of address. When branch DP enters the new address in the depository computer system, it will be automatically conveyed to all companies in which the account holder holds shares.

Can account holder close his / her demat account with one DP and transfer all securities to his/her account with another DP?

• Yes. He/she can submit account closure request to his/her branch DP in prescribed form. The branch DP will transfer all his/her securities, as per his/her instruction, and close the demat account.

What would be the charges for account closure and securities transfer due to account closing?

• The charges would be as per the schedule of charges agreed by account holder at the time of account opening or any subsequent changes there-in.
  
  
• >NSDL/CDSL is allowing waiver of charges to DPs where all the securities in an account are moved to another account with another DP due to account closure if account name remains the same.

Nomination

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, the securities will be transmitted to the surviving holder(s). Only in the event of death of all the joint holders, the securities will be transmitted to the nominee.

Can a NRI nominate?

• Yes, NRI can nominate directly. But, the power of attorney holder cannot nominate on behalf of NRI.

Can a minor nominate?

• No, a minor cannot nominate either directly or through its guardian

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.

Can there be more than one nominee?

• No, at present only one nomination can be made for one demat 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 a depository 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 nomination?

• The nomination form (format provided in account opening form) duly filled-in should be submitted to the branch DP either at the time of account opening or later. The account holder, nominee and two witnesses must sign this form and the name; address and photograph of the nominee must be submitted. (Photograph of nominee Is not required in case the account is opened with CDSL DP/branch)
  
  
• 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 account holder/s by simply filling up the nomination form once again and submitting it to the branch DP.

D. Transmission

What does transmission mean in relation to demat accounts?

• Transmission is the process by which securities of a deceased account holder (s) are transferred to the account of his legal heirs/nominee/surviving holder(s).
  
  
• Process of transmission in case of dematerialized holdings is more convenient as the transmission formalities for all securities held in a demat account can be completed by submitting necessary documents to the branch 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.

What is the procedure for transmission of securities to the nominee in case of the death of the account holder?

• In case of the death of the sole holder, for the purpose of transmission of securities, the nominee has to submit a duly filled-in transmission form, notarized copy of death certificate and an affidavit in the prescribed format.
  
  
• >After verifying these documents, the DP will transmit the securities to the account of the nominee.

What would happen if no nomination is made for the account?

• In case nomination is not made, the securities would be transmitted to the account of legal heir(s), as may be determined by an order of the competent court. However in cases where the value of securities to be transmitted is less than Rs. 1,00,000/- the DP may process the request based on submission of necessary letter of indemnity , surety , affidavits and NOC documents.

What is the procedure for transmission in case of Joint Accounts?

• In the event of death of one of the joint holders, the securities will be transmitted to the surviving holder(s) account on submission of Transmission Form and notarised copy of the death certificate of the deceased joint holder to the DP.
  
  
• For transmission of securities, the account of the surviving holder(s) must be in the same sequence in which the names appear in the joint account to be closed.

What is the advantage of transmission?

• The major advantage in case of dematerialized holdings is that transmission formalities for all securities held in Demat account can be completed just by interaction with the branch DP alone, unlike in the case of physical securities, where the claimant has to interact with the Issuer or its Registrar separately.

E. Dematerialization

What is meant by 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 in the investor's account with his DP.
  
  
• In order to dematerialize certificates; an investor will have to first open an account with a branch DP and then request for the dematerialisation of certificates by filling up a dematerialisation request form [DRF], which is available with branch DP and submitting the same along with the physical certificates.
  
  
• The investor has to ensure that before the certificates are handed over to the branch DP for demat, they are defaced by marking "Surrendered for Dematerialisation" on the face of the certificates. (PLEASE NOTE THAT THIS DEFACING IS NOT REQUIRED TO BE DONE BY THE CLIENT IN CASE DEMAT ACCOUNT IS OPENED WITH CDSL DP. The defacing is the responsibility of the branch DP in case of CDSL demat account)

Can one dematerialize any share certificate?

• One can dematerialize only those certificates that are already registered in one's name and are in the list of securities admitted for dematerialisation at NSDL or CDSL.
  
  
• All the scrips included in S&P, CNX, NIFTY and BSE SENSEX have already joined NSDL/CDSL. This list has more than 3700 companies and is steadily growing.
  
  
• The investor can get an updated list of these companies from our branch DP or from NSDL's / CDSL's office or NSDL/CDSL's website at www.nsdl.com and www.cdslindia.com

What precautions Demat account holder should take before defacing a share certificate?

• He/she must ensure that it is available for dematerialisation. He/she must therefore check with his/her branch Depository Participant whether the ISIN (code number for the security in a depository system) has been activated and made available for dematerialisation by the depository.
  
  
• If yes, then he/she should submit Demat Request Form along with the physical certificates. He / she should NOT deface the certificates. (In case of NSDL , a client is advised to affix the relative rubber stamp "Surrendered for Dematerialization" on share certificates) PLEASE SEE POINT 36 ABOVE ALSO.

How long does the dematerialisation process take?

• Dematerialisation will normally take about 30 days.

What if it takes more than 30 days for dematerialisation of the shares?

• f the process of dematerialisation takes more than 30 days, the client should be advised suitably by the branch DP (after contacting CBODPO, if required). If the client has a grievance, he should submit grievance to the branch / DP for redressal.
  
  
• A copy of the grievance should also be sent to bank's Central Back Office DP Operations (CBODPO) at following address: Bank of Baroda,
  Central Back Office DP Operations,
  (CBODPO),
  UTI Tower,
  Gn Block, Bandra Kurla Complex,
  Bandra (East),MUMBAI-400 051
  
  Email:: demat @bankofbaroda com

Government Securities & Debt Instruments

Can an investor dematerialize his/her debt instruments, mutual fund units, government securities also in his/her demat account?

• Yes. He/she can dematerialize and hold all such investments in a single demat account.

Rematerialisation

Can his/her electronic holdings be converted back into certificates?

• Yes. If Demat account holder wishes to get back his/her securities in physical form, all he/she has to do is to request branch DP for Rematerialisation of the same.
  
  
• 'Rematerialisation' is the term used for converting electronic holdings back into certificates. His/her branch DP will forward his/her request to CBODPO, which in turn will forward to NSDL/CDSL after verifying that he/she has the necessary balances.
  
  
• NSDL/CDSL in turn will intimate the registrar who will print the certificates and dispatch the same to him/her.

Trading/Settlement

What is the procedure for selling dematerialised securities?

• The procedure for selling dematerialised securities is very simple. After the Demat account holder has sold the securities, he/she would instruct branch DP to debit his/her account with the number of securities sold by him/her and credit his/her broker's clearing account. This delivery instruction has to be given to branch DP using the delivery instruction slips given to the account holder by branch DP at the time of opening the account. Procedure for selling securities is given here below:
  
  
• He/she sells securities in any of the stock exchanges linked to NSDL/CDSL through a broker.
  
  
• He/she gives instruction to branch DP to debit his/her account and credit the broker's [clearing member pool] account.
  
  
• Before the pay-in day, the broker gives instruction to DP for delivery to clearing corporation.
  
  
• His/her broker receives payment from the stock exchange [clearing corporation]
  
  
• He/she receives payment from the broker for the sale of securities.

How can an investor/ demat account holder purchase dematerialised securities?

• For receiving demat securities the demat account holder may give a one-time standing instruction to his/her branch DP. This standing instruction can be given at the time of account opening or later. He/she may also choose to give separate receipt instruction every time some securities are to be received. However, it is advisable to give standing instructions for "credits" at the time of opening Demat account.
  
  
• The transactions relating to purchase of securities are summarized below:
  1. Demat account holder purchases securities through a broker;
     
     
  2. He/she makes payment to his/her broker who arranges payment to clearing corporation on the pay-in day;
     
     
  3. His/her broker receives credit of securities in clearing account on the pay-out day;
     
     
  4. His/her broker gives instructions to branch DP to debit clearing account and credit his/her account;
     
     
  5. He/she receives shares into his/her Demat account. However, if standing instructions are not given at the time of opening the account, he/she will have to give 'Receipt Instructions' to his/her branch DP for receiving credit,.
     
     
  6. He/she should ensure that his/her broker transfers the securities purchased from his (broker's) clearing account to his/her (client's) depository account, before the book closure. If the securities remain in the clearing account of the broker, the company may give corporate benefits to the broker. In that case, he/she will have to collect benefits from his/her broker.

What do 'Market Trades' and 'Off Market Trades' mean?

• Any trade settled through a clearing corporation is termed as the 'Market Trade'. These trades are done through stock brokers on a stock exchange.
  
  
• 'Off Market Trade' is one which is settled directly between two parties without the involvement of clearing corporation. The same delivery instruction slip can be used either for market trade or off-market trade by ticking one of the two options.

If client sells securities through a sub-broker, which part of the delivery instruction slip has to be filled?

• If the client is delivering securities to his/her sub-broker, he/she would need to fill-in the off-market trade portion of the delivery instruction slip.

What settlement details are required on the delivery instruction slip and when delivery is to be given to a broker?

• On every stock exchange various settlements are effected every day such as weekly settlement, daily settlement, auction settlement etc. Each of these settlements is identified by the combination of the market type and the settlement number.
  
  
• >Clients are required to mention the appropriate settlement details on the delivery instruction slip while transferring the shares to his/her broker's account. These settlement details are available on the contract note issued by the broker.

How client comes to know about the settlement deadlines?

• The branch depository participant with whom demat account is maintained will prescribe the deadlines (as advised by CBODPO, if it is an authorized branch) to be followed by the client for submission of delivery instruction slips. He/she should deliver instructions to the branch DP as per these deadlines.

When an investor buys shares, in what time should he/she receive the securities from his/her broker?

• The broker is expected to transfer the securities to client's Demat account within two working days or four calendar days after securities are received in his pool account, provided the client has made the requisite payment to the broker.

What precautions, the Demat account holder(s) need to observe with respect to Delivery Instruction Slips [DIS]?

• Account holder should ensure and insist with branch DP to issue DIS book; Branch DP should not issue loose slips.
  
  
• Ensure that DIS numbers are pre-printed and branch DP takes acknowledgment from the client for the DIS booklet issued to him/her.
  
  
• Client should ensure that his/her account number [client id] is pre-stamped.
  
  
• If Demat account is a joint account, all the joint holders have to sign the instruction slips. Instruction cannot be executed if all joint holders have not signed.
  
  
• Client is advised not to leave signed blank DIS with anyone viz., broker/sub-broker/branch's staff.
  
  
• Keep the DIS book under lock and key when not in use.
  
  
• If only one entry is made in the DIS book, strike out remaining space to prevent misuse by any one.
  
  
• The client should fill in target account ID and all details in DIS herself/himself.

What is 'execution date' given in the delivery instruction form?

• Execution date is the date on which securities will be actually debited from your account. The execution date written on the delivery instruction has to be entered by the branch DP in the DEBOS/Other system. When this is uploaded to DPM/CDAC by CBODPO or by DP to DPM/CDAC, the Depository's system will record the date and will debit client's account only on that date.
  
  
• Client may issue the instruction well in advance of the date on which he/she wants the securities to be debited from his/her account but his/her account will be debited only on the execution date.

What benefit a client gets by giving delivery instruction slip with a future execution date?

• By giving a future dated instruction the risk of non-execution of instruction due to lack of time or last minute rush is covered

What is the importance of record dates to a client?

• In case the securities bought by client are yet to be transferred into his/her account by his/her broker before the book closure / record date, he/she will not be entitled to receive corporate benefit such as dividend or bonus since client's name will not figure in the list of beneficial owners. Hence, client must ensure that securities bought by him/her are transferred into his/her account before the book closure / record date announced by the company.

Can one buy and sell shares through Depository Participant?

• No. Shares can be bought and sold only through a stockbroker. Our Branch DP facilitates delivering the shares against a sell transaction or receiving the shares for a buy transaction.

Corporate Benefits

Who will give the corporate benefits arising out of client's holdings to him/her?

• The benefits will be given by the company If at the time of book closure / record date, shares are in client's broker's account the company will give the corporate benefits (dividend/bonus) to the broker and the broker has to pass on the same to the client.

How would the client get his/her dividend / interest or other cash entitlements?

• The concerned company obtains the details of beneficiary holders and their holdings as on the date of the book closure / record date from NSDL/CDSL.
  
  
• The payment to the investors will be made by the company through the ECS (Electronic Clearing Service) facility or by issuing warrants on which client's bank account details are printed.
  
  
• The bank account details will be those which the client would have mentioned in his/her account opening form or changed thereafter.

How would the client get his/her bonus shares or other non-cash entitlements?

• The concerned company obtains the details of beneficiary holders and their holdings as on the date of the book closure / record date from NSDL / CDSL.
  
  
• The client's entitlement will be credited by the company directly in client's demat account.

In case of discrepancies in corporate benefits whom the client should contact?

• In case of discrepancies in corporate benefits, client can approach branch DP or the company / its R&T Agents.

How will the investor confirm that bonus / rights entitlement is credited into the account?

• An allotment advice will be sent by the Issuer/ their R&T agent for bonus/ rights entitlement.
  
  
• The Transaction Statement given by the branch DP, will also show the bonus / rights credit into the account.
  
  
• The quantity shown in the advice and statement of transaction should match.

Pledging

Can client pledge dematerialised securities?

• Yes. In fact, pledging dematerialised securities is easier and more advantageous as compared to pledging physical securities.

What should the client do if he/she wants to pledge electronic securities?

• Both, the client (pledgor) as well as the lender (pledgee) must have demat accounts;
  
  
• Client has to initiate the pledge by submitting to his/her branch 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, the securities are pledged.
  
  
• All financial transactions between the pledgor and the pledgee are handled as per usual practice outside the depository system.

How can the client close the pledge after repayment of his/her loan?

• After the client has repaid the loan, he/she can request for a closure of pledge by instructing branch DP in a prescribed format.
  
  
• The pledgee on receiving the repayment will instruct his/her 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 depository participant of NSDL or CDSL i.e. both the DPs should be of the same depository.

Can the client change the securities offered in a pledge?

• Yes, if the pledgee [lender] agrees, client 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 (client) would continue to receive all the corporate benefits.

Charges

What will be the charges for account opening and other depository related transactions?

• NSDL /CDSL charges the DPs and not the investors. NSDL/CDSL charges to their DPs are fixed. However, the DP is free to charge its client for the services offered. The charges that DP will be charging a demat account holder (opened with NSDL) for various services are mentioned in the Schedule of Charges which forms a part of the account opening agreement. Client may keep a copy of this for his/her future reference. Client can get the details of the charges from the branch DP in case of account opened under CDSL.
  
  
• DP / Bank may change charges by giving 30 days notice in advance to the clients.

Inter-Depository Transfers

If client's demat account is with NSDL or CDSL, can he/she receive his/her securities from an account holder having account with some other depository in India?

• Yes. Inter depository transfers are possible

Safety Features

How will a client know that his/her branch DP has updated his/her demat account after each transaction?

• Transaction Statement will be sent periodically by the CBODPO/ DP, which will detail current balances and the various transactions client has done through the depository account.
  
  
• If a client so desires, branch DP may forward the request to CBODPO for the Transaction Statement at intervals shorter than the stipulated ones, at a cost.

At what frequency will client receive his/her Transaction Statement from CBODPO?

• The client will receive a Holding Statement from CBODPO/DP once in a quarter. If client has done any transaction during the quarter, he/she will receive the statement within fifteen days of the transaction.

What is to be done if there are any discrepancies in transaction statement?

• In case of any discrepancy in the transaction statement, client can contact the branch DP. If the discrepancy cannot be resolved at the branch DP level, then client should approach NSDL/CDSL.
  
  
• NSDL/CDSL also sends out a statement of holdings to a few clients, picked at random. In case the balance in Demat account as indicated by CBODPO/DP does not tally with the balance as indicated by NSDL/CDSL, client can contact his/her branch DP/ NSDL/CDSL for clarification.
  
  
• Client is advised to contact branch DP for seeking clarification.

What happens if client loses his/her Transaction Statement?

• Simple. Inform the branch DP and obtain a duplicate Transaction Statement

What security do a client do if the only proof of his/her holdings in the depository is merely a piece of paper indicating his/her account balance?

• No transaction can be effected in demat account without client's written authorization. Further, if client happens to be away for a long time, he/she has the facility of freezing demat account wherein only credits into demat account will be allowed and no debit will be possible.

What will happen if DP goes bankrupt or stops operation?

• Ours is a premier nationalized bank and a Government of India undertaking.
  
  
• In a rare event of Bank going bankrupt or closing the operation, the interests of the investors will be fully protected. In such a situation, the investor is given option of either transferring the securities to a new DP or else he may rematerialize the securities.

Can client freeze his / her account?

• The depository system provides the facility to freeze the demat accounts for any debits or for both debits and credits. In an account which is "frozen for debits", no debits will be permitted from the account, till the time it is un-frozen. This is the additional security feature for the benefit of the investors.

Non Resident

Where can an NRI open a demat account?

• NRI can open a demat account with any of our identified branch for opening Demat account. The NRI 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 Depository Participant

Does an NRI need any RBI permission to open demat account?

• No permission is required from RBI to open a demat account. Holding securities in demat only constitutes change in form and does not need any special permission.

Does NRI requires to take permission for dematerialisation / Rematerialisation of securities?

• No special permission is required. Holding securities in demat only constitutes change in form and does not need any special permission. Permission taken (where required) at the time of acquiring the securities is adequate.

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.

How does NRI dematerialize securities purchased while he/she was resident?

• As per FEMA rules, NRI must regularize his/her holdings to reflect change of status - in this case, bring them to 'Non-Resident' status.
  
  
• For this, NRI must submit (if not already submitted to the issuing company earlier) a letter addressed to the issuing company along with the Demat Request Form stating change of status and giving details of foreign address.

What are the procedures to be followed in respect of investment in securities in case person resident in India becomes NRI?

• On becoming an NRI, a new depository account with appropriate NRI status is to be opened and all the balances held in account with 'Resident' status should be transferred to the account with NRI status & securities held under this account will be treated on non-repatriable basis.

What are the procedures to be followed in respect of investment in securities in case NRI becomes person resident in India?

• On becoming a resident, a new depository account with appropriate status - 'Resident' in this case - is to be opened and all the balances held in account with 'Non-Resident' status should be transferred to 'Resident' status.

Can a NRI purchase securities by subscribing to an issue? What are the approvals required?

• The issuing company is required to issue shares to NRIs on the basis of specific or general permission from GoI/RBI. Therefore, individual NRI need not obtain any permission

Can a NRI purchase securities in the secondary market? What are the approvals required in the new FEMA rules?

• Purchases made in the secondary market are investments under Portfolio Investment Scheme. Permission to buy in the market is given by authorized dealers under the Portfolio Investment Scheme on repatriable/ non-repatriable basis. The said permission is a one-time general permission.

Does NRI require any permission to subscribe to Rights issue of a company?

• No

Does NRI require any permission to receive bonus shares?

• No

Can an NRI nominate or be nominated in demat account? Whether such nominee can be person resident in India?

• Yes

Can an NRI and person resident in India have a joint demat account?

• Yes. For the purpose of determining ownership of holding, the first holder's status is taken into account. Hence, even though other joint holders may be persons resident in India, the sale proceeds of such securities can be repatriated in case the first holder is permitted to repatriate funds.

What type of bank accounts are to be given at the time of account opening and subsequently (by way of change of details)?

• The bank details recorded by the branch Depository Participant may be used by the issuer of securities to directly credit the dividend or interest.
  
  
• The following bank accounts may be given:
  For non-repatriable - NRO [dividend/interest is repatriable] -
  For repatriable - NRE.