A STUDY ON DEPOSITORY PARTICIPANT SERVICE PROCESS AT FORTUNE FINANCIAL SERVICE INDIA LIMITED
PROJECT SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE MASTER OF BUSINESS ADMINISTRATION
DECLARATION
I here by declare that th ! "r#$ect re"#rt t tled %A !t&dy #' De"#! t#ry Part c "a't Ser( ce Pr#ce!! at FORTUNE FINANCIAL SER)ICES *INDIA+ LIMITED, S&b- tted by -e t# the de"art-e't #. Ma!ter! #. B&! 'e!! Ad- ' !trat #'/ ) (e0a'a'da Sch##l #. P#!t Grad&ate !t&d e! 1111 U' (er! ty ! a b#'a. de 2#r0 &'derta0e' by -e a'd t ! '#t !&b- tted t# a'y #ther &' (er! ty #r I'!t t&t #' .#r the a2ard #. a'y de3ree d "l#-a 4 cert . cate #r "&bl !hed a'y t -e be.#re5 Date 6 Place6 *! 3'at&re+
ACKNOWLEDGEMENT
The "er.ect 2ay t# d#c&-e't th ! "r#$ect 2#&ld be t# !tart 2 th ac0'#2led3 '3 all th#!e "e#"le 2h# d rectly #r 'd rectly e'c#&ra3ed/ !&""#rted -e 2 th the r (al&e added '"&t! 2 th#&t the- th ! "r#$ect 2#&ld '#t ha(e bee' th ! better5 T# !tart 2 th I 2#&ld l 0e t# tha'0 1111/ bra'ch -a'a3er #. FORTUNE FINANCIAL SER)ICES *INDIA+ LIMTED at 1111 .#r 3 ( '3 -e a' #""#rt&' ty t# d# -y "r#$ect 2#r05 My ! 'cere tha'0! t# -y .ac<y 111 ! r .#r hel" '3 ' -e #&t (ar #&! a!"ect! #. -y "r#$ect a'd I 2#&ld l 0e t# tha'0 c#lle3e -a'a3e-e't .#r c##rd 'at '3 2 th -e d&r '3 th ! #'e -#'th #. -y "r#$ect5 F 'ally I 2#&ld l 0e t# #2e -y ! 'cere a""rec at #' t# all the E-"l#yee! #. the #r3a' 7at #' 2h# "r#( ded a .r e'dly e'( r#'-e't a'd !&""#rted thr#&3h #&t -y "r#$ect5
INDE1 Table #. c#'te't!6 85 I'tr#d&ct #' ? Need F#r the !t&dy ? Ob$ect (e! #. the !t&dy ? Sc#"e #. the !t&dy ? C#-"a'y9! "r#. le :5 Meth#d#l#3y ? Pr -ary !#&rce! ? Sec#'dary !#&rce! ;5 De!cr "t #' #. the !t&dy area <5 Pre!e'tat #' #. .act! ? de"#! t#ry !y!te-
? Ser( ce! #..ered by a DP ? Acc#&'t #"e' '3 ? De-ater al !at #' ? Re-ater al !at #' ? Trad '3 a'd !ettle-e't ? Pled3e ? Tra'!- !! #' ? Tra'!"#! t #' ? Free7 '3 a'd &'.ree7 '3 #. a' acc#&'t ? S&!"e'! #' #. a' acc#&'t =5 F 'd '3! #. the !t&dy >5 C#'cl&! #'! ?5 L - tat #'! @5 B bl #3ra"hy
INTRODUCTION The . eld #. . 'a'c al !er( ce! ' I'd a ha! e'tered a'#ther !ta3e #. de(el#"-e't 2 th a !h .t ' t! #&tl##0 t# 'te3rate 2 th the 3l#bal -ar0et!5 I'(e!t#r! c#'. de'ce/ A&al ty !er( ce!/ C&!t#-er eB"ectat #' a'd Sat !.act #'/ A& c0 re!"#'!e/ Tech'#l#3y 'te3rat #' are the 2#rd! t#day5
W th l beral 7at #' a'd dere3&lat #'/ the I'd a' -ar0et! ha(e c#-e #&t #. the G#(er'-e't c&rta '!5 The ca" tal -ar0et ha! -ade tre-e'd#&! "r#3re!! ! 'ce the' a!"ect5
Pr#"er -ar0et '.ra!tr&ct&re/ re3&lat#ry a'd le3al .ra-e2#r0! are e!!e't al .#r e-er3 '3 ca" tal -ar0et! t# .&'ct #' e..ect (ely ' a 3r#2 '3 2#rld #. . 'a'c al 'te3rat #'5 W th the (a!t '(e!t '3 "#"&lat #' ' I'd a character 7ed by ll teracy a'd "##rly de(el#"ed a'd a&t#-ated !t#c0 eBcha'3e! 2h ch d# '#t "r#( de e'#&3h l C& d ty a'd de! red le(el #. tra'!"are'cy ' #"erat #' G#(er'-e't #. I'd a ' 8DD> e'acted the De"#! t#r e! Act/ 8DD> t# 0 c0 !tart de"#! t#ry !er( ce! ' I'd a ' a "la''ed a'd !y!te-at c -a''er5 Sec&r t e! a'd EBcha'3e B#ard #. I'd a *SEBI+ "r#( ded the !&""#rt t# the G#(er'-e't9! e'dea(#r5 A De"#! t#ry ! a' #r3a' 7at #' 2here the !ec&r t e! #. !hareh#lder! are held ' a' electr#' c .#r- at the reC&e!t #. !hareh#lder5 It ! a' electr#' c !#l&t #' t# "r#ble-! #. deal '3 ' "hy! cal .#r- a'd c#'d&ct '3 tra'!act #'! ' ca" tal -ar0et ' a -#re e.. c e't a'd e..ect (e -a''er5 The De"#! t#ry h#ld! !ec&r t e! ' a' acc#&'t / tra'!.er !ec&r t e! bet2ee' acc#&'th#lder!/ .ac l tate! !a.e0ee" '3 #. !ec&r t e! a'd .ac l tate! tra'!.er #. #2'er!h " 2 th#&t tra'!.er #. !ec&r t e!5 De"#! t#ry !y!te- ! l#'3 "re(ale't ' the ad(a'ced c#&'tr e! a'd ha! bee' "lay '3 a ! 3' . ca't r#le ' the !t#c0 -ar0et ar#&'d the 2#rld5 The !y!te- ! t -e te!ted a'd rel able5
NEED FOR THE STUDY Need .#r a De"#! t#ry ' I'd a6 O(er the la!t decade/ the I'd a' ca" tal -ar0et ha! bee' 3r#2 '3 by lea"! a'd b#&'d!5 I'd a ha! the lar3e!t '&-ber #. l !ted c#-"a' e! ' the 2#rld t#day5 Parad#B cally the "r#ble-! a!!#c ated 2 th the !ettle-e't! #. trade! are al!# #' the r !e5 A! a re!< #. th !/ '(e!t#r! ha(e t# .ace a l#t #. 'c#'(e' e'ce ' e..ect '3 re3 !trat #' #. !ec&r t e! ' the r .a(#&r a'd t# e'!&re that they rece (e the r r 3ht.&l !hare #. d ( de'd/ b#'&!/ r 3ht! a'd #ther be'e. t!5
The #ld !y!te- #. !t#c0 trad '3 a'd !ettle-e't ! .eat&red by 'crea!ed -ar0et a'd #"erat #'al 'e.. c e'c e!5 Th ! !ect #' #. the -ar0et c#-"r !e! the Sec#'dary -ar0et 2h ch ! "#"&larly called a! the %St#c0 Mar0et, c#-"r ! '3 #. :; St#c0 EBcha'3e! a'd ! the #r3a' 7ed -ar0et re3&lated by the SEBI .#r "&rcha!e a'd !ale #. !ec&r t e! thr#&3h 'ter-ed ar e! called !t#c0 br#0er! a'd !&bEbr#0er!5 The G#(er'-e't #. I'd a "r#-&l3ated the De"#! t#r e! Ord 'a'ce ' Se"te-ber 8DD=/ th&! "a( '3 the 2ay .#r !ett '3 &" #. De"#! t#r e! ' the c#&'try5 Nat #'al Sec&r t e! De"#! t#ry L - ted *NSDL+ 2a! 'a&3&rated a! the . r!t de"#! t#ry ' I'd a #' @th N#(e-ber 8DD>5 It ! re!"#'! ble .#r h#ld '3 a'd ha'dl '3 #. !ec&r t e! ' electr#' c .#r- el - 'at '3 "r#ble-! that are '#r-ally a!!#c ated 2 th "hy! cal cert . cate! l 0e -&t lat #' d&e t# carele!! ha'dl '3/ l#!! ' tra'! t/ "r#ble-! #. bad del (er e! etc5
OBJECTIVES OF THE STUDY
The basic b!ec"i#es $ "he s"%&' a(e6 ? T# 0'#2 a'd &'der!ta'd the 'eed a'd -"#rta'ce #. !cr " le!! trad '3 ' the ca" tal -ar0et5 ? T# &'der!ta'd the c#'ce"t #. De"#! t#ry !y!te- ' I'd a5
? T# !t&dy the r#le #. a de"#! t#ry "art c "a't a! a b&! 'e!! "art'er t# De"#! t#ry 2 th !"ec al e-"ha! ! #' F#rt&'e F 'a'c al Ser( ce! *I'd a+ L - ted5 ? T# e(al&ate the 2#r0 '3 #. a De"#! t#ry Part c "a't ' acc#rda'ce 2 th Ce'tral De"#! t#ry Ser( ce! *I'd a+ L - ted *CDSL+ 3& del 'e! a'd deter- 'e the 2ay! a'd -ea'! #. -"r#( '3 t! e.. c e'cy5
SCOPE OF THE STUDY The "re!e't !t&dy c#'ce'trate! #' De"#! t#ry Part c "a't Ser( ce Pr#ce!!5 The !t&dy ! -ade ' real 2#r0 '3 e'( r#'-e't a'd e-"ha! ! ! 3 (e' #' (ar #&! 'tr cac e! &'der the De"#! t#ry Part c "a't #"erat #'al 2#r0 at F#rt&'e F 'a'c al Ser( ce! *I'd a+ L - ted5
COMPANY PROFILE
B%si)ess P( $i*e F#rt&'e F 'a'c al Ser( ce! I'd a Ltd5 ! a . 'a'c al !er( ce! c#-"a'y5 It 2a! 'c#r"#rated a! a "r (ate l - ted c#-"a'y #' J&'5 8</ 8DD8 a'd 2a! c#'(erted 't# a "&bl c l - ted c#-"a'y 2 th the "re!e't 'a-e #' Oct5 :F/ 8DD<5
The c#-"a'y "r#( de! . 'a'c al !er( ce! 'cl&d '3 '(e!t-e't ba'0 '3/ !t#c0 br#0 '3 a'd d !tr b&t #'/ c#r"#rate ad( !#ry/ DP !er( ce! a'd c#--#d t e! br#0 '35 It ! a Gcate3#ry 8G -ercha't ba'0er a'd a c#r"#rate -e-ber #. the M&-ba St#c0 EBcha'3e a'd the Nat #'al St#c0 EBcha'3e5 It ha! M< C#--#d ty EBcha'3e #. I'd a a'd Nat #'al C#--#d ty H Der (at (e! EBcha'3e -e-ber!h "! a'd ! al!# a DP 2 th Ce'tral De"#! t#ry Ser( ce! I'd a5 I' :FF?/ the c#-"a'y 2a! a!!#c ated 2 th !!&e! related t# eBter'al c#--erc al b#rr#2 '3! a'd .#re 3' c&rre'cy c#'(ert ble b#'d!5 F#rt&'e EC& ty Br#0er! I'd a a'd F#rt&'e C#--#d t e! H Der (at (e! I'd a are !&b! d ar e! #. the c#-"a'y5 The re3 !tered #.. ce #. the c#-"a'y ! l#cated at I5I5 Cha-ber!/ :'d Fl##r/ S r P5T5 Mar3/ F#rt/ M&-ba E<FFFF85
SERVICES OFFERED BY FORTUNE FINANCIAL + INDIA,LIMITED
S" c- B( -i)./ F#rt&'e ! a c#r"#rate -e-ber #. the B#-bay St#c0 EBcha'3e Ltd5 *BSE+5 F#rt&'eJ! !&b! d ary F#rt&'e EC& ty Br#0er! I'd a L - ted *KFEBILK+ ! a c#r"#rate -e-ber #. the Nat #'al St#c0 EBcha'3e #. I'd a Ltd5 *NSE+5 W th
a ded cated trad '3 de!0 #. 8= trader!/ the c#-"a'y .#c&! #' "r#( d '3 #&r '!t t&t #'al/ HNI a'd reta l cl e't! 2 th "er!#'al 7ed !er( ce! t# .ac l tate the eBec&t #' #. b&y a'd !ell #rder! ' a .la2le!! a'd e.. c e't -a''er #' b#th the BSE a'd NSE5 We #..er the .#ll#2 '3 ra'3e #. !er( ce! rele(a't t# -ar0et 'ter-ed at #'6 BSE L Ca!h Mar0et Se3-e't 4 F&t&re! H O"t #'! NSE L Ca!h Mar0et Se3-e't 4 F&t&re! H O"t #'! CDSL De"#! tary Part c "a't
I)#es"0e)" Ba)-i). /
F#rt&'e .#c&!e! #' - dE-ar0et c#r"#rate cl e't! by #..er '3 c#r"#rate . 'a'ce/ !!&e -a'a3e-e't/ -er3er!/ acC& ! t #'! a'd c#r"#rate ad( !#ry a'd .&'d ra ! '3 ad( !#ry !er( ce!5
Dis"(ib%"i ) $ Fi)a)cia* P( &%c"s 6 F#rt&'e ! a lead '3 d !tr b&t#r #. . 'a'c al "r#d&ct! thr#&3h t! "r#"r etary 'et2#r0 #. eB"er e'ced "r#.e!! #'al! "r#( d '3 "er!#'al 7ed atte't #' a'd c&!t#- 7ed !#l&t #' t# '(e!t#r! ba!ed #' the r r !0Eret&r' "r#. le5
De1 si" (' Pa("ici1a)" Se(#ices6 F#rt&'e F 'a'c al Ser( ce! *I'd a+ L - ted ! a De"#! t#ry Part c "a't CDSL5 It! DPEID ! <<=FF5 It ha! ded cated cl e't !er( ce tea-! ' M&-ba / G#a/ Hyderabad/ P&'e H Delh 5
METHODOLOGY
The "r#$ect ha! bee' d#'e ' real 2#r0 '3 c#'d t #'! at the F#rt&'e F 'a'c al Ser( ce! *I'd a+ L - ted9! de"art-e't l#cated at Ba!heerba3h *Hyderabad+ 2 th "ract cal eB"#!&re .#r the (ar #&! "r#ce!!e! carr ed #&t by DP !er( ce d ( ! #'5 I'.#r-at #' ha! bee' #bta 'ed thr#&3h Pr -ary a'd Sec#'dary !#&rce!5 P(i0a(' S %(ces6
? I'#2led3e #bta 'ed ' the tra ' '3 !e!! #' at F#rt&'e F 'a'c al Ser( ce! *I'd a+ L - ted lear' '3 ce'ter 2here the tra 'ee! are 'tr#d&ced t# the ba! c .&'ct #' '3 #. a De"#! t#ry Part c "a't5 ? Per!#'al 'teract #' 2 th the e-"l#yee! #. F#rt&'e F 'a'c al Ser( ce *I'd a+ L - ted 2h# 2ere '(#l(ed ' the "r#( ! #' #. (ar #&! !er( ce!5 Sec )&a(' S %(ces/ C#llect #' #. data .r#- 'e2!"a"er!/ b##0! a'd $#&r'al!5 C#llect #' #. &"dated '.#r-at #' .r#- the 'ter'et5
DESCRIPTION OF THE STUDY AREA
De1 si" ('/ A De"#! t#ry ! a' #r3a' 7at #' 2here the !ec&r t e! are 0e"t ' the electr#' c .#r-5 At "re!e't there are t2# de"#! t#r e! ' I'd a 'a-ely NSDL "r#-#ted by NSE/ a'd CDSL "r#-#ted by BSE5 De1 si" (' Pa("ici1a)"6
A De"#! t#ry Part c "a't ! a' a&th#r 7ed a3e't #. de"#! t#ry 2h# e..ect! the tra'!act #'! a! "er the '!tr&ct #' #. the cl e't5 F#rt&'e F 'a'c al Ser( ce! *I'd a+ L - ted ! #'e #. the De"#! t#ry Part c "a't! #. CDSL5 De"#! t#ry 'teract! 2 th t! cl e't!4 '(e!t#r! thr#&3h t! a3e't! called de"#! t#ry "art c "a't!5 F#r a'y '(e!t#r4cl e't t# a(a l the !er( ce! "r#( ded by the De"#! t#ry/ he ha! t# #"e' De"#! t#ry acc#&'t/ 0'#2' a! De-at a4c/ 2 th a'y #. the De"#! t#ry Part c "a't!5 De"#! t#ry ca' ' -a'y 2ay! be c#-"ared t# a ba'05 Sec&r t e! #. the '(e!t#r! are held ' electr#' c4b##0 e'try .#r- by the De"#! t#ry5 A"art .r#- h#ld '3 the !ec&r t e!/ De"#! t#ry al!# "r#( de! !er( ce! related t# tra'!act #'! ' !ec&r t e!5 Se(eral c#'! der the De"#! t#ry t# be a'#ther c&!t#d a'5 B&t the de"#! t#ry ha! a' ad(a'ta3e #(er the c&!t#d a' L the De"#! t#ry ca' tra'!.er the Be'e. c al O2'er!h " #. the Sec&r t e! / le3ally / 2h ch a c&!t#d a' ca''#t d#5
De0a" Acc %)" O1e)i)./
A De-at acc#&'t ! #"e'ed #' the !a-e l 'e! a! that #. a Ba'0 Acc#&'t5 Pre!cr bed Acc#&'t #"e' '3 .#r-! are a(a lable 2 th De"#! t#ry Part c "a't! 2h ch t# be . lled by cl e't!5 Sta'dard A3ree-e't! are t# be ! 3'ed by the Cl e't a'd the DP/ 2h ch deta l! the r 3ht! a'd #bl 3at #'! #. b#th the "art e!5
Al#'3 2 th the .#r- the cl e't reC& re! t# attach "h#t#3ra"h! #. Acc#&'th#lder/ atte!ted c#" e! #. "r##. #. re! de'ce a'd "r##. #. de't ty 'eed! t# be !&b- tted al#'3 2 th the acc#&'t #"e' '3 .#r-5 I' ca!e #. C#r"#rate cl e't!/ add t #'al attach-e't! reC& red are L tr&e c#"y #. the re!#l&t #' .#r De-at a4c #"e' '3 al#'3 2 th ! 3'at#r e! t# #"erate the acc#&'t a'd tr&e c#" e! #. the Me-#ra'd&- a'd Art cle! #. A!!#c at #' ! t# be attached5
Se(#ices $$e(e& b' De1 si" (' /
? De-ater al !at #' ! c#'(ert '3 "hy! cal cert . cate! t# electr#' c .#r-5 ? Re-ater al !at #' ! re(er!e #. de-at/ 3ett '3 "hy! cal cert . cate! .r#- the electr#' c !ec&r t e!5 ? Tra'!.er #. !ec&r t e! / cha'3e #. be'e. c al #2'er!h "5 ? Settle-e't #. trade! d#'e #' eBcha'3e c#''ected t# the De"#! t#ry5 ? Pled3e4Hy"#thecat #' #. de-at !hare!5 ? Electr#' c cred t ' "&bl c #..er '3 #. the c#-"a' e!5 ? N#'Eca!h be'e. t! l 0e B#'&!4R 3ht!Ed rect cred t 't# the electr#' c .#r-5
N%0be( $ De1 si" (ies i) "he c %)"('/ ? Nat #'al Sec&r t e! De"#! t#ry Ser( ce! Ltd5 ? Ce'tral De"#! t#ry Ser( ce! Ltd5
DEPOSITORY SYSTEM The ch e. "layer! ' a de"#! t#ry !y!te- are the De"#! t#ry/ De"#! t#ry Part c "a't/ Clear '3 C#r"#rat #'/ Clear '3 Me-ber a'd Re3 !trar a'd Tra'!.er A3e't5
DEPOSITORY / Acc#rd '3 t# !ect #' :*e+ #. the De"#! t#ry Act/ 8DD> %De"#! t#ry -ea'! a c#-"a'y .#r-ed a'd re3 !tered &'der the C#-"a'y9! Act 8D=>/ a'd 2h ch ha! bee' 3ra'ted a cert . cate #.
re3 !trat #' &'der !ect #' 8:*8A+ #. Sec&r t e! EBcha'3e B#ard O. I'd a Act/ 8DD:5, The Act de. 'e! a De"#! t#ry a! M A' #r3a' 7at #' 2here !ec&r t e! #. a !hareh#lder are held ' the .#r- #. electr#' c acc#&'t! ' the !a-e 2ay a! a ba'0 h#ld! -#'ey5 The de"#! t#ry h#ld! electr#' c c&!t#dy #. !ec&r t e! a'd al!# arra'3e! .#r tra'!.er #. #2'er!h " #. !ec&r t e! #' the !ettle-e't date!59
NSDL AND CDSL
The t2# de"#! t#r e! re3 !tered &'der the act are the NSDL*Nat #'al Sec&r t e! De"#! t#ry L - ted + a'd CSDL*Ce'tral De"#! t#ry Ser( ce! L - ted+5
NSDL+Na"i )a* Sec%(i"ies De1 si" (' Li0i"e&,/ NSDL ! the . r!t De"#! t#ry ' I'd a5 It 2a! re3 !tered #' @th J&'e 8DD> 2 th the Sec&r t e! a'd EBcha'3e B#ard #. I'd a5 It 2a! !et &" a! a re!< #. De"#! t#r e! Act/ 8DD> a! a "&bl c l - ted c#-"a'y a'd "r#-#ted by the I'd&!tr al De(el#"-e't Ba'0 #. I'd a *IDBI+/ U' t Tr&!t #. I'd a *UTI+ a'd the Nat #'al EBcha'3e *NSE+ t# .ac l tate trad '3 a'd !ettle-e't #. !ec&r t e! ' de-ater al 7ed .#r-5 The NSDL !y!te- ! de! 3'ed ' !&ch a 2ay that a clear '3 -e-ber ca' 3 (e a'd ta0e del (ery ' electr#' c .#r- #'ly . he #"e'! a !"ec al acc#&'t called the clear '3 acc#&'t 2 th the "art c "a't5 The la&'ch #. NSDL ! a ! 3' . ca't re.#r- ' the ca" tal -ar0et a'd !hall "lay a cr&c al r#le ' dr ( '3 -ar0et e.. c e'cy5 The 3r#2th 2a! !l#2 ' the be3 '' '3 b&t 3athered -#-e't&- 2he' SEBI ca-e #&t 2 th '#t . cat #' re3ard '3 c#-"&l!#ry !ettle-e't #. tra'!act #'! ' !elected !cr "! ' de-at .#r- by . 'a'c al '!t t&t #'!5 The '&-ber #. !ec&r t e! 2h ch 2a! #r 3 'ally re!tr cted t# e 3ht 2a! e'ha'ced "r#3re!! (ely a'd
reta l '(e!t#r! 2ere al!# r#"ed ' c#-"&l!#ry !ettle-e't #. !elected !cr "! ' de-at .#r-5 The c#'ce"t rece (ed a -a$#r b##!t 2he' SEBI 'tr#d&ced the UNIFIED SEGMENT CONCEPT5 Re'der '3 the del (ery #. de-at !ec&r t e! ' "hy! cal !e3-e't! a! M3##d!95 It 2a! the dec ! #' #. SEBI that reC& red 'd ( d&al '(e!t#r! t# acce"t de-at !hare! a'd 'ece!! tated the #"e' '3 #. DP acc#&'t!5 A! a re!< the '(e!t#r! acc#&'t! 2 th NSDL thr#&3h (ar #&! De"#! t#ry Part c "a't !h#2ed a dra-at c !"&rt5
The .&'ct #'! #. NSDL 'cl&de6 • Acc#&'t O"e' '3 • De-ater al 7at #' • Re-ater al 7at #' • Settle-e't a'd Clear '3 • IPO! • C#r"#rate Be'e. t! • Pled3e a'd Hy"#thecat #'
CDSL +Ce)"(a* De1 si" (' Se(#ices Li0i"e&,/ The De"#! t#ry Act 8DD> 'tr#d&ced a -< de"#! t#ry .ra-e2#r0 .#r !cr "le!! !ettle-e't5 The St#c0 EBcha'3e / M&-ba 2 th the c#&'try9! lead '3 ba'0! l 0e Ba'0 #. Bar#da/ Ba'0 #. I'd a/ HDFC Ba'0 a'd SBI ha! "r#-#ted the Ce'tral De"#! t#ry Ser( ce! L - ted/ I'd a9! !ec#'d de"#! t#ry .#r deal '3 ' !ec&r t e! ' electr#' c .#r-5 CDSL had a' ' t al "a d &" ca" tal #. 8FF cr#re!5 Sec&r t e! a'd EBcha'3e #. I'd a *SEBI+ ha! 3ra'ted the cert . cate #. re3 !trat #' &'der re3&lat #' ? #. SEBI *De"#! t#r e! a'd Part c "a't!+ re3&lat #'!/ 8DD> t# CDSL #' 8Dth A&3&!t /8DD@5 CDSL ha! th&! bec#-e the !ec#'d de"#! t#ry ' the c#&'try5
The b!ec"i#es $ "his &e1 si" (' a(e " / ? Accelerate the 3r#2th #. !cr "le!! trad '35 ? Ma0e a -a$#r thr&!t ' 'd ( d&al '(e!t#r "art c "at #' ' the de"#! t#ry5 ? Create c#-"et t (e e'( r#'-e't/ 2h ch 2 ll be re!"#'! (e t# the &!er! a'd de-a'd!5 ? E'ha'ce l C& d ty5
DEPOSITORY PARTICIPANT/ De"#! t#ry Part c "a't ! the a3e't #. the De"#! t#ry a'd ! the 'ter.ace bet2ee' the de"#! t#ry a'd the '(e!t#r5 Acc#rd '3 t# SEBI 3& del 'e!/ . 'a'c al '!t t&t #'!/ ba'0!/ c&!t#d a'!/ !t#c0br#0er! etc ca' bec#-e De"#! t#ry Part c "a't!5 SCHIL ! the . r!t "art c "a't re3 !tered 2 th NSDL5 I' #rder t# a(a l the !er( ce! #. a de"#! t#ry/ a' '(e!t#r ha! t# #"e' a' acc#&'t 2 th a de"#! t#ry thr#&3h a DP $&!t l 0e a "er!#' #"e' '3 a' acc#&'t 2 th the bra'ch #. a ba'05 A DP ! re!"#'! ble .#r -a 'ta ' '3 the !ec&r t e! acc#&'t! #. the '(e!t#r! a'd ha'dl '3 t ' acc#rda'ce 2 th the '(e!t#r9! '!tr&ct #'!5 De"#! t#ry Part c "a't ! the 0ey "layer ' the !y!te-/ 2h ch act! a! a' a3e't #. the De"#! t#ry a'd ! ' .act the c&!t#-er 'ter.ace #. de"#! t#ry5 It #"e'! the acc#&'t! #. the '(e!t#r!/ .ac l tate! de-ater al 7at #'/ !ettle trade! a'd e..ect! c#r"#rate act #'!5
The se.0e)"s i) DP b%si)ess i)c*%&e $i#e 0ai) b%si)esses/
Acc %)" O1e)i)./ O"e' '3 #. a' acc#&'t ' the 'a-e #. the cl e't/ 2h#!e h#ld '3! are held ' the !a-e 2ay a! ' a ba'05
De0a"e(ia*i2a"i )/
The "r#ce!! #. c#'(er! #' #. h#ld '3! .r#- "hy! cal .#r- t# electr#' c .#r-5
Re0a"e(ia*i2a"i )/
The "r#ce!! #. c#'(er! #' #. h#ld '3! .r#- electr#' c .#r- t# b##0 e'try .#r-5
T(a&i). a)& Se""*e0e)"/
Trad '3 a'd Settle-e't #. -ar0et a'd #..E-ar0et trade!5
P*e&.e a)& H'1 "heca"i )/
Fac l tat '3 "led3e #. !ec&r t e! a'd t# "r#( de electr#' c cred t #. 'e2 !hare all#t-e't! !&ch a! b#'&!/ "&bl c !!&e!/ r 3ht! etc5
ELIGIBILITY FOR BEING A DEPOSITORY PARTICIPANT/
A! "er SEBI *De"#! t#r e! a'd Part c "a't!+ Re3&lat #'!/ 8DD>/ the .#ll#2 '3 cate3#r e! are el 3 ble t# bec#-e DP!5 ? P&bl c F 'a'c al I'!t t&t #' a! de. 'ed ' !ect #' <A #. the c#-"a' e! Act/ 8D=>5 ? Ba'0 'cl&ded ' the Sec#'d Sched&le #. the RBI Act/ 8D;<5 ? RBI a""r#(ed .#re 3' ba'0! #"erat '3 ' I'd a5 ? State F 'a'c al C#r"#rat #' e!tabl !hed &'der !ect #' ; #. SFC Act/ 8D=85 ? I'!t t&t #' e'3a3ed ' "r#( d '3 . 'a'c al !er( ce!/ "r#-#ted by a'y #. the '!t t&t #'! -e't #'ed ab#(e/ e ther $# 'tly #r !e"arately5 ? C&!t#d a' #. Sec&r t e! 2h# ha! bee' 3ra'ted cert . cate #. re3 !trat #' &'der !ect #' 8: *8A+ #. SEBI Act5 ? Clear '3 C#r"#rat #' #r Clear '3 h#&!e #. St#c0 EBcha'3e5
? The St#c0br#0er/ 2h# ha! bee' 3ra'ted cert . cate #. re3 !trat #' &'der !ect #' 8: *8+ #. SEBI Act/ "r#( ded that6 *a+ They ha(e a - ' -&- 'et 2#rth #. R!5=Fla0h5 *b+ A33re3ate (al&e #. the P#rt.#l # #. !ec&r t e! held ' de-ater al 7ed .#r- ' a de"#! t#ry thr#&3h each !t#c0br#0er !h#&ld '#t be -#re tha' := t -e! h ! 'et 2#rth5 ? N#'Eba'0 '3 F 'a'ce c#-"a'y "r#( ded that6 *a+ They ha(e a - ' -&- 'et 2#rth #. R!5=la0h/ . they 2 !h t# act a! a DP #'ly #' behal. #. the-!el(e! a'd '#t #' behal. #. a'y #ther "er!#'5 *b+ They ha(e a - ' -&- 'et 2#rth #. R!5=Fcr#re ' add t #' t# the 'et 2#rth !"ec . ed by a'y #ther a&th#r ty/ . they 2 !h t# act a! DP #' behal. #. a'y #ther "er!#'5 The Re3&lat #'! e-"#2er CDSL t# !et t! #2' !elect #' cr ter a ' the Byela2!5 Th&! the a""l ca't! -&!t al!# c#-"ly 2 th the .#ll#2 '3 ad- !! #' cr ter a !tated ' the Byela2!6 ? The a""l ca't !h#&ld ha(e a - ' -&- 'et 2#rth #. R!585=cr#re5
? The a""l ca't !h#&ld '#t ha(e bee' c#'( cted ' a'y #. the . (e year! --ed ately "reced '3 the . l '3 #. the a""l cat #' ' a'y -a''er '(#l( '3 - !a""r#"r at #' #. .&'d! a'd !ec&r t e!/ the.t/ e-be77le-e't #. .&'d!/ .ra&d&le't c#'(er! #' #r .#r3ery5 ? The a""l ca't !h#&ld '#t ha(e bee' eB"elled/ barred #r !&!"e'ded by SEBI/ !el.Ere3&lat#ry #r3a' 7at #' #r a'y !t#c0 eBcha'3e5
CLEARING CORPORATIONS6
The clear '3 c#r"#rat #' "r#( de! clear '3 !er( ce! a'd ! re!"#'! ble .#r the clear '3 a'd !ettle-e't !y!te- .#r t! clear '3 -e-ber! a'd '(e!t#r! t# !ettle the trade #. De"#! t#ry Sy!te-5 The Nat #'al Sec&r t e! Clear '3 C#r"#rat #' L - ted*NSCCL+ ! a 2h#lly ear'ed !&b! d ary #. NSE5
It c##rd 'ate! bet2ee'
The eBcha'3e .#r eBec&ted trade!/ clear '3 -e-ber! a'd c&!t#d a'! .#r br '3 '3 ' the 'ece!!ary .&'d! a'd !ec&r t e! .#r !ettle-e't5 Clear '3 ba'0! .#r !ettle-e't #. .&'d!5 De"#! t#ry .#r !ec&r ty !ettle-e't5
REGISTRAR AND TRANSFER AGENT/
The re3 !trar a'd tra'!.er a3e't*RTA+ ! a cr t cal l '0 bet2ee' I!!&er C#-"a'y/ St#c0 trader a'd I'(e!t#r5 Whether t ! a "r -ary -ar0et/ "&bl c
!!&e #r a !ec#'dary -ar0et trade/ r#le #. RTA ! -"#rta't a! !!&e #. !ec&r t e! #r tra'!.er #. !ec&r t e! ! d#'e thr#&3h th ! a3e'cy5 The !c#"e #. 2#r0 .#r re3 !trar! t# !!&e a'd !hare tra'!.er a3e't! .#r !ec&r t e! ad- tted ' the de"#! t#ry !y!te- are &'der6 Ma 'ta ' '3 #. .#l #! ' the de"#! t#ry5 U"dat '3 #. data d#2'l#aded by the de"#! t#ry #' a "er #d cal ba! !5 C#'. r-at #' #. &"dat '3 t# de"#! t#ry #' a da ly ba! !5 Sca'' '3 #. .r#'t a'd bac0 #. !hare cert . cate be.#re de-ater al !at #'5 I!!&e #. cert . cate! #' re-ater al !at #'5 J#b! relat '3 t# "&bl c !!&e!5 CLEARING MEMBER Clear '3 -e-ber! are "er!#'! 2h# ha(e bee' ad- tted a! -e-ber! by a clear '3 c#r"#rat #'5 Wh ch ha! bee' ad- tted a! a &!er by the de"#! t#ry5 He ha! t# #"e' a clear '3 -e-ber acc#&'t 2 th a "art c "a't5 Clear '3 -e-ber acc#&'t ! held 2 th a DP by the clear '3 -e-ber #. a clear '3 c#r"#rat #'/ .#r the "&r"#!e #. carry '3 #&t clear '3 a'd !ettle-e't .&'ct #'! ' re!"ect t# electr#' c trade5
BENEFITS OF TRADING AND SETTLEMENT UNDER DEPOSITORY SYSTEM/ I' the De"#! t#ry !y!te-/ the #2'er!h " a'd tra'!.er #. !ec&r t e! ta0e! "lace by electr#' c b##0 e'tr e!5 At the #&t!et/ th ! !y!te- r d! the ca" tal -ar0et #. the da'3er! #. ha'dl '3 #. the "a"er5 That ! '#t all/ the De"#! t#ry "r#( de! #ther d rect a'd 'd rect be'e. t! l 0e6
Be)e$i"s " a)& I)#es" (/
Red&ct #' #. r !0 a!!#c ated 2 th "hy! cal !cr "!5 N# !ta-" d&ty #' tra'!.er5 N# bad del (er e!5 N# l#!!4the.t4.#r3ery4.a0e5 Red&ced tra'!act #' c#!t!5 A& c0 !ettle-e't cycle! *TN= !ettle-e't+ I-"r#(ed l C& d ty #. !t#c0!5
Electr#' c cred t ' IPO9!/ R 3ht! a'd B#'&!5 F&'3 b l ty #. De-ater al !ed H#ld '3!5
h#ld '3! a'd tra'!act #'! lead '3 t# better c#'tr#l!5 / 'crea! '3 I--ed ate tra'!.er a'd re3 !trat #' #. !ec&r t e! l C& d ty #. !t#c0! 2 th the '(e!t#r! a'd c#'!eC&e'ce t&r'#(er5 PayE ' a'd "ayE#&t #&t #. .&'d! are #' the !a-e day .#r !cr "le!! trad '35 Red&ct #' ' rate #. 'tere!t #' l#a'! 3ra'ted a3a '!t "led3e #. de-ater al 7ed !ec&r t e! by -a'y ba'0!5 Fa!ter rece "t #. be'e. t! a'd r 3ht! re!< '3 .r#- c#r"#rate act #'5 Pr#tect #' #. !hareh#lder! r 3ht! .r#- t -ely c#--&' cat #' .r#!!&er!4re3 !trar5
Be)e$i"s " C*ea(i). Me0be(/
E'ha'ced l C& d ty/ !a.ety a'd t&r'#(er #' !t#c0 -ar0et5 O""#rt&' ty .#r de(el#"-e't #. reta l br#0era3e b&! 'e!!5 Ab l ty t# arra'3e "led3e! 2 th#&t -#(e-e't #. "hy! cal !cr " a'd .&rther 'crea!e #(erall le(el #. trad '3 act ( ty/ l C& d ty a'd "r#. t5
I-"r#(ed "r#tect #' #. !hareh#lder! r 3ht! re!< '3 .r#- -#re t -ely c#--&' cat #' .r#- the !!&er5 Red&ced tra'!act #' c#!t! thr#&3h 3reater e.. c e'cy5 El - 'at #' #. .#r3ery a'd c#&'ter.e t 2 th atte'da't red&ct #' ' !ettle-e't r !0 .r#- bad del (er e!5 Pr#( de a&t#-at #' t# "#!t trade "r#ce!! '35 Sta'dard 7at #' #. "r#ce!! '35 Br '3 '3 e.. c e'cy t# the -ar0et "lace5 I-"r#(ed ca!h .l#2!5
BENEFITS TO ISSUER COMPANY/
I-"r#(ed e.. c e'cy #. re3 !trar a'd tra'!.er a3e't!5 E.. c e't c#--&' cat #' 2 th '(e!t#r!5 U"dated l !t #. !hareh#lder! #' a 2ee0ly ba! !5
Red&ct #' ' "r 't '3 a'd d !"atch c#!t! .#r 'e2 !!&e! a'd tra'!.er! re!< '3 ' !a( '3!5 Better -a3e 2 th 3l#bal '(e!t#r!5 U"Et#Edate 0'#2led3e #. '(e!t#r9! 'a-e a'd addre!!5 C#r"#rate -a3e a'd a2are'e!!5
Be)e$i"s " Ec ) 0'3C %)"('/
Gr#2 '3 a'd -#re l C& d ca" tal -ar0et! t# "r#( de . 'a'c '3 a'd de(el#"-e't !te-- '3 -#re e.. c e't "#!t trade !y!te-! 2 th red&ced tra'!act #' c#!t!5 I'crea!e ' c#-"et t (e'e!! ' the 'ter'at #'al -ar0et "lace a'd attract '3 '(e!t#r! a'd .&'d -a'a3er! by c#-"ly '3 2 th !t "&lated 'ter'at #'al !ta'dard! call '3 .#r a' e.. c e't a'd r !0 .ree trad '3 e'( r#'-e't5 Great tra'!"are'cy ' the -ar0et5 Pre(e't! add t #' #. -#re "a"er ' the -ar0et5 Re!<! ' 'crea!ed c#'. de'ce #. '(e!t#r!5 Re!<! ' 'te3rat #' #. d#-e!t c -ar0et t# 2#rld ca" tal -ar0et5
Red&ct #' #. !ettle-e't r !0! a'd .ra&d!5
SERVICES OF OFFERED BY A DEPOSITORY PARTICIPANT/
? ACCOUNT OPENING ? DEMATERIALISATION ? REMATERIALISATION ? TRADING AND SETTLEMENT ? TRANSFER OF SECURITIES ? PLEDGE
ACCOUNT OPENING/
A' '(e!t#r 2h# 2 !he! t# #"erate ' electr#' c -#de 2 ll ha(e t# #"e' a' acc#&'t 2 th a'y #. the de"#! t#ry "art c "a't #. h ! ch# ce/ 2h# ! a b&! 'e!! "art'er #. NSDL5 There ! '# re!tr ct #' #' the '&-ber #. acc#&'t! that a' '(e!t#r ca' #"e' 2 th the DP4DP!5 The '(e!t#r ca' #"e' a' acc#&'t by . ll '3 a' acc#&'t #"e' '3 .#r- 2 th the DP5 He ha! t# ! 3' a' a3ree-e't 2 th the de"#! t#ry "art c "a't5 There are ba! cally ; ty"e! #. acc#&'t!5 Be'e. c ary Acc#&'t C#r"#rate Acc#&'t Clear '3 Me-ber Acc#&'t The C#r"#rate Acc#&'t -ay be A H#&!e Acc#&'t A N#'EH#&!e Acc#&'t
P( ce&%(e $ ( 1e)i). a Be)e$icia(' ( a C*ie)" Acc %)"/
The 'd ( d&al ! reC& red t# . ll ' a' acc#&'t #"e' '3 .#r- a(a lable at (ar #&! ISC9! *I'(e!t#r Ser( ce Ce'tre+ #. the DP reC&e!t '3 the DP t# #"e' a' acc#&'t ' h !4her 'a-e #r 'a-e!5 The acc#&'t !h#&ld be #"e'ed ' the !a-e 'a-e4'a-e! a! t a""ear! #' the !hare cert . cate!5 The cl e't ha! t# !&b- t the . lled &" .#r- al#'3 2 th the reC& ! te d#c&-e't! a! !"ec . ed by the DP5 The cl e't ! reC& red t# .&r' !h deta l! re3ard '3 the ba'0 'a-e/ the bra'ch addre!!/ PAN4GIR '&-ber/ ba'0 acc#&'t '&-ber a'd taB ded&ct #' !tat&!5 I. cl e't ! a' NRI '(e!t#r/ deta l! re3ard '3 the .#re 3' addre!!/ RBI re.ere'ce '&-ber a'd RBI a""r#(al data are t# be .&r' !hed5 I. cl e't ! a - '#r the G&ard a' deta l! *'a-e a'd addre!!+ a'd the - '#r/! date #. b rth are t# be "r#( ded5 I. the cl e't 2 !he! t# ha(e a '#- 'ee the '#- 'ee deta l! *'a-e a'd addre!!+ are t# be "r#( ded5
I' ca!e #. $# 't h#lder! the 'a-e! #. all the h#lder!/ the r .ather4h&!ba'd! 'a-e a'd the r PAN4GIR '&-ber! ha(e t# be !"ec . ed5 A' a3ree-e't ! eBec&ted 2 th the DP5 The DP (er . e! .#r c#-"lete'e!! #. the .#r- a'd e'cl#!ed d#c&-e't!5 I. all the '.#r-at #' ab#&t the cl e't ! ' acc#rda'ce 2 th the #r 3 'al d#c&-e't!/ the acc#&'t ! #"e'ed a'd a' acc#&'t '&-ber called the cl e't Id ! 3 (e' t# the cl e't5 Th ! cl e't Id al#'3 2 th the DP ! &' C&e5 The cl e't ha! t# C&#te th ! cl e't d ' all .&t&re c#rre!"#'de'ce 2 th the DP5 The ! 3'at&re! #. all the h#lder! are !ca''ed a'd !t#red .#r .&t&re (er . cat #'5
Acc %)" O1e)i). $ ( C (1 (a"es/
C#r"#rate Acc#&'t -ay be a h#&!e #r a '#'Eh#&!e acc#&'t5 A h#&!e acc#&'t ! the "art c "a't/! #2' be'e. c ary acc#&'t held ' t! #2' !y!te.#r the "&r"#!e #. h#ld '3 t! #2' !ec&r t e!5 N#'Eh#&!e c#r"#rate -ay be . 'a'c al '!t t&t #'!/ F#re 3' I'!t t&t #'al I'(e!t#r!/ B#dy c#r"#rate/ M&t&al F&'d/ Tr&!t #r Ba'05 Pr#ced&re ! !a-e a! that #. a' 'd ( d&al cl e't5 C#r"#rate ha(e t# .&r' !h add t #'al d#c&-e't! l 0e the c#-"a'y b#ard re!#l&t #'/ the Me-#ra'd&- #. A!!#c at #' a'd the Art cle! #. A!!#c at #'5 The ! 3'at&re! #. all the a&th#r 7ed ! 3'at#r e! are !ca''ed a'd !t#red .#r .&t&re (er . cat #'5
P( ce&%(e $ ( O1e)i). a C*ea(i). Me0be( Acc %)"/
A Clear '3 -e-ber -ay be a br#0er #r a' 'ter-ed ary bet2ee' a br#0er a'd the clear '3 c#r"#rat #'5 Clear '3 -e-ber acc#&'t ! a' acc#&'t held 2 th the "art c "a't by a clear '3 -e-ber #. a clear '3 c#r"#rat #' .#r the "&r"#!e #. carry '3 #&t clear '3 a'd !ettle-e't .&'ct #' ' re!"ect #. electr#' c trade!5 A clear '3 -e-ber9! acc#&'t c#'! !t! #. three "art!6 P##l Acc#&'t Del (ery Acc#&'t Rece "t Acc#&'t P##l Acc#&'t -ea'! acc#&'t #. a clear '3 -e-ber -a 'ta 'ed 2 th a "art c "a't/ 2h ch ! &!ed .#r tra'!.er #. the !ec&r t e! .r#- acc#&'t! #. the cl e't t# the clear '3 c#r"#rat #' t# the acc#&'t! #. cl e't! ' ca!e #. "&rcha!e #. !ec&r t e!5 Del (ery Acc#&'t -ea'! the acc#&'t #. the clear '3 -e-ber -a 'ta 'ed 2 th the "art c "a't .#r rece ( '3 !ec&r t e!/ .r#- the "##l acc#&'t a'd tra'!.err '3 the !a-e t# the clear '3 c#r"#rat #'5
Rece "t Acc#&'t -ea'! the acc#&'t #. the clear '3 -e-ber -a 'ta 'ed 2 th the "art c "a't .#r rece ( '3 !ec&r t e! a'd tra'!.err '3 the !a-e t# the "##l acc#&'t5
P( ce&%(e $ ( 1e)i). a) i)&i#i&%a*3c (1 (a"e acc %)"/
S"a("
C*ie)" s%b0i"s "he a11*ica"i ) $ (0
Is $ (0 i) acc (&a)ce 4i"h (e5%i(e0e)"s6
Se't t# D" .#r .&rther "r#ce!! '3
C*ie)" &e"ai*s e)"e(e& i) DPM b' "he D1
Cl e't ! 3'at&re ca"t&red a'd !"ec -e'
C*ie)" ID .e)e(a"e& a)& e)"e(e& ) "he $ (0
The D1 i)"i0a"es c*ie)" ID "
s" 1
Acc %)" 1e)i). $ ( a c*ea(i). 0e0be(/
S"a("
C*ie)" s%b0i"s "he a11*ica"i ) $ (0
Is $ (0 i) acc (&a)ce 4i"h (e5%i(e0e)"s6
Se't t# D" .#r .&rther "r#ce!! '3
F (4a(&e& " NSDL
NSDL all#t! CMBPEID
NSDL se)&s CMBP7ID T DP
D1 1e)s a3c a)& .i#es a3c N 8"
s" 1
De0a"e(ia*isa"i ) 1( cess/
O'e #. the -eth#d! .#r "re(e't '3 all the "r#ble-! that #cc&r 2 th "hy! cal !ec&r t e! ! thr#&3h de-ater al !at #' *de-at+5 I'd a ha! ad#"ted the de-at r#&te ' 2h ch the b##0 e'try ! -ade electr#' cally a3a '!t !ec&r t e! that are ca'celled5 The !hare cert . cate! are !hredded a'd a c#rre!"#'d '3 cred t e'try #. the '&-ber #. !ec&r t e! ! -ade ' the acc#&'t #"e'ed 2 th the De"#! t#ry Part c "a't*DP+5 cl e't !&b!cr b '3 t# !ec&r t e! #..ered by a' !!&er thr#&3h "r -ary -ar0et !!&e! -ay al!# be "r#( ded a' #"t #'5 The cl e't c#&ld #"t t# rece (e the all#tted !ec&r t e! ' a de-ater al 7ed .#r- are .&'3 ble/ /e5 they d# '#t bear a'y d !t '3& !h '3 .eat&re!5
De-ater al !at #' #. "hy! cal !t#c06
I' ca!e #. "r -ary !!&e!/ the '(e!t#r -ay #"t .#r all#t-e't #. !ec&r t e! ' electr#' c .#r-5 I' #rder t# eBerc !e th ! #"t #'/ the '(e!t#r 'eed! t# ha(e a' acc#&'t 2 th a "art c "a't5 Wh le . ll '3 &" the a""l cat #' .#r- .#r the !!&e the '(e!t#r ha! t# -e't #' t! acc#&'t '&-ber 2 th the "art c "a't a'd al!# the 'de't . cat #' '&-ber #. the "art c "a't 2 th NSDL5 O' rece ( '3 electr#' c 't -at #' .r#- the !!&er4RHT a3e't ! -<a'e#&!ly '.#r-! the '(e!t#r #. the all#t-e't by "#!t5
A h#lder #. de"#! t#ry el 3 ble !ec&r t e! -ay 3et h ! "hy! cal h#ld '3 c#'(erted 't# electr#' c .#r- by -a0 '3 a reC&e!t thr#&3h the DP 2 th 2h#- he ha! be'e. c ary acc#&'t5
P(e(e5%isi"es $ ( De0a"e(ia*isa"i ) Re5%es"/
98 The re3 !tered h#lder #. the !ec&r t e! !h#&ld -a0e the reC&e!t5 :8 Sec&r t e! t# be de-aterl al 7ed -&!t be rec#3' 7ed by NSDL el 3 ble5 I' #ther 2#rd!/ #'ly th#!e !ec&r t e! 2h#!e ISIN ha! bee' act (ated by NSDL/ ca' be de-ater al 7ed5 ;8 The c#-"a'y4 !!&e !h#&ld ha(e e!tabl !hed c#''ect ( ty 2 th NSDL5 #'ly a.ter !&ch c#''ect ( ty ! e!tabl !hed that !ec&r t e! #. that c#-"a'y4 !!&er are rec#3' 7ed t# be a(a lable .#r de-ater al 7at #'5
<8 The h#lder #. !ec&r t e! !h#&ld ha(e a be'e. c ary acc#&'t ' the !a-e 'a-e a! t a""ear! #' the !ec&r ty cert . cate! t# be de-ater al 7ed5 =8 The reC&e!t !h#&ld be -ade ' the "re!cr bed de-ater al 7ed reC&e!t .#r-5
T(a)s1 si"i ) c%0 De0a"/
NSDL ha! a-e'ded t! Byela2! a'd B&! 'e!! R&le! t# e'able t# tra'!"#!e 'a-e! #. the $# 't h#lder! al#'3 2 th the "r#ce!! #. de-ater al !at #' thr#&3h the D"!5 Pr #r t# th ! a-e'd-e't '(e!t#r! ha( '3 Share! ' $# 't 'a-e! *Mr5A H Mr5B+/ b&t ' d ..ere't !eC&e'ce *Mr5B H Mr5A+/ 2ere e ther t# #"e' -< "le acc#&'t! .#r each !eC&e'ce *Mr5A H Mr5B a'd Mr5B H Mr5A+ #r t# e..ect the tra'c"#! t#' d rectly 2 th the !!&er4RHT a3e't a'd the' de-ater al 7ed the r !ec&r t e! thr#&3h the r D"!5 I' ca!e #. tra'!"#! t #'Ec&- de'ater al !at #'/ the cl e't ca' 3et the !ec&r t e! de-ater al 7ed ' the !a-e acc#&'t . the 'a-e! a""ear '3 #' the cert . cate! -atch 2 th the 'a-e! ' 2h ch the acc#&'t ha! bee' #"e'ed b&t are ' a d ..ere't #rder/ by !&b- tt '3 the !ec&r ty cert . cate! al#'3 2 th tra'!"#!t #' .#r- a'd the de-ater al !at #' .#r- t# the D"5
INVESTOR
R > T AGENT
NSD L
PROCEDURE FOR DEMATERIALISATION OF PHYSICAL STOCK/
• N# reC&e!t! .#r De-at !h#&ld be e'terta 'ed .#r a "er!#' #ther tha' the re3 !tered !hareh#lder ' the b##0! #. the c#-"a'y5 • The cl e't 2 ll !&b- t a reC&e!t t# the De"#! t#ry Part c "ate ' the de-ater al !at #' reC&e!t .#r- .#r de-atr al !at #' al#'3 2 th the cert . cate! #. !ec&r t e! t# be de-ater al 7ed5 Be.#re !&b- !! #'/ the cl e't t# de.ace the cert . cate! by 2r t '3 %!&rre'dered .#r De-at,5 • The De"#! t#ry Part c "a't 2 ll (er .y that the .#r- ! d&ly . lled ' a'd the '&-ber #. cert . cate!/ '&-ber #. !hare! a'd the !ec&r ty ty"e *EC& ty/ Debe't&re! etc+ are 3 (e' ' the DRF *De-at ReC&e!t F#r-+5 I. the .#r- a'd !ec&r ty c#&'t ! ' #rder/ the "art c "a't 2 ll !cr&t ' 7e the .#r- a'd the cert . cate! 2h ch '(#l(e! the .#ll#2 '36 85 (er . cat #' #. cl e't9! ! 3'at&re #' the De-ater al !ed reC&e!t 2 th the !"ec -e' ! 3'at&re *the ! 3'at&re #' the acc#&'t #"e' '3 .#r-+5 I. the ! 3'at&re d ..er!/ the Part c "a't !h#&ld e'!&re h -!el. #. the de't .y #. the cl e't5 L :5 c#-"are the 'a-e! #' DRF H the cert . cate! 2 th the cl e't acc#&'t5
;5 "a dE&" !tat&! <5 ISIN =5 "ar "a!!& !tat&! >5 l#c0EI' !tat&! ?5 d !t 'ct (e '&-ber! • I' ca!e !ec&r t e! are '#t ' #rder they are ret&r'ed t# the cl e't a'd ac0#2led3e-e't ! #bta 'ed5 The De"#! t#ry Part c "a't 2 ll re$ect the reC&e!t a'd ret&r' the DRF a'd cert . cate! ' ca!e5 • I. the ISIN #. the cert . cate !&rre'dered/ "erta ' '3 t# a ! '3le DRF ! '#t the !a-e5 • I' ca!e the cert . cate! are -&t lated/ #r they are de.eated ' !&ch a 2ay that the -ater al '.#r-at #' ! '#t readable/ the "art c "a't 2 ll re$ect the De-ater al !at #' reC&e!t5 He -ay ad( ce the cl e't t# !e'd the cert . cate! t# the I!!&er4RHT a3e't a'd 3et 'e2 !hare! ' l e& there#.5 • The Part c "a't -&!t (er .y the 'at&re #. the !ec&r ty/ t! "ar b&! !tat&! 2 th re.ere'ce t# the l !t #. ISIN *I'ter'at #'al Sec&r ty Ide't . cat #' N&-ber+ c#de! a(a lable 2 th t5 Wr#'3 all#cat #' -ay re!< ' a(# dable l#!!e! t# the cl e't!5 The ISIN ! e'tered ' !"ace "r#( ded .#r t ' the De-ater al !at #' reC&e!t .#r-5 • I. "art! #. the cert . cate! "erta ' '3 t# a ! '3le DRF are "artly "a dE&" the "art c "a't! 2 ll re$ect a'd ret&r' the DRF al#'3 2 th the cert . cate!5 He -ay ad( ce the cl e't t# !e'd !e"arate reC&e!t .#r the l#c0edE ' cert . cate!5 Al!# cert . cate! l#c0edE ' .#r d ..ere't rea!#'! !h#&ld '#t be !&b- tted t#3ether 2 th a ! '3le DRF5
• I' ca!e the !ec&r t e! are .#&'d ' #rder the deta l! #. the reC&e!t a! -e't #'ed ' the .#r- are e'tered ' the DPM a'd De-ater al !at #' reC&e!t '&-ber 2 ll be 3e'erated by the !y!te-5 • The DRN !# 3e'erated ! e'tered ' the !"ace "r#( ded .#r the "&r"#!e ' the DRF5 • A "er!#' #ther tha' the "er!#' 2h# e'tered the data !h#&ld (er .y deta l! rec#rded .#r the DRN5 The "art c "a't the' relea!e! the reC&e!t t# DM5 • The DM .#r2ard! the reC&e!t t# the I!!&er4RHT a3e't electr#' cally5 • The "art c "a't 2 ll "&'ch the cert . cate! #' the c#-"a'y 'a-e a! !h#2' ' the A''eB&reEIIEB !# that t d#e! '#t de!tr#y a'y -ater al '.#r-at #' #' the cert . cate5 • The "art c a"a't 2 ll the' d !"atch the cert . cate! al#'3 2 th the reC&e!t .#r- a'd a c#(er '3 letter l 0e A''eB&reEIIEC t# the I!!&er4RHT a3e't5 • Whe' the I!!&er4RHT a3e't c#'. r-! acce"ta'ce #. the reC&e!t .#r.#r De-ater la !at #' the DM electr#' cally a&th#r 7e the creat #' #. a""r#"r ate cred t bala'ce! ' the cl e't9! acc#&'t5 • The DPM 2 ll cred t the cl e't9! acc#&'t a&t#-at cally5 • The Part c "a't -&!t '.#r- the cl e't the cha'3e! ' the cl e't9! acc#&'t .#ll#2 '3 the c#'.#ra-t #' #. the reC&e!t5
P( ce&%(e $ ( De0a"e(ia*isa"i ) $ P(i0a(' Iss%e/
A' '(e!t#r 2h le a""ly '3 .#r a "r -ary !!&e ha! t# 'd cate the #"t #' t# rece (e all#t-e't #. !ec&r t e! ' electr#' c .#r- ' the a""l cat #'5/ The acc#&'t '&-ber #. the '(e!t#r a'd the "art c "a't9! de't . cat #' '&-ber 2 th NSDL al!# ha(e t# be -e't #'ed ' the a""l cat #' .#r-5 • O' all#t-e't/ the I!!&er4RHT a3e't all#cate! the !ec&r t e! t# NSDL5 The I!!&er4RHT a3e't ' the DPM &"l#ad! th ! '.#r-at #'5 • The DM d#2'l#ad! the all#dat #' #. !ec&r t e! t# the Mrele(a't cl e't!9 acc#&'t! ' the DPM5 • The "art c "a't '.#r-! the cl e't acc#rd '3ly5 • I' ca!e 2here all#cat #' 2 ll '#t be cred ted t# the cl e't9! acc#&'t d&e t# 'c#rrect acc#&'t '&-ber/ the !a-e ! b##0ed t# the !&!"e'!e acc#&'t at the DPM5 • A re"#rt ! 3e'erated #. all all#cat #' b##0ed t# the !&!"e'!e acc#&'t5 • Ma'&al "r#ce!! '3 ! &'derta0e' ' re!#l( '3 the all#cat #'! b##0ed t# !&!"e'!e acc#&'t5 Each all#cat #' ! chec0ed !e"arately5 Th ! '(#l(e! .#ll#2 &" 2 th the I!!&er4RHT a3e't t# . 'd the r 3ht be'e. c ary5 • O'ce the r 3ht be'e. c ary acc#&'t! traced/ the r 3ht b##0 '3 ! re"#rted t# the DM5 The all#cat #' ! -#(ed #&t #. the !&!"e'!e acc#&'t a'd the DM Cred t! the r 3ht acc#&'t5
• I. the c#rrect be'e. c ary acc#&'t ca''#t be traced .#r -#re tha' . .tee' day!/ the I!!&er4RHT a3e't 2 ll be a!0ed t# "#!t "hy! cal cert . cate! t# the c#'cer'ed '(e!t#r! a'd the !&!"e'!e bala'ce 2 ll be red&ced t# 7er#5
P(eca%"i )s/
• H#ld '3! ' th#!e !ec&r t e! that ha(e '#t yet bee' ad- tted .#r de-ateral !at #' by NSDL ca''#t be de-ater al 7ed5 L !t #. !ec&r t e! ad- tted .#r de-ateral !at #' !h#&ld be (er . ed be.#re de.ac '3 the !ec&r t e!5 • H#ld '3! ' !treet 'a-e ca''#t be de-ater al 7ed5 A 'e2 "r#ced&re ! ' "lace .#r tra'!.er H de-at t# be d#'e t#3ether5 • The c#-b 'at #' a'd !eC&e'ce #. 'a-e! #. h#lder! a! "r 'ted #' the "hy! cal cert . cate !h#&ld be de't cal 2 th the 'a-e! ' t at '3 the de-ater al !at #' reC&e!t5 • Se"arate de-ater al !at #' reC&e!t 2 ll ha(e t# be . lled .#r l#c0edE ' a'd .ree h#ld '3!5 • Se"arate de-ater al !at #' reC&e!t! 2 ll ha(e t# be . lled .#r .&lly "a d &" a'd "artly "a d &" h#ld '3!5 • Se"arte de-ateral !at #' reC&e!t! 2 ll ha(e t# be . lled .#r h#ld '3! ' the d ..ere't ISIN! #. a c#-"a'y5
Reas )s $ ( Re!ec"i )/
The De"#! t#ry Part c "a't/ .#r the .#ll#2 '3 rea!#'! that re$ect the De-at reC&e!t .#r-!5 • I. the cl e't ID '#t -e't #'ed5 • I. the h#lder9! ! 3'at&re ! - !! '35 • I. the "atter' #. the 'a-e! #' the a""l cat #' are ' - !-atch 2 th that #' the !ec&r t e!5 • I. the 'a-e t!el. ! ' - !-atch 2 th that #' the !ec&r t e!5 • I. the C&a't ty #. !hare! ' the a""l cat #' are ' - !-atch 2 th that #. the !ec&r t e!5 • I. the cl e't ID ! 'c#rrect5 • The !cr " ! '#t &'der De-ater al !at #'5 • I. the '&-ber #. !hare cert . cate! d#e! '#t tally 2 th the '&-ber !"ec . ed #' the a""l cat #'5 • I. deta l! !&ch a! .#l #/ d !tr b&t #' '&-ber! are '#t -e't #'ed5 • I. the !hare! are 2arra't EC& ty Share! #r Debe't&re!5 • A'y #ther rea!#'5 • I. t2# ISIN! are -e't #'ed #' the !a-e DRF5 • I. the cl e't ID ! '#t act (e5 • I. the DRF ! rece (ed 2 th#&t the !hare cert . cate!5 • I. the a""l cat #' .#r- ! already re$ected5
DEMATERIALISATION PROCESS
Be.i)
Sha(eh *&e(s s%b0i"s DRF > sha(e ce("i$ica"e
IRC $ (4a(&s " DP i)4a(& Sha(e ce("i$ica"es &e$e((e& as s%b0i""e& $ ( &e0a" Ph'sica* ce("i$ica"es #e(i$ie& 4i"h chec-*is" .e)e(a"e& a" i)4a(& a)& 0 &i$ica"i )s 0a&e i$ )ecessa('
Is "he $ (0 acce1"e&
C(ea"i ) $ "e?" $i*e I)$ (0a"i ) %1* a&e& " NSDL
DRN .e)e(a"e&
A
A
DRN )%0be( 4(i""e) ) DRF
DRF@s $ (4a(&e& " i)4a(&
DRFs %)&e( #a(i %s RTAs se1a(a"e& 4i"h a c #e(i). *e""e( $ ( e#e(' RTA
DRFs se)" " i)"e()a* a%&i"
Se)& " Dis1a"ch a$"e( a%&i"i).
F (0s &is1a"ch " "he (es1ec"i#e (e.is"(a(s
s" 1
REMATERIALISATION
Re-ater al !at #' ! the "r#ce!! #. !!& '3 "hy! cal !ec&r t e! ' "lace I#. the !ec&r t e! held electr#' cally ' b##0Ee'try .#r- 2 th de"#! t#ry5 U'der th ! "r#ce!!/ the de"#! t#ry acc#&'t #. a be'e. c al #2'er ! deb ted .#r the !ec&r t e! !#&3ht t# be re-ater al 7ed a'd "hy! cal cert . cate! .#r the eC& (ale't '&-ber #. !ec&r t e! are !!&ed5 A be'e. c al #2'er h#ld '3 the !ec&r t e! 2 th a de"#! t#ry ha! a r 3ht t# 3et h ! electr#' c h#ld '3 c#'(erted 't# "hy! cal h#ld '3 at a'y t -e5 The be'e. c al #2'er de! r '3 t# rece (e "hy! cal !ec&r ty cert . cate! ' "lace #. the electr#' c h#ld '3 !h#&ld -a0e a reC&e!t t# the !!&er #r t! RHT A3e't thr#&3h h ! DP ' the "re!cr bed Re-ater al !at #' ReC&e!t F#r- *RRF+5
P(e(e5%isi"e " a Re70a"e(ia*isa"i ) Re5%es"/
85 The be'e. c al #2'er! #. the !ec&r t e! !h#&ld -a0e the reC&e!t5 :5 There !h#&ld be !&.. c e't .ree bala'ce #. !ec&r t e! a(a lable ' the be'e. c ary acc#&'t t# h#'#&r the reE-ateral !ed reC&e!t5
Re7Ma"e(ia*isa"i ) P( cess/
85 The DP !h#&ld "r#( de reE-ater al !at #' reC&e!t .#r-!*RRF+ t# cl e't!5 :5 The cl e't !h#&ld c#-"lete RRF ' all re!"ect! a'd !&b- t t t# the DP5 ;5 The DP !h#&ld chec0 RRF .#r (al d ty/ c#-"lete'e!! a'd c#rrect'e!!5 I' "art c&lar/ the .#ll#2 '3 "# 't! !h#&ld be chec0ed5 • There ! !&.. c e't .ree bala'ce a(a lable ' the cl e't9! acc#&'t t# h#'#&r the re-ater al !at #' reC&e!t5 • The 'a-e #. the cl e't #' RRF ! eBactly the !a-e a! that ' the cl e't acc#&'t5 • I' ca!e #. $# 't h#ld '3/ the #rder #. 'a-e! a""ear '3 ' RRF ! the !a-e a! ' the cl e't9! acc#&'t5 • Deta l! l 0e !ec&r ty/ .ace (al&e/ !!&er9! 'a-e a'd l#c0E ' !tat&! are . lledE ' c#rrectly5 • The cl e't ha! 'd cated h ! #"t #' t# rece (e "hy! cal cert . cate! e ther ' $&-b# l#t .#r the e't re C&a't ty reC&e!ted #r ' -ar0et l#t5 • Se"arate RRF are !&b- tted .#r
? Free a'd l#c0edE ' !ec&t r e!
? Sec&tr r e! l#c0edE ' .#r d ..ere't rea!#'! ? Each ISIN ? Sec&r t e! #. d ..ere't "a dE(al&e a'd ? Each cl e't acc#&'t • RRF ! ! 3'ed by ? The !#le h#lder ' ca!e #. ! '3le h#ld '3 ? All $# 't h#lder! ' ca!e #. $# 't h#ld '3 ? A&th#r 7ed S 3'at#r e! ' the ca!e #. c#r"#rate acc#&'t!/ ? C#'!t t&ted att#r'ey ' the ca!e #. NRI acc#&'t! <5 I. RRF ! '#t .#&'d ' #rder/ the DP !h#&ld ret&r' the RRF t# the cl e't .#r rect . cat #'5 =5 I. RR. ! .#&'d ' #rder the DP !h#&ld acce"t RRF a'd !!&e a' ac0'#2led3e-e't t# the cl e't5 >5 DP Sh#&ld e'ter the reE-ater al !at #' reC&e!t ' DPM5 DPM 2 ll 3e'erate a re-at reC&e!t '&-ber *RRN+ 2h ch !h#&ld be -e't #'ed #' RRF5 ?5 A' a&th#r 7ed "er!#'/ #ther tha' #'e 2h# e'tered the RRF deta l! ' DPM/ !h#&ld (er .y the deta l! #. RRN a'd relea!e a reC&e!t t# the de"#! t#ry5 @5 The DP !h#&ld c#-"lete the a&th#r 7at #' .#r RRF t# the !!&er #r t! RHT A3e't .#r reE-ater al !at #'5 The DP !h#&ld .#r2ard RRF t# the !!&er #r t! RHT A3e't 2 th ' !e(e' day! #. acce"t '3 t .#r- the cl e't5
D5 The !!&er #r t! RHT A3e't !h#&ld (er .y the RRF .#r (al d ty/ c#-"lete'e!! a'd c#rrect'e!!5 It !h#&ld al!# -atch the deal! 2 th the 't -at #' rece (ed .r#- the de"#! t#ry a3a '!t the !a-e RRN5 8F5I' ca!e the !!&er #r t! RHT A3e't . 'd! RRF ' #rder/ t !h#&ld c#'. r- the re-at reC&e!t the !!&er #r t! RHT A3e't !h#&ld the' "r#ceed t# !!&e the "hy! cal !ec&r ty cert . cate! a'd d !"atch the- t# the be'e. c al #2'er5 885The DP/ #' rece ( '3 c#'. r-at #' #. deb t e'try ' DPM/ !h#&ld '.#r- the cl e't acc#rd '3ly5 The e't re "r#ce!! ta0e! a -aB -&- #. ;Fday!5 N# trad '3 ! "#!! ble #' the !ec&r t e! !e't .#r re-at5
PROCEDURE FOR REMATERIALISATION OF SECURITIES /
STAR T
Recei1" $ RRF $ (0 c*ie)"
D es c*ie)" ha#e s%$$icie)" ba*a)ce i) his acc %)"
Re5%es" sa#e& i) DPMARRN .e)e(a"e&
Re!ec" (e5%es"
Ve("i$ie& RRN $ (4a(&e& " NSDL
A%"h (i2a"i ) $ RRF b' DP
Re5%es" $ (4a(&e& b' NSDL " R>T e*ec"( )ica**'
Ph'sica* (e5%es" $ (4a(&e& " R>T
Ne4 ce("i$ica"es 1(i)"e& b' R>T
Dis1a"chi). $ ce("i$ica"es " i)#es" ( > c )$i(0a"i
A
S"a"%s %1&a"e& " DP
A
I)"i0a"i ) " c*ie)" b' "he DP
s 1
TRADING AND SETTLEMENT IN DEPOSITORY MODE/
Trad '3 ' De-ater al 7ed !ec&r t e! ! d ..ere't .r#- trad '3 ' "hy! cal !ec&r t e! a'd trade ' #'e .#r- ca''#t be !ettled ' a'#ther .#r-5 H#2e(er/ SEBI ha! a''#&'ced that 2 th e..ect .r#- >th A"r l/ 8DD@/ de-ater al 7ed !ec&r t e! ca' be del (ered a3a '!t #bl 3at #' ' the "hy! cal -ar0et #. b#th NSE a'd BSE5 Th ! -ea'! a' '(e!t#r 2h# ha! !#ld !ec&r t e! ' "hy! cal -ar0et ca' del (er e ther "hy! cal #r de-ater al 7ed !ec&r t e!5 B&t "hy! cal !ec&r t e! ca''#t be del (ered a3a '!t #bl 3at #' ' the -ar0et .#r de-ater al 7ed !ec&r t e!5 C&rre'tly/ de-ater al 7ed !ec&r t e! ca' be traded #' NSE a'd BSE5 All trade! d#'e ' De"#! t#ry !e3-e't 2 th e..ect .r#- 8=th Ja'&ary/ 8DD@ !h#&ld .#ll#2 R#ll '3 Settle-e't Cycle5
R **i). Se""*e0e)" +TB;,/
I' ca!e #. R#ll '3 Settle-e't Cycle/ the acc#&'t '3 "er #d ! red&ced t# #'e day5 Th ! -ea'! that . the br#0er eBec&te! the tra'!act #' #' M#'day/ !ettle-e't #. the !a-e 2 ll be #' Th&r!day5 S - larly/ .#r trade! eBec&ted #' T&e!day/ !ettle-e't 2 ll be #' Fr day a'd !# #'5
P( ce&%(e $ ( Se**i). De0a" Sec%(i"ies/
The "r#ced&re .#r !ell '3 De-at !ec&r t e! ! (ery ! -"le5 A.ter !ell '3 the !ec&r t e! #'e 2#&ld '!tr&ct h !4her DP t# deb t h !4her acc#&'t 2 th the '&-ber #. !ec&r t e! !#ld by h - a'd cred t h !4her br#0er9! acc#&'t5 Th ! del (ery '!tr&ct #' ha! t# be 3 (e' t# h !4her DP &! '3 the del (ery '!tr&ct #' !l "! 3 (e' t# h -4her by h ! DP at the t -e #. #"e' '3 the acc#&'t5
P( ce&%(e $ ( se**i). sec%(i"ies is as $ ** 4s/
85 O#& !ell !ec&r t e! ' a'y #. the !t#c0 eBcha'3e! l '0ed t# NSDL thr#&3h a br#0er5 :5 O#& 3 (e '!tr&ct #'! t# y#&r DP t# deb t y#&r acc#&'t a'd cred t the br#0er9! acc#&'t5 ;5 Be.#re the "ayE ' day/ y#&r br#0er 3 (e! '!tr&ct #' t# t! DP .#r del (ery t# clear '3 c#r"#rat #'5 <5 O#&r br#0er rece (e! "ay-e't .r#- the !t#c0 eBcha'3e *clear '3 c#r"#rat #'+5 =5 O#& rece (e "ay-e't .r#- the br#0er .#r the !ale #. !ec&r t e!5
P( ce&%(e $ ( P%(chasi). De0a" Sec%(i"ies/
F#r rece ( '3 De-at !ec&r t e! #'e -ay 3 (e a #'e t -e !ta'd '3 '!tr&ct #' t# h !4her DP5 Th ! !ta'd '3 '!tr&ct #' ca' be 3 (e' at the t -e #. acc#&'t #"e' '3 #r later5 Alter'at (ely/ #'e -ay ch##!e t# 3 (e !e"arate rece "t '!tr&ct #' e(ery t -e !#-e !ec&r t e! are t# be rece (ed5 The tra'!act #' relat '3 t# "&rcha!e #. !ec&r t e! are !&--ar 7ed5
P( ce&%(e $ 1%(chase sec%(i"ies is as $ ** 4s/
• O#& "&rcha!e !ec&r t e! thr#&3h a br#0er5 • O#& -a0e "ay-e't t# y#&r br#0er 2h# arra'3e! "ay-e't t# clear '3 c#r"#rat #' #' the "ayE 'Eday5 • O#&r br#0er rece (e! cred t #. !ec&r t e! ' t! clear '3 c#r"#rat #' #' the "ayE 'Eday5 • O#&r br#0er 3 (e! '!tr&ct #' t# t! DP t# deb t clear '3 acc#&'t a'd cred t y#&r acc#&'t5 • O#& rece (e !hare! 't# y#&r acc#&'t5 H#2e(er . !ta'd '3 '!tr&ct #' are '#t 3 (e' at the t -e #. #"e' '3 the acc#&'t y#& 2 ll ha(e t# 3 (e '!tr&ct #'! t# y#&r DP .#r rece ( '3 cred t5
• O#& !h#&ld e'!&re that y#&r br#0er tra'!.er! the !ec&r t e! .r#- t! clear '3 acc#&'t t# y#&r de"#! t#ry acc#&'t be.#re the b##0 cl#!&re5 I. the !ec&r t e! re-a ' ' the clear '3 acc#&'t #. the br#0er the c#-"a'y 2 ll 3 (e c#r"#rate be'e. t *d ( de'd #r b#'&!+ t# the br#0er5 I' that ca!e y#& 2 ll ha(e t# c#llect the be'e. t! .r#- the br#0er5 • Trad '3 ' de-ater al 7ed !ec&r t e! ca' be b .&rcated 't# -ar0et a'd #..E-ar0et trade!5
Ma(-e" T(a&es/
Mar0et trade! are th#!e trade! that are eBec&ted #' the !t#c0 eBcha'3e! a'd are cleared a'd !ettled thr#&3h the clear '3 c#r"#rat #'5 F#r the "&r"#!e #. NSDL #"erat #'!/ trade!/ 2h ch are 'e3#t ated a'd !&b!eC&e'tly re"#rted t# the !t#c0 eBcha'3e .#r be '3 cleared a'd !ettled thr#&3h the clear '3 c#r"#rat #'/ ! al!# treated a! Mar0et Trade!5 Mar0et trade! ca' be !ettled #'ly thr#&3h a clear '3 -e-ber5 A'y clear '3 -e-ber 'te'd '3 t# "art c "ate ' De"#! t#ry !e3-e't #. the -ar0et ha! t# #"e' a !"ec al clear '3 -e-ber acc#&'t 2 th a "art c "a't5 I. the clear '3 -e-ber ! t!el. ! a "art c "a't/ the acc#&'t ca' be #"e'ed ' t! #2' "art c "a't !etE &"5 Whe' cl e't! !ell !ec&r t e!/ !ec&r t e! are -#(ed .r#- the cl e't9! acc#&'t t# the "##l acc#&'t #. the -e-ber5 At the t -e #. "ayE ' the !ec&r t e! are -#(ed t# the clear '3 c#r"#rat #' ba!ed #' the 'et #bl 3at #' #. the clear '3 -e-ber5 I'(ar ably/ the reta l cl e't! &!e the !er( ce! #. the !ell '3 br#0er a! a clear '3 -e-ber .#r !ettle-e't #. the r tra'!act #'!5
H#2e(er/ the .ac l ty .#r &! '3 a clear '3 -e-ber #ther tha' the br#0er 2h# eBec&te! the #rder! ! a(a lable5 I' !&ch ca!e! the cl e't 2 ll 'd cate the clear '3 -e-ber at the t -e #. "lac '3 #rder5 I. the clear '3 -e-ber acce"t! the trade/ the trad '3 -e-ber 2h# eBec&ted the tra'!act #' t# the clear '3 -e-ber! tra'!.er! the r 'et #bl 3at #'! t# the clear '3 c#r"#rat #'5 O' the "ay#&t day/ the clear '3 c#r"#rat #' 2 ll cred t the "##l a-#&'t #. the clear '3 -e-ber 2 th 'et rece (able! by the clear '3 -e-ber5 The clear '3 -e-ber 2 ll the' 3 (e '!tr&ct #'! .#r tra'!.err '3 the bala'ce! .r#- the "##l acc#&'t t# the b&y '3 cl e't9! acc#&'t!5
O$$7Ma(-e" T(a&es/
O..EMar0et Trade! are th#!e trade! that are cleared a'd !ettled thr#&3h the clear '3 c#r"#rat #' #r the clear '3 h#&!e5 O..EMar0et Trade! are deal! 3e'erally .#r b&l0 C&a't t e!/ 2h ch are 'e3#t ated #&t! de the trad '3 !y!te- #. !t#c0 eBcha'3e bet2ee' trad '3 -e-ber! d rectly5 I. the!e trade! are !&b!eC&e'tly re"#rted t# the !t#c0 eBcha'3e a'd cleared thr#&3h the clear '3 c#r"#rat #'/ they are '#t treated a! O..EMar0et Trade!5 O..EMar0et Trade! re!< ' tra'!.er! .r#- #'e be'e. c ary acc#&'t t# a'#ther be'e. c ary acc#&'t a'd bet2ee' a be'e. c ary acc#&'t a'd the h#&!e acc#&'t #. a "art c "a't5
PLEDGE
NSDL "r#( de! be'e. c al #2'er! 2 th the .ac l ty Pled3e4Hy"#thecate !ec&r t e! held ' De-ater al 7ed .#r-5
P( ce&%(e $ ( c(ea"i). a P*e&.e ( H'1 "heca"i )6
Whe' the be'e. c al #2'er 'te'd! t# create a Pled3e #r Hy"#thecat #' #' a !ec&r ty #2'ed by h -/ he !h#&ld -a0e a' a""l cat #' the DP 2h# ha! a' acc#&'t ' re!"ect #. !&ch a !ec&r ty5 The deta l! re3ard '3 the C&a't ty #. !hare! t# be "led3ed a'd the t -e "er #d ha(e t# be .&r' !hed5 The DP !hall a.ter -a0 '3 a '#te ' t! rec#rd! #. the '#t ce #. "led3e a'd hy"#thecat #'/ .#r2ard! the a""l cat #' #. the be'e. c al #2'er t# the de"#! t#ry5 O' rece "t #. !&ch a""l cat #' the de"#! t#ry !hall -a0e '(e!t 3at #' a! t -ay c#'! der 'ece!!ary a'd . a""r#(e! the creat #' #. "led3e #r Hy"#thecat #'/ t !hall e'ter the "art c&lar! ' t! rec#rd! a'd 't -ate! the DP5 The DP ' t&r' '.#r-! the be'e. c al #2'er5 I. the de"#! t#ry re$ect! the creat #' #. Pled3e #r hy"#thecat #' t !hall rec#rd the rea!#'! .#r !&ch d !a""r#(al a'd 't -ate! the DP/ 2h# ' t&r' '.#r- the be'e. c al #2'er5
• The Part c "a't 2 th#&t the c#'c&rre'ce #. the "led3e !hall a..ect '# tra'!.er #. !ec&r t e!/ ' re!"ect #. 2h ch '#t ce #. "led3e #r e'try ! ' .#rce5 • The Pled3ed !ec&r t e! are b##0ed ' .a(#&r #. the Pled3e/ 2h# ca' relea!e the "led3e #'ce the "led3#r re"ay! t! l#a'5 • I. the "led3#r .a l! t# re"ay the l#a'/ the "led3ee ca' '(#0e the "led3e ' acc#rda'ce 2 th the "led3e deed5 • O' '(#0 '3 the "led3e/ the !ec&r t e! 2 ll 3et tra'!.erred t# the Pled3ee9! acc#&'t a'd ' t! 'a-e --ed ately5 • The "led3#r ca' cl#!e "led3e by -a0 '3 a' a""l cat #' t# the DP a.ter re"ay-e't #. the l#a' t# the "led3ee5
OTHER SERVICES OFFERED BY A DEPOSITORY PARTICIPANT/
? TRANSMISSION OF SECURITIES ? TRANSPORTATION OF SECURITIES ? UNFREEPING OF AN ACCOUNT ? FREEPING OF AN ACCOUNT ? SUSPENSION OF AN ACCOUNT
TRANSMISSION OF SECURITIES
Tra'!- !! #' #. !ec&r t e! ca' be cate3#r 7ed 't# : "art!6
•
T(a)s0issi ) $ Sec%(i"ies/ I' the e(e't #. death #. a'y #. the
$# 't h#lder!/ ' 2h ch ca!e/ the #ther eB !t '3 $# 't h#lder! ca' 3et the !ec&r t e! tra'!- tted ' the r .a(#&r by "r#d&c '3 the death cert . cate5 The eB !t '3 $# 't h#lder! ha(e t# #"e' a 'e2 acc#&'t 2 th a "art c "a't5
• T(a)s0issi ) $ Sec%(i"ies/ I' the e(e't #. death #. a !#le trader/ ' 2h ch ca!e/ the cla -a't!4!&cce!!#r!4le3al he r! ca' 3et the !ec&r t e! tra'!- tted ' the r .a(#&r by !&b- tt '3 the rele(a't le3al d#c&-e't! t# the Part c "a't5 The cla -a't!4le3al he r!4!&cce!!#r! !h#&ld #"e' a' acc#&'t 2 th a "art c "a't t# 3et !ec&r t e! tra'!- tted ' the r .a(#&r5
+a, T(a)s0issi ) $ sec%(i"ies $ s *e h *&e( +&ecease&,/
• Where the !#le h#lder 2h# ha! !ec&r t e! held ' t! 'a-e ! decea!ed/ the' a'y !&cce!!#r!4cla -a't!4le3al he r! !hall be reC& red t# -a0e a reC&e!t .#r tra'!- !! #' a'd .&r' !h a'y #. the .#ll#2 '3 le3al d#c&-e't!6 ( 75/ "r#bate #. 2 ll/ !&cce!! #' cert . cate/ letter #. Ad- ' !trat #'/ #r a'y #ther le3al d#c&-e't
2h ch -ay be reC& red al#'3 2 th a' atte!ted c#"y #. the Death Cert . cate t# the Part c "a't5 • The "art c "a't 2 ll (er .y all the le3al d#c&-e't! !&b- tted by the le3al he r4cla -a't4!&cce!!#r .#r the r a&the't c ty5 I. !at !. e! ab#&t the a&the't c ty #. the d#c&-e't! !&b- tted/ the "art c "a't 2 ll tra'!- t the !ec&r t e! t# the re!"ect (e cl e't5
T(a)s0issi ) i) case $ &ea"h $ )e $ "he ! i)" h *&e(s/
• I' the e(e't #. a'y $# 't h#lder9! de- !e/ the #ther $# 't h#lder! !hall ha(e the !ec&r t e! tra'!- tted ' the r .a(#&r #'ly #' .&r' !h '3 a c#"y #. the death cert . cate *d&ly atte!ted4#r ' #r 3 'al+ thr#&3h the "art c "a't5 • The "art c "a't 2 ll (er .y the d#c&-e't! a'd !at !.y t!el. ab#&t the a&the't c ty #. the !a-e5
TRANSPOSITION
The C#-"a' e! Act/ 8D=> "er- t! $# 't h#ld '3 #. !hare!5 Whe' !hare! are !!&ed ' "hy! cal .#r-/ 'a-e! #. all the $# 't h#lder! are "r 'ted #' the !hare cert . cate!5 All the $# 't h#lder! are rec#3' 7ed a! -e-ber! #. the c#-"a'y5 H#2e(er the c#-"a'y 2 ll deal the -e-ber 2h#!e 'a-e! a""eared . r!t a-#'3 the $# 't h#lder! .#r "ay-e't #. d ( de'd a'd del (ery #. d#c&-e't!4c#--&' cat #'4'#t ce!5 The $# 't h#lder! are e't tled t# cha'3e the !eC&e'ce #. 'a-e! by -a0 '3 a 2r tte' reC&e!t t# the c#-"a'y5 Th ! d#e! '#t c#'!t t&te a tra'!.er cha'3 '3 the !eC&e'ce #. $# 't h#lder! ! called MTra'!"#! t #'95 H#2e(er tra'!"#! t #' ! t# be a(a led .#r e't re h#ld '3 ' a .#l # a'd '#t all#2ed .#r "art h#ld '35 I. the !a-e !et #. $# 't h#lder! held !ec&r t e! ' d ..ere't !eC&e'ce #. 'a-e!/ the!e $# 't h#lder! 2ere earl er reC& red t# #"e' d ..ere't De"#! t#ry acc#&'t ' NSDL de"#! t#ry !y!te-5 NSDL ha! 'tr#d&ced MTra'!"#! t #' c&- De-at9 .ac l ty t# hel" $# 't h#lder!/ t# de-at !ec&r t e! ' the !a-e acc#&'t e(e' th#&3h !hare cert . cate! are ' d ..ere't !eC&e'ce #. 'a-e!5 F#r th ! "&r"#!e the DRF a'd a' add t #'al .#r- called MTra'!"#! t #' .#r-9 !h#&ld be !&b- tted t# the DP5
FREECING OF AN ACCOUNT
A cl e't -ay 2 !h t# .ree7e t! acc#&'t by deact (at '3 t5 The "art c "a't ha! a .ac l ty ' the DPM t# .ree7e a' acc#&'t5 The acc#&'t ! .r#7e' .#r a'y tra'!act #' therea.ter &'t l t ! react (ated #' a reC&e!t .r#the cl e't5 A' acc#&'t -ay be .r#7e' .#r deb t! #r .#r b#th deb t! a'd cred t! de"e'd '3 #' the ch# ce #. the acc#&'t h#lder/ b&t a'y be'e. t ar ! '3/ d&e t# c#r"#rate act #'! ! cred ted t# the acc#&'t $&!t l 0e a'y #ther acc#&'t5
P( ce&%(e $ ( $(ee2i). a) acc %)"/
• The cl e't !&b- t! a reC&e!t .#r- t# the "art c "a't ' the "re!cr bed .#r- .#r .ree7 '3 t! acc#&'t5 • O' rece "t #. the reC&e!t .#r-/ the "art c "a't (er . e! 2hether the .#r- ! d&ly . lled #r '#t a'd the' !!&e ! 3'ed a'd !ta-"ed ac0'#2led3e-e't !l " t# the cl e't5 • The "art c "a't c#-"are! the ! 3'at&re #. the cl e't #' the .#r- 2 th that #. a(a lable ' t! rec#rd!5
• I. the reC&e!t .#r- ! ' #rder the "art c "a't cha'3e! the !tat&! #. the cl e't9! acc#&'t .r#- MACTI)E9 t# MSUSPENDED FOR DEBIT9 #r MSUSPENDED FOR ALL9 de"e'd '3 #' the ch# ce #. the cl e't .r#the date -e't #'ed by the cl e't #' the .#r-5 The "art c "a't e'ter! the rea!#'! .#r cha'3e ' !tat&!5 • The "art c "a't the' 't -ate! t# the cl e't ab#&t the cha'3e ' !tat&!5
UNFREECING OF AN ACCOUNT
A cl e't 2h#!e acc#&'t ! .r#7e' -ay reC&e!t t# &'.ree7e t5 The Part c "a't ha! the .ac l ty ' the DPM t# &'.ree7e a' acc#&'t5 The acc#&'t ! react (ated a'd tra'!act #'! are all#2ed #' the acc#&'t therea.ter5
P( ce&%(e $ ( %)$(ee2i). a) acc %)"/
• The cl e't !&b- t! a reC&e!t t# the "art c "a't ' the "re!cr bed .#r.#r &'.ree7 '3 h ! acc#&'t5 • O' rece "t #. the reC&e!t .#r-/ the "art c "a't (er . e! 2hether the .#r- ! d&ly . lled #r '#t5 The' t !!&e! a ! 3'ed a'd !ta-"ed ac0'#2led3ed !l " t# the cl e't5 • The "art c "a't c#-"are! the ! 3'at&re #. the cl e't #' the .#r- 2 th that #. a(a lable ' t! rec#rd!5 • I. the reC&e!t .#r- ! ' #rder/ the Part c "a't cha'3e! the !tat&! #. the cl e't9! acc#&'t t# MACTI)E9 #' the date -e't #'ed by the cl e't #' the .#r-5 The "art c "a't e'ter! the rea!#' .#r cha'3e ' the !tat&!5 • The "art c "a't 't -ate! the cl e't ab#&t the cha'3e ' !tat&!5
SUSPENSION OF AN ACCOUNT
A Part c "a't ha! the .ac l ty ' the DPM t# !&!"e'd a cl e't9! acc#&'t ' ca!e t rece (e! a d rect (e #rder t# the e..ect .r#- NSDL/ I'c#-e taB #r J&d c al a&th#r t e!5 N# tra'!act #'! are all#2ed #' the acc#&'t/ b&t be'e. t! ar ! '3 d&e t# c#r"#rate act #' are cred ted t# the !&!"e'ded acc#&'t $&!t a! ' a'y #ther acc#&'t5 The cl e't ca''#t -#(e the .r#7e' h#ld '3! #&t #. the acc#&'t5 The Part c "a't 't -ate! the cl e't ab#&t the !&!"e'! #' #. h ! acc#&'t!5
P( ce&%(e $ ( S%s1e)&i). a) Acc %)"/
O' rece "t #. d rect (e4#rder .#r !&!"e'd '3 #. a cl e't acc#&'t/ the Part c "a't ha! t# cha'3e the cl e't9! acc#&'t !tat&! ' the DPM .r#MACTI)E9 t# MSUSPEND FOR DEMAT9 #r MSUSPEND FOR ALL95 It rec#rd! the rea!#' .#r the !tat&! cha'3e a! Md rect (e4#rder #. the c#'cer'ed a&th#r ty95 The Part c "a't 't -ate! the cl e't ab#&t the !&!"e'! #' #. h ! acc#&'t5 I' ca!e #. clear '3 -e-ber9! cl e't/ the "art c "a't 't -ate! the clear '3 c#r"#rat #' al!# ab#&t the !&!"e'! #'5
P( ce&%(e $ ( Re# -i). S%s1e)si ) $ a) Acc %)"/
• The !tat&! 2#&ld be cha'3ed t# MACTI)E9 #' rece "t #. a d rect (e t# re(#0e !&ch !&!"e'! #' .r#- NSDL #r a&th#r t e! -e't #'ed ab#(e5 The "art c "a't rec#rd! the rea!#' .#r the !tat&! cha'3e a! a d rect (e .r#- the c#'cer'ed a&th#r ty5 • The Part c "a't 't -ate! the cl e't ab#&t the re(#0 '3 #. the !&!"e'! #'5
Depository Reforms -2007
The year &'der re( e2 2 t'e!!ed ! 3' . ca't re.#r-! ' the de"#! t#ry related area! at the ' t at (e #. SEBI5 S#-e #. the -"#rta't re.#r-! are a! .#ll#2!6
a+ Stre'3the' '3 #. S&r(e lla'ce Mecha' !- SEBI had ad( !ed the de"#! t#r e! t# e'ha'ce a'd ad#"t a -< E.aceted a""r#ach ' the r S&r(e lla'ce -echa' !-5 Acc#rd '3ly/ y#&r c#-"a'y ha! ta0e' !e(eral !te"! ' th ! d rect #'/ !#-e #. 2h ch are -e't #'ed bel#25 CDSL carr e! #&t a "r#ce!! #. de't .y '3 -< "le de-at acc#&'t! ba!ed #' 'a-e/ addre!! a'd PAN card deta l! #. the h#lder!5 De"#! t#r e! "art c "a't! are the' '!tr&cted t# (er .y the 3e'& 'e'e!! #. !&ch de-at acc#&'th#lder!5 F&rther/ PAN card deta l! "r#( ded by acc#&'t h#lder! are 'de"e'de'tly (er . ed by CDSL 2 th the I'c#-e TaB De"art-e't a'd '!ta'ce! 2here PAN card deta l! are '#t -atch '3 2 th the I'c#-e TaB De"art-e't9! Data ba!e/ are br#&3ht t# the '#t ce #. the c#'cer'ed de"#! t#ry "art c "a't/ t# 3et the !a-e rect . ed5
b+ PAN Card -ade C#-"&l!#ry .#r O"e' '3 4 O"erat '3 #. De-at Acc#&'t! La!t year SEBI had d rected that (er . cat #' #. PAN card by de"#! t#ry "art c "a't! 2a! c#-"&l!#ry ' re!"ect #. all de-at acc#&'t! #"e'ed #' #r a.ter 8!t A"r l/ :FF>5 F&rther/ SEBI had d rected that 2 th e..ect .r#- 8!t Oct#ber/ :FF> eB !t '3 acc#&'t h#lder! 2#&ld '#t be able t# #"erate the r de-at acc#&'t! ' ca!e they d# '#t "r#d&ce the r PAN card .#r (er . cat #' by the c#'cer'ed de"#! t#ry "art c "a't5 O' rece "t #. re"re!e'tat #' ' th !(e.a(&A SEBI e?"e)&e& "he *as" &a"e $ s%b0issi ) $ "he PAN ca(&s " ;9s"
FINDINGS
The $ ** 4i). is "he "ab*e "ha" sh 4s "he )%0be( $ De1 si" (' Pa("ici1a)"s $ CDSL $( 0
D; " DE
MONTH F YEAR APRILD; APRIL D< APRIL D= APRIL DH APRIL DE
NUMBER OF DEPOSITORY PARTICIPANTS 9G9 :99 :9E ;9= ;H=
GRAPH OF THE ABOVE TABLE/
<DD ;=D ;DD :=DD 9=D 9DD =D D D; D< D= DH DE DPs
The ab#(e 3ra"h de" ct! the c#'t '&#&! r !e ' the '&-ber #. De"#! t#ry Part c "a't! re3 !tered 2 th the CDSL ' I'd a .#r the "a!t . (e year!5 I' the year :FF; the t#tal '&-ber #. De"#! t#ry Part c "a't! re3 !tered 2 th the De"#! t#ry 2a! 8D85/ 2h ch ha! 3#'e t# :88 ' the year :FF< a'd !&b!eC&e'tly t# ;>= ' the year :FF?5
NUMBER OF BENEFICIAL OWNER ACCOUNTS MONTH7YEAR NUMBER OF BENEFICIAL OWNERACCOUNTS+IN LAKHS, :8= H8; 9D899 9I8H9 :I8E;
APRILD; APRIL D< APRIL D= APRIL DH APRIL DE
35 NUMBER OF BO ACCOUNTS 30 25 20 15 10 5 0 YEAR Apr-03 Apr-04 Apr-05 Apr-06 Apr-07
The ab#(e 3ra"h de" ct! the c#'t '&#&! r !e ' the '&-ber #. Be'e. c al O2'er! #. CDSL ' I'd a .#r the "a!t . (e year!5 I' the year :FF; the t#tal '&-ber #. Be'e. c al O2'er! acc#&'t! 2a! :5= la0h/ 2h ch ha! 3#'e t# ;5=la0h ' the year :FF< a'd !&b!eC&e'tly t#
5?;la0h ' the year :FF?5
CONCLUSIONS
? The (e*a"i )shi1 be"4ee) De1 si" (' Pa("ici1a)" a)& "he De1 si" (' is . #e()e& b' a) a.(ee0e)" 0a&e be"4ee) "he "4 %)&e( "he DP Ac"8 ? A De1 si" (' Pa("ici1a)" ca) $$e( &e1 si" (' ac"i#i"ies )*' a$"e( b"ai)i). a ce("i$ica"e $ (e.is"(a"i ) $( 0 SEBI8 ? I$ a s" c-b( -e( see-s " ac" as a De1 si" (' Pa("ici1a)" i) 0 (e "ha) )e &e1 si" (' he sh %*& c 01*' 4i"h s1eci$ie& )e" 4 ("h c(i"e(ia se1a(a"e*' $ ( each s%ch &e1 si" ('8 ? CDSL (e5%i(es 0i)i0%0 )e" 4 ("h $ Rs898=c( (e " be e*i.ib*e " bec 0e a DP8 ? A De1 si" (' sha** i)&e0)i$' a be)e$icia* 4)e( a)' * ss ca%se& &%e " )e.*i.e)ce $ "he b' "he De1 si" ('8
? CDSL b"ai)s a%&i"e& $i)a)cia* (e1 ("s $( 0 a** i"s De1 si" (' Pa("ici1a)"s )ce e#e(' 'ea(8 ? De1 si" (' 1a("ici1a)"s a(e (e5%i(e& " s%b0i" " CDSL i)"e()a* a%&i" (e1 ("s e#e(' 5%a("e(8 ? CDSL &e#e* 1s s $"4a(e (e5%i(e& b' De1 si" (' Pa("ici1a)"sA C 01a)ies a)& C*ea(i). C (1 (a"i )s $ ( c )&%c"i). &e1 si" (' 1e(a"i )s8
? De1 si" (' Pa("ici1a)"s 0a' &e#e* 1 s $"4a(e $ "hei( 4)A $ ( c 7 (&i)a"i )A c 00%)ica"i ) a)& c )"( * a)& 1( #i&e se(#ice " "hei( c*ie)"s8 I" is ca**e& JBac- O$$ice S $"4a(e@8
Li0i"a"i )s
98 The &%(a"i ) $ "he 1( !ec" %)&e("a-e) 4as )*' ;D &a's8 :8 The 0ai) c )ce)"(a"i ) 4as .i#e) " "he se(#ices $$e(e& b' "he CDSL@S De1 si" (' Pa("ici1a)"s8
BIBLIOGRAPHY De1 si" (ies La4A P(ac"ice a)& P( ce&%(es b' Sa)!i# A.a(4a* a)& Pa4a) K%0a( Vi!a'8 Fi)ace I)&ia J %()a*s8
WEBSITES/ 4448c&s*8c 0 4448)s&*8c 0 4448$$si*8c 0
doc_679439285.doc
PROJECT SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE MASTER OF BUSINESS ADMINISTRATION
DECLARATION
I here by declare that th ! "r#$ect re"#rt t tled %A !t&dy #' De"#! t#ry Part c "a't Ser( ce Pr#ce!! at FORTUNE FINANCIAL SER)ICES *INDIA+ LIMITED, S&b- tted by -e t# the de"art-e't #. Ma!ter! #. B&! 'e!! Ad- ' !trat #'/ ) (e0a'a'da Sch##l #. P#!t Grad&ate !t&d e! 1111 U' (er! ty ! a b#'a. de 2#r0 &'derta0e' by -e a'd t ! '#t !&b- tted t# a'y #ther &' (er! ty #r I'!t t&t #' .#r the a2ard #. a'y de3ree d "l#-a 4 cert . cate #r "&bl !hed a'y t -e be.#re5 Date 6 Place6 *! 3'at&re+
ACKNOWLEDGEMENT
The "er.ect 2ay t# d#c&-e't th ! "r#$ect 2#&ld be t# !tart 2 th ac0'#2led3 '3 all th#!e "e#"le 2h# d rectly #r 'd rectly e'c#&ra3ed/ !&""#rted -e 2 th the r (al&e added '"&t! 2 th#&t the- th ! "r#$ect 2#&ld '#t ha(e bee' th ! better5 T# !tart 2 th I 2#&ld l 0e t# tha'0 1111/ bra'ch -a'a3er #. FORTUNE FINANCIAL SER)ICES *INDIA+ LIMTED at 1111 .#r 3 ( '3 -e a' #""#rt&' ty t# d# -y "r#$ect 2#r05 My ! 'cere tha'0! t# -y .ac<y 111 ! r .#r hel" '3 ' -e #&t (ar #&! a!"ect! #. -y "r#$ect a'd I 2#&ld l 0e t# tha'0 c#lle3e -a'a3e-e't .#r c##rd 'at '3 2 th -e d&r '3 th ! #'e -#'th #. -y "r#$ect5 F 'ally I 2#&ld l 0e t# #2e -y ! 'cere a""rec at #' t# all the E-"l#yee! #. the #r3a' 7at #' 2h# "r#( ded a .r e'dly e'( r#'-e't a'd !&""#rted thr#&3h #&t -y "r#$ect5
INDE1 Table #. c#'te't!6 85 I'tr#d&ct #' ? Need F#r the !t&dy ? Ob$ect (e! #. the !t&dy ? Sc#"e #. the !t&dy ? C#-"a'y9! "r#. le :5 Meth#d#l#3y ? Pr -ary !#&rce! ? Sec#'dary !#&rce! ;5 De!cr "t #' #. the !t&dy area <5 Pre!e'tat #' #. .act! ? de"#! t#ry !y!te-
? Ser( ce! #..ered by a DP ? Acc#&'t #"e' '3 ? De-ater al !at #' ? Re-ater al !at #' ? Trad '3 a'd !ettle-e't ? Pled3e ? Tra'!- !! #' ? Tra'!"#! t #' ? Free7 '3 a'd &'.ree7 '3 #. a' acc#&'t ? S&!"e'! #' #. a' acc#&'t =5 F 'd '3! #. the !t&dy >5 C#'cl&! #'! ?5 L - tat #'! @5 B bl #3ra"hy
INTRODUCTION The . eld #. . 'a'c al !er( ce! ' I'd a ha! e'tered a'#ther !ta3e #. de(el#"-e't 2 th a !h .t ' t! #&tl##0 t# 'te3rate 2 th the 3l#bal -ar0et!5 I'(e!t#r! c#'. de'ce/ A&al ty !er( ce!/ C&!t#-er eB"ectat #' a'd Sat !.act #'/ A& c0 re!"#'!e/ Tech'#l#3y 'te3rat #' are the 2#rd! t#day5
W th l beral 7at #' a'd dere3&lat #'/ the I'd a' -ar0et! ha(e c#-e #&t #. the G#(er'-e't c&rta '!5 The ca" tal -ar0et ha! -ade tre-e'd#&! "r#3re!! ! 'ce the' a!"ect5
Pr#"er -ar0et '.ra!tr&ct&re/ re3&lat#ry a'd le3al .ra-e2#r0! are e!!e't al .#r e-er3 '3 ca" tal -ar0et! t# .&'ct #' e..ect (ely ' a 3r#2 '3 2#rld #. . 'a'c al 'te3rat #'5 W th the (a!t '(e!t '3 "#"&lat #' ' I'd a character 7ed by ll teracy a'd "##rly de(el#"ed a'd a&t#-ated !t#c0 eBcha'3e! 2h ch d# '#t "r#( de e'#&3h l C& d ty a'd de! red le(el #. tra'!"are'cy ' #"erat #' G#(er'-e't #. I'd a ' 8DD> e'acted the De"#! t#r e! Act/ 8DD> t# 0 c0 !tart de"#! t#ry !er( ce! ' I'd a ' a "la''ed a'd !y!te-at c -a''er5 Sec&r t e! a'd EBcha'3e B#ard #. I'd a *SEBI+ "r#( ded the !&""#rt t# the G#(er'-e't9! e'dea(#r5 A De"#! t#ry ! a' #r3a' 7at #' 2here the !ec&r t e! #. !hareh#lder! are held ' a' electr#' c .#r- at the reC&e!t #. !hareh#lder5 It ! a' electr#' c !#l&t #' t# "r#ble-! #. deal '3 ' "hy! cal .#r- a'd c#'d&ct '3 tra'!act #'! ' ca" tal -ar0et ' a -#re e.. c e't a'd e..ect (e -a''er5 The De"#! t#ry h#ld! !ec&r t e! ' a' acc#&'t / tra'!.er !ec&r t e! bet2ee' acc#&'th#lder!/ .ac l tate! !a.e0ee" '3 #. !ec&r t e! a'd .ac l tate! tra'!.er #. #2'er!h " 2 th#&t tra'!.er #. !ec&r t e!5 De"#! t#ry !y!te- ! l#'3 "re(ale't ' the ad(a'ced c#&'tr e! a'd ha! bee' "lay '3 a ! 3' . ca't r#le ' the !t#c0 -ar0et ar#&'d the 2#rld5 The !y!te- ! t -e te!ted a'd rel able5
NEED FOR THE STUDY Need .#r a De"#! t#ry ' I'd a6 O(er the la!t decade/ the I'd a' ca" tal -ar0et ha! bee' 3r#2 '3 by lea"! a'd b#&'d!5 I'd a ha! the lar3e!t '&-ber #. l !ted c#-"a' e! ' the 2#rld t#day5 Parad#B cally the "r#ble-! a!!#c ated 2 th the !ettle-e't! #. trade! are al!# #' the r !e5 A! a re!< #. th !/ '(e!t#r! ha(e t# .ace a l#t #. 'c#'(e' e'ce ' e..ect '3 re3 !trat #' #. !ec&r t e! ' the r .a(#&r a'd t# e'!&re that they rece (e the r r 3ht.&l !hare #. d ( de'd/ b#'&!/ r 3ht! a'd #ther be'e. t!5
The #ld !y!te- #. !t#c0 trad '3 a'd !ettle-e't ! .eat&red by 'crea!ed -ar0et a'd #"erat #'al 'e.. c e'c e!5 Th ! !ect #' #. the -ar0et c#-"r !e! the Sec#'dary -ar0et 2h ch ! "#"&larly called a! the %St#c0 Mar0et, c#-"r ! '3 #. :; St#c0 EBcha'3e! a'd ! the #r3a' 7ed -ar0et re3&lated by the SEBI .#r "&rcha!e a'd !ale #. !ec&r t e! thr#&3h 'ter-ed ar e! called !t#c0 br#0er! a'd !&bEbr#0er!5 The G#(er'-e't #. I'd a "r#-&l3ated the De"#! t#r e! Ord 'a'ce ' Se"te-ber 8DD=/ th&! "a( '3 the 2ay .#r !ett '3 &" #. De"#! t#r e! ' the c#&'try5 Nat #'al Sec&r t e! De"#! t#ry L - ted *NSDL+ 2a! 'a&3&rated a! the . r!t de"#! t#ry ' I'd a #' @th N#(e-ber 8DD>5 It ! re!"#'! ble .#r h#ld '3 a'd ha'dl '3 #. !ec&r t e! ' electr#' c .#r- el - 'at '3 "r#ble-! that are '#r-ally a!!#c ated 2 th "hy! cal cert . cate! l 0e -&t lat #' d&e t# carele!! ha'dl '3/ l#!! ' tra'! t/ "r#ble-! #. bad del (er e! etc5
OBJECTIVES OF THE STUDY
The basic b!ec"i#es $ "he s"%&' a(e6 ? T# 0'#2 a'd &'der!ta'd the 'eed a'd -"#rta'ce #. !cr " le!! trad '3 ' the ca" tal -ar0et5 ? T# &'der!ta'd the c#'ce"t #. De"#! t#ry !y!te- ' I'd a5
? T# !t&dy the r#le #. a de"#! t#ry "art c "a't a! a b&! 'e!! "art'er t# De"#! t#ry 2 th !"ec al e-"ha! ! #' F#rt&'e F 'a'c al Ser( ce! *I'd a+ L - ted5 ? T# e(al&ate the 2#r0 '3 #. a De"#! t#ry Part c "a't ' acc#rda'ce 2 th Ce'tral De"#! t#ry Ser( ce! *I'd a+ L - ted *CDSL+ 3& del 'e! a'd deter- 'e the 2ay! a'd -ea'! #. -"r#( '3 t! e.. c e'cy5
SCOPE OF THE STUDY The "re!e't !t&dy c#'ce'trate! #' De"#! t#ry Part c "a't Ser( ce Pr#ce!!5 The !t&dy ! -ade ' real 2#r0 '3 e'( r#'-e't a'd e-"ha! ! ! 3 (e' #' (ar #&! 'tr cac e! &'der the De"#! t#ry Part c "a't #"erat #'al 2#r0 at F#rt&'e F 'a'c al Ser( ce! *I'd a+ L - ted5
COMPANY PROFILE
B%si)ess P( $i*e F#rt&'e F 'a'c al Ser( ce! I'd a Ltd5 ! a . 'a'c al !er( ce! c#-"a'y5 It 2a! 'c#r"#rated a! a "r (ate l - ted c#-"a'y #' J&'5 8</ 8DD8 a'd 2a! c#'(erted 't# a "&bl c l - ted c#-"a'y 2 th the "re!e't 'a-e #' Oct5 :F/ 8DD<5
The c#-"a'y "r#( de! . 'a'c al !er( ce! 'cl&d '3 '(e!t-e't ba'0 '3/ !t#c0 br#0 '3 a'd d !tr b&t #'/ c#r"#rate ad( !#ry/ DP !er( ce! a'd c#--#d t e! br#0 '35 It ! a Gcate3#ry 8G -ercha't ba'0er a'd a c#r"#rate -e-ber #. the M&-ba St#c0 EBcha'3e a'd the Nat #'al St#c0 EBcha'3e5 It ha! M< C#--#d ty EBcha'3e #. I'd a a'd Nat #'al C#--#d ty H Der (at (e! EBcha'3e -e-ber!h "! a'd ! al!# a DP 2 th Ce'tral De"#! t#ry Ser( ce! I'd a5 I' :FF?/ the c#-"a'y 2a! a!!#c ated 2 th !!&e! related t# eBter'al c#--erc al b#rr#2 '3! a'd .#re 3' c&rre'cy c#'(ert ble b#'d!5 F#rt&'e EC& ty Br#0er! I'd a a'd F#rt&'e C#--#d t e! H Der (at (e! I'd a are !&b! d ar e! #. the c#-"a'y5 The re3 !tered #.. ce #. the c#-"a'y ! l#cated at I5I5 Cha-ber!/ :'d Fl##r/ S r P5T5 Mar3/ F#rt/ M&-ba E<FFFF85
SERVICES OFFERED BY FORTUNE FINANCIAL + INDIA,LIMITED
S" c- B( -i)./ F#rt&'e ! a c#r"#rate -e-ber #. the B#-bay St#c0 EBcha'3e Ltd5 *BSE+5 F#rt&'eJ! !&b! d ary F#rt&'e EC& ty Br#0er! I'd a L - ted *KFEBILK+ ! a c#r"#rate -e-ber #. the Nat #'al St#c0 EBcha'3e #. I'd a Ltd5 *NSE+5 W th
a ded cated trad '3 de!0 #. 8= trader!/ the c#-"a'y .#c&! #' "r#( d '3 #&r '!t t&t #'al/ HNI a'd reta l cl e't! 2 th "er!#'al 7ed !er( ce! t# .ac l tate the eBec&t #' #. b&y a'd !ell #rder! ' a .la2le!! a'd e.. c e't -a''er #' b#th the BSE a'd NSE5 We #..er the .#ll#2 '3 ra'3e #. !er( ce! rele(a't t# -ar0et 'ter-ed at #'6 BSE L Ca!h Mar0et Se3-e't 4 F&t&re! H O"t #'! NSE L Ca!h Mar0et Se3-e't 4 F&t&re! H O"t #'! CDSL De"#! tary Part c "a't
I)#es"0e)" Ba)-i). /
F#rt&'e .#c&!e! #' - dE-ar0et c#r"#rate cl e't! by #..er '3 c#r"#rate . 'a'ce/ !!&e -a'a3e-e't/ -er3er!/ acC& ! t #'! a'd c#r"#rate ad( !#ry a'd .&'d ra ! '3 ad( !#ry !er( ce!5
Dis"(ib%"i ) $ Fi)a)cia* P( &%c"s 6 F#rt&'e ! a lead '3 d !tr b&t#r #. . 'a'c al "r#d&ct! thr#&3h t! "r#"r etary 'et2#r0 #. eB"er e'ced "r#.e!! #'al! "r#( d '3 "er!#'al 7ed atte't #' a'd c&!t#- 7ed !#l&t #' t# '(e!t#r! ba!ed #' the r r !0Eret&r' "r#. le5
De1 si" (' Pa("ici1a)" Se(#ices6 F#rt&'e F 'a'c al Ser( ce! *I'd a+ L - ted ! a De"#! t#ry Part c "a't CDSL5 It! DPEID ! <<=FF5 It ha! ded cated cl e't !er( ce tea-! ' M&-ba / G#a/ Hyderabad/ P&'e H Delh 5
METHODOLOGY
The "r#$ect ha! bee' d#'e ' real 2#r0 '3 c#'d t #'! at the F#rt&'e F 'a'c al Ser( ce! *I'd a+ L - ted9! de"art-e't l#cated at Ba!heerba3h *Hyderabad+ 2 th "ract cal eB"#!&re .#r the (ar #&! "r#ce!!e! carr ed #&t by DP !er( ce d ( ! #'5 I'.#r-at #' ha! bee' #bta 'ed thr#&3h Pr -ary a'd Sec#'dary !#&rce!5 P(i0a(' S %(ces6
? I'#2led3e #bta 'ed ' the tra ' '3 !e!! #' at F#rt&'e F 'a'c al Ser( ce! *I'd a+ L - ted lear' '3 ce'ter 2here the tra 'ee! are 'tr#d&ced t# the ba! c .&'ct #' '3 #. a De"#! t#ry Part c "a't5 ? Per!#'al 'teract #' 2 th the e-"l#yee! #. F#rt&'e F 'a'c al Ser( ce *I'd a+ L - ted 2h# 2ere '(#l(ed ' the "r#( ! #' #. (ar #&! !er( ce!5 Sec )&a(' S %(ces/ C#llect #' #. data .r#- 'e2!"a"er!/ b##0! a'd $#&r'al!5 C#llect #' #. &"dated '.#r-at #' .r#- the 'ter'et5
DESCRIPTION OF THE STUDY AREA
De1 si" ('/ A De"#! t#ry ! a' #r3a' 7at #' 2here the !ec&r t e! are 0e"t ' the electr#' c .#r-5 At "re!e't there are t2# de"#! t#r e! ' I'd a 'a-ely NSDL "r#-#ted by NSE/ a'd CDSL "r#-#ted by BSE5 De1 si" (' Pa("ici1a)"6
A De"#! t#ry Part c "a't ! a' a&th#r 7ed a3e't #. de"#! t#ry 2h# e..ect! the tra'!act #'! a! "er the '!tr&ct #' #. the cl e't5 F#rt&'e F 'a'c al Ser( ce! *I'd a+ L - ted ! #'e #. the De"#! t#ry Part c "a't! #. CDSL5 De"#! t#ry 'teract! 2 th t! cl e't!4 '(e!t#r! thr#&3h t! a3e't! called de"#! t#ry "art c "a't!5 F#r a'y '(e!t#r4cl e't t# a(a l the !er( ce! "r#( ded by the De"#! t#ry/ he ha! t# #"e' De"#! t#ry acc#&'t/ 0'#2' a! De-at a4c/ 2 th a'y #. the De"#! t#ry Part c "a't!5 De"#! t#ry ca' ' -a'y 2ay! be c#-"ared t# a ba'05 Sec&r t e! #. the '(e!t#r! are held ' electr#' c4b##0 e'try .#r- by the De"#! t#ry5 A"art .r#- h#ld '3 the !ec&r t e!/ De"#! t#ry al!# "r#( de! !er( ce! related t# tra'!act #'! ' !ec&r t e!5 Se(eral c#'! der the De"#! t#ry t# be a'#ther c&!t#d a'5 B&t the de"#! t#ry ha! a' ad(a'ta3e #(er the c&!t#d a' L the De"#! t#ry ca' tra'!.er the Be'e. c al O2'er!h " #. the Sec&r t e! / le3ally / 2h ch a c&!t#d a' ca''#t d#5
De0a" Acc %)" O1e)i)./
A De-at acc#&'t ! #"e'ed #' the !a-e l 'e! a! that #. a Ba'0 Acc#&'t5 Pre!cr bed Acc#&'t #"e' '3 .#r-! are a(a lable 2 th De"#! t#ry Part c "a't! 2h ch t# be . lled by cl e't!5 Sta'dard A3ree-e't! are t# be ! 3'ed by the Cl e't a'd the DP/ 2h ch deta l! the r 3ht! a'd #bl 3at #'! #. b#th the "art e!5
Al#'3 2 th the .#r- the cl e't reC& re! t# attach "h#t#3ra"h! #. Acc#&'th#lder/ atte!ted c#" e! #. "r##. #. re! de'ce a'd "r##. #. de't ty 'eed! t# be !&b- tted al#'3 2 th the acc#&'t #"e' '3 .#r-5 I' ca!e #. C#r"#rate cl e't!/ add t #'al attach-e't! reC& red are L tr&e c#"y #. the re!#l&t #' .#r De-at a4c #"e' '3 al#'3 2 th ! 3'at#r e! t# #"erate the acc#&'t a'd tr&e c#" e! #. the Me-#ra'd&- a'd Art cle! #. A!!#c at #' ! t# be attached5
Se(#ices $$e(e& b' De1 si" (' /
? De-ater al !at #' ! c#'(ert '3 "hy! cal cert . cate! t# electr#' c .#r-5 ? Re-ater al !at #' ! re(er!e #. de-at/ 3ett '3 "hy! cal cert . cate! .r#- the electr#' c !ec&r t e!5 ? Tra'!.er #. !ec&r t e! / cha'3e #. be'e. c al #2'er!h "5 ? Settle-e't #. trade! d#'e #' eBcha'3e c#''ected t# the De"#! t#ry5 ? Pled3e4Hy"#thecat #' #. de-at !hare!5 ? Electr#' c cred t ' "&bl c #..er '3 #. the c#-"a' e!5 ? N#'Eca!h be'e. t! l 0e B#'&!4R 3ht!Ed rect cred t 't# the electr#' c .#r-5
N%0be( $ De1 si" (ies i) "he c %)"('/ ? Nat #'al Sec&r t e! De"#! t#ry Ser( ce! Ltd5 ? Ce'tral De"#! t#ry Ser( ce! Ltd5
DEPOSITORY SYSTEM The ch e. "layer! ' a de"#! t#ry !y!te- are the De"#! t#ry/ De"#! t#ry Part c "a't/ Clear '3 C#r"#rat #'/ Clear '3 Me-ber a'd Re3 !trar a'd Tra'!.er A3e't5
DEPOSITORY / Acc#rd '3 t# !ect #' :*e+ #. the De"#! t#ry Act/ 8DD> %De"#! t#ry -ea'! a c#-"a'y .#r-ed a'd re3 !tered &'der the C#-"a'y9! Act 8D=>/ a'd 2h ch ha! bee' 3ra'ted a cert . cate #.
re3 !trat #' &'der !ect #' 8:*8A+ #. Sec&r t e! EBcha'3e B#ard O. I'd a Act/ 8DD:5, The Act de. 'e! a De"#! t#ry a! M A' #r3a' 7at #' 2here !ec&r t e! #. a !hareh#lder are held ' the .#r- #. electr#' c acc#&'t! ' the !a-e 2ay a! a ba'0 h#ld! -#'ey5 The de"#! t#ry h#ld! electr#' c c&!t#dy #. !ec&r t e! a'd al!# arra'3e! .#r tra'!.er #. #2'er!h " #. !ec&r t e! #' the !ettle-e't date!59
NSDL AND CDSL
The t2# de"#! t#r e! re3 !tered &'der the act are the NSDL*Nat #'al Sec&r t e! De"#! t#ry L - ted + a'd CSDL*Ce'tral De"#! t#ry Ser( ce! L - ted+5
NSDL+Na"i )a* Sec%(i"ies De1 si" (' Li0i"e&,/ NSDL ! the . r!t De"#! t#ry ' I'd a5 It 2a! re3 !tered #' @th J&'e 8DD> 2 th the Sec&r t e! a'd EBcha'3e B#ard #. I'd a5 It 2a! !et &" a! a re!< #. De"#! t#r e! Act/ 8DD> a! a "&bl c l - ted c#-"a'y a'd "r#-#ted by the I'd&!tr al De(el#"-e't Ba'0 #. I'd a *IDBI+/ U' t Tr&!t #. I'd a *UTI+ a'd the Nat #'al EBcha'3e *NSE+ t# .ac l tate trad '3 a'd !ettle-e't #. !ec&r t e! ' de-ater al 7ed .#r-5 The NSDL !y!te- ! de! 3'ed ' !&ch a 2ay that a clear '3 -e-ber ca' 3 (e a'd ta0e del (ery ' electr#' c .#r- #'ly . he #"e'! a !"ec al acc#&'t called the clear '3 acc#&'t 2 th the "art c "a't5 The la&'ch #. NSDL ! a ! 3' . ca't re.#r- ' the ca" tal -ar0et a'd !hall "lay a cr&c al r#le ' dr ( '3 -ar0et e.. c e'cy5 The 3r#2th 2a! !l#2 ' the be3 '' '3 b&t 3athered -#-e't&- 2he' SEBI ca-e #&t 2 th '#t . cat #' re3ard '3 c#-"&l!#ry !ettle-e't #. tra'!act #'! ' !elected !cr "! ' de-at .#r- by . 'a'c al '!t t&t #'!5 The '&-ber #. !ec&r t e! 2h ch 2a! #r 3 'ally re!tr cted t# e 3ht 2a! e'ha'ced "r#3re!! (ely a'd
reta l '(e!t#r! 2ere al!# r#"ed ' c#-"&l!#ry !ettle-e't #. !elected !cr "! ' de-at .#r-5 The c#'ce"t rece (ed a -a$#r b##!t 2he' SEBI 'tr#d&ced the UNIFIED SEGMENT CONCEPT5 Re'der '3 the del (ery #. de-at !ec&r t e! ' "hy! cal !e3-e't! a! M3##d!95 It 2a! the dec ! #' #. SEBI that reC& red 'd ( d&al '(e!t#r! t# acce"t de-at !hare! a'd 'ece!! tated the #"e' '3 #. DP acc#&'t!5 A! a re!< the '(e!t#r! acc#&'t! 2 th NSDL thr#&3h (ar #&! De"#! t#ry Part c "a't !h#2ed a dra-at c !"&rt5
The .&'ct #'! #. NSDL 'cl&de6 • Acc#&'t O"e' '3 • De-ater al 7at #' • Re-ater al 7at #' • Settle-e't a'd Clear '3 • IPO! • C#r"#rate Be'e. t! • Pled3e a'd Hy"#thecat #'
CDSL +Ce)"(a* De1 si" (' Se(#ices Li0i"e&,/ The De"#! t#ry Act 8DD> 'tr#d&ced a -< de"#! t#ry .ra-e2#r0 .#r !cr "le!! !ettle-e't5 The St#c0 EBcha'3e / M&-ba 2 th the c#&'try9! lead '3 ba'0! l 0e Ba'0 #. Bar#da/ Ba'0 #. I'd a/ HDFC Ba'0 a'd SBI ha! "r#-#ted the Ce'tral De"#! t#ry Ser( ce! L - ted/ I'd a9! !ec#'d de"#! t#ry .#r deal '3 ' !ec&r t e! ' electr#' c .#r-5 CDSL had a' ' t al "a d &" ca" tal #. 8FF cr#re!5 Sec&r t e! a'd EBcha'3e #. I'd a *SEBI+ ha! 3ra'ted the cert . cate #. re3 !trat #' &'der re3&lat #' ? #. SEBI *De"#! t#r e! a'd Part c "a't!+ re3&lat #'!/ 8DD> t# CDSL #' 8Dth A&3&!t /8DD@5 CDSL ha! th&! bec#-e the !ec#'d de"#! t#ry ' the c#&'try5
The b!ec"i#es $ "his &e1 si" (' a(e " / ? Accelerate the 3r#2th #. !cr "le!! trad '35 ? Ma0e a -a$#r thr&!t ' 'd ( d&al '(e!t#r "art c "at #' ' the de"#! t#ry5 ? Create c#-"et t (e e'( r#'-e't/ 2h ch 2 ll be re!"#'! (e t# the &!er! a'd de-a'd!5 ? E'ha'ce l C& d ty5
DEPOSITORY PARTICIPANT/ De"#! t#ry Part c "a't ! the a3e't #. the De"#! t#ry a'd ! the 'ter.ace bet2ee' the de"#! t#ry a'd the '(e!t#r5 Acc#rd '3 t# SEBI 3& del 'e!/ . 'a'c al '!t t&t #'!/ ba'0!/ c&!t#d a'!/ !t#c0br#0er! etc ca' bec#-e De"#! t#ry Part c "a't!5 SCHIL ! the . r!t "art c "a't re3 !tered 2 th NSDL5 I' #rder t# a(a l the !er( ce! #. a de"#! t#ry/ a' '(e!t#r ha! t# #"e' a' acc#&'t 2 th a de"#! t#ry thr#&3h a DP $&!t l 0e a "er!#' #"e' '3 a' acc#&'t 2 th the bra'ch #. a ba'05 A DP ! re!"#'! ble .#r -a 'ta ' '3 the !ec&r t e! acc#&'t! #. the '(e!t#r! a'd ha'dl '3 t ' acc#rda'ce 2 th the '(e!t#r9! '!tr&ct #'!5 De"#! t#ry Part c "a't ! the 0ey "layer ' the !y!te-/ 2h ch act! a! a' a3e't #. the De"#! t#ry a'd ! ' .act the c&!t#-er 'ter.ace #. de"#! t#ry5 It #"e'! the acc#&'t! #. the '(e!t#r!/ .ac l tate! de-ater al 7at #'/ !ettle trade! a'd e..ect! c#r"#rate act #'!5
The se.0e)"s i) DP b%si)ess i)c*%&e $i#e 0ai) b%si)esses/
Acc %)" O1e)i)./ O"e' '3 #. a' acc#&'t ' the 'a-e #. the cl e't/ 2h#!e h#ld '3! are held ' the !a-e 2ay a! ' a ba'05
De0a"e(ia*i2a"i )/
The "r#ce!! #. c#'(er! #' #. h#ld '3! .r#- "hy! cal .#r- t# electr#' c .#r-5
Re0a"e(ia*i2a"i )/
The "r#ce!! #. c#'(er! #' #. h#ld '3! .r#- electr#' c .#r- t# b##0 e'try .#r-5
T(a&i). a)& Se""*e0e)"/
Trad '3 a'd Settle-e't #. -ar0et a'd #..E-ar0et trade!5
P*e&.e a)& H'1 "heca"i )/
Fac l tat '3 "led3e #. !ec&r t e! a'd t# "r#( de electr#' c cred t #. 'e2 !hare all#t-e't! !&ch a! b#'&!/ "&bl c !!&e!/ r 3ht! etc5
ELIGIBILITY FOR BEING A DEPOSITORY PARTICIPANT/
A! "er SEBI *De"#! t#r e! a'd Part c "a't!+ Re3&lat #'!/ 8DD>/ the .#ll#2 '3 cate3#r e! are el 3 ble t# bec#-e DP!5 ? P&bl c F 'a'c al I'!t t&t #' a! de. 'ed ' !ect #' <A #. the c#-"a' e! Act/ 8D=>5 ? Ba'0 'cl&ded ' the Sec#'d Sched&le #. the RBI Act/ 8D;<5 ? RBI a""r#(ed .#re 3' ba'0! #"erat '3 ' I'd a5 ? State F 'a'c al C#r"#rat #' e!tabl !hed &'der !ect #' ; #. SFC Act/ 8D=85 ? I'!t t&t #' e'3a3ed ' "r#( d '3 . 'a'c al !er( ce!/ "r#-#ted by a'y #. the '!t t&t #'! -e't #'ed ab#(e/ e ther $# 'tly #r !e"arately5 ? C&!t#d a' #. Sec&r t e! 2h# ha! bee' 3ra'ted cert . cate #. re3 !trat #' &'der !ect #' 8: *8A+ #. SEBI Act5 ? Clear '3 C#r"#rat #' #r Clear '3 h#&!e #. St#c0 EBcha'3e5
? The St#c0br#0er/ 2h# ha! bee' 3ra'ted cert . cate #. re3 !trat #' &'der !ect #' 8: *8+ #. SEBI Act/ "r#( ded that6 *a+ They ha(e a - ' -&- 'et 2#rth #. R!5=Fla0h5 *b+ A33re3ate (al&e #. the P#rt.#l # #. !ec&r t e! held ' de-ater al 7ed .#r- ' a de"#! t#ry thr#&3h each !t#c0br#0er !h#&ld '#t be -#re tha' := t -e! h ! 'et 2#rth5 ? N#'Eba'0 '3 F 'a'ce c#-"a'y "r#( ded that6 *a+ They ha(e a - ' -&- 'et 2#rth #. R!5=la0h/ . they 2 !h t# act a! a DP #'ly #' behal. #. the-!el(e! a'd '#t #' behal. #. a'y #ther "er!#'5 *b+ They ha(e a - ' -&- 'et 2#rth #. R!5=Fcr#re ' add t #' t# the 'et 2#rth !"ec . ed by a'y #ther a&th#r ty/ . they 2 !h t# act a! DP #' behal. #. a'y #ther "er!#'5 The Re3&lat #'! e-"#2er CDSL t# !et t! #2' !elect #' cr ter a ' the Byela2!5 Th&! the a""l ca't! -&!t al!# c#-"ly 2 th the .#ll#2 '3 ad- !! #' cr ter a !tated ' the Byela2!6 ? The a""l ca't !h#&ld ha(e a - ' -&- 'et 2#rth #. R!585=cr#re5
? The a""l ca't !h#&ld '#t ha(e bee' c#'( cted ' a'y #. the . (e year! --ed ately "reced '3 the . l '3 #. the a""l cat #' ' a'y -a''er '(#l( '3 - !a""r#"r at #' #. .&'d! a'd !ec&r t e!/ the.t/ e-be77le-e't #. .&'d!/ .ra&d&le't c#'(er! #' #r .#r3ery5 ? The a""l ca't !h#&ld '#t ha(e bee' eB"elled/ barred #r !&!"e'ded by SEBI/ !el.Ere3&lat#ry #r3a' 7at #' #r a'y !t#c0 eBcha'3e5
CLEARING CORPORATIONS6
The clear '3 c#r"#rat #' "r#( de! clear '3 !er( ce! a'd ! re!"#'! ble .#r the clear '3 a'd !ettle-e't !y!te- .#r t! clear '3 -e-ber! a'd '(e!t#r! t# !ettle the trade #. De"#! t#ry Sy!te-5 The Nat #'al Sec&r t e! Clear '3 C#r"#rat #' L - ted*NSCCL+ ! a 2h#lly ear'ed !&b! d ary #. NSE5
It c##rd 'ate! bet2ee'
The eBcha'3e .#r eBec&ted trade!/ clear '3 -e-ber! a'd c&!t#d a'! .#r br '3 '3 ' the 'ece!!ary .&'d! a'd !ec&r t e! .#r !ettle-e't5 Clear '3 ba'0! .#r !ettle-e't #. .&'d!5 De"#! t#ry .#r !ec&r ty !ettle-e't5
REGISTRAR AND TRANSFER AGENT/
The re3 !trar a'd tra'!.er a3e't*RTA+ ! a cr t cal l '0 bet2ee' I!!&er C#-"a'y/ St#c0 trader a'd I'(e!t#r5 Whether t ! a "r -ary -ar0et/ "&bl c
!!&e #r a !ec#'dary -ar0et trade/ r#le #. RTA ! -"#rta't a! !!&e #. !ec&r t e! #r tra'!.er #. !ec&r t e! ! d#'e thr#&3h th ! a3e'cy5 The !c#"e #. 2#r0 .#r re3 !trar! t# !!&e a'd !hare tra'!.er a3e't! .#r !ec&r t e! ad- tted ' the de"#! t#ry !y!te- are &'der6 Ma 'ta ' '3 #. .#l #! ' the de"#! t#ry5 U"dat '3 #. data d#2'l#aded by the de"#! t#ry #' a "er #d cal ba! !5 C#'. r-at #' #. &"dat '3 t# de"#! t#ry #' a da ly ba! !5 Sca'' '3 #. .r#'t a'd bac0 #. !hare cert . cate be.#re de-ater al !at #'5 I!!&e #. cert . cate! #' re-ater al !at #'5 J#b! relat '3 t# "&bl c !!&e!5 CLEARING MEMBER Clear '3 -e-ber! are "er!#'! 2h# ha(e bee' ad- tted a! -e-ber! by a clear '3 c#r"#rat #'5 Wh ch ha! bee' ad- tted a! a &!er by the de"#! t#ry5 He ha! t# #"e' a clear '3 -e-ber acc#&'t 2 th a "art c "a't5 Clear '3 -e-ber acc#&'t ! held 2 th a DP by the clear '3 -e-ber #. a clear '3 c#r"#rat #'/ .#r the "&r"#!e #. carry '3 #&t clear '3 a'd !ettle-e't .&'ct #'! ' re!"ect t# electr#' c trade5
BENEFITS OF TRADING AND SETTLEMENT UNDER DEPOSITORY SYSTEM/ I' the De"#! t#ry !y!te-/ the #2'er!h " a'd tra'!.er #. !ec&r t e! ta0e! "lace by electr#' c b##0 e'tr e!5 At the #&t!et/ th ! !y!te- r d! the ca" tal -ar0et #. the da'3er! #. ha'dl '3 #. the "a"er5 That ! '#t all/ the De"#! t#ry "r#( de! #ther d rect a'd 'd rect be'e. t! l 0e6
Be)e$i"s " a)& I)#es" (/
Red&ct #' #. r !0 a!!#c ated 2 th "hy! cal !cr "!5 N# !ta-" d&ty #' tra'!.er5 N# bad del (er e!5 N# l#!!4the.t4.#r3ery4.a0e5 Red&ced tra'!act #' c#!t!5 A& c0 !ettle-e't cycle! *TN= !ettle-e't+ I-"r#(ed l C& d ty #. !t#c0!5
Electr#' c cred t ' IPO9!/ R 3ht! a'd B#'&!5 F&'3 b l ty #. De-ater al !ed H#ld '3!5
h#ld '3! a'd tra'!act #'! lead '3 t# better c#'tr#l!5 / 'crea! '3 I--ed ate tra'!.er a'd re3 !trat #' #. !ec&r t e! l C& d ty #. !t#c0! 2 th the '(e!t#r! a'd c#'!eC&e'ce t&r'#(er5 PayE ' a'd "ayE#&t #&t #. .&'d! are #' the !a-e day .#r !cr "le!! trad '35 Red&ct #' ' rate #. 'tere!t #' l#a'! 3ra'ted a3a '!t "led3e #. de-ater al 7ed !ec&r t e! by -a'y ba'0!5 Fa!ter rece "t #. be'e. t! a'd r 3ht! re!< '3 .r#- c#r"#rate act #'5 Pr#tect #' #. !hareh#lder! r 3ht! .r#- t -ely c#--&' cat #' .r#!!&er!4re3 !trar5
Be)e$i"s " C*ea(i). Me0be(/
E'ha'ced l C& d ty/ !a.ety a'd t&r'#(er #' !t#c0 -ar0et5 O""#rt&' ty .#r de(el#"-e't #. reta l br#0era3e b&! 'e!!5 Ab l ty t# arra'3e "led3e! 2 th#&t -#(e-e't #. "hy! cal !cr " a'd .&rther 'crea!e #(erall le(el #. trad '3 act ( ty/ l C& d ty a'd "r#. t5
I-"r#(ed "r#tect #' #. !hareh#lder! r 3ht! re!< '3 .r#- -#re t -ely c#--&' cat #' .r#- the !!&er5 Red&ced tra'!act #' c#!t! thr#&3h 3reater e.. c e'cy5 El - 'at #' #. .#r3ery a'd c#&'ter.e t 2 th atte'da't red&ct #' ' !ettle-e't r !0 .r#- bad del (er e!5 Pr#( de a&t#-at #' t# "#!t trade "r#ce!! '35 Sta'dard 7at #' #. "r#ce!! '35 Br '3 '3 e.. c e'cy t# the -ar0et "lace5 I-"r#(ed ca!h .l#2!5
BENEFITS TO ISSUER COMPANY/
I-"r#(ed e.. c e'cy #. re3 !trar a'd tra'!.er a3e't!5 E.. c e't c#--&' cat #' 2 th '(e!t#r!5 U"dated l !t #. !hareh#lder! #' a 2ee0ly ba! !5
Red&ct #' ' "r 't '3 a'd d !"atch c#!t! .#r 'e2 !!&e! a'd tra'!.er! re!< '3 ' !a( '3!5 Better -a3e 2 th 3l#bal '(e!t#r!5 U"Et#Edate 0'#2led3e #. '(e!t#r9! 'a-e a'd addre!!5 C#r"#rate -a3e a'd a2are'e!!5
Be)e$i"s " Ec ) 0'3C %)"('/
Gr#2 '3 a'd -#re l C& d ca" tal -ar0et! t# "r#( de . 'a'c '3 a'd de(el#"-e't !te-- '3 -#re e.. c e't "#!t trade !y!te-! 2 th red&ced tra'!act #' c#!t!5 I'crea!e ' c#-"et t (e'e!! ' the 'ter'at #'al -ar0et "lace a'd attract '3 '(e!t#r! a'd .&'d -a'a3er! by c#-"ly '3 2 th !t "&lated 'ter'at #'al !ta'dard! call '3 .#r a' e.. c e't a'd r !0 .ree trad '3 e'( r#'-e't5 Great tra'!"are'cy ' the -ar0et5 Pre(e't! add t #' #. -#re "a"er ' the -ar0et5 Re!<! ' 'crea!ed c#'. de'ce #. '(e!t#r!5 Re!<! ' 'te3rat #' #. d#-e!t c -ar0et t# 2#rld ca" tal -ar0et5
Red&ct #' #. !ettle-e't r !0! a'd .ra&d!5
SERVICES OF OFFERED BY A DEPOSITORY PARTICIPANT/
? ACCOUNT OPENING ? DEMATERIALISATION ? REMATERIALISATION ? TRADING AND SETTLEMENT ? TRANSFER OF SECURITIES ? PLEDGE
ACCOUNT OPENING/
A' '(e!t#r 2h# 2 !he! t# #"erate ' electr#' c -#de 2 ll ha(e t# #"e' a' acc#&'t 2 th a'y #. the de"#! t#ry "art c "a't #. h ! ch# ce/ 2h# ! a b&! 'e!! "art'er #. NSDL5 There ! '# re!tr ct #' #' the '&-ber #. acc#&'t! that a' '(e!t#r ca' #"e' 2 th the DP4DP!5 The '(e!t#r ca' #"e' a' acc#&'t by . ll '3 a' acc#&'t #"e' '3 .#r- 2 th the DP5 He ha! t# ! 3' a' a3ree-e't 2 th the de"#! t#ry "art c "a't5 There are ba! cally ; ty"e! #. acc#&'t!5 Be'e. c ary Acc#&'t C#r"#rate Acc#&'t Clear '3 Me-ber Acc#&'t The C#r"#rate Acc#&'t -ay be A H#&!e Acc#&'t A N#'EH#&!e Acc#&'t
P( ce&%(e $ ( 1e)i). a Be)e$icia(' ( a C*ie)" Acc %)"/
The 'd ( d&al ! reC& red t# . ll ' a' acc#&'t #"e' '3 .#r- a(a lable at (ar #&! ISC9! *I'(e!t#r Ser( ce Ce'tre+ #. the DP reC&e!t '3 the DP t# #"e' a' acc#&'t ' h !4her 'a-e #r 'a-e!5 The acc#&'t !h#&ld be #"e'ed ' the !a-e 'a-e4'a-e! a! t a""ear! #' the !hare cert . cate!5 The cl e't ha! t# !&b- t the . lled &" .#r- al#'3 2 th the reC& ! te d#c&-e't! a! !"ec . ed by the DP5 The cl e't ! reC& red t# .&r' !h deta l! re3ard '3 the ba'0 'a-e/ the bra'ch addre!!/ PAN4GIR '&-ber/ ba'0 acc#&'t '&-ber a'd taB ded&ct #' !tat&!5 I. cl e't ! a' NRI '(e!t#r/ deta l! re3ard '3 the .#re 3' addre!!/ RBI re.ere'ce '&-ber a'd RBI a""r#(al data are t# be .&r' !hed5 I. cl e't ! a - '#r the G&ard a' deta l! *'a-e a'd addre!!+ a'd the - '#r/! date #. b rth are t# be "r#( ded5 I. the cl e't 2 !he! t# ha(e a '#- 'ee the '#- 'ee deta l! *'a-e a'd addre!!+ are t# be "r#( ded5
I' ca!e #. $# 't h#lder! the 'a-e! #. all the h#lder!/ the r .ather4h&!ba'd! 'a-e a'd the r PAN4GIR '&-ber! ha(e t# be !"ec . ed5 A' a3ree-e't ! eBec&ted 2 th the DP5 The DP (er . e! .#r c#-"lete'e!! #. the .#r- a'd e'cl#!ed d#c&-e't!5 I. all the '.#r-at #' ab#&t the cl e't ! ' acc#rda'ce 2 th the #r 3 'al d#c&-e't!/ the acc#&'t ! #"e'ed a'd a' acc#&'t '&-ber called the cl e't Id ! 3 (e' t# the cl e't5 Th ! cl e't Id al#'3 2 th the DP ! &' C&e5 The cl e't ha! t# C&#te th ! cl e't d ' all .&t&re c#rre!"#'de'ce 2 th the DP5 The ! 3'at&re! #. all the h#lder! are !ca''ed a'd !t#red .#r .&t&re (er . cat #'5
Acc %)" O1e)i). $ ( C (1 (a"es/
C#r"#rate Acc#&'t -ay be a h#&!e #r a '#'Eh#&!e acc#&'t5 A h#&!e acc#&'t ! the "art c "a't/! #2' be'e. c ary acc#&'t held ' t! #2' !y!te.#r the "&r"#!e #. h#ld '3 t! #2' !ec&r t e!5 N#'Eh#&!e c#r"#rate -ay be . 'a'c al '!t t&t #'!/ F#re 3' I'!t t&t #'al I'(e!t#r!/ B#dy c#r"#rate/ M&t&al F&'d/ Tr&!t #r Ba'05 Pr#ced&re ! !a-e a! that #. a' 'd ( d&al cl e't5 C#r"#rate ha(e t# .&r' !h add t #'al d#c&-e't! l 0e the c#-"a'y b#ard re!#l&t #'/ the Me-#ra'd&- #. A!!#c at #' a'd the Art cle! #. A!!#c at #'5 The ! 3'at&re! #. all the a&th#r 7ed ! 3'at#r e! are !ca''ed a'd !t#red .#r .&t&re (er . cat #'5
P( ce&%(e $ ( O1e)i). a C*ea(i). Me0be( Acc %)"/
A Clear '3 -e-ber -ay be a br#0er #r a' 'ter-ed ary bet2ee' a br#0er a'd the clear '3 c#r"#rat #'5 Clear '3 -e-ber acc#&'t ! a' acc#&'t held 2 th the "art c "a't by a clear '3 -e-ber #. a clear '3 c#r"#rat #' .#r the "&r"#!e #. carry '3 #&t clear '3 a'd !ettle-e't .&'ct #' ' re!"ect #. electr#' c trade!5 A clear '3 -e-ber9! acc#&'t c#'! !t! #. three "art!6 P##l Acc#&'t Del (ery Acc#&'t Rece "t Acc#&'t P##l Acc#&'t -ea'! acc#&'t #. a clear '3 -e-ber -a 'ta 'ed 2 th a "art c "a't/ 2h ch ! &!ed .#r tra'!.er #. the !ec&r t e! .r#- acc#&'t! #. the cl e't t# the clear '3 c#r"#rat #' t# the acc#&'t! #. cl e't! ' ca!e #. "&rcha!e #. !ec&r t e!5 Del (ery Acc#&'t -ea'! the acc#&'t #. the clear '3 -e-ber -a 'ta 'ed 2 th the "art c "a't .#r rece ( '3 !ec&r t e!/ .r#- the "##l acc#&'t a'd tra'!.err '3 the !a-e t# the clear '3 c#r"#rat #'5
Rece "t Acc#&'t -ea'! the acc#&'t #. the clear '3 -e-ber -a 'ta 'ed 2 th the "art c "a't .#r rece ( '3 !ec&r t e! a'd tra'!.err '3 the !a-e t# the "##l acc#&'t5
P( ce&%(e $ ( 1e)i). a) i)&i#i&%a*3c (1 (a"e acc %)"/
S"a("
C*ie)" s%b0i"s "he a11*ica"i ) $ (0
Is $ (0 i) acc (&a)ce 4i"h (e5%i(e0e)"s6
Se't t# D" .#r .&rther "r#ce!! '3
C*ie)" &e"ai*s e)"e(e& i) DPM b' "he D1
Cl e't ! 3'at&re ca"t&red a'd !"ec -e'
C*ie)" ID .e)e(a"e& a)& e)"e(e& ) "he $ (0
The D1 i)"i0a"es c*ie)" ID "
s" 1
Acc %)" 1e)i). $ ( a c*ea(i). 0e0be(/
S"a("
C*ie)" s%b0i"s "he a11*ica"i ) $ (0
Is $ (0 i) acc (&a)ce 4i"h (e5%i(e0e)"s6
Se't t# D" .#r .&rther "r#ce!! '3
F (4a(&e& " NSDL
NSDL all#t! CMBPEID
NSDL se)&s CMBP7ID T DP
D1 1e)s a3c a)& .i#es a3c N 8"
s" 1
De0a"e(ia*isa"i ) 1( cess/
O'e #. the -eth#d! .#r "re(e't '3 all the "r#ble-! that #cc&r 2 th "hy! cal !ec&r t e! ! thr#&3h de-ater al !at #' *de-at+5 I'd a ha! ad#"ted the de-at r#&te ' 2h ch the b##0 e'try ! -ade electr#' cally a3a '!t !ec&r t e! that are ca'celled5 The !hare cert . cate! are !hredded a'd a c#rre!"#'d '3 cred t e'try #. the '&-ber #. !ec&r t e! ! -ade ' the acc#&'t #"e'ed 2 th the De"#! t#ry Part c "a't*DP+5 cl e't !&b!cr b '3 t# !ec&r t e! #..ered by a' !!&er thr#&3h "r -ary -ar0et !!&e! -ay al!# be "r#( ded a' #"t #'5 The cl e't c#&ld #"t t# rece (e the all#tted !ec&r t e! ' a de-ater al 7ed .#r- are .&'3 ble/ /e5 they d# '#t bear a'y d !t '3& !h '3 .eat&re!5
De-ater al !at #' #. "hy! cal !t#c06
I' ca!e #. "r -ary !!&e!/ the '(e!t#r -ay #"t .#r all#t-e't #. !ec&r t e! ' electr#' c .#r-5 I' #rder t# eBerc !e th ! #"t #'/ the '(e!t#r 'eed! t# ha(e a' acc#&'t 2 th a "art c "a't5 Wh le . ll '3 &" the a""l cat #' .#r- .#r the !!&e the '(e!t#r ha! t# -e't #' t! acc#&'t '&-ber 2 th the "art c "a't a'd al!# the 'de't . cat #' '&-ber #. the "art c "a't 2 th NSDL5 O' rece ( '3 electr#' c 't -at #' .r#- the !!&er4RHT a3e't ! -<a'e#&!ly '.#r-! the '(e!t#r #. the all#t-e't by "#!t5
A h#lder #. de"#! t#ry el 3 ble !ec&r t e! -ay 3et h ! "hy! cal h#ld '3 c#'(erted 't# electr#' c .#r- by -a0 '3 a reC&e!t thr#&3h the DP 2 th 2h#- he ha! be'e. c ary acc#&'t5
P(e(e5%isi"es $ ( De0a"e(ia*isa"i ) Re5%es"/
98 The re3 !tered h#lder #. the !ec&r t e! !h#&ld -a0e the reC&e!t5 :8 Sec&r t e! t# be de-aterl al 7ed -&!t be rec#3' 7ed by NSDL el 3 ble5 I' #ther 2#rd!/ #'ly th#!e !ec&r t e! 2h#!e ISIN ha! bee' act (ated by NSDL/ ca' be de-ater al 7ed5 ;8 The c#-"a'y4 !!&e !h#&ld ha(e e!tabl !hed c#''ect ( ty 2 th NSDL5 #'ly a.ter !&ch c#''ect ( ty ! e!tabl !hed that !ec&r t e! #. that c#-"a'y4 !!&er are rec#3' 7ed t# be a(a lable .#r de-ater al 7at #'5
<8 The h#lder #. !ec&r t e! !h#&ld ha(e a be'e. c ary acc#&'t ' the !a-e 'a-e a! t a""ear! #' the !ec&r ty cert . cate! t# be de-ater al 7ed5 =8 The reC&e!t !h#&ld be -ade ' the "re!cr bed de-ater al 7ed reC&e!t .#r-5
T(a)s1 si"i ) c%0 De0a"/
NSDL ha! a-e'ded t! Byela2! a'd B&! 'e!! R&le! t# e'able t# tra'!"#!e 'a-e! #. the $# 't h#lder! al#'3 2 th the "r#ce!! #. de-ater al !at #' thr#&3h the D"!5 Pr #r t# th ! a-e'd-e't '(e!t#r! ha( '3 Share! ' $# 't 'a-e! *Mr5A H Mr5B+/ b&t ' d ..ere't !eC&e'ce *Mr5B H Mr5A+/ 2ere e ther t# #"e' -< "le acc#&'t! .#r each !eC&e'ce *Mr5A H Mr5B a'd Mr5B H Mr5A+ #r t# e..ect the tra'c"#! t#' d rectly 2 th the !!&er4RHT a3e't a'd the' de-ater al 7ed the r !ec&r t e! thr#&3h the r D"!5 I' ca!e #. tra'!"#! t #'Ec&- de'ater al !at #'/ the cl e't ca' 3et the !ec&r t e! de-ater al 7ed ' the !a-e acc#&'t . the 'a-e! a""ear '3 #' the cert . cate! -atch 2 th the 'a-e! ' 2h ch the acc#&'t ha! bee' #"e'ed b&t are ' a d ..ere't #rder/ by !&b- tt '3 the !ec&r ty cert . cate! al#'3 2 th tra'!"#!t #' .#r- a'd the de-ater al !at #' .#r- t# the D"5
INVESTOR
R > T AGENT
NSD L
PROCEDURE FOR DEMATERIALISATION OF PHYSICAL STOCK/
• N# reC&e!t! .#r De-at !h#&ld be e'terta 'ed .#r a "er!#' #ther tha' the re3 !tered !hareh#lder ' the b##0! #. the c#-"a'y5 • The cl e't 2 ll !&b- t a reC&e!t t# the De"#! t#ry Part c "ate ' the de-ater al !at #' reC&e!t .#r- .#r de-atr al !at #' al#'3 2 th the cert . cate! #. !ec&r t e! t# be de-ater al 7ed5 Be.#re !&b- !! #'/ the cl e't t# de.ace the cert . cate! by 2r t '3 %!&rre'dered .#r De-at,5 • The De"#! t#ry Part c "a't 2 ll (er .y that the .#r- ! d&ly . lled ' a'd the '&-ber #. cert . cate!/ '&-ber #. !hare! a'd the !ec&r ty ty"e *EC& ty/ Debe't&re! etc+ are 3 (e' ' the DRF *De-at ReC&e!t F#r-+5 I. the .#r- a'd !ec&r ty c#&'t ! ' #rder/ the "art c "a't 2 ll !cr&t ' 7e the .#r- a'd the cert . cate! 2h ch '(#l(e! the .#ll#2 '36 85 (er . cat #' #. cl e't9! ! 3'at&re #' the De-ater al !ed reC&e!t 2 th the !"ec -e' ! 3'at&re *the ! 3'at&re #' the acc#&'t #"e' '3 .#r-+5 I. the ! 3'at&re d ..er!/ the Part c "a't !h#&ld e'!&re h -!el. #. the de't .y #. the cl e't5 L :5 c#-"are the 'a-e! #' DRF H the cert . cate! 2 th the cl e't acc#&'t5
;5 "a dE&" !tat&! <5 ISIN =5 "ar "a!!& !tat&! >5 l#c0EI' !tat&! ?5 d !t 'ct (e '&-ber! • I' ca!e !ec&r t e! are '#t ' #rder they are ret&r'ed t# the cl e't a'd ac0#2led3e-e't ! #bta 'ed5 The De"#! t#ry Part c "a't 2 ll re$ect the reC&e!t a'd ret&r' the DRF a'd cert . cate! ' ca!e5 • I. the ISIN #. the cert . cate !&rre'dered/ "erta ' '3 t# a ! '3le DRF ! '#t the !a-e5 • I' ca!e the cert . cate! are -&t lated/ #r they are de.eated ' !&ch a 2ay that the -ater al '.#r-at #' ! '#t readable/ the "art c "a't 2 ll re$ect the De-ater al !at #' reC&e!t5 He -ay ad( ce the cl e't t# !e'd the cert . cate! t# the I!!&er4RHT a3e't a'd 3et 'e2 !hare! ' l e& there#.5 • The Part c "a't -&!t (er .y the 'at&re #. the !ec&r ty/ t! "ar b&! !tat&! 2 th re.ere'ce t# the l !t #. ISIN *I'ter'at #'al Sec&r ty Ide't . cat #' N&-ber+ c#de! a(a lable 2 th t5 Wr#'3 all#cat #' -ay re!< ' a(# dable l#!!e! t# the cl e't!5 The ISIN ! e'tered ' !"ace "r#( ded .#r t ' the De-ater al !at #' reC&e!t .#r-5 • I. "art! #. the cert . cate! "erta ' '3 t# a ! '3le DRF are "artly "a dE&" the "art c "a't! 2 ll re$ect a'd ret&r' the DRF al#'3 2 th the cert . cate!5 He -ay ad( ce the cl e't t# !e'd !e"arate reC&e!t .#r the l#c0edE ' cert . cate!5 Al!# cert . cate! l#c0edE ' .#r d ..ere't rea!#'! !h#&ld '#t be !&b- tted t#3ether 2 th a ! '3le DRF5
• I' ca!e the !ec&r t e! are .#&'d ' #rder the deta l! #. the reC&e!t a! -e't #'ed ' the .#r- are e'tered ' the DPM a'd De-ater al !at #' reC&e!t '&-ber 2 ll be 3e'erated by the !y!te-5 • The DRN !# 3e'erated ! e'tered ' the !"ace "r#( ded .#r the "&r"#!e ' the DRF5 • A "er!#' #ther tha' the "er!#' 2h# e'tered the data !h#&ld (er .y deta l! rec#rded .#r the DRN5 The "art c "a't the' relea!e! the reC&e!t t# DM5 • The DM .#r2ard! the reC&e!t t# the I!!&er4RHT a3e't electr#' cally5 • The "art c "a't 2 ll "&'ch the cert . cate! #' the c#-"a'y 'a-e a! !h#2' ' the A''eB&reEIIEB !# that t d#e! '#t de!tr#y a'y -ater al '.#r-at #' #' the cert . cate5 • The "art c a"a't 2 ll the' d !"atch the cert . cate! al#'3 2 th the reC&e!t .#r- a'd a c#(er '3 letter l 0e A''eB&reEIIEC t# the I!!&er4RHT a3e't5 • Whe' the I!!&er4RHT a3e't c#'. r-! acce"ta'ce #. the reC&e!t .#r.#r De-ater la !at #' the DM electr#' cally a&th#r 7e the creat #' #. a""r#"r ate cred t bala'ce! ' the cl e't9! acc#&'t5 • The DPM 2 ll cred t the cl e't9! acc#&'t a&t#-at cally5 • The Part c "a't -&!t '.#r- the cl e't the cha'3e! ' the cl e't9! acc#&'t .#ll#2 '3 the c#'.#ra-t #' #. the reC&e!t5
P( ce&%(e $ ( De0a"e(ia*isa"i ) $ P(i0a(' Iss%e/
A' '(e!t#r 2h le a""ly '3 .#r a "r -ary !!&e ha! t# 'd cate the #"t #' t# rece (e all#t-e't #. !ec&r t e! ' electr#' c .#r- ' the a""l cat #'5/ The acc#&'t '&-ber #. the '(e!t#r a'd the "art c "a't9! de't . cat #' '&-ber 2 th NSDL al!# ha(e t# be -e't #'ed ' the a""l cat #' .#r-5 • O' all#t-e't/ the I!!&er4RHT a3e't all#cate! the !ec&r t e! t# NSDL5 The I!!&er4RHT a3e't ' the DPM &"l#ad! th ! '.#r-at #'5 • The DM d#2'l#ad! the all#dat #' #. !ec&r t e! t# the Mrele(a't cl e't!9 acc#&'t! ' the DPM5 • The "art c "a't '.#r-! the cl e't acc#rd '3ly5 • I' ca!e 2here all#cat #' 2 ll '#t be cred ted t# the cl e't9! acc#&'t d&e t# 'c#rrect acc#&'t '&-ber/ the !a-e ! b##0ed t# the !&!"e'!e acc#&'t at the DPM5 • A re"#rt ! 3e'erated #. all all#cat #' b##0ed t# the !&!"e'!e acc#&'t5 • Ma'&al "r#ce!! '3 ! &'derta0e' ' re!#l( '3 the all#cat #'! b##0ed t# !&!"e'!e acc#&'t5 Each all#cat #' ! chec0ed !e"arately5 Th ! '(#l(e! .#ll#2 &" 2 th the I!!&er4RHT a3e't t# . 'd the r 3ht be'e. c ary5 • O'ce the r 3ht be'e. c ary acc#&'t! traced/ the r 3ht b##0 '3 ! re"#rted t# the DM5 The all#cat #' ! -#(ed #&t #. the !&!"e'!e acc#&'t a'd the DM Cred t! the r 3ht acc#&'t5
• I. the c#rrect be'e. c ary acc#&'t ca''#t be traced .#r -#re tha' . .tee' day!/ the I!!&er4RHT a3e't 2 ll be a!0ed t# "#!t "hy! cal cert . cate! t# the c#'cer'ed '(e!t#r! a'd the !&!"e'!e bala'ce 2 ll be red&ced t# 7er#5
P(eca%"i )s/
• H#ld '3! ' th#!e !ec&r t e! that ha(e '#t yet bee' ad- tted .#r de-ateral !at #' by NSDL ca''#t be de-ater al 7ed5 L !t #. !ec&r t e! ad- tted .#r de-ateral !at #' !h#&ld be (er . ed be.#re de.ac '3 the !ec&r t e!5 • H#ld '3! ' !treet 'a-e ca''#t be de-ater al 7ed5 A 'e2 "r#ced&re ! ' "lace .#r tra'!.er H de-at t# be d#'e t#3ether5 • The c#-b 'at #' a'd !eC&e'ce #. 'a-e! #. h#lder! a! "r 'ted #' the "hy! cal cert . cate !h#&ld be de't cal 2 th the 'a-e! ' t at '3 the de-ater al !at #' reC&e!t5 • Se"arate de-ater al !at #' reC&e!t 2 ll ha(e t# be . lled .#r l#c0edE ' a'd .ree h#ld '3!5 • Se"arate de-ater al !at #' reC&e!t! 2 ll ha(e t# be . lled .#r .&lly "a d &" a'd "artly "a d &" h#ld '3!5 • Se"arte de-ateral !at #' reC&e!t! 2 ll ha(e t# be . lled .#r h#ld '3! ' the d ..ere't ISIN! #. a c#-"a'y5
Reas )s $ ( Re!ec"i )/
The De"#! t#ry Part c "a't/ .#r the .#ll#2 '3 rea!#'! that re$ect the De-at reC&e!t .#r-!5 • I. the cl e't ID '#t -e't #'ed5 • I. the h#lder9! ! 3'at&re ! - !! '35 • I. the "atter' #. the 'a-e! #' the a""l cat #' are ' - !-atch 2 th that #' the !ec&r t e!5 • I. the 'a-e t!el. ! ' - !-atch 2 th that #' the !ec&r t e!5 • I. the C&a't ty #. !hare! ' the a""l cat #' are ' - !-atch 2 th that #. the !ec&r t e!5 • I. the cl e't ID ! 'c#rrect5 • The !cr " ! '#t &'der De-ater al !at #'5 • I. the '&-ber #. !hare cert . cate! d#e! '#t tally 2 th the '&-ber !"ec . ed #' the a""l cat #'5 • I. deta l! !&ch a! .#l #/ d !tr b&t #' '&-ber! are '#t -e't #'ed5 • I. the !hare! are 2arra't EC& ty Share! #r Debe't&re!5 • A'y #ther rea!#'5 • I. t2# ISIN! are -e't #'ed #' the !a-e DRF5 • I. the cl e't ID ! '#t act (e5 • I. the DRF ! rece (ed 2 th#&t the !hare cert . cate!5 • I. the a""l cat #' .#r- ! already re$ected5
DEMATERIALISATION PROCESS
Be.i)
Sha(eh *&e(s s%b0i"s DRF > sha(e ce("i$ica"e
IRC $ (4a(&s " DP i)4a(& Sha(e ce("i$ica"es &e$e((e& as s%b0i""e& $ ( &e0a" Ph'sica* ce("i$ica"es #e(i$ie& 4i"h chec-*is" .e)e(a"e& a" i)4a(& a)& 0 &i$ica"i )s 0a&e i$ )ecessa('
Is "he $ (0 acce1"e&
C(ea"i ) $ "e?" $i*e I)$ (0a"i ) %1* a&e& " NSDL
DRN .e)e(a"e&
A
A
DRN )%0be( 4(i""e) ) DRF
DRF@s $ (4a(&e& " i)4a(&
DRFs %)&e( #a(i %s RTAs se1a(a"e& 4i"h a c #e(i). *e""e( $ ( e#e(' RTA
DRFs se)" " i)"e()a* a%&i"
Se)& " Dis1a"ch a$"e( a%&i"i).
F (0s &is1a"ch " "he (es1ec"i#e (e.is"(a(s
s" 1
REMATERIALISATION
Re-ater al !at #' ! the "r#ce!! #. !!& '3 "hy! cal !ec&r t e! ' "lace I#. the !ec&r t e! held electr#' cally ' b##0Ee'try .#r- 2 th de"#! t#ry5 U'der th ! "r#ce!!/ the de"#! t#ry acc#&'t #. a be'e. c al #2'er ! deb ted .#r the !ec&r t e! !#&3ht t# be re-ater al 7ed a'd "hy! cal cert . cate! .#r the eC& (ale't '&-ber #. !ec&r t e! are !!&ed5 A be'e. c al #2'er h#ld '3 the !ec&r t e! 2 th a de"#! t#ry ha! a r 3ht t# 3et h ! electr#' c h#ld '3 c#'(erted 't# "hy! cal h#ld '3 at a'y t -e5 The be'e. c al #2'er de! r '3 t# rece (e "hy! cal !ec&r ty cert . cate! ' "lace #. the electr#' c h#ld '3 !h#&ld -a0e a reC&e!t t# the !!&er #r t! RHT A3e't thr#&3h h ! DP ' the "re!cr bed Re-ater al !at #' ReC&e!t F#r- *RRF+5
P(e(e5%isi"e " a Re70a"e(ia*isa"i ) Re5%es"/
85 The be'e. c al #2'er! #. the !ec&r t e! !h#&ld -a0e the reC&e!t5 :5 There !h#&ld be !&.. c e't .ree bala'ce #. !ec&r t e! a(a lable ' the be'e. c ary acc#&'t t# h#'#&r the reE-ateral !ed reC&e!t5
Re7Ma"e(ia*isa"i ) P( cess/
85 The DP !h#&ld "r#( de reE-ater al !at #' reC&e!t .#r-!*RRF+ t# cl e't!5 :5 The cl e't !h#&ld c#-"lete RRF ' all re!"ect! a'd !&b- t t t# the DP5 ;5 The DP !h#&ld chec0 RRF .#r (al d ty/ c#-"lete'e!! a'd c#rrect'e!!5 I' "art c&lar/ the .#ll#2 '3 "# 't! !h#&ld be chec0ed5 • There ! !&.. c e't .ree bala'ce a(a lable ' the cl e't9! acc#&'t t# h#'#&r the re-ater al !at #' reC&e!t5 • The 'a-e #. the cl e't #' RRF ! eBactly the !a-e a! that ' the cl e't acc#&'t5 • I' ca!e #. $# 't h#ld '3/ the #rder #. 'a-e! a""ear '3 ' RRF ! the !a-e a! ' the cl e't9! acc#&'t5 • Deta l! l 0e !ec&r ty/ .ace (al&e/ !!&er9! 'a-e a'd l#c0E ' !tat&! are . lledE ' c#rrectly5 • The cl e't ha! 'd cated h ! #"t #' t# rece (e "hy! cal cert . cate! e ther ' $&-b# l#t .#r the e't re C&a't ty reC&e!ted #r ' -ar0et l#t5 • Se"arate RRF are !&b- tted .#r
? Free a'd l#c0edE ' !ec&t r e!
? Sec&tr r e! l#c0edE ' .#r d ..ere't rea!#'! ? Each ISIN ? Sec&r t e! #. d ..ere't "a dE(al&e a'd ? Each cl e't acc#&'t • RRF ! ! 3'ed by ? The !#le h#lder ' ca!e #. ! '3le h#ld '3 ? All $# 't h#lder! ' ca!e #. $# 't h#ld '3 ? A&th#r 7ed S 3'at#r e! ' the ca!e #. c#r"#rate acc#&'t!/ ? C#'!t t&ted att#r'ey ' the ca!e #. NRI acc#&'t! <5 I. RRF ! '#t .#&'d ' #rder/ the DP !h#&ld ret&r' the RRF t# the cl e't .#r rect . cat #'5 =5 I. RR. ! .#&'d ' #rder the DP !h#&ld acce"t RRF a'd !!&e a' ac0'#2led3e-e't t# the cl e't5 >5 DP Sh#&ld e'ter the reE-ater al !at #' reC&e!t ' DPM5 DPM 2 ll 3e'erate a re-at reC&e!t '&-ber *RRN+ 2h ch !h#&ld be -e't #'ed #' RRF5 ?5 A' a&th#r 7ed "er!#'/ #ther tha' #'e 2h# e'tered the RRF deta l! ' DPM/ !h#&ld (er .y the deta l! #. RRN a'd relea!e a reC&e!t t# the de"#! t#ry5 @5 The DP !h#&ld c#-"lete the a&th#r 7at #' .#r RRF t# the !!&er #r t! RHT A3e't .#r reE-ater al !at #'5 The DP !h#&ld .#r2ard RRF t# the !!&er #r t! RHT A3e't 2 th ' !e(e' day! #. acce"t '3 t .#r- the cl e't5
D5 The !!&er #r t! RHT A3e't !h#&ld (er .y the RRF .#r (al d ty/ c#-"lete'e!! a'd c#rrect'e!!5 It !h#&ld al!# -atch the deal! 2 th the 't -at #' rece (ed .r#- the de"#! t#ry a3a '!t the !a-e RRN5 8F5I' ca!e the !!&er #r t! RHT A3e't . 'd! RRF ' #rder/ t !h#&ld c#'. r- the re-at reC&e!t the !!&er #r t! RHT A3e't !h#&ld the' "r#ceed t# !!&e the "hy! cal !ec&r ty cert . cate! a'd d !"atch the- t# the be'e. c al #2'er5 885The DP/ #' rece ( '3 c#'. r-at #' #. deb t e'try ' DPM/ !h#&ld '.#r- the cl e't acc#rd '3ly5 The e't re "r#ce!! ta0e! a -aB -&- #. ;Fday!5 N# trad '3 ! "#!! ble #' the !ec&r t e! !e't .#r re-at5
PROCEDURE FOR REMATERIALISATION OF SECURITIES /
STAR T
Recei1" $ RRF $ (0 c*ie)"
D es c*ie)" ha#e s%$$icie)" ba*a)ce i) his acc %)"
Re5%es" sa#e& i) DPMARRN .e)e(a"e&
Re!ec" (e5%es"
Ve("i$ie& RRN $ (4a(&e& " NSDL
A%"h (i2a"i ) $ RRF b' DP
Re5%es" $ (4a(&e& b' NSDL " R>T e*ec"( )ica**'
Ph'sica* (e5%es" $ (4a(&e& " R>T
Ne4 ce("i$ica"es 1(i)"e& b' R>T
Dis1a"chi). $ ce("i$ica"es " i)#es" ( > c )$i(0a"i
A
S"a"%s %1&a"e& " DP
A
I)"i0a"i ) " c*ie)" b' "he DP
s 1
TRADING AND SETTLEMENT IN DEPOSITORY MODE/
Trad '3 ' De-ater al 7ed !ec&r t e! ! d ..ere't .r#- trad '3 ' "hy! cal !ec&r t e! a'd trade ' #'e .#r- ca''#t be !ettled ' a'#ther .#r-5 H#2e(er/ SEBI ha! a''#&'ced that 2 th e..ect .r#- >th A"r l/ 8DD@/ de-ater al 7ed !ec&r t e! ca' be del (ered a3a '!t #bl 3at #' ' the "hy! cal -ar0et #. b#th NSE a'd BSE5 Th ! -ea'! a' '(e!t#r 2h# ha! !#ld !ec&r t e! ' "hy! cal -ar0et ca' del (er e ther "hy! cal #r de-ater al 7ed !ec&r t e!5 B&t "hy! cal !ec&r t e! ca''#t be del (ered a3a '!t #bl 3at #' ' the -ar0et .#r de-ater al 7ed !ec&r t e!5 C&rre'tly/ de-ater al 7ed !ec&r t e! ca' be traded #' NSE a'd BSE5 All trade! d#'e ' De"#! t#ry !e3-e't 2 th e..ect .r#- 8=th Ja'&ary/ 8DD@ !h#&ld .#ll#2 R#ll '3 Settle-e't Cycle5
R **i). Se""*e0e)" +TB;,/
I' ca!e #. R#ll '3 Settle-e't Cycle/ the acc#&'t '3 "er #d ! red&ced t# #'e day5 Th ! -ea'! that . the br#0er eBec&te! the tra'!act #' #' M#'day/ !ettle-e't #. the !a-e 2 ll be #' Th&r!day5 S - larly/ .#r trade! eBec&ted #' T&e!day/ !ettle-e't 2 ll be #' Fr day a'd !# #'5
P( ce&%(e $ ( Se**i). De0a" Sec%(i"ies/
The "r#ced&re .#r !ell '3 De-at !ec&r t e! ! (ery ! -"le5 A.ter !ell '3 the !ec&r t e! #'e 2#&ld '!tr&ct h !4her DP t# deb t h !4her acc#&'t 2 th the '&-ber #. !ec&r t e! !#ld by h - a'd cred t h !4her br#0er9! acc#&'t5 Th ! del (ery '!tr&ct #' ha! t# be 3 (e' t# h !4her DP &! '3 the del (ery '!tr&ct #' !l "! 3 (e' t# h -4her by h ! DP at the t -e #. #"e' '3 the acc#&'t5
P( ce&%(e $ ( se**i). sec%(i"ies is as $ ** 4s/
85 O#& !ell !ec&r t e! ' a'y #. the !t#c0 eBcha'3e! l '0ed t# NSDL thr#&3h a br#0er5 :5 O#& 3 (e '!tr&ct #'! t# y#&r DP t# deb t y#&r acc#&'t a'd cred t the br#0er9! acc#&'t5 ;5 Be.#re the "ayE ' day/ y#&r br#0er 3 (e! '!tr&ct #' t# t! DP .#r del (ery t# clear '3 c#r"#rat #'5 <5 O#&r br#0er rece (e! "ay-e't .r#- the !t#c0 eBcha'3e *clear '3 c#r"#rat #'+5 =5 O#& rece (e "ay-e't .r#- the br#0er .#r the !ale #. !ec&r t e!5
P( ce&%(e $ ( P%(chasi). De0a" Sec%(i"ies/
F#r rece ( '3 De-at !ec&r t e! #'e -ay 3 (e a #'e t -e !ta'd '3 '!tr&ct #' t# h !4her DP5 Th ! !ta'd '3 '!tr&ct #' ca' be 3 (e' at the t -e #. acc#&'t #"e' '3 #r later5 Alter'at (ely/ #'e -ay ch##!e t# 3 (e !e"arate rece "t '!tr&ct #' e(ery t -e !#-e !ec&r t e! are t# be rece (ed5 The tra'!act #' relat '3 t# "&rcha!e #. !ec&r t e! are !&--ar 7ed5
P( ce&%(e $ 1%(chase sec%(i"ies is as $ ** 4s/
• O#& "&rcha!e !ec&r t e! thr#&3h a br#0er5 • O#& -a0e "ay-e't t# y#&r br#0er 2h# arra'3e! "ay-e't t# clear '3 c#r"#rat #' #' the "ayE 'Eday5 • O#&r br#0er rece (e! cred t #. !ec&r t e! ' t! clear '3 c#r"#rat #' #' the "ayE 'Eday5 • O#&r br#0er 3 (e! '!tr&ct #' t# t! DP t# deb t clear '3 acc#&'t a'd cred t y#&r acc#&'t5 • O#& rece (e !hare! 't# y#&r acc#&'t5 H#2e(er . !ta'd '3 '!tr&ct #' are '#t 3 (e' at the t -e #. #"e' '3 the acc#&'t y#& 2 ll ha(e t# 3 (e '!tr&ct #'! t# y#&r DP .#r rece ( '3 cred t5
• O#& !h#&ld e'!&re that y#&r br#0er tra'!.er! the !ec&r t e! .r#- t! clear '3 acc#&'t t# y#&r de"#! t#ry acc#&'t be.#re the b##0 cl#!&re5 I. the !ec&r t e! re-a ' ' the clear '3 acc#&'t #. the br#0er the c#-"a'y 2 ll 3 (e c#r"#rate be'e. t *d ( de'd #r b#'&!+ t# the br#0er5 I' that ca!e y#& 2 ll ha(e t# c#llect the be'e. t! .r#- the br#0er5 • Trad '3 ' de-ater al 7ed !ec&r t e! ca' be b .&rcated 't# -ar0et a'd #..E-ar0et trade!5
Ma(-e" T(a&es/
Mar0et trade! are th#!e trade! that are eBec&ted #' the !t#c0 eBcha'3e! a'd are cleared a'd !ettled thr#&3h the clear '3 c#r"#rat #'5 F#r the "&r"#!e #. NSDL #"erat #'!/ trade!/ 2h ch are 'e3#t ated a'd !&b!eC&e'tly re"#rted t# the !t#c0 eBcha'3e .#r be '3 cleared a'd !ettled thr#&3h the clear '3 c#r"#rat #'/ ! al!# treated a! Mar0et Trade!5 Mar0et trade! ca' be !ettled #'ly thr#&3h a clear '3 -e-ber5 A'y clear '3 -e-ber 'te'd '3 t# "art c "ate ' De"#! t#ry !e3-e't #. the -ar0et ha! t# #"e' a !"ec al clear '3 -e-ber acc#&'t 2 th a "art c "a't5 I. the clear '3 -e-ber ! t!el. ! a "art c "a't/ the acc#&'t ca' be #"e'ed ' t! #2' "art c "a't !etE &"5 Whe' cl e't! !ell !ec&r t e!/ !ec&r t e! are -#(ed .r#- the cl e't9! acc#&'t t# the "##l acc#&'t #. the -e-ber5 At the t -e #. "ayE ' the !ec&r t e! are -#(ed t# the clear '3 c#r"#rat #' ba!ed #' the 'et #bl 3at #' #. the clear '3 -e-ber5 I'(ar ably/ the reta l cl e't! &!e the !er( ce! #. the !ell '3 br#0er a! a clear '3 -e-ber .#r !ettle-e't #. the r tra'!act #'!5
H#2e(er/ the .ac l ty .#r &! '3 a clear '3 -e-ber #ther tha' the br#0er 2h# eBec&te! the #rder! ! a(a lable5 I' !&ch ca!e! the cl e't 2 ll 'd cate the clear '3 -e-ber at the t -e #. "lac '3 #rder5 I. the clear '3 -e-ber acce"t! the trade/ the trad '3 -e-ber 2h# eBec&ted the tra'!act #' t# the clear '3 -e-ber! tra'!.er! the r 'et #bl 3at #'! t# the clear '3 c#r"#rat #'5 O' the "ay#&t day/ the clear '3 c#r"#rat #' 2 ll cred t the "##l a-#&'t #. the clear '3 -e-ber 2 th 'et rece (able! by the clear '3 -e-ber5 The clear '3 -e-ber 2 ll the' 3 (e '!tr&ct #'! .#r tra'!.err '3 the bala'ce! .r#- the "##l acc#&'t t# the b&y '3 cl e't9! acc#&'t!5
O$$7Ma(-e" T(a&es/
O..EMar0et Trade! are th#!e trade! that are cleared a'd !ettled thr#&3h the clear '3 c#r"#rat #' #r the clear '3 h#&!e5 O..EMar0et Trade! are deal! 3e'erally .#r b&l0 C&a't t e!/ 2h ch are 'e3#t ated #&t! de the trad '3 !y!te- #. !t#c0 eBcha'3e bet2ee' trad '3 -e-ber! d rectly5 I. the!e trade! are !&b!eC&e'tly re"#rted t# the !t#c0 eBcha'3e a'd cleared thr#&3h the clear '3 c#r"#rat #'/ they are '#t treated a! O..EMar0et Trade!5 O..EMar0et Trade! re!< ' tra'!.er! .r#- #'e be'e. c ary acc#&'t t# a'#ther be'e. c ary acc#&'t a'd bet2ee' a be'e. c ary acc#&'t a'd the h#&!e acc#&'t #. a "art c "a't5
PLEDGE
NSDL "r#( de! be'e. c al #2'er! 2 th the .ac l ty Pled3e4Hy"#thecate !ec&r t e! held ' De-ater al 7ed .#r-5
P( ce&%(e $ ( c(ea"i). a P*e&.e ( H'1 "heca"i )6
Whe' the be'e. c al #2'er 'te'd! t# create a Pled3e #r Hy"#thecat #' #' a !ec&r ty #2'ed by h -/ he !h#&ld -a0e a' a""l cat #' the DP 2h# ha! a' acc#&'t ' re!"ect #. !&ch a !ec&r ty5 The deta l! re3ard '3 the C&a't ty #. !hare! t# be "led3ed a'd the t -e "er #d ha(e t# be .&r' !hed5 The DP !hall a.ter -a0 '3 a '#te ' t! rec#rd! #. the '#t ce #. "led3e a'd hy"#thecat #'/ .#r2ard! the a""l cat #' #. the be'e. c al #2'er t# the de"#! t#ry5 O' rece "t #. !&ch a""l cat #' the de"#! t#ry !hall -a0e '(e!t 3at #' a! t -ay c#'! der 'ece!!ary a'd . a""r#(e! the creat #' #. "led3e #r Hy"#thecat #'/ t !hall e'ter the "art c&lar! ' t! rec#rd! a'd 't -ate! the DP5 The DP ' t&r' '.#r-! the be'e. c al #2'er5 I. the de"#! t#ry re$ect! the creat #' #. Pled3e #r hy"#thecat #' t !hall rec#rd the rea!#'! .#r !&ch d !a""r#(al a'd 't -ate! the DP/ 2h# ' t&r' '.#r- the be'e. c al #2'er5
• The Part c "a't 2 th#&t the c#'c&rre'ce #. the "led3e !hall a..ect '# tra'!.er #. !ec&r t e!/ ' re!"ect #. 2h ch '#t ce #. "led3e #r e'try ! ' .#rce5 • The Pled3ed !ec&r t e! are b##0ed ' .a(#&r #. the Pled3e/ 2h# ca' relea!e the "led3e #'ce the "led3#r re"ay! t! l#a'5 • I. the "led3#r .a l! t# re"ay the l#a'/ the "led3ee ca' '(#0e the "led3e ' acc#rda'ce 2 th the "led3e deed5 • O' '(#0 '3 the "led3e/ the !ec&r t e! 2 ll 3et tra'!.erred t# the Pled3ee9! acc#&'t a'd ' t! 'a-e --ed ately5 • The "led3#r ca' cl#!e "led3e by -a0 '3 a' a""l cat #' t# the DP a.ter re"ay-e't #. the l#a' t# the "led3ee5
OTHER SERVICES OFFERED BY A DEPOSITORY PARTICIPANT/
? TRANSMISSION OF SECURITIES ? TRANSPORTATION OF SECURITIES ? UNFREEPING OF AN ACCOUNT ? FREEPING OF AN ACCOUNT ? SUSPENSION OF AN ACCOUNT
TRANSMISSION OF SECURITIES
Tra'!- !! #' #. !ec&r t e! ca' be cate3#r 7ed 't# : "art!6
•
T(a)s0issi ) $ Sec%(i"ies/ I' the e(e't #. death #. a'y #. the
$# 't h#lder!/ ' 2h ch ca!e/ the #ther eB !t '3 $# 't h#lder! ca' 3et the !ec&r t e! tra'!- tted ' the r .a(#&r by "r#d&c '3 the death cert . cate5 The eB !t '3 $# 't h#lder! ha(e t# #"e' a 'e2 acc#&'t 2 th a "art c "a't5
• T(a)s0issi ) $ Sec%(i"ies/ I' the e(e't #. death #. a !#le trader/ ' 2h ch ca!e/ the cla -a't!4!&cce!!#r!4le3al he r! ca' 3et the !ec&r t e! tra'!- tted ' the r .a(#&r by !&b- tt '3 the rele(a't le3al d#c&-e't! t# the Part c "a't5 The cla -a't!4le3al he r!4!&cce!!#r! !h#&ld #"e' a' acc#&'t 2 th a "art c "a't t# 3et !ec&r t e! tra'!- tted ' the r .a(#&r5
+a, T(a)s0issi ) $ sec%(i"ies $ s *e h *&e( +&ecease&,/
• Where the !#le h#lder 2h# ha! !ec&r t e! held ' t! 'a-e ! decea!ed/ the' a'y !&cce!!#r!4cla -a't!4le3al he r! !hall be reC& red t# -a0e a reC&e!t .#r tra'!- !! #' a'd .&r' !h a'y #. the .#ll#2 '3 le3al d#c&-e't!6 ( 75/ "r#bate #. 2 ll/ !&cce!! #' cert . cate/ letter #. Ad- ' !trat #'/ #r a'y #ther le3al d#c&-e't
2h ch -ay be reC& red al#'3 2 th a' atte!ted c#"y #. the Death Cert . cate t# the Part c "a't5 • The "art c "a't 2 ll (er .y all the le3al d#c&-e't! !&b- tted by the le3al he r4cla -a't4!&cce!!#r .#r the r a&the't c ty5 I. !at !. e! ab#&t the a&the't c ty #. the d#c&-e't! !&b- tted/ the "art c "a't 2 ll tra'!- t the !ec&r t e! t# the re!"ect (e cl e't5
T(a)s0issi ) i) case $ &ea"h $ )e $ "he ! i)" h *&e(s/
• I' the e(e't #. a'y $# 't h#lder9! de- !e/ the #ther $# 't h#lder! !hall ha(e the !ec&r t e! tra'!- tted ' the r .a(#&r #'ly #' .&r' !h '3 a c#"y #. the death cert . cate *d&ly atte!ted4#r ' #r 3 'al+ thr#&3h the "art c "a't5 • The "art c "a't 2 ll (er .y the d#c&-e't! a'd !at !.y t!el. ab#&t the a&the't c ty #. the !a-e5
TRANSPOSITION
The C#-"a' e! Act/ 8D=> "er- t! $# 't h#ld '3 #. !hare!5 Whe' !hare! are !!&ed ' "hy! cal .#r-/ 'a-e! #. all the $# 't h#lder! are "r 'ted #' the !hare cert . cate!5 All the $# 't h#lder! are rec#3' 7ed a! -e-ber! #. the c#-"a'y5 H#2e(er the c#-"a'y 2 ll deal the -e-ber 2h#!e 'a-e! a""eared . r!t a-#'3 the $# 't h#lder! .#r "ay-e't #. d ( de'd a'd del (ery #. d#c&-e't!4c#--&' cat #'4'#t ce!5 The $# 't h#lder! are e't tled t# cha'3e the !eC&e'ce #. 'a-e! by -a0 '3 a 2r tte' reC&e!t t# the c#-"a'y5 Th ! d#e! '#t c#'!t t&te a tra'!.er cha'3 '3 the !eC&e'ce #. $# 't h#lder! ! called MTra'!"#! t #'95 H#2e(er tra'!"#! t #' ! t# be a(a led .#r e't re h#ld '3 ' a .#l # a'd '#t all#2ed .#r "art h#ld '35 I. the !a-e !et #. $# 't h#lder! held !ec&r t e! ' d ..ere't !eC&e'ce #. 'a-e!/ the!e $# 't h#lder! 2ere earl er reC& red t# #"e' d ..ere't De"#! t#ry acc#&'t ' NSDL de"#! t#ry !y!te-5 NSDL ha! 'tr#d&ced MTra'!"#! t #' c&- De-at9 .ac l ty t# hel" $# 't h#lder!/ t# de-at !ec&r t e! ' the !a-e acc#&'t e(e' th#&3h !hare cert . cate! are ' d ..ere't !eC&e'ce #. 'a-e!5 F#r th ! "&r"#!e the DRF a'd a' add t #'al .#r- called MTra'!"#! t #' .#r-9 !h#&ld be !&b- tted t# the DP5
FREECING OF AN ACCOUNT
A cl e't -ay 2 !h t# .ree7e t! acc#&'t by deact (at '3 t5 The "art c "a't ha! a .ac l ty ' the DPM t# .ree7e a' acc#&'t5 The acc#&'t ! .r#7e' .#r a'y tra'!act #' therea.ter &'t l t ! react (ated #' a reC&e!t .r#the cl e't5 A' acc#&'t -ay be .r#7e' .#r deb t! #r .#r b#th deb t! a'd cred t! de"e'd '3 #' the ch# ce #. the acc#&'t h#lder/ b&t a'y be'e. t ar ! '3/ d&e t# c#r"#rate act #'! ! cred ted t# the acc#&'t $&!t l 0e a'y #ther acc#&'t5
P( ce&%(e $ ( $(ee2i). a) acc %)"/
• The cl e't !&b- t! a reC&e!t .#r- t# the "art c "a't ' the "re!cr bed .#r- .#r .ree7 '3 t! acc#&'t5 • O' rece "t #. the reC&e!t .#r-/ the "art c "a't (er . e! 2hether the .#r- ! d&ly . lled #r '#t a'd the' !!&e ! 3'ed a'd !ta-"ed ac0'#2led3e-e't !l " t# the cl e't5 • The "art c "a't c#-"are! the ! 3'at&re #. the cl e't #' the .#r- 2 th that #. a(a lable ' t! rec#rd!5
• I. the reC&e!t .#r- ! ' #rder the "art c "a't cha'3e! the !tat&! #. the cl e't9! acc#&'t .r#- MACTI)E9 t# MSUSPENDED FOR DEBIT9 #r MSUSPENDED FOR ALL9 de"e'd '3 #' the ch# ce #. the cl e't .r#the date -e't #'ed by the cl e't #' the .#r-5 The "art c "a't e'ter! the rea!#'! .#r cha'3e ' !tat&!5 • The "art c "a't the' 't -ate! t# the cl e't ab#&t the cha'3e ' !tat&!5
UNFREECING OF AN ACCOUNT
A cl e't 2h#!e acc#&'t ! .r#7e' -ay reC&e!t t# &'.ree7e t5 The Part c "a't ha! the .ac l ty ' the DPM t# &'.ree7e a' acc#&'t5 The acc#&'t ! react (ated a'd tra'!act #'! are all#2ed #' the acc#&'t therea.ter5
P( ce&%(e $ ( %)$(ee2i). a) acc %)"/
• The cl e't !&b- t! a reC&e!t t# the "art c "a't ' the "re!cr bed .#r.#r &'.ree7 '3 h ! acc#&'t5 • O' rece "t #. the reC&e!t .#r-/ the "art c "a't (er . e! 2hether the .#r- ! d&ly . lled #r '#t5 The' t !!&e! a ! 3'ed a'd !ta-"ed ac0'#2led3ed !l " t# the cl e't5 • The "art c "a't c#-"are! the ! 3'at&re #. the cl e't #' the .#r- 2 th that #. a(a lable ' t! rec#rd!5 • I. the reC&e!t .#r- ! ' #rder/ the Part c "a't cha'3e! the !tat&! #. the cl e't9! acc#&'t t# MACTI)E9 #' the date -e't #'ed by the cl e't #' the .#r-5 The "art c "a't e'ter! the rea!#' .#r cha'3e ' the !tat&!5 • The "art c "a't 't -ate! the cl e't ab#&t the cha'3e ' !tat&!5
SUSPENSION OF AN ACCOUNT
A Part c "a't ha! the .ac l ty ' the DPM t# !&!"e'd a cl e't9! acc#&'t ' ca!e t rece (e! a d rect (e #rder t# the e..ect .r#- NSDL/ I'c#-e taB #r J&d c al a&th#r t e!5 N# tra'!act #'! are all#2ed #' the acc#&'t/ b&t be'e. t! ar ! '3 d&e t# c#r"#rate act #' are cred ted t# the !&!"e'ded acc#&'t $&!t a! ' a'y #ther acc#&'t5 The cl e't ca''#t -#(e the .r#7e' h#ld '3! #&t #. the acc#&'t5 The Part c "a't 't -ate! the cl e't ab#&t the !&!"e'! #' #. h ! acc#&'t!5
P( ce&%(e $ ( S%s1e)&i). a) Acc %)"/
O' rece "t #. d rect (e4#rder .#r !&!"e'd '3 #. a cl e't acc#&'t/ the Part c "a't ha! t# cha'3e the cl e't9! acc#&'t !tat&! ' the DPM .r#MACTI)E9 t# MSUSPEND FOR DEMAT9 #r MSUSPEND FOR ALL95 It rec#rd! the rea!#' .#r the !tat&! cha'3e a! Md rect (e4#rder #. the c#'cer'ed a&th#r ty95 The Part c "a't 't -ate! the cl e't ab#&t the !&!"e'! #' #. h ! acc#&'t5 I' ca!e #. clear '3 -e-ber9! cl e't/ the "art c "a't 't -ate! the clear '3 c#r"#rat #' al!# ab#&t the !&!"e'! #'5
P( ce&%(e $ ( Re# -i). S%s1e)si ) $ a) Acc %)"/
• The !tat&! 2#&ld be cha'3ed t# MACTI)E9 #' rece "t #. a d rect (e t# re(#0e !&ch !&!"e'! #' .r#- NSDL #r a&th#r t e! -e't #'ed ab#(e5 The "art c "a't rec#rd! the rea!#' .#r the !tat&! cha'3e a! a d rect (e .r#- the c#'cer'ed a&th#r ty5 • The Part c "a't 't -ate! the cl e't ab#&t the re(#0 '3 #. the !&!"e'! #'5
Depository Reforms -2007
The year &'der re( e2 2 t'e!!ed ! 3' . ca't re.#r-! ' the de"#! t#ry related area! at the ' t at (e #. SEBI5 S#-e #. the -"#rta't re.#r-! are a! .#ll#2!6
a+ Stre'3the' '3 #. S&r(e lla'ce Mecha' !- SEBI had ad( !ed the de"#! t#r e! t# e'ha'ce a'd ad#"t a -< E.aceted a""r#ach ' the r S&r(e lla'ce -echa' !-5 Acc#rd '3ly/ y#&r c#-"a'y ha! ta0e' !e(eral !te"! ' th ! d rect #'/ !#-e #. 2h ch are -e't #'ed bel#25 CDSL carr e! #&t a "r#ce!! #. de't .y '3 -< "le de-at acc#&'t! ba!ed #' 'a-e/ addre!! a'd PAN card deta l! #. the h#lder!5 De"#! t#r e! "art c "a't! are the' '!tr&cted t# (er .y the 3e'& 'e'e!! #. !&ch de-at acc#&'th#lder!5 F&rther/ PAN card deta l! "r#( ded by acc#&'t h#lder! are 'de"e'de'tly (er . ed by CDSL 2 th the I'c#-e TaB De"art-e't a'd '!ta'ce! 2here PAN card deta l! are '#t -atch '3 2 th the I'c#-e TaB De"art-e't9! Data ba!e/ are br#&3ht t# the '#t ce #. the c#'cer'ed de"#! t#ry "art c "a't/ t# 3et the !a-e rect . ed5
b+ PAN Card -ade C#-"&l!#ry .#r O"e' '3 4 O"erat '3 #. De-at Acc#&'t! La!t year SEBI had d rected that (er . cat #' #. PAN card by de"#! t#ry "art c "a't! 2a! c#-"&l!#ry ' re!"ect #. all de-at acc#&'t! #"e'ed #' #r a.ter 8!t A"r l/ :FF>5 F&rther/ SEBI had d rected that 2 th e..ect .r#- 8!t Oct#ber/ :FF> eB !t '3 acc#&'t h#lder! 2#&ld '#t be able t# #"erate the r de-at acc#&'t! ' ca!e they d# '#t "r#d&ce the r PAN card .#r (er . cat #' by the c#'cer'ed de"#! t#ry "art c "a't5 O' rece "t #. re"re!e'tat #' ' th !(e.a(&A SEBI e?"e)&e& "he *as" &a"e $ s%b0issi ) $ "he PAN ca(&s " ;9s"
FINDINGS
The $ ** 4i). is "he "ab*e "ha" sh 4s "he )%0be( $ De1 si" (' Pa("ici1a)"s $ CDSL $( 0
D; " DEMONTH F YEAR APRIL
D; APRIL D< APRIL D= APRIL DH APRIL DENUMBER OF DEPOSITORY PARTICIPANTS 9G9 :99 :9E ;9= ;H=
GRAPH OF THE ABOVE TABLE/
<DD ;=D ;DD :=D
D 9=D 9DD =D D D; D< D= DH DE DPsThe ab#(e 3ra"h de" ct! the c#'t '&#&! r !e ' the '&-ber #. De"#! t#ry Part c "a't! re3 !tered 2 th the CDSL ' I'd a .#r the "a!t . (e year!5 I' the year :FF; the t#tal '&-ber #. De"#! t#ry Part c "a't! re3 !tered 2 th the De"#! t#ry 2a! 8D85/ 2h ch ha! 3#'e t# :88 ' the year :FF< a'd !&b!eC&e'tly t# ;>= ' the year :FF?5
NUMBER OF BENEFICIAL OWNER ACCOUNTS MONTH7YEAR NUMBER OF BENEFICIAL OWNERACCOUNTS+IN LAKHS, :8= H8; 9D899 9I8H9 :I8E;
APRIL
D; APRIL D< APRIL D= APRIL DH APRIL DE35 NUMBER OF BO ACCOUNTS 30 25 20 15 10 5 0 YEAR Apr-03 Apr-04 Apr-05 Apr-06 Apr-07
The ab#(e 3ra"h de" ct! the c#'t '&#&! r !e ' the '&-ber #. Be'e. c al O2'er! #. CDSL ' I'd a .#r the "a!t . (e year!5 I' the year :FF; the t#tal '&-ber #. Be'e. c al O2'er! acc#&'t! 2a! :5= la0h/ 2h ch ha! 3#'e t# ;5=la0h ' the year :FF< a'd !&b!eC&e'tly t#
5?;la0h ' the year :FF?5CONCLUSIONS
? The (e*a"i )shi1 be"4ee) De1 si" (' Pa("ici1a)" a)& "he De1 si" (' is . #e()e& b' a) a.(ee0e)" 0a&e be"4ee) "he "4 %)&e( "he DP Ac"8 ? A De1 si" (' Pa("ici1a)" ca) $$e( &e1 si" (' ac"i#i"ies )*' a$"e( b"ai)i). a ce("i$ica"e $ (e.is"(a"i ) $( 0 SEBI8 ? I$ a s" c-b( -e( see-s " ac" as a De1 si" (' Pa("ici1a)" i) 0 (e "ha) )e &e1 si" (' he sh %*& c 01*' 4i"h s1eci$ie& )e" 4 ("h c(i"e(ia se1a(a"e*' $ ( each s%ch &e1 si" ('8 ? CDSL (e5%i(es 0i)i0%0 )e" 4 ("h $ Rs898=c( (e " be e*i.ib*e " bec 0e a DP8 ? A De1 si" (' sha** i)&e0)i$' a be)e$icia* 4)e( a)' * ss ca%se& &%e " )e.*i.e)ce $ "he b' "he De1 si" ('8
? CDSL b"ai)s a%&i"e& $i)a)cia* (e1 ("s $( 0 a** i"s De1 si" (' Pa("ici1a)"s )ce e#e(' 'ea(8 ? De1 si" (' 1a("ici1a)"s a(e (e5%i(e& " s%b0i" " CDSL i)"e()a* a%&i" (e1 ("s e#e(' 5%a("e(8 ? CDSL &e#e* 1s s $"4a(e (e5%i(e& b' De1 si" (' Pa("ici1a)"sA C 01a)ies a)& C*ea(i). C (1 (a"i )s $ ( c )&%c"i). &e1 si" (' 1e(a"i )s8
? De1 si" (' Pa("ici1a)"s 0a' &e#e* 1 s $"4a(e $ "hei( 4)A $ ( c 7 (&i)a"i )A c 00%)ica"i ) a)& c )"( * a)& 1( #i&e se(#ice " "hei( c*ie)"s8 I" is ca**e& JBac- O$$ice S $"4a(e@8
Li0i"a"i )s
98 The &%(a"i ) $ "he 1( !ec" %)&e("a-e) 4as )*' ;D &a's8 :8 The 0ai) c )ce)"(a"i ) 4as .i#e) " "he se(#ices $$e(e& b' "he CDSL@S De1 si" (' Pa("ici1a)"s8
BIBLIOGRAPHY De1 si" (ies La4A P(ac"ice a)& P( ce&%(es b' Sa)!i# A.a(4a* a)& Pa4a) K%0a( Vi!a'8 Fi)ace I)&ia J %()a*s8
WEBSITES/ 4448c&s*8c 0 4448)s&*8c 0 4448$$si*8c 0
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