Description
The field of financial services in India has entered another stage of development with a shift in its outlook to integrate with the global markets. Investors confidence, Quality services, Customer expectation and Satisfaction, Quick response, Technology integration are the words today.
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#$ect re"#rt ttled %A !t&dy #' De"#!t#ry
Partc"a't Ser(ce Pr#ce!! at F#rt&'e F'a'cal Ser(ce! )I'da* L+ted,
S&b+tted by +e t# the de"art+e't #- Ma!ter! #- B&!'e!! Ad+'!trat#'.
/(e0a'a'da Sch##l #- P#!t Grad&ate !t&de! 1111 U'(er!ty ! a
b#'a-de 2#r0 &'derta0e' by +e a'd t ! '#t !&b+tted t# a'y #ther
&'(er!ty #r I'!tt&t#' -#r the a2ard #- a'y de3ree d"l#+a 4 cert-cate #r
"&bl!hed a'y t+e be-#re5
Date 6
Place6 )!3'at&re*
ACKNOWLEDGEMENT
The "er-ect 2ay t# d#c&+e't th! "r#$ect 2#&ld be t# !tart 2th
ac0'#2led3'3 all th#!e "e#"le 2h# drectly #r 'drectly e'c#&ra3ed.
!&""#rted +e 2th ther (al&e added '"&t! 2th#&t the+ th! "r#$ect 2#&ld
'#t ha(e bee' th! better5
T# !tart 2th I 2#&ld l0e t# tha'0 1111. bra'ch +a'a3er #- FORTUNE
FINANCIAL SER/ICES )INDIA* LIMTED at 1111 -#r 3('3 +e a'
#""#rt&'ty t# d# +y "r#$ect 2#r05
My !'cere tha'0! t# +y -ac<y 111 !r -#r hel"'3 ' +e #&t (ar#&!
a!"ect! #- +y "r#$ect a'd I 2#&ld l0e t# tha'0 c#lle3e +a'a3e+e't -#r
c##rd'at'3 2th +e d&r'3 th! #'e +#'th #- +y "r#$ect5
F'ally I 2#&ld l0e t# #2e +y !'cere a""recat#' t# all the E+"l#yee! #-
the #r3a'7at#' 2h# "r#(ded a -re'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+ateral!at#'
? Re+ateral!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 Bbl#3ra"hy
INTRODUCTION
The -eld #- -'a'cal !er(ce! ' I'da ha! e'tered a'#ther !ta3e #-
de(el#"+e't 2th a !h-t ' t! #&tl##0 t# 'te3rate 2th the 3l#bal +ar0et!5
I'(e!t#r! c#'-de'ce. A&alty !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
Wth lberal7at#' a'd dere3&lat#'. the I'da' +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'tal -#r e+er3'3 ca"tal +ar0et! t# -&'ct#' e--ect(ely ' a 3r#2'3
2#rld #- -'a'cal 'te3rat#'5 Wth the (a!t '(e!t'3 "#"&lat#' ' I'da
character7ed by llteracy a'd "##rly de(el#"ed a'd a&t#+ated !t#c0
eBcha'3e! 2hch d# '#t "r#(de e'#&3h lC&dty a'd de!red le(el #-
tra'!"are'cy ' #"erat#' G#(er'+e't #- I'da ' 8DD> e'acted the
De"#!t#re! Act. 8DD> t# 0c0 !tart de"#!t#ry !er(ce! ' I'da ' a "la''ed
a'd !y!te+atc +a''er5 Sec&rte! a'd EBcha'3e B#ard #- I'da )SEBI*
"r#(ded the !&""#rt t# the G#(er'+e't9! e'dea(#r5
A De"#!t#ry ! a' #r3a'7at#' 2here the !ec&rte! #- !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--ce't a'd e--ect(e +a''er5
The De"#!t#ry h#ld! !ec&rte! ' a' acc#&'t . tra'!-er !ec&rte!
bet2ee' acc#&'th#lder!. -acltate! !a-e0ee"'3 #- !ec&rte! a'd -acltate!
tra'!-er #- #2'er!h" 2th#&t tra'!-er #- !ec&rte!5 De"#!t#ry !y!te+ !
l#'3 "re(ale't ' the ad(a'ced c#&'tre! 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
relable5
NEED FOR THE STUDY
Need -#r a De"#!t#ry ' I'da6
O(er the la!t decade. the I'da' ca"tal +ar0et ha! bee' 3r#2'3 by
lea"! a'd b#&'d!5 I'da ha! the lar3e!t '&+ber #- l!ted c#+"a'e! ' the
2#rld t#day5 Parad#Bcally the "r#ble+! a!!#cated 2th 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&rte! ' ther -a(#&r a'd t#
e'!&re that they rece(e ther r3ht-&l !hare #- d(de'd. b#'&!. r3ht! 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--ce'ce!5 Th! !ect#' #- the +ar0et
c#+"r!e! the Sec#'dary +ar0et 2hch ! "#"&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&rte! thr#&3h
'ter+edare! called !t#c0 br#0er! a'd !&bEbr#0er!5
The G#(er'+e't #- I'da "r#+&l3ated the De"#!t#re! Ord'a'ce '
Se"te+ber 8DD=. th&! "a('3 the 2ay -#r !ett'3 &" #- De"#!t#re! ' the
c#&'try5 Nat#'al Sec&rte! De"#!t#ry L+ted )NSDL* 2a! 'a&3&rated a!
the -r!t de"#!t#ry ' I'da #' @
th
N#(e+ber 8DD>5 It ! re!"#'!ble -#r
h#ld'3 a'd ha'dl'3 #- !ec&rte! ' electr#'c -#r+ el+'at'3 "r#ble+!
that are '#r+ally a!!#cated 2th "hy!cal cert-cate! l0e +&tlat#' d&e t#
carele!! ha'dl'3. l#!! ' tra'!t. "r#ble+! #- bad del(ere! 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'da5
? T# !t&dy the r#le #- a de"#!t#ry "artc"a't a! a b&!'e!! "art'er t#
De"#!t#ry 2th !"ecal e+"ha!! #' F#rt&'e F'a'cal Ser(ce!
)I'da* L+ted5
? T# e(al&ate the 2#r0'3 #- a De"#!t#ry Partc"a't ' acc#rda'ce
2th Ce'tral De"#!t#ry Ser(ce! )I'da* L+ted )CDSL* 3&del'e!
a'd deter+'e the 2ay! a'd +ea'! #- +"r#('3 t! e--ce'cy5
SCOPE OF THE STUDY
The "re!e't !t&dy c#'ce'trate! #' De"#!t#ry Partc"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#&! 'trcace! &'der the De"#!t#ry Partc"a't #"erat#'al
2#r0 at F#rt&'e F'a'cal Ser(ce! )I'da* L+ted5
COMPANY PROFILE
B%si)ess P($i*e
F#rt&'e F'a'cal Ser(ce! I'da Ltd5 ! a -'a'cal !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 "&blc l+ted c#+"a'y 2th the "re!e't 'a+e #' Oct5 :F.
8DD<5
The c#+"a'y "r#(de! -'a'cal !er(ce! 'cl&d'3 '(e!t+e't ba'0'3.
!t#c0 br#0'3 a'd d!trb&t#'. c#r"#rate ad(!#ry. DP !er(ce! a'd
c#++#dte! 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#++#dty EBcha'3e #- I'da a'd Nat#'al C#++#dty H
Der(at(e! EBcha'3e +e+ber!h"! a'd ! al!# a DP 2th Ce'tral
De"#!t#ry Ser(ce! I'da5
I' :FF?. the c#+"a'y 2a! a!!#cated 2th !!&e! related t# eBter'al
c#++ercal b#rr#2'3! a'd -#re3' c&rre'cy c#'(ertble b#'d!5 F#rt&'e
EC&ty Br#0er! I'da
a'd F#rt&'e C#++#dte! H Der(at(e! I'da are !&b!dare! #- the
c#+"a'y5
The re3!tered #--ce #- the c#+"a'y ! l#cated at I5I5 Cha+ber!. :'d
Fl##r. Sr P5T5 Mar3. F#rt. M&+baE<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!dary F#rt&'e EC&ty Br#0er! I'da L+ted )KFEBILK* ! a
c#r"#rate +e+ber #- the Nat#'al St#c0 EBcha'3e #- I'da Ltd5 )NSE*5 Wth
a dedcated trad'3 de!0 #- 8= trader!. the c#+"a'y -#c&! #' "r#(d'3 #&r
'!tt&t#'al. HNI a'd retal cle't! 2th "er!#'al7ed !er(ce! t# -acltate
the eBec&t#' #- b&y a'd !ell #rder! ' a -la2le!! a'd
e--ce'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+edat#'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 Partc"a't
I)#es"0e)" Ba)-i). /
F#rt&'e -#c&!e! #' +dE+ar0et c#r"#rate cle'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!trb&t#r #- -'a'cal "r#d&ct! thr#&3h t! "r#"retary
'et2#r0 #- eB"ere'ced "r#-e!!#'al! "r#(d'3 "er!#'al7ed atte't#' a'd
c&!t#+7ed !#l&t#' t# '(e!t#r! ba!ed #' ther r!0Eret&r' "r#-le5
De1si"(' Pa("ici1a)" Se(#ices6
F#rt&'e F'a'cal Ser(ce! )I'da* L+ted ! a De"#!t#ry Partc"a't
CDSL5 It! DPEID ! <<=FF5 It ha! dedcated cle't !er(ce tea+! ' M&+ba.
G#a. Hyderabad. P&'e H Delh5
METHODOLOGY
The "r#$ect ha! bee' d#'e ' real 2#r0'3 c#'dt#'! at the F#rt&'e
F'a'cal Ser(ce! )I'da* L+ted9! de"art+e't l#cated at Ba!heerba3h
)Hyderabad* 2th "ractcal eB"#!&re -#r the (ar#&! "r#ce!!e! carred #&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'cal
Ser(ce! )I'da* L+ted lear''3 ce'ter 2here the tra'ee! are
'tr#d&ced t# the ba!c -&'ct#''3 #- a De"#!t#ry Partc"a't5
? Per!#'al 'teract#' 2th the e+"l#yee! #- F#rt&'e F'a'cal Ser(ce
)I'da* 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
De1si"('/
A De"#!t#ry ! a' #r3a'7at#' 2here the !ec&rte! are 0e"t ' the
electr#'c -#r+5 At "re!e't there are t2# de"#!t#re! ' I'da 'a+ely NSDL
"r#+#ted by NSE. a'd CDSL "r#+#ted by BSE5
De1si"(' Pa("ici1a)"6
A De"#!t#ry Partc"a't ! a' a&th#r7ed a3e't #- de"#!t#ry 2h#
e--ect! the tra'!act#'! a! "er the '!tr&ct#' #- the cle't5 F#rt&'e F'a'cal
Ser(ce! )I'da* L+ted ! #'e #- the De"#!t#ry Partc"a't! #- CDSL5
De"#!t#ry 'teract! 2th t! cle't!4'(e!t#r! thr#&3h t! a3e't!
called de"#!t#ry "artc"a't!5
F#r a'y '(e!t#r4cle't t# a(al 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. 2th a'y #- the
De"#!t#ry Partc"a't!5
De"#!t#ry ca' ' +a'y 2ay! be c#+"ared t# a ba'05 Sec&rte! #- 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&rte!. De"#!t#ry al!# "r#(de! !er(ce! related t#
tra'!act#'! ' !ec&rte!5 Se(eral c#'!der the De"#!t#ry t# be a'#ther
c&!t#da'5 B&t the de"#!t#ry ha! a' ad(a'ta3e #(er the c&!t#da' L the
De"#!t#ry ca' tra'!-er the Be'e-cal O2'er!h" #- the Sec&rte! . le3ally .
2hch a c&!t#da' 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!crbed Acc#&'t #"e''3 -#r+! are a(alable 2th De"#!t#ry
Partc"a't! 2hch t# be -lled by cle't!5 Sta'dard A3ree+e't! are t# be
!3'ed by the Cle't a'd the DP. 2hch detal! the r3ht! a'd #bl3at#'! #-
b#th the "arte!5
Al#'3 2th the -#r+ the cle't reC&re! t# attach "h#t#3ra"h! #-
Acc#&'th#lder. atte!ted c#"e! #- "r##- #- re!de'ce a'd "r##- #- de'tty
'eed! t# be !&b+tted al#'3 2th the acc#&'t #"e''3 -#r+5
I' ca!e #- C#r"#rate cle't!. addt#'al attach+e't! reC&red are L tr&e
c#"y #- the re!#l&t#' -#r De+at a4c #"e''3 al#'3 2th !3'at#re! t#
#"erate the acc#&'t a'd tr&e c#"e! #- the Me+#ra'd&+ a'd Artcle! #-
A!!#cat#' ! t# be attached5
Se(#ices $$e(e& b' De1si"(' /
? De+ateral!at#' ! c#'(ert'3 "hy!cal cert-cate! t# electr#'c
-#r+5
? Re+ateral!at#' ! re(er!e #- de+at. 3ett'3 "hy!cal cert-cate!
-r#+ the electr#'c !ec&rte!5
? Tra'!-er #- !ec&rte! . cha'3e #- be'e-cal #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 credt ' "&blc #--er'3 #- the c#+"a'e!5
? N#'Eca!h be'e-t! l0e B#'&!4R3ht!Edrect credt 't# the electr#'c
-#r+5
N%0be( $ De1si"(ies i) "he c%)"('/
? Nat#'al Sec&rte! De"#!t#ry Ser(ce! Ltd5
? Ce'tral De"#!t#ry Ser(ce! Ltd5
DEPOSITORY SYSTEM
The che- "layer! ' a de"#!t#ry !y!te+ are the De"#!t#ry.
De"#!t#ry Partc"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 2hch ha! bee' 3ra'ted a cert-cate #-
re3!trat#' &'der !ect#' 88A* #- Sec&rte! EBcha'3e B#ard O- I'da
Act. 8DD:5,
The Act de-'e! a De"#!t#ry a!
M A' #r3a'7at#' 2here !ec&rte! #- 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&rte! a'd al!# arra'3e! -#r tra'!-er #-
#2'er!h" #- !ec&rte! #' the !ettle+e't date!59
NSDL AND CDSL
The t2# de"#!t#re! re3!tered &'der the act are the NSDL)Nat#'al
Sec&rte! 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 De1si"(' Li0i"e&,/
NSDL ! the -r!t De"#!t#ry ' I'da5 It 2a! re3!tered #' @
th
J&'e
8DD> 2th the Sec&rte! a'd EBcha'3e B#ard #- I'da5 It 2a! !et &" a! a
re!< #- De"#!t#re! Act. 8DD> a! a "&blc l+ted c#+"a'y a'd "r#+#ted
by the I'd&!tral De(el#"+e't Ba'0 #- I'da )IDBI*. U't Tr&!t #- I'da
)UTI* a'd the Nat#'al EBcha'3e )NSE* t# -acltate trad'3 a'd !ettle+e't
#- !ec&rte! ' de+ateral7ed -#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 !"ecal
acc#&'t called the clear'3 acc#&'t 2th the "artc"a't5
The la&'ch #- NSDL ! a !3'-ca't re-#r+ ' the ca"tal +ar0et
a'd !hall "lay a cr&cal r#le ' dr('3 +ar0et e--ce'cy5 The 3r#2th 2a!
!l#2 ' the be3'''3 b&t 3athered +#+e't&+ 2he' SEBI ca+e #&t 2th
'#t-cat#' re3ard'3 c#+"&l!#ry !ettle+e't #- tra'!act#'! ' !elected
!cr"! ' de+at -#r+ by -'a'cal '!tt&t#'!5 The '&+ber #- !ec&rte!
2hch 2a! #r3'ally re!trcted t# e3ht 2a! e'ha'ced "r#3re!!(ely a'd
retal '(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&rte! ' "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! 2th NSDL
thr#&3h (ar#&! De"#!t#ry Partc"a't !h#2ed a dra+atc !"&rt5
The -&'ct#'! #- NSDL 'cl&de6
• Acc#&'t O"e''3
• De+ateral7at#'
• Re+ateral7at#'
• Settle+e't a'd Clear'3
• IPO!
• C#r"#rate Be'e-t!
• Pled3e a'd Hy"#thecat#'
CDSL +Ce)"(a* De1si"(' 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 2th the c#&'try9!
lead'3 ba'0! l0e Ba'0 #- Bar#da. Ba'0 #- I'da. HDFC Ba'0 a'd SBI ha!
"r#+#ted the Ce'tral De"#!t#ry
Ser(ce! L+ted. I'da9! !ec#'d de"#!t#ry -#r deal'3 ' !ec&rte! '
electr#'c -#r+5 CDSL had a' 'tal "ad &" ca"tal #- 8FF cr#re!5 Sec&rte!
a'd EBcha'3e #- I'da )SEBI* ha! 3ra'ted the cert-cate #- re3!trat#'
&'der re3&lat#' ? #- SEBI )De"#!t#re! a'd Partc"a't!* re3&lat#'!. 8DD>
t# CDSL #' 8D
th
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 &e1si"(' a(e "/
? Accelerate the 3r#2th #- !cr"le!! trad'35
? Ma0e a +a$#r thr&!t ' 'd(d&al '(e!t#r "artc"at#' ' the
de"#!t#ry5
? Create c#+"ett(e e'(r#'+e't. 2hch 2ll be re!"#'!(e t# the &!er!
a'd de+a'd!5
? E'ha'ce lC&dty5
DEPOSITORY PARTICIPANT/
De"#!t#ry Partc"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'cal '!tt&t#'!. ba'0!. c&!t#da'!. !t#c0br#0er! etc ca'
bec#+e De"#!t#ry Partc"a't!5
SCHIL ! the -r!t "artc"a't re3!tered 2th NSDL5 I' #rder t# a(al
the !er(ce! #- a de"#!t#ry. a' '(e!t#r ha! t# #"e' a' acc#&'t 2th a
de"#!t#ry thr#&3h a DP $&!t l0e a "er!#' #"e''3 a' acc#&'t 2th the
bra'ch #- a ba'05 A DP ! re!"#'!ble -#r +a'ta''3 the !ec&rte! acc#&'t!
#- the '(e!t#r! a'd ha'dl'3 t ' acc#rda'ce 2th the '(e!t#r9!
'!tr&ct#'!5
De"#!t#ry Partc"a't ! the 0ey "layer ' the !y!te+. 2hch 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!. -acltate! de+ateral7at#'. !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 cle'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)/
Facltat'3 "led3e #- !ec&rte! a'd t# "r#(de electr#'c credt #- 'e2
!hare all#t+e't! !&ch a! b#'&!. "&blc !!&e!. r3ht! etc5
ELIGIBILITY FOR BEING A DEPOSITORY
PARTICIPANT/
A! "er SEBI )De"#!t#re! a'd Partc"a't!* Re3&lat#'!. 8DD>. the
-#ll#2'3 cate3#re! are el3ble t# bec#+e DP!5
? P&blc F'a'cal I'!tt&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 -#re3' ba'0! #"erat'3 ' I'da5
? State F'a'cal C#r"#rat#' e!tabl!hed &'der !ect#' ; #- SFC Act.
8D=85
? I'!tt&t#' e'3a3ed ' "r#(d'3 -'a'cal !er(ce!. "r#+#ted by a'y
#- the '!tt&t#'! +e't#'ed ab#(e. ether $#'tly #r !e"arately5
? C&!t#da' #- Sec&rte! 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&rte! held ' de+ateral7ed
-#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 ' addt#' t# the 'et
2#rth !"ec-ed by a'y #ther a&th#rty. - they 2!h t# act a! DP #'
behal- #- a'y #ther "er!#'5
The Re3&lat#'! e+"#2er CDSL t# !et t! #2' !elect#' crtera ' the
Byela2!5
Th&! the a""lca't! +&!t al!# c#+"ly 2th the -#ll#2'3 ad+!!#' crtera
!tated ' the Byela2!6
? The a""lca't !h#&ld ha(e a +'+&+ 'et 2#rth #- R!585=cr#re5
? The a""lca't !h#&ld '#t ha(e bee' c#'(cted ' a'y #- the -(e year!
++edately "reced'3 the -l'3 #- the a""lcat#' ' a'y +a''er
'(#l('3 +!a""r#"rat#' #- -&'d! a'd !ec&rte!. the-t.
e+be77le+e't #- -&'d!. -ra&d&le't c#'(er!#' #r -#r3ery5
? The a""lca'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 CORPORATIONS 6
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&rte! Clear'3
C#r"#rat#' L+ted)NSCCL* ! a 2h#lly ear'ed !&b!dary #- NSE5
It c##rd'ate! bet2ee'
The eBcha'3e -#r eBec&ted trade!. clear'3 +e+ber! a'd c&!t#da'! -#r
br'3'3 ' the 'ece!!ary -&'d! a'd !ec&rte! -#r !ettle+e't5
Clear'3 ba'0! -#r !ettle+e't #- -&'d!5
De"#!t#ry -#r !ec&rty !ettle+e't5
REGISTRAR AND TRANSFER AGENT/
The re3!trar a'd tra'!-er a3e't)RTA* ! a crtcal l'0 bet2ee' I!!&er
C#+"a'y. St#c0 trader a'd I'(e!t#r5 Whether t ! a "r+ary +ar0et. "&blc
!!&e #r a !ec#'dary +ar0et trade. r#le #- RTA ! +"#rta't a! !!&e #-
!ec&rte! #r tra'!-er #- !ec&rte! ! 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&rte! 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#dcal ba!!5
C#'-r+at#' #- &"dat'3 t# de"#!t#ry #' a daly ba!!5
Sca'''3 #- -r#'t a'd bac0 #- !hare cert-cate be-#re de+ateral!at#'5
I!!&e #- cert-cate! #' re+ateral!at#'5
J#b! relat'3 t# "&blc !!&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 Whch ha! bee' ad+tted a! a &!er by the
de"#!t#ry5 He ha! t# #"e' a clear'3 +e+ber acc#&'t 2th a "artc"a't5
Clear'3 +e+ber acc#&'t ! held 2th 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&rte!
ta0e! "lace by electr#'c b##0 e'tre!5 At the #&t!et. th! !y!te+ rd! the
ca"tal +ar0et #- the da'3er! #- ha'dl'3 #- the "a"er5 That ! '#t all. the
De"#!t#ry "r#(de! #ther drect a'd 'drect be'e-t! l0e6
Be)e$i"s " a)& I)#es"(/
Red&ct#' #- r!0 a!!#cated 2th "hy!cal !cr"!5
N# !ta+" d&ty #' tra'!-er5
N# bad del(ere!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 lC&dty #- !t#c0!5
Electr#'c credt ' IPO9!. R3ht! a'd B#'&!5
F&'3blty #- De+ateral!ed H#ld'3!5
h#ld'3! a'd tra'!act#'! lead'3 t# better c#'tr#l!5
.'crea!'3 I++edate tra'!-er a'd re3!trat#' #- !ec&rte! lC&dty #-
!t#c0! 2th 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+ateral7ed !ec&rte! by +a'y ba'0!5
Fa!ter rece"t #- be'e-t! a'd r3ht! re!<'3 -r#+ c#r"#rate act#'5
Pr#tect#' #- !hareh#lder! r3ht! -r#+ t+ely c#++&'cat#' -r#+
!!&er!4re3!trar5
Be)e$i"s " C*ea(i). Me0be(/
E'ha'ced lC&dty. !a-ety a'd t&r'#(er #' !t#c0 +ar0et5
O""#rt&'ty -#r de(el#"+e't #- retal br#0era3e b&!'e!!5
Ablty t# arra'3e "led3e! 2th#&t +#(e+e't #- "hy!cal !cr" a'd -&rther
'crea!e #(erall le(el #- trad'3 act(ty. lC&dty a'd "r#-t5
I+"r#(ed "r#tect#' #- !hareh#lder! r3ht! re!<'3 -r#+ +#re t+ely
c#++&'cat#' -r#+ the !!&er5
Red&ced tra'!act#' c#!t! thr#&3h 3reater e--ce'cy5
El+'at#' #- -#r3ery a'd c#&'ter-et 2th atte'da't red&ct#' ' !ettle+e't
r!0 -r#+ bad del(ere!5
Pr#(de a&t#+at#' t# "#!t trade "r#ce!!'35
Sta'dard7at#' #- "r#ce!!'35
Br'3'3 e--ce'cy t# the +ar0et "lace5
I+"r#(ed ca!h -l#2!5
BENEFITS TO ISSUER COMPANY/
I+"r#(ed e--ce'cy #- re3!trar a'd tra'!-er a3e't!5
E--ce't c#++&'cat#' 2th '(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 2th 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 lC&d ca"tal +ar0et! t# "r#(de -'a'c'3 a'd
de(el#"+e't !te++'3 +#re e--ce't "#!t trade !y!te+! 2th red&ced
tra'!act#' c#!t!5
I'crea!e ' c#+"ett(e'e!! ' the 'ter'at#'al +ar0et "lace a'd attract'3
'(e!t#r! a'd -&'d +a'a3er! by c#+"ly'3 2th !t"&lated 'ter'at#'al
!ta'dard! call'3 -#r a' e--ce't a'd r!0 -ree trad'3 e'(r#'+e't5
Great tra'!"are'cy ' the +ar0et5
Pre(e't! addt#' #- +#re "a"er ' the +ar0et5
Re!<! ' 'crea!ed c#'-de'ce #- '(e!t#r!5
Re!<! ' 'te3rat#' #- d#+e!tc +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 2ll ha(e t#
#"e' a' acc#&'t 2th a'y #- the de"#!t#ry "artc"a't #- h! ch#ce. 2h# !
a b&!'e!! "art'er #- NSDL5 There ! '# re!trct#' #' the '&+ber #-
acc#&'t! that a' '(e!t#r ca' #"e' 2th the DP4DP!5 The '(e!t#r ca' #"e'
a' acc#&'t by -ll'3 a' acc#&'t #"e''3 -#r+ 2th the DP5 He ha! t# !3' a'
a3ree+e't 2th the de"#!t#ry "artc"a't5
There are ba!cally ; ty"e! #- acc#&'t!5
Be'e-cary 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(alable
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 cle't ha! t# !&b+t the -lled &" -#r+ al#'3 2th the reC&!te
d#c&+e't! a! !"ec-ed by the DP5
The cle't ! reC&red t# -&r'!h detal! 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- cle't ! a' NRI '(e!t#r. detal! re3ard'3 the -#re3' addre!!. RBI
re-ere'ce '&+ber a'd RBI a""r#(al data are t# be -&r'!hed5
I- cle't ! a +'#r the G&arda' detal! )'a+e a'd addre!!* a'd the +'#r.!
date #- brth are t# be "r#(ded5
I- the cle't 2!he! t# ha(e a '#+'ee the '#+'ee detal! )'a+e a'd
addre!!* are t# be "r#(ded5
I' ca!e #- $#'t h#lder! the 'a+e! #- all the h#lder!. ther -ather4h&!ba'd!
'a+e a'd ther PAN4GIR '&+ber! ha(e t# be !"ec-ed5
A' a3ree+e't ! eBec&ted 2th 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 cle't ! ' acc#rda'ce 2th the #r3'al
d#c&+e't!. the acc#&'t ! #"e'ed a'd a' acc#&'t '&+ber called the cle't Id
! 3(e' t# the cle't5
Th! cle't Id al#'3 2th the DP ! &'C&e5
The cle't ha! t# C&#te th! cle't d ' all -&t&re c#rre!"#'de'ce 2th 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 "artc"a't.! #2' be'e-cary acc#&'t held ' t! #2' !y!te+
-#r the "&r"#!e #- h#ld'3 t! #2' !ec&rte!5
N#'Eh#&!e c#r"#rate +ay be -'a'cal '!tt&t#'!. F#re3'
I'!tt&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 cle't5
C#r"#rate ha(e t# -&r'!h addt#'al d#c&+e't! l0e the c#+"a'y b#ard
re!#l&t#'. the Me+#ra'd&+ #- A!!#cat#' a'd the Artcle! #- A!!#cat#'5
The !3'at&re! #- all the a&th#r7ed !3'at#re! 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+edary bet2ee' a
br#0er a'd the clear'3 c#r"#rat#'5 Clear'3 +e+ber acc#&'t ! a' acc#&'t
held 2th the "artc"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 2th a
"artc"a't. 2hch ! &!ed -#r tra'!-er #- the !ec&rte! -r#+ acc#&'t! #- the
cle't t# the clear'3 c#r"#rat#' t# the acc#&'t! #- cle't! ' ca!e #-
"&rcha!e #- !ec&rte!5
Del(ery Acc#&'t +ea'! the acc#&'t #- the clear'3 +e+ber
+a'ta'ed 2th the "artc"a't -#r rece('3 !ec&rte!. -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 2th
the "artc"a't -#r rece('3 !ec&rte! 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
Se't t# D" -#r -&rther
"r#ce!!'3
C*ie)" &e"ai*s e)"e(e& i)
DPM b' "he D1
C*ie)" ID .e)e(a"e& a)&
e)"e(e& )
"he $(0
The D1 i)"i0a"es c*ie)"
ID "
s"1
Is $(0 i)
acc(&a)ce
4i"h
(e5%i(e0e)"s6
Cle't !3'at&re
ca"t&red a'd !"ec+e'
Acc%)" 1e)i). $( a c*ea(i). 0e0be(/
C*ie)" s%b0i"s "he a11*ica"i)
$(0
Se't t# D" -#r -&rther
"r#ce!!'3
F(4a(&e& " NSDL
NSDL se)&s CMBP7ID T
DP
D1 1e)s a3c a)& .i#es
a3c N8"
s"1
Is $(0 i)
acc(&a)ce
4i"h
(e5%i(e0e)"s6
NSDL all#t! CMBPEID
S"a("
De0a"e(ia*isa"i) 1(cess/
O'e #- the +eth#d! -#r "re(e't'3 all the "r#ble+! that #cc&r 2th
"hy!cal
!ec&rte! ! thr#&3h de+ateral!at#' )de+at*5 I'da ha! ad#"ted the de+at
r#&te ' 2hch the b##0 e'try ! +ade electr#'cally a3a'!t !ec&rte! that
are ca'celled5 The !hare cert-cate! are !hredded a'd a c#rre!"#'d'3 credt
e'try #- the '&+ber #- !ec&rte! ! +ade ' the acc#&'t #"e'ed 2th the
De"#!t#ry Partc"a't)DP*5
cle't !&b!crb'3 t# !ec&rte! #--ered by a' !!&er thr#&3h "r+ary
+ar0et !!&e! +ay al!# be "r#(ded a' #"t#'5
The cle't c#&ld #"t t# rece(e the all#tted !ec&rte! ' a de+ateral7ed
-#r+ are -&'3ble. .e5 they d# '#t bear a'y d!t'3&!h'3 -eat&re!5
De+ateral!at#' #- "hy!cal !t#c06
I' ca!e #- "r+ary !!&e!. the '(e!t#r +ay #"t -#r all#t+e't #- !ec&rte! '
electr#'c -#r+5 I' #rder t# eBerc!e th! #"t#'. the '(e!t#r 'eed! t#
ha(e a' acc#&'t 2th a "artc"a't5 Whle -ll'3 &" the a""lcat#'
-#r+ -#r the !!&e the '(e!t#r ha! t# +e't#' t! acc#&'t '&+ber 2th
the "artc"a't a'd al!# the 'de't-cat#' '&+ber #- the "artc"a't
2th 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 el3ble !ec&rte! +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 2th
2h#+ he ha! be'e-cary acc#&'t5
P(e(e5%isi"es $( De0a"e(ia*isa"i) Re5%es"/
98 The re3!tered h#lder #- the !ec&rte! !h#&ld +a0e the reC&e!t5
:8 Sec&rte! t# be de+aterlal7ed +&!t be rec#3'7ed by NSDL
el3ble5 I' #ther 2#rd!. #'ly th#!e !ec&rte! 2h#!e ISIN ha! bee'
act(ated by NSDL. ca' be de+ateral7ed5
;8 The c#+"a'y4!!&e !h#&ld ha(e e!tabl!hed c#''ect(ty 2th NSDL5
#'ly a-ter !&ch c#''ect(ty ! e!tabl!hed that !ec&rte! #- that
c#+"a'y4!!&er are rec#3'7ed t# be a(alable -#r de+ateral7at#'5
<8 The h#lder #- !ec&rte! !h#&ld ha(e a be'e-cary acc#&'t ' the !a+e
'a+e a! t a""ear! #' the !ec&rty cert-cate! t# be de+ateral7ed5
=8 The reC&e!t !h#&ld be +ade ' the "re!crbed de+ateral7ed reC&e!t
-#r+5
T(a)s1si"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 2th the "r#ce!! #-
de+ateral!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 ether 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#' drectly 2th the
!!&er4RHT a3e't a'd the' de+ateral7ed ther !ec&rte! thr#&3h ther
D"!5
I' ca!e #- tra'!"#!t#'Ec&+ de'ateral!at#'. the cle't ca' 3et the
!ec&rte! de+ateral7ed ' the !a+e acc#&'t - the 'a+e! a""ear'3 #'
the cert-cate! +atch 2th the 'a+e! ' 2hch the acc#&'t ha! bee'
#"e'ed b&t are ' a d--ere't #rder. by !&b+tt'3 the !ec&rty cert-cate!
al#'3 2th tra'!"#!t#' -#r+ a'd the de+ateral!at#' -#r+ t# the D"5
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 cle't 2ll !&b+t a reC&e!t t# the De"#!t#ry Partc"ate ' the
de+ateral!at#' reC&e!t -#r+ -#r de+atral!at#' al#'3 2th the
cert-cate! #- !ec&rte! t# be de+ateral7ed5 Be-#re !&b+!!#'. the
cle't t# de-ace the cert-cate! by 2rt'3 %!&rre'dered -#r De+at,5
• The De"#!t#ry Partc"a't 2ll (er-y that the -#r+ ! d&ly -lled '
a'd the '&+ber #- cert-cate!. '&+ber #- !hare! a'd the !ec&rty 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&rty c#&'t ! ' #rder. the "artc"a't 2ll
!cr&t'7e the -#r+ a'd the cert-cate! 2hch '(#l(e! the -#ll#2'36
85 (er-cat#' #- cle't9! !3'at&re #' the De+ateral!ed reC&e!t 2th
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 Partc"a't !h#&ld e'!&re h+!el- #- the
de't-y #- the cle't5 L
:5 c#+"are the 'a+e! #' DRF H the cert-cate! 2th the cle't acc#&'t5
INVESTOR
NSD
L
R > T AGENT
;5 "adE&" !tat&!
<5 ISIN
=5 "ar "a!!& !tat&!
>5 l#c0EI' !tat&!
?5 d!t'ct(e '&+ber!
• I' ca!e !ec&rte! are '#t ' #rder they are ret&r'ed t# the cle't a'd
ac0#2led3e+e't ! #bta'ed5 The De"#!t#ry Partc"a't 2ll 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 +&tlated. #r they are de-eated ' !&ch a 2ay
that the +ateral '-#r+at#' ! '#t readable. the "artc"a't 2ll re$ect
the De+ateral!at#' reC&e!t5 He +ay ad(ce the cle't t# !e'd the
cert-cate! t# the I!!&er4RHT a3e't a'd 3et 'e2 !hare! ' le& there#-5
• The Partc"a't +&!t (er-y the 'at&re #- the !ec&rty. t! "arb&! !tat&!
2th re-ere'ce t# the l!t #- ISIN )I'ter'at#'al Sec&rty Ide't-cat#'
N&+ber* c#de! a(alable 2th t5 Wr#'3 all#cat#' +ay re!< '
a(#dable l#!!e! t# the cle't!5 The ISIN ! e'tered ' !"ace "r#(ded
-#r t ' the De+ateral!at#' reC&e!t -#r+5
• I- "art! #- the cert-cate! "erta''3 t# a !'3le DRF are "artly "adE&"
the "artc"a't! 2ll re$ect a'd ret&r' the DRF al#'3 2th the
cert-cate!5 He +ay ad(ce the cle'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 2th a !'3le DRF5
• I' ca!e the !ec&rte! are -#&'d ' #rder the detal! #- the reC&e!t a!
+e't#'ed ' the -#r+ are e'tered ' the DPM a'd De+ateral!at#'
reC&e!t '&+ber 2ll 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
detal! rec#rded -#r the DRN5 The "artc"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 "artc"a't 2ll "&'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 +ateral
'-#r+at#' #' the cert-cate5
• The "artca"a't 2ll the' d!"atch the cert-cate! al#'3 2th the
reC&e!t -#r+ a'd a c#(er'3 letter l0e 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+aterla!at#' the DM electr#'cally a&th#r7e the creat#' #-
a""r#"rate credt bala'ce! ' the cle't9! acc#&'t5
• The DPM 2ll credt the cle't9! acc#&'t a&t#+atcally5
• The Partc"a't +&!t '-#r+ the cle't the cha'3e! ' the cle'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 2hle a""ly'3 -#r a "r+ary !!&e ha! t# 'dcate the #"t#'
t# rece(e all#t+e't #- !ec&rte! ' electr#'c -#r+ ' the a""lcat#'5. The
acc#&'t '&+ber #- the '(e!t#r a'd the "artc"a't9! de't-cat#' '&+ber
2th NSDL al!# ha(e t# be +e't#'ed ' the a""lcat#' -#r+5
• O' all#t+e't. the I!!&er4RHT a3e't all#cate! the !ec&rte! 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&rte! t# the Mrele(a't
cle't!9 acc#&'t! ' the DPM5
• The "artc"a't '-#r+! the cle't acc#rd'3ly5
• I' ca!e 2here all#cat#' 2ll '#t be credted t# the cle'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 &" 2th the I!!&er4RHT a3e't t# -'d the r3ht
be'e-cary5
• O'ce the r3ht be'e-cary acc#&'t! traced. the r3ht b##0'3 !
re"#rted t# the DM5 The all#cat#' ! +#(ed #&t #- the !&!"e'!e
acc#&'t a'd the DM Credt! the r3ht acc#&'t5
• I- the c#rrect be'e-cary acc#&'t ca''#t be traced -#r +#re tha'
--tee' day!. the I!!&er4RHT a3e't 2ll be a!0ed t# "#!t "hy!cal
cert-cate! t# the c#'cer'ed '(e!t#r! a'd the !&!"e'!e bala'ce 2ll
be red&ced t# 7er#5
P(eca%"i)s/
• H#ld'3! ' th#!e !ec&rte! that ha(e '#t yet bee' ad+tted -#r
de+ateral!at#' by NSDL ca''#t be de+ateral7ed5 L!t #-
!ec&rte! ad+tted -#r de+ateral!at#' !h#&ld be (er-ed be-#re
de-ac'3 the !ec&rte!5
• H#ld'3! ' !treet 'a+e ca''#t be de+ateral7ed5 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'tcal 2th the 'a+e! 'tat'3 the
de+ateral!at#' reC&e!t5
• Se"arate de+ateral!at#' reC&e!t 2ll ha(e t# be -lled -#r l#c0edE
' a'd -ree h#ld'3!5
• Se"arate de+ateral!at#' reC&e!t! 2ll ha(e t# be -lled -#r -&lly
"ad &" a'd "artly "ad &" h#ld'3!5
• Se"arte de+ateral!at#' reC&e!t! 2ll 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 Partc"a't. -#r the -#ll#2'3 rea!#'! that re$ect the De+at
reC&e!t -#r+!5
• I- the cle't ID '#t +e't#'ed5
• I- the h#lder9! !3'at&re ! +!!'35
• I- the "atter' #- the 'a+e! #' the a""lcat#' are ' +!+atch 2th
that #' the !ec&rte!5
• I- the 'a+e t!el- ! ' +!+atch 2th that #' the !ec&rte!5
• I- the C&a'tty #- !hare! ' the a""lcat#' are ' +!+atch 2th that
#- the !ec&rte!5
• I- the cle't ID ! 'c#rrect5
• The !cr" ! '#t &'der De+ateral!at#'5
• I- the '&+ber #- !hare cert-cate! d#e! '#t tally 2th the '&+ber
!"ec-ed #' the a""lcat#'5
• I- detal! !&ch a! -#l#. d!trb&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 cle't ID ! '#t act(e5
• I- the DRF ! rece(ed 2th#&t the !hare cert-cate!5
• I- the a""lcat#' -#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
DRN .e)e(a"e&
A
a
I)$(0a"i)
%1*a&e& "
NSDL
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+ateral!at#' ! the "r#ce!! #- !!&'3 "hy!cal !ec&rte! ' "lace
I#- the !ec&rte! held electr#'cally ' b##0Ee'try -#r+ 2th de"#!t#ry5
U'der th! "r#ce!!. the de"#!t#ry acc#&'t #- a be'e-cal #2'er ! debted
-#r the !ec&rte! !#&3ht t# be re+ateral7ed a'd "hy!cal cert-cate! -#r the
eC&(ale't '&+ber #- !ec&rte! are !!&ed5
A be'e-cal #2'er h#ld'3 the !ec&rte! 2th a de"#!t#ry ha! a r3ht t#
3et h! electr#'c h#ld'3 c#'(erted 't# "hy!cal h#ld'3 at a'y t+e5 The
be'e-cal #2'er de!r'3 t# rece(e "hy!cal !ec&rty 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!crbed Re+ateral!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-cal #2'er! #- the !ec&rte! !h#&ld +a0e the reC&e!t5
:5 There !h#&ld be !&--ce't -ree bala'ce #- !ec&rte! a(alable ' the
be'e-cary 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+ateral!at#' reC&e!t -#r+!)RRF* t#
cle't!5
:5 The cle'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 (aldty. c#+"lete'e!! a'd c#rrect'e!!5
I' "artc&lar. the -#ll#2'3 "#'t! !h#&ld be chec0ed5
• There ! !&--ce't -ree bala'ce a(alable ' the cle't9! acc#&'t
t# h#'#&r the re+ateral!at#' reC&e!t5
• The 'a+e #- the cle't #' RRF ! eBactly the !a+e a! that ' the
cle't acc#&'t5
• I' ca!e #- $#'t h#ld'3. the #rder #- 'a+e! a""ear'3 ' RRF !
the !a+e a! ' the cle't9! acc#&'t5
• Detal! l0e !ec&rty. -ace (al&e. !!&er9! 'a+e a'd l#c0E'
!tat&! are -lledE' c#rrectly5
• The cle't ha! 'dcated h! #"t#' t# rece(e "hy!cal
cert-cate! ether ' $&+b# l#t -#r the e'tre C&a'tty reC&e!ted
#r ' +ar0et l#t5
• Se"arate RRF are !&b+tted -#r
? Free a'd l#c0edE' !ec&tre!
? Sec&trre! l#c0edE' -#r d--ere't rea!#'!
? Each ISIN
? Sec&rte! #- d--ere't "adE(al&e a'd
? Each cle'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#r7ed S3'at#re! ' the ca!e #- c#r"#rate acc#&'t!.
? C#'!tt&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
cle'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 cle't5
>5 DP Sh#&ld e'ter the reE+ateral!at#' reC&e!t ' DPM5 DPM 2ll
3e'erate a re+at reC&e!t '&+ber )RRN* 2hch !h#&ld be +e't#'ed
#' RRF5
?5 A' a&th#r7ed "er!#'. #ther tha' #'e 2h# e'tered the RRF detal! '
DPM. !h#&ld (er-y the detal! #- RRN a'd relea!e a reC&e!t t# the
de"#!t#ry5
@5 The DP !h#&ld c#+"lete the a&th#r7at#' -#r RRF t# the !!&er #r t!
RHT A3e't -#r reE+ateral!at#'5 The DP !h#&ld -#r2ard RRF t# the
!!&er #r t! RHT A3e't 2th' !e(e' day! #- acce"t'3 t -#r+ the
cle't5
D5 The !!&er #r t! RHT A3e't !h#&ld (er-y the RRF -#r (aldty.
c#+"lete'e!! a'd c#rrect'e!!5 It !h#&ld al!# +atch the deal! 2th 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&rty cert-cate! a'd d!"atch the+ t#
the be'e-cal #2'er5
885 The DP. #' rece('3 c#'-r+at#' #- debt e'try ' DPM. !h#&ld
'-#r+ the cle't acc#rd'3ly5
The e'tre "r#ce!! ta0e! a +aB+&+ #- ;Fday!5 N# trad'3 ! "#!!ble #'
the !ec&rte! !e't -#r re+at5
PROCEDURE FOR REMATERIALISATION OF
SECURITIES /
Recei1" $ RRF $(0 c*ie)"
Re5%es" sa#e& i)
DPMARRN .e)e(a"e&
Ve("i$ie& RRN $(4a(&e& "
NSDL
Ne4 ce("i$ica"es 1(i)"e&
b' R>T
Dis1a"chi). $ ce("i$ica"es
" i)#es"(
>
c)$i(0a"i
A
Des c*ie)" ha#e
s%$$icie)"
ba*a)ce i) his
acc%)"
Re!ec" (e5%es"
Re5%es" $(4a(&e& b'
NSDL " R>T
e*ec"()ica**'
STAR
T
A%"h(i2a"i) $
RRF b' DP
Ph'sica* (e5%es"
$(4a(&e& " R>T
A
S"a"%s %1&a"e& " DP
I)"i0a"i) " c*ie)"
b' "he DP
s1
TRADING AND SETTLEMENT IN DEPOSITORY
MODE/
Trad'3 ' De+ateral7ed !ec&rte! ! d--ere't -r#+ trad'3 '
"hy!cal !ec&rte! a'd trade ' #'e -#r+ ca''#t be !ettled ' a'#ther -#r+5
H#2e(er. SEBI ha! a''#&'ced that 2th e--ect -r#+ >
th
A"rl. 8DD@.
de+ateral7ed !ec&rte! ca' be del(ered a3a'!t #bl3at#' ' the "hy!cal
+ar0et #- b#th NSE a'd BSE5 Th! +ea'! a' '(e!t#r 2h# ha! !#ld
!ec&rte! ' "hy!cal +ar0et ca' del(er ether "hy!cal #r de+ateral7ed
!ec&rte!5 B&t "hy!cal !ec&rte! ca''#t be del(ered a3a'!t #bl3at#' '
the +ar0et -#r de+ateral7ed !ec&rte!5
C&rre'tly. de+ateral7ed !ec&rte! ca' be traded #' NSE a'd BSE5
All trade! d#'e ' De"#!t#ry !e3+e't 2th 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 2ll be #' Th&r!day5 S+larly. -#r trade!
eBec&ted #' T&e!day. !ettle+e't 2ll be #' Frday a'd !# #'5
P(ce&%(e $( Se**i). De0a" Sec%(i"ies/
The "r#ced&re -#r !ell'3 De+at !ec&rte! ! (ery !+"le5 A-ter
!ell'3 the !ec&rte! #'e 2#&ld '!tr&ct h!4her DP t# debt h!4her acc#&'t
2th the '&+ber #- !ec&rte! !#ld by h+ a'd credt 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&rte! ' 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# debt y#&r acc#&'t a'd credt 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&rte!5
P(ce&%(e $( P%(chasi). De0a" Sec%(i"ies/
F#r rece('3 De+at !ec&rte! #'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&rte! are t# be rece(ed5 The
tra'!act#' relat'3 t# "&rcha!e #- !ec&rte! are !&++ar7ed5
P(ce&%(e $ 1%(chase sec%(i"ies is as $**4s/
• O#& "&rcha!e !ec&rte! 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! credt #- !ec&rte! ' t! clear'3 c#r"#rat#' #'
the "ayE'Eday5
• O#&r br#0er 3(e! '!tr&ct#' t# t! DP t# debt clear'3 acc#&'t a'd
credt 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#& 2ll ha(e t# 3(e
'!tr&ct#'! t# y#&r DP -#r rece('3 credt5
• O#& !h#&ld e'!&re that y#&r br#0er tra'!-er! the !ec&rte! -r#+ t!
clear'3 acc#&'t t# y#&r de"#!t#ry acc#&'t be-#re the b##0 cl#!&re5
I- the !ec&rte! re+a' ' the clear'3 acc#&'t #- the br#0er the
c#+"a'y 2ll 3(e c#r"#rate be'e-t )d(de'd #r b#'&!* t# the br#0er5
I' that ca!e y#& 2ll ha(e t# c#llect the be'e-t! -r#+ the br#0er5
• Trad'3 ' de+ateral7ed !ec&rte! 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!. 2hch are 'e3#tated 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# "artc"ate ' De"#!t#ry !e3+e't #- the +ar0et ha! t# #"e' a
!"ecal clear'3 +e+ber acc#&'t 2th a "artc"a't5 I- the clear'3 +e+ber
! t!el- ! a "artc"a't. the acc#&'t ca' be #"e'ed ' t! #2' "artc"a't !etE
&"5 Whe' cle't! !ell !ec&rte!. !ec&rte! are +#(ed -r#+ the cle't9!
acc#&'t t# the "##l acc#&'t #- the +e+ber5 At the t+e #- "ayE' the
!ec&rte! are +#(ed t# the clear'3 c#r"#rat#' ba!ed #' the 'et #bl3at#'
#- the clear'3 +e+ber5 I'(arably. the retal cle't! &!e the !er(ce! #- the
!ell'3 br#0er a! a clear'3 +e+ber -#r !ettle+e't #- ther tra'!act#'!5
H#2e(er. the -aclty -#r &!'3 a clear'3 +e+ber #ther tha' the br#0er
2h# eBec&te! the #rder! ! a(alable5 I' !&ch ca!e! the cle't 2ll 'dcate 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! ther 'et #bl3at#'! t# the clear'3 c#r"#rat#'5 O' the
"ay#&t day. the clear'3 c#r"#rat#' 2ll credt the "##l a+#&'t #- the
clear'3 +e+ber 2th 'et rece(able! by the clear'3 +e+ber5
The clear'3 +e+ber 2ll the' 3(e '!tr&ct#'! -#r tra'!-err'3 the bala'ce!
-r#+ the "##l acc#&'t t# the b&y'3 cle'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'tte!. 2hch are
'e3#tated #&t!de the trad'3 !y!te+ #- !t#c0 eBcha'3e bet2ee' trad'3
+e+ber! drectly5 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-cary acc#&'t t# a'#ther be'e-cary acc#&'t a'd bet2ee' a
be'e-cary acc#&'t a'd the h#&!e acc#&'t #- a "artc"a't5
PLEDGE
NSDL "r#(de! be'e-cal #2'er! 2th the -aclty Pled3e4Hy"#thecate
!ec&rte! held ' De+ateral7ed -#r+5
P(ce&%(e $( c(ea"i). a P*e&.e ( H'1"heca"i)6
Whe' the be'e-cal #2'er 'te'd! t# create a Pled3e #r Hy"#thecat#' #' a
!ec&rty #2'ed by h+. he !h#&ld +a0e a' a""lcat#' the DP 2h# ha! a'
acc#&'t ' re!"ect #- !&ch a !ec&rty5
The detal! re3ard'3 the C&a'tty #- !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 '#tce #- "led3e a'd
hy"#thecat#'. -#r2ard! the a""lcat#' #- the be'e-cal #2'er t# the
de"#!t#ry5
O' rece"t #- !&ch a""lcat#' the de"#!t#ry !hall +a0e '(e!t3at#' a! t
+ay c#'!der 'ece!!ary a'd - a""r#(e! the creat#' #- "led3e #r
Hy"#thecat#'. t !hall e'ter the "artc&lar! ' t! rec#rd! a'd 't+ate! the
DP5
The DP ' t&r' '-#r+! the be'e-cal #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-cal #2'er5
• The Partc"a't 2th#&t the c#'c&rre'ce #- the "led3e !hall a--ect '#
tra'!-er #- !ec&rte!. ' re!"ect #- 2hch '#tce #- "led3e #r e'try !
' -#rce5
• The Pled3ed !ec&rte! 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 -al! t# re"ay the l#a'. the "led3ee ca' '(#0e the
"led3e ' acc#rda'ce 2th the "led3e deed5
• O' '(#0'3 the "led3e. the !ec&rte! 2ll 3et tra'!-erred t# the
Pled3ee9! acc#&'t a'd ' t! 'a+e ++edately5
• The "led3#r ca' cl#!e "led3e by +a0'3 a' a""lcat#' 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&rte! ca' be cate3#r7ed 't# : "art!6
• T(a)s0issi) $ Sec%(i"ies/ I' the e(e't #- death #- a'y #- the
$#'t h#lder!. ' 2hch ca!e. the #ther eB!t'3 $#'t h#lder! ca' 3et the
!ec&rte! tra'!+tted ' ther -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 2th
a "artc"a't5
• T(a)s0issi) $ Sec%(i"ies/ I' the e(e't #- death #- a !#le trader. '
2hch ca!e. the cla+a't!4!&cce!!#r!4le3al her! ca' 3et the !ec&rte!
tra'!+tted ' ther -a(#&r by !&b+tt'3 the rele(a't le3al d#c&+e't!
t# the Partc"a't5 The cla+a't!4le3al her!4!&cce!!#r! !h#&ld #"e' a'
acc#&'t 2th a "artc"a't t# 3et !ec&rte! tra'!+tted ' ther -a(#&r5
+a, T(a)s0issi) $ sec%(i"ies $ s*e h*&e( +&ecease&,/
• Where the !#le h#lder 2h# ha! !ec&rte! held ' t! 'a+e !
decea!ed. the' a'y !&cce!!#r!4cla+a't!4le3al her! !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 #- 2ll. !&cce!!#'
cert-cate. letter #- Ad+'!trat#'. #r a'y #ther le3al d#c&+e't
2hch +ay be reC&red al#'3 2th a' atte!ted c#"y #- the Death
Cert-cate t# the Partc"a't5
• The "artc"a't 2ll (er-y all the le3al d#c&+e't! !&b+tted by
the le3al her4cla+a't4!&cce!!#r -#r ther a&the'tcty5 I-
!at!-e! ab#&t the a&the'tcty #- the d#c&+e't! !&b+tted. the
"artc"a't 2ll tra'!+t the !ec&rte! t# the re!"ect(e cle'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&rte! tra'!+tted ' ther -a(#&r #'ly #' -&r'!h'3 a
c#"y #- the death cert-cate )d&ly atte!ted4#r ' #r3'al* thr#&3h the
"artc"a't5
• The "artc"a't 2ll (er-y the d#c&+e't! a'd !at!-y t!el- ab#&t the
a&the'tcty #- 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 2ll 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'#tce!5 The $#'t h#lder! are e'ttled t#
cha'3e the !eC&e'ce #- 'a+e! by +a0'3 a 2rtte' reC&e!t t# the c#+"a'y5
Th! d#e! '#t c#'!tt&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(aled -#r e'tre
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&rte! ' d--ere't !eC&e'ce #-
'a+e!. the!e $#'t h#lder! 2ere earler 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 -aclty t# hel" $#'t h#lder!. t# de+at !ec&rte! ' 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' addt#'al -#r+ called MTra'!"#!t#' -#r+9
!h#&ld be !&b+tted t# the DP5
FREECING OF AN ACCOUNT
A cle't +ay 2!h t# -ree7e t! acc#&'t by deact(at'3 t5 The
"artc"a't ha! a -aclty ' the DPM t# -ree7e a' acc#&'t5 The acc#&'t !
-r#7e' -#r a'y tra'!act#' therea-ter &'tl t ! react(ated #' a reC&e!t -r#+
the cle't5 A' acc#&'t +ay be -r#7e' -#r debt! #r -#r b#th debt! a'd credt!
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#'! ! credted t# the acc#&'t $&!t l0e a'y #ther acc#&'t5
P(ce&%(e $( $(ee2i). a) acc%)"/
• The cle't !&b+t! a reC&e!t -#r+ t# the "artc"a't ' the "re!crbed
-#r+ -#r -ree7'3 t! acc#&'t5
• O' rece"t #- the reC&e!t -#r+. the "artc"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 cle't5
• The "artc"a't c#+"are! the !3'at&re #- the cle't #' the -#r+ 2th
that #- a(alable ' t! rec#rd!5
• I- the reC&e!t -#r+ ! ' #rder the "artc"a't cha'3e! the !tat&! #- the
cle't9! acc#&'t -r#+ MACTI/E9 t# MSUSPENDED FOR DEBIT9 #r
MSUSPENDED FOR ALL9 de"e'd'3 #' the ch#ce #- the cle't -r#+
the date +e't#'ed by the cle't #' the -#r+5 The "artc"a't e'ter!
the rea!#'! -#r cha'3e ' !tat&!5
• The "artc"a't the' 't+ate! t# the cle't ab#&t the cha'3e ' !tat&!5
UNFREECING OF AN ACCOUNT
A cle't 2h#!e acc#&'t ! -r#7e' +ay reC&e!t t# &'-ree7e t5 The
Partc"a't ha! the -aclty ' 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 cle't !&b+t! a reC&e!t t# the "artc"a't ' the "re!crbed -#r+
-#r &'-ree7'3 h! acc#&'t5
• O' rece"t #- the reC&e!t -#r+. the "artc"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 cle't5
• The "artc"a't c#+"are! the !3'at&re #- the cle't #' the -#r+ 2th
that #- a(alable ' t! rec#rd!5
• I- the reC&e!t -#r+ ! ' #rder. the Partc"a't cha'3e! the !tat&! #- the
cle't9! acc#&'t t# MACTI/E9 #' the date +e't#'ed by the cle't #'
the -#r+5 The "artc"a't e'ter! the rea!#' -#r cha'3e ' the !tat&!5
• The "artc"a't 't+ate! the cle't ab#&t the cha'3e ' !tat&!5
SUSPENSION OF AN ACCOUNT
A Partc"a't ha! the -aclty ' the DPM t# !&!"e'd a cle't9! acc#&'t
' ca!e t rece(e! a drect(e #rder t# the e--ect -r#+ NSDL. I'c#+e taB #r
J&dcal a&th#rte!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 credted t# the !&!"e'ded acc#&'t $&!t a! ' a'y #ther
acc#&'t5 The cle't ca''#t +#(e the -r#7e' h#ld'3! #&t #- the acc#&'t5 The
Partc"a't 't+ate! the cle't ab#&t the !&!"e'!#' #- h! acc#&'t!5
P(ce&%(e $( S%s1e)&i). a) Acc%)"/
O' rece"t #- drect(e4#rder -#r !&!"e'd'3 #- a cle't acc#&'t. the
Partc"a't ha! t# cha'3e the cle'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! Mdrect(e4#rder #- the c#'cer'ed
a&th#rty95
The Partc"a't 't+ate! the cle't ab#&t the !&!"e'!#' #- h! acc#&'t5 I'
ca!e #- clear'3 +e+ber9! cle't. the "artc"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 drect(e t#
re(#0e !&ch !&!"e'!#' -r#+ NSDL #r a&th#rte! +e't#'ed ab#(e5
The "artc"a't rec#rd! the rea!#' -#r the !tat&! cha'3e a! a drect(e
-r#+ the c#'cer'ed a&th#rty5
• The Partc"a't 't+ate! the cle't ab#&t the re(#0'3 #- the
!&!"e'!#'5
Depository Reforms -2007
The year &'der re(e2 2t'e!!ed !3'-ca't re-#r+! ' the de"#!t#ry
related area! at the 'tat(e #- SEBI5 S#+e #- the +"#rta't re-#r+! are a!
-#ll#2!6
a* Stre'3the''3 #- S&r(ella'ce Mecha'!+ SEBI had ad(!ed the
de"#!t#re! t# e'ha'ce a'd ad#"t a +<E-aceted a""r#ach ' ther
S&r(ella'ce +echa'!+5 Acc#rd'3ly. y#&r c#+"a'y ha! ta0e' !e(eral !te"!
' th! drect#'. !#+e #- 2hch are +e't#'ed bel#25
CDSL carre! #&t a "r#ce!! #- de't-y'3 +<"le de+at acc#&'t! ba!ed #'
'a+e. addre!! a'd PAN card detal! #- the h#lder!5 De"#!t#re! "artc"a't!
are the' '!tr&cted t# (er-y the 3e'&'e'e!! #- !&ch de+at acc#&'th#lder!5
F&rther. PAN card detal! "r#(ded by acc#&'t h#lder! are 'de"e'de'tly
(er-ed by CDSL 2th the I'c#+e TaB De"art+e't a'd '!ta'ce! 2here
PAN card detal! are '#t +atch'3 2th the I'c#+e TaB De"art+e't9!
Data ba!e. are br#&3ht t# the '#tce #- the c#'cer'ed de"#!t#ry "artc"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 drected that (er-cat#' #- PAN card by de"#!t#ry
"artc"a't! 2a! c#+"&l!#ry ' re!"ect #- all de+at acc#&'t! #"e'ed #' #r
a-ter 8!t A"rl. :FF>5 F&rther. SEBI had drected that 2th e--ect -r#+ 8!t
Oct#ber. :FF> eB!t'3 acc#&'t h#lder! 2#&ld '#t be able t# #"erate ther
de+at acc#&'t! ' ca!e they d# '#t "r#d&ce ther PAN card -#r (er-cat#'
by the c#'cer'ed de"#!t#ry "artc"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" sh4s "he )%0be( $ De1si"('
Pa("ici1a)"s $ CDSL $(0
D; " DE
MONTH F YEAR NUMBER OF DEPOSITORY
PARTICIPANTS
APRILD; 9G9
APRILD< :99
APRILD= :9E
APRILDH ;9=
APRILDE ;H=
GRAPH OF THE ABOVE TABLE/
The ab#(e 3ra"h de"ct! the c#'t'&#&! r!e ' the '&+ber #- De"#!t#ry
Partc"a't! re3!tered 2th the CDSL ' I'da -#r the "a!t -(e year!5
I' the year :FF; the t#tal '&+ber #- De"#!t#ry Partc"a't! re3!tered
2th the De"#!t#ry 2a! 8D85. 2hch ha! 3#'e t# :88 ' the year :FF< a'd
!&b!eC&e'tly t# ;>= ' the year :FF?5
D
=D
9DD
9=D
D
:=D
;DD
;=D
<DD
D; D< D= DH DE
DPs
NUMBER OF BENEFICIAL OWNER ACCOUNTS
MONTH7YEAR NUMBER OF
BENEFICIAL
OWNERACCOUNTS+IN
LAKHS,
APRILD; :8=
APRILD< H8;
APRILD= 9D899
APRILDH 9I8H9
APRILDE :I8E;
The ab#(e 3ra"h de"ct! the c#'t'&#&! r!e ' the '&+ber #- Be'e-cal
O2'er! #- CDSL ' I'da -#r the "a!t -(e year!5
I' the year :FF; the t#tal '&+ber #- Be'e-cal O2'er! acc#&'t! 2a! :5=
la0h. 2hch 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) De1si"(' Pa("ici1a)" a)& "he De1si"('
is .#e()e& b' a) a.(ee0e)" 0a&e be"4ee) "he "4 %)&e( "he DP
Ac"8
? A De1si"(' Pa("ici1a)" ca) $$e( &e1si"(' 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 De1si"(' Pa("ici1a)" i) 0(e "ha)
)e &e1si"(' he sh%*& c01*' 4i"h s1eci$ie& )e" 4("h c(i"e(ia
se1a(a"e*' $( each s%ch &e1si"('8
? CDSL (e5%i(es 0i)i0%0 )e" 4("h $ Rs898=c((e " be e*i.ib*e "
bec0e a DP8
? A De1si"(' sha** i)&e0)i$' a be)e$icia* 4)e( a)' *ss ca%se& &%e
" )e.*i.e)ce $ "he b' "he De1si"('8
? CDSL b"ai)s a%&i"e& $i)a)cia* (e1("s $(0 a** i"s De1si"('
Pa("ici1a)"s )ce e#e(' 'ea(8
? De1si"(' 1a("ici1a)"s a(e (e5%i(e& " s%b0i" " CDSL i)"e()a*
a%&i" (e1("s e#e(' 5%a("e(8
? CDSL &e#e*1s s$"4a(e (e5%i(e& b' De1si"(' Pa("ici1a)"sA
C01a)ies a)& C*ea(i). C(1(a"i)s $( c)&%c"i). &e1si"('
1e(a"i)s8
? De1si"(' Pa("ici1a)"s 0a' &e#e*1 s$"4a(e $ "hei( 4)A $( c7
(&i)a"i)A c00%)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 De1si"(' Pa("ici1a)"s8
BIBLIOGRAPHY
De1si"(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/
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doc_936776344.doc
The field of financial services in India has entered another stage of development with a shift in its outlook to integrate with the global markets. Investors confidence, Quality services, Customer expectation and Satisfaction, Quick response, Technology integration are the words today.
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#$ect re"#rt ttled %A !t&dy #' De"#!t#ry
Partc"a't Ser(ce Pr#ce!! at F#rt&'e F'a'cal Ser(ce! )I'da* L+ted,
S&b+tted by +e t# the de"art+e't #- Ma!ter! #- B&!'e!! Ad+'!trat#'.
/(e0a'a'da Sch##l #- P#!t Grad&ate !t&de! 1111 U'(er!ty ! a
b#'a-de 2#r0 &'derta0e' by +e a'd t ! '#t !&b+tted t# a'y #ther
&'(er!ty #r I'!tt&t#' -#r the a2ard #- a'y de3ree d"l#+a 4 cert-cate #r
"&bl!hed a'y t+e be-#re5
Date 6
Place6 )!3'at&re*
ACKNOWLEDGEMENT
The "er-ect 2ay t# d#c&+e't th! "r#$ect 2#&ld be t# !tart 2th
ac0'#2led3'3 all th#!e "e#"le 2h# drectly #r 'drectly e'c#&ra3ed.
!&""#rted +e 2th ther (al&e added '"&t! 2th#&t the+ th! "r#$ect 2#&ld
'#t ha(e bee' th! better5
T# !tart 2th I 2#&ld l0e t# tha'0 1111. bra'ch +a'a3er #- FORTUNE
FINANCIAL SER/ICES )INDIA* LIMTED at 1111 -#r 3('3 +e a'
#""#rt&'ty t# d# +y "r#$ect 2#r05
My !'cere tha'0! t# +y -ac<y 111 !r -#r hel"'3 ' +e #&t (ar#&!
a!"ect! #- +y "r#$ect a'd I 2#&ld l0e t# tha'0 c#lle3e +a'a3e+e't -#r
c##rd'at'3 2th +e d&r'3 th! #'e +#'th #- +y "r#$ect5
F'ally I 2#&ld l0e t# #2e +y !'cere a""recat#' t# all the E+"l#yee! #-
the #r3a'7at#' 2h# "r#(ded a -re'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+ateral!at#'
? Re+ateral!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 Bbl#3ra"hy
INTRODUCTION
The -eld #- -'a'cal !er(ce! ' I'da ha! e'tered a'#ther !ta3e #-
de(el#"+e't 2th a !h-t ' t! #&tl##0 t# 'te3rate 2th the 3l#bal +ar0et!5
I'(e!t#r! c#'-de'ce. A&alty !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
Wth lberal7at#' a'd dere3&lat#'. the I'da' +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'tal -#r e+er3'3 ca"tal +ar0et! t# -&'ct#' e--ect(ely ' a 3r#2'3
2#rld #- -'a'cal 'te3rat#'5 Wth the (a!t '(e!t'3 "#"&lat#' ' I'da
character7ed by llteracy a'd "##rly de(el#"ed a'd a&t#+ated !t#c0
eBcha'3e! 2hch d# '#t "r#(de e'#&3h lC&dty a'd de!red le(el #-
tra'!"are'cy ' #"erat#' G#(er'+e't #- I'da ' 8DD> e'acted the
De"#!t#re! Act. 8DD> t# 0c0 !tart de"#!t#ry !er(ce! ' I'da ' a "la''ed
a'd !y!te+atc +a''er5 Sec&rte! a'd EBcha'3e B#ard #- I'da )SEBI*
"r#(ded the !&""#rt t# the G#(er'+e't9! e'dea(#r5
A De"#!t#ry ! a' #r3a'7at#' 2here the !ec&rte! #- !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--ce't a'd e--ect(e +a''er5
The De"#!t#ry h#ld! !ec&rte! ' a' acc#&'t . tra'!-er !ec&rte!
bet2ee' acc#&'th#lder!. -acltate! !a-e0ee"'3 #- !ec&rte! a'd -acltate!
tra'!-er #- #2'er!h" 2th#&t tra'!-er #- !ec&rte!5 De"#!t#ry !y!te+ !
l#'3 "re(ale't ' the ad(a'ced c#&'tre! 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
relable5
NEED FOR THE STUDY
Need -#r a De"#!t#ry ' I'da6
O(er the la!t decade. the I'da' ca"tal +ar0et ha! bee' 3r#2'3 by
lea"! a'd b#&'d!5 I'da ha! the lar3e!t '&+ber #- l!ted c#+"a'e! ' the
2#rld t#day5 Parad#Bcally the "r#ble+! a!!#cated 2th 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&rte! ' ther -a(#&r a'd t#
e'!&re that they rece(e ther r3ht-&l !hare #- d(de'd. b#'&!. r3ht! 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--ce'ce!5 Th! !ect#' #- the +ar0et
c#+"r!e! the Sec#'dary +ar0et 2hch ! "#"&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&rte! thr#&3h
'ter+edare! called !t#c0 br#0er! a'd !&bEbr#0er!5
The G#(er'+e't #- I'da "r#+&l3ated the De"#!t#re! Ord'a'ce '
Se"te+ber 8DD=. th&! "a('3 the 2ay -#r !ett'3 &" #- De"#!t#re! ' the
c#&'try5 Nat#'al Sec&rte! De"#!t#ry L+ted )NSDL* 2a! 'a&3&rated a!
the -r!t de"#!t#ry ' I'da #' @
th
N#(e+ber 8DD>5 It ! re!"#'!ble -#r
h#ld'3 a'd ha'dl'3 #- !ec&rte! ' electr#'c -#r+ el+'at'3 "r#ble+!
that are '#r+ally a!!#cated 2th "hy!cal cert-cate! l0e +&tlat#' d&e t#
carele!! ha'dl'3. l#!! ' tra'!t. "r#ble+! #- bad del(ere! 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'da5
? T# !t&dy the r#le #- a de"#!t#ry "artc"a't a! a b&!'e!! "art'er t#
De"#!t#ry 2th !"ecal e+"ha!! #' F#rt&'e F'a'cal Ser(ce!
)I'da* L+ted5
? T# e(al&ate the 2#r0'3 #- a De"#!t#ry Partc"a't ' acc#rda'ce
2th Ce'tral De"#!t#ry Ser(ce! )I'da* L+ted )CDSL* 3&del'e!
a'd deter+'e the 2ay! a'd +ea'! #- +"r#('3 t! e--ce'cy5
SCOPE OF THE STUDY
The "re!e't !t&dy c#'ce'trate! #' De"#!t#ry Partc"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#&! 'trcace! &'der the De"#!t#ry Partc"a't #"erat#'al
2#r0 at F#rt&'e F'a'cal Ser(ce! )I'da* L+ted5
COMPANY PROFILE
B%si)ess P($i*e
F#rt&'e F'a'cal Ser(ce! I'da Ltd5 ! a -'a'cal !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 "&blc l+ted c#+"a'y 2th the "re!e't 'a+e #' Oct5 :F.
8DD<5
The c#+"a'y "r#(de! -'a'cal !er(ce! 'cl&d'3 '(e!t+e't ba'0'3.
!t#c0 br#0'3 a'd d!trb&t#'. c#r"#rate ad(!#ry. DP !er(ce! a'd
c#++#dte! 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#++#dty EBcha'3e #- I'da a'd Nat#'al C#++#dty H
Der(at(e! EBcha'3e +e+ber!h"! a'd ! al!# a DP 2th Ce'tral
De"#!t#ry Ser(ce! I'da5
I' :FF?. the c#+"a'y 2a! a!!#cated 2th !!&e! related t# eBter'al
c#++ercal b#rr#2'3! a'd -#re3' c&rre'cy c#'(ertble b#'d!5 F#rt&'e
EC&ty Br#0er! I'da
a'd F#rt&'e C#++#dte! H Der(at(e! I'da are !&b!dare! #- the
c#+"a'y5
The re3!tered #--ce #- the c#+"a'y ! l#cated at I5I5 Cha+ber!. :'d
Fl##r. Sr P5T5 Mar3. F#rt. M&+baE<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!dary F#rt&'e EC&ty Br#0er! I'da L+ted )KFEBILK* ! a
c#r"#rate +e+ber #- the Nat#'al St#c0 EBcha'3e #- I'da Ltd5 )NSE*5 Wth
a dedcated trad'3 de!0 #- 8= trader!. the c#+"a'y -#c&! #' "r#(d'3 #&r
'!tt&t#'al. HNI a'd retal cle't! 2th "er!#'al7ed !er(ce! t# -acltate
the eBec&t#' #- b&y a'd !ell #rder! ' a -la2le!! a'd
e--ce'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+edat#'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 Partc"a't
I)#es"0e)" Ba)-i). /
F#rt&'e -#c&!e! #' +dE+ar0et c#r"#rate cle'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!trb&t#r #- -'a'cal "r#d&ct! thr#&3h t! "r#"retary
'et2#r0 #- eB"ere'ced "r#-e!!#'al! "r#(d'3 "er!#'al7ed atte't#' a'd
c&!t#+7ed !#l&t#' t# '(e!t#r! ba!ed #' ther r!0Eret&r' "r#-le5
De1si"(' Pa("ici1a)" Se(#ices6
F#rt&'e F'a'cal Ser(ce! )I'da* L+ted ! a De"#!t#ry Partc"a't
CDSL5 It! DPEID ! <<=FF5 It ha! dedcated cle't !er(ce tea+! ' M&+ba.
G#a. Hyderabad. P&'e H Delh5
METHODOLOGY
The "r#$ect ha! bee' d#'e ' real 2#r0'3 c#'dt#'! at the F#rt&'e
F'a'cal Ser(ce! )I'da* L+ted9! de"art+e't l#cated at Ba!heerba3h
)Hyderabad* 2th "ractcal eB"#!&re -#r the (ar#&! "r#ce!!e! carred #&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'cal
Ser(ce! )I'da* L+ted lear''3 ce'ter 2here the tra'ee! are
'tr#d&ced t# the ba!c -&'ct#''3 #- a De"#!t#ry Partc"a't5
? Per!#'al 'teract#' 2th the e+"l#yee! #- F#rt&'e F'a'cal Ser(ce
)I'da* 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
De1si"('/
A De"#!t#ry ! a' #r3a'7at#' 2here the !ec&rte! are 0e"t ' the
electr#'c -#r+5 At "re!e't there are t2# de"#!t#re! ' I'da 'a+ely NSDL
"r#+#ted by NSE. a'd CDSL "r#+#ted by BSE5
De1si"(' Pa("ici1a)"6
A De"#!t#ry Partc"a't ! a' a&th#r7ed a3e't #- de"#!t#ry 2h#
e--ect! the tra'!act#'! a! "er the '!tr&ct#' #- the cle't5 F#rt&'e F'a'cal
Ser(ce! )I'da* L+ted ! #'e #- the De"#!t#ry Partc"a't! #- CDSL5
De"#!t#ry 'teract! 2th t! cle't!4'(e!t#r! thr#&3h t! a3e't!
called de"#!t#ry "artc"a't!5
F#r a'y '(e!t#r4cle't t# a(al 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. 2th a'y #- the
De"#!t#ry Partc"a't!5
De"#!t#ry ca' ' +a'y 2ay! be c#+"ared t# a ba'05 Sec&rte! #- 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&rte!. De"#!t#ry al!# "r#(de! !er(ce! related t#
tra'!act#'! ' !ec&rte!5 Se(eral c#'!der the De"#!t#ry t# be a'#ther
c&!t#da'5 B&t the de"#!t#ry ha! a' ad(a'ta3e #(er the c&!t#da' L the
De"#!t#ry ca' tra'!-er the Be'e-cal O2'er!h" #- the Sec&rte! . le3ally .
2hch a c&!t#da' 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!crbed Acc#&'t #"e''3 -#r+! are a(alable 2th De"#!t#ry
Partc"a't! 2hch t# be -lled by cle't!5 Sta'dard A3ree+e't! are t# be
!3'ed by the Cle't a'd the DP. 2hch detal! the r3ht! a'd #bl3at#'! #-
b#th the "arte!5
Al#'3 2th the -#r+ the cle't reC&re! t# attach "h#t#3ra"h! #-
Acc#&'th#lder. atte!ted c#"e! #- "r##- #- re!de'ce a'd "r##- #- de'tty
'eed! t# be !&b+tted al#'3 2th the acc#&'t #"e''3 -#r+5
I' ca!e #- C#r"#rate cle't!. addt#'al attach+e't! reC&red are L tr&e
c#"y #- the re!#l&t#' -#r De+at a4c #"e''3 al#'3 2th !3'at#re! t#
#"erate the acc#&'t a'd tr&e c#"e! #- the Me+#ra'd&+ a'd Artcle! #-
A!!#cat#' ! t# be attached5
Se(#ices $$e(e& b' De1si"(' /
? De+ateral!at#' ! c#'(ert'3 "hy!cal cert-cate! t# electr#'c
-#r+5
? Re+ateral!at#' ! re(er!e #- de+at. 3ett'3 "hy!cal cert-cate!
-r#+ the electr#'c !ec&rte!5
? Tra'!-er #- !ec&rte! . cha'3e #- be'e-cal #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 credt ' "&blc #--er'3 #- the c#+"a'e!5
? N#'Eca!h be'e-t! l0e B#'&!4R3ht!Edrect credt 't# the electr#'c
-#r+5
N%0be( $ De1si"(ies i) "he c%)"('/
? Nat#'al Sec&rte! De"#!t#ry Ser(ce! Ltd5
? Ce'tral De"#!t#ry Ser(ce! Ltd5
DEPOSITORY SYSTEM
The che- "layer! ' a de"#!t#ry !y!te+ are the De"#!t#ry.
De"#!t#ry Partc"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 2hch ha! bee' 3ra'ted a cert-cate #-
re3!trat#' &'der !ect#' 8
8A* #- Sec&rte! EBcha'3e B#ard O- I'da Act. 8DD:5,
The Act de-'e! a De"#!t#ry a!
M A' #r3a'7at#' 2here !ec&rte! #- 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&rte! a'd al!# arra'3e! -#r tra'!-er #-
#2'er!h" #- !ec&rte! #' the !ettle+e't date!59
NSDL AND CDSL
The t2# de"#!t#re! re3!tered &'der the act are the NSDL)Nat#'al
Sec&rte! 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 De1si"(' Li0i"e&,/
NSDL ! the -r!t De"#!t#ry ' I'da5 It 2a! re3!tered #' @
th
J&'e
8DD> 2th the Sec&rte! a'd EBcha'3e B#ard #- I'da5 It 2a! !et &" a! a
re!< #- De"#!t#re! Act. 8DD> a! a "&blc l+ted c#+"a'y a'd "r#+#ted
by the I'd&!tral De(el#"+e't Ba'0 #- I'da )IDBI*. U't Tr&!t #- I'da
)UTI* a'd the Nat#'al EBcha'3e )NSE* t# -acltate trad'3 a'd !ettle+e't
#- !ec&rte! ' de+ateral7ed -#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 !"ecal
acc#&'t called the clear'3 acc#&'t 2th the "artc"a't5
The la&'ch #- NSDL ! a !3'-ca't re-#r+ ' the ca"tal +ar0et
a'd !hall "lay a cr&cal r#le ' dr('3 +ar0et e--ce'cy5 The 3r#2th 2a!
!l#2 ' the be3'''3 b&t 3athered +#+e't&+ 2he' SEBI ca+e #&t 2th
'#t-cat#' re3ard'3 c#+"&l!#ry !ettle+e't #- tra'!act#'! ' !elected
!cr"! ' de+at -#r+ by -'a'cal '!tt&t#'!5 The '&+ber #- !ec&rte!
2hch 2a! #r3'ally re!trcted t# e3ht 2a! e'ha'ced "r#3re!!(ely a'd
retal '(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&rte! ' "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! 2th NSDL
thr#&3h (ar#&! De"#!t#ry Partc"a't !h#2ed a dra+atc !"&rt5
The -&'ct#'! #- NSDL 'cl&de6
• Acc#&'t O"e''3
• De+ateral7at#'
• Re+ateral7at#'
• Settle+e't a'd Clear'3
• IPO!
• C#r"#rate Be'e-t!
• Pled3e a'd Hy"#thecat#'
CDSL +Ce)"(a* De1si"(' 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 2th the c#&'try9!
lead'3 ba'0! l0e Ba'0 #- Bar#da. Ba'0 #- I'da. HDFC Ba'0 a'd SBI ha!
"r#+#ted the Ce'tral De"#!t#ry
Ser(ce! L+ted. I'da9! !ec#'d de"#!t#ry -#r deal'3 ' !ec&rte! '
electr#'c -#r+5 CDSL had a' 'tal "ad &" ca"tal #- 8FF cr#re!5 Sec&rte!
a'd EBcha'3e #- I'da )SEBI* ha! 3ra'ted the cert-cate #- re3!trat#'
&'der re3&lat#' ? #- SEBI )De"#!t#re! a'd Partc"a't!* re3&lat#'!. 8DD>
t# CDSL #' 8D
th
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 &e1si"(' a(e "/
? Accelerate the 3r#2th #- !cr"le!! trad'35
? Ma0e a +a$#r thr&!t ' 'd(d&al '(e!t#r "artc"at#' ' the
de"#!t#ry5
? Create c#+"ett(e e'(r#'+e't. 2hch 2ll be re!"#'!(e t# the &!er!
a'd de+a'd!5
? E'ha'ce lC&dty5
DEPOSITORY PARTICIPANT/
De"#!t#ry Partc"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'cal '!tt&t#'!. ba'0!. c&!t#da'!. !t#c0br#0er! etc ca'
bec#+e De"#!t#ry Partc"a't!5
SCHIL ! the -r!t "artc"a't re3!tered 2th NSDL5 I' #rder t# a(al
the !er(ce! #- a de"#!t#ry. a' '(e!t#r ha! t# #"e' a' acc#&'t 2th a
de"#!t#ry thr#&3h a DP $&!t l0e a "er!#' #"e''3 a' acc#&'t 2th the
bra'ch #- a ba'05 A DP ! re!"#'!ble -#r +a'ta''3 the !ec&rte! acc#&'t!
#- the '(e!t#r! a'd ha'dl'3 t ' acc#rda'ce 2th the '(e!t#r9!
'!tr&ct#'!5
De"#!t#ry Partc"a't ! the 0ey "layer ' the !y!te+. 2hch 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!. -acltate! de+ateral7at#'. !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 cle'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)/
Facltat'3 "led3e #- !ec&rte! a'd t# "r#(de electr#'c credt #- 'e2
!hare all#t+e't! !&ch a! b#'&!. "&blc !!&e!. r3ht! etc5
ELIGIBILITY FOR BEING A DEPOSITORY
PARTICIPANT/
A! "er SEBI )De"#!t#re! a'd Partc"a't!* Re3&lat#'!. 8DD>. the
-#ll#2'3 cate3#re! are el3ble t# bec#+e DP!5
? P&blc F'a'cal I'!tt&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 -#re3' ba'0! #"erat'3 ' I'da5
? State F'a'cal C#r"#rat#' e!tabl!hed &'der !ect#' ; #- SFC Act.
8D=85
? I'!tt&t#' e'3a3ed ' "r#(d'3 -'a'cal !er(ce!. "r#+#ted by a'y
#- the '!tt&t#'! +e't#'ed ab#(e. ether $#'tly #r !e"arately5
? C&!t#da' #- Sec&rte! 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&rte! held ' de+ateral7ed
-#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 ' addt#' t# the 'et
2#rth !"ec-ed by a'y #ther a&th#rty. - they 2!h t# act a! DP #'
behal- #- a'y #ther "er!#'5
The Re3&lat#'! e+"#2er CDSL t# !et t! #2' !elect#' crtera ' the
Byela2!5
Th&! the a""lca't! +&!t al!# c#+"ly 2th the -#ll#2'3 ad+!!#' crtera
!tated ' the Byela2!6
? The a""lca't !h#&ld ha(e a +'+&+ 'et 2#rth #- R!585=cr#re5
? The a""lca't !h#&ld '#t ha(e bee' c#'(cted ' a'y #- the -(e year!
++edately "reced'3 the -l'3 #- the a""lcat#' ' a'y +a''er
'(#l('3 +!a""r#"rat#' #- -&'d! a'd !ec&rte!. the-t.
e+be77le+e't #- -&'d!. -ra&d&le't c#'(er!#' #r -#r3ery5
? The a""lca'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 CORPORATIONS 6
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&rte! Clear'3
C#r"#rat#' L+ted)NSCCL* ! a 2h#lly ear'ed !&b!dary #- NSE5
It c##rd'ate! bet2ee'
The eBcha'3e -#r eBec&ted trade!. clear'3 +e+ber! a'd c&!t#da'! -#r
br'3'3 ' the 'ece!!ary -&'d! a'd !ec&rte! -#r !ettle+e't5
Clear'3 ba'0! -#r !ettle+e't #- -&'d!5
De"#!t#ry -#r !ec&rty !ettle+e't5
REGISTRAR AND TRANSFER AGENT/
The re3!trar a'd tra'!-er a3e't)RTA* ! a crtcal l'0 bet2ee' I!!&er
C#+"a'y. St#c0 trader a'd I'(e!t#r5 Whether t ! a "r+ary +ar0et. "&blc
!!&e #r a !ec#'dary +ar0et trade. r#le #- RTA ! +"#rta't a! !!&e #-
!ec&rte! #r tra'!-er #- !ec&rte! ! 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&rte! 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#dcal ba!!5
C#'-r+at#' #- &"dat'3 t# de"#!t#ry #' a daly ba!!5
Sca'''3 #- -r#'t a'd bac0 #- !hare cert-cate be-#re de+ateral!at#'5
I!!&e #- cert-cate! #' re+ateral!at#'5
J#b! relat'3 t# "&blc !!&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 Whch ha! bee' ad+tted a! a &!er by the
de"#!t#ry5 He ha! t# #"e' a clear'3 +e+ber acc#&'t 2th a "artc"a't5
Clear'3 +e+ber acc#&'t ! held 2th 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&rte!
ta0e! "lace by electr#'c b##0 e'tre!5 At the #&t!et. th! !y!te+ rd! the
ca"tal +ar0et #- the da'3er! #- ha'dl'3 #- the "a"er5 That ! '#t all. the
De"#!t#ry "r#(de! #ther drect a'd 'drect be'e-t! l0e6
Be)e$i"s " a)& I)#es"(/
Red&ct#' #- r!0 a!!#cated 2th "hy!cal !cr"!5
N# !ta+" d&ty #' tra'!-er5
N# bad del(ere!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 lC&dty #- !t#c0!5
Electr#'c credt ' IPO9!. R3ht! a'd B#'&!5
F&'3blty #- De+ateral!ed H#ld'3!5
h#ld'3! a'd tra'!act#'! lead'3 t# better c#'tr#l!5
.'crea!'3 I++edate tra'!-er a'd re3!trat#' #- !ec&rte! lC&dty #-
!t#c0! 2th 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+ateral7ed !ec&rte! by +a'y ba'0!5
Fa!ter rece"t #- be'e-t! a'd r3ht! re!<'3 -r#+ c#r"#rate act#'5
Pr#tect#' #- !hareh#lder! r3ht! -r#+ t+ely c#++&'cat#' -r#+
!!&er!4re3!trar5
Be)e$i"s " C*ea(i). Me0be(/
E'ha'ced lC&dty. !a-ety a'd t&r'#(er #' !t#c0 +ar0et5
O""#rt&'ty -#r de(el#"+e't #- retal br#0era3e b&!'e!!5
Ablty t# arra'3e "led3e! 2th#&t +#(e+e't #- "hy!cal !cr" a'd -&rther
'crea!e #(erall le(el #- trad'3 act(ty. lC&dty a'd "r#-t5
I+"r#(ed "r#tect#' #- !hareh#lder! r3ht! re!<'3 -r#+ +#re t+ely
c#++&'cat#' -r#+ the !!&er5
Red&ced tra'!act#' c#!t! thr#&3h 3reater e--ce'cy5
El+'at#' #- -#r3ery a'd c#&'ter-et 2th atte'da't red&ct#' ' !ettle+e't
r!0 -r#+ bad del(ere!5
Pr#(de a&t#+at#' t# "#!t trade "r#ce!!'35
Sta'dard7at#' #- "r#ce!!'35
Br'3'3 e--ce'cy t# the +ar0et "lace5
I+"r#(ed ca!h -l#2!5
BENEFITS TO ISSUER COMPANY/
I+"r#(ed e--ce'cy #- re3!trar a'd tra'!-er a3e't!5
E--ce't c#++&'cat#' 2th '(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 2th 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 lC&d ca"tal +ar0et! t# "r#(de -'a'c'3 a'd
de(el#"+e't !te++'3 +#re e--ce't "#!t trade !y!te+! 2th red&ced
tra'!act#' c#!t!5
I'crea!e ' c#+"ett(e'e!! ' the 'ter'at#'al +ar0et "lace a'd attract'3
'(e!t#r! a'd -&'d +a'a3er! by c#+"ly'3 2th !t"&lated 'ter'at#'al
!ta'dard! call'3 -#r a' e--ce't a'd r!0 -ree trad'3 e'(r#'+e't5
Great tra'!"are'cy ' the +ar0et5
Pre(e't! addt#' #- +#re "a"er ' the +ar0et5
Re!<! ' 'crea!ed c#'-de'ce #- '(e!t#r!5
Re!<! ' 'te3rat#' #- d#+e!tc +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 2ll ha(e t#
#"e' a' acc#&'t 2th a'y #- the de"#!t#ry "artc"a't #- h! ch#ce. 2h# !
a b&!'e!! "art'er #- NSDL5 There ! '# re!trct#' #' the '&+ber #-
acc#&'t! that a' '(e!t#r ca' #"e' 2th the DP4DP!5 The '(e!t#r ca' #"e'
a' acc#&'t by -ll'3 a' acc#&'t #"e''3 -#r+ 2th the DP5 He ha! t# !3' a'
a3ree+e't 2th the de"#!t#ry "artc"a't5
There are ba!cally ; ty"e! #- acc#&'t!5
Be'e-cary 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(alable
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 cle't ha! t# !&b+t the -lled &" -#r+ al#'3 2th the reC&!te
d#c&+e't! a! !"ec-ed by the DP5
The cle't ! reC&red t# -&r'!h detal! 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- cle't ! a' NRI '(e!t#r. detal! re3ard'3 the -#re3' addre!!. RBI
re-ere'ce '&+ber a'd RBI a""r#(al data are t# be -&r'!hed5
I- cle't ! a +'#r the G&arda' detal! )'a+e a'd addre!!* a'd the +'#r.!
date #- brth are t# be "r#(ded5
I- the cle't 2!he! t# ha(e a '#+'ee the '#+'ee detal! )'a+e a'd
addre!!* are t# be "r#(ded5
I' ca!e #- $#'t h#lder! the 'a+e! #- all the h#lder!. ther -ather4h&!ba'd!
'a+e a'd ther PAN4GIR '&+ber! ha(e t# be !"ec-ed5
A' a3ree+e't ! eBec&ted 2th 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 cle't ! ' acc#rda'ce 2th the #r3'al
d#c&+e't!. the acc#&'t ! #"e'ed a'd a' acc#&'t '&+ber called the cle't Id
! 3(e' t# the cle't5
Th! cle't Id al#'3 2th the DP ! &'C&e5
The cle't ha! t# C&#te th! cle't d ' all -&t&re c#rre!"#'de'ce 2th 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 "artc"a't.! #2' be'e-cary acc#&'t held ' t! #2' !y!te+
-#r the "&r"#!e #- h#ld'3 t! #2' !ec&rte!5
N#'Eh#&!e c#r"#rate +ay be -'a'cal '!tt&t#'!. F#re3'
I'!tt&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 cle't5
C#r"#rate ha(e t# -&r'!h addt#'al d#c&+e't! l0e the c#+"a'y b#ard
re!#l&t#'. the Me+#ra'd&+ #- A!!#cat#' a'd the Artcle! #- A!!#cat#'5
The !3'at&re! #- all the a&th#r7ed !3'at#re! 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+edary bet2ee' a
br#0er a'd the clear'3 c#r"#rat#'5 Clear'3 +e+ber acc#&'t ! a' acc#&'t
held 2th the "artc"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 2th a
"artc"a't. 2hch ! &!ed -#r tra'!-er #- the !ec&rte! -r#+ acc#&'t! #- the
cle't t# the clear'3 c#r"#rat#' t# the acc#&'t! #- cle't! ' ca!e #-
"&rcha!e #- !ec&rte!5
Del(ery Acc#&'t +ea'! the acc#&'t #- the clear'3 +e+ber
+a'ta'ed 2th the "artc"a't -#r rece('3 !ec&rte!. -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 2th
the "artc"a't -#r rece('3 !ec&rte! 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
Se't t# D" -#r -&rther
"r#ce!!'3
C*ie)" &e"ai*s e)"e(e& i)
DPM b' "he D1
C*ie)" ID .e)e(a"e& a)&
e)"e(e& )
"he $(0
The D1 i)"i0a"es c*ie)"
ID "
s"1
Is $(0 i)
acc(&a)ce
4i"h
(e5%i(e0e)"s6
Cle't !3'at&re
ca"t&red a'd !"ec+e'
Acc%)" 1e)i). $( a c*ea(i). 0e0be(/
C*ie)" s%b0i"s "he a11*ica"i)
$(0
Se't t# D" -#r -&rther
"r#ce!!'3
F(4a(&e& " NSDL
NSDL se)&s CMBP7ID T
DP
D1 1e)s a3c a)& .i#es
a3c N8"
s"1
Is $(0 i)
acc(&a)ce
4i"h
(e5%i(e0e)"s6
NSDL all#t! CMBPEID
S"a("
De0a"e(ia*isa"i) 1(cess/
O'e #- the +eth#d! -#r "re(e't'3 all the "r#ble+! that #cc&r 2th
"hy!cal
!ec&rte! ! thr#&3h de+ateral!at#' )de+at*5 I'da ha! ad#"ted the de+at
r#&te ' 2hch the b##0 e'try ! +ade electr#'cally a3a'!t !ec&rte! that
are ca'celled5 The !hare cert-cate! are !hredded a'd a c#rre!"#'d'3 credt
e'try #- the '&+ber #- !ec&rte! ! +ade ' the acc#&'t #"e'ed 2th the
De"#!t#ry Partc"a't)DP*5
cle't !&b!crb'3 t# !ec&rte! #--ered by a' !!&er thr#&3h "r+ary
+ar0et !!&e! +ay al!# be "r#(ded a' #"t#'5
The cle't c#&ld #"t t# rece(e the all#tted !ec&rte! ' a de+ateral7ed
-#r+ are -&'3ble. .e5 they d# '#t bear a'y d!t'3&!h'3 -eat&re!5
De+ateral!at#' #- "hy!cal !t#c06
I' ca!e #- "r+ary !!&e!. the '(e!t#r +ay #"t -#r all#t+e't #- !ec&rte! '
electr#'c -#r+5 I' #rder t# eBerc!e th! #"t#'. the '(e!t#r 'eed! t#
ha(e a' acc#&'t 2th a "artc"a't5 Whle -ll'3 &" the a""lcat#'
-#r+ -#r the !!&e the '(e!t#r ha! t# +e't#' t! acc#&'t '&+ber 2th
the "artc"a't a'd al!# the 'de't-cat#' '&+ber #- the "artc"a't
2th 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 el3ble !ec&rte! +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 2th
2h#+ he ha! be'e-cary acc#&'t5
P(e(e5%isi"es $( De0a"e(ia*isa"i) Re5%es"/
98 The re3!tered h#lder #- the !ec&rte! !h#&ld +a0e the reC&e!t5
:8 Sec&rte! t# be de+aterlal7ed +&!t be rec#3'7ed by NSDL
el3ble5 I' #ther 2#rd!. #'ly th#!e !ec&rte! 2h#!e ISIN ha! bee'
act(ated by NSDL. ca' be de+ateral7ed5
;8 The c#+"a'y4!!&e !h#&ld ha(e e!tabl!hed c#''ect(ty 2th NSDL5
#'ly a-ter !&ch c#''ect(ty ! e!tabl!hed that !ec&rte! #- that
c#+"a'y4!!&er are rec#3'7ed t# be a(alable -#r de+ateral7at#'5
<8 The h#lder #- !ec&rte! !h#&ld ha(e a be'e-cary acc#&'t ' the !a+e
'a+e a! t a""ear! #' the !ec&rty cert-cate! t# be de+ateral7ed5
=8 The reC&e!t !h#&ld be +ade ' the "re!crbed de+ateral7ed reC&e!t
-#r+5
T(a)s1si"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 2th the "r#ce!! #-
de+ateral!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 ether 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#' drectly 2th the
!!&er4RHT a3e't a'd the' de+ateral7ed ther !ec&rte! thr#&3h ther
D"!5
I' ca!e #- tra'!"#!t#'Ec&+ de'ateral!at#'. the cle't ca' 3et the
!ec&rte! de+ateral7ed ' the !a+e acc#&'t - the 'a+e! a""ear'3 #'
the cert-cate! +atch 2th the 'a+e! ' 2hch the acc#&'t ha! bee'
#"e'ed b&t are ' a d--ere't #rder. by !&b+tt'3 the !ec&rty cert-cate!
al#'3 2th tra'!"#!t#' -#r+ a'd the de+ateral!at#' -#r+ t# the D"5
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 cle't 2ll !&b+t a reC&e!t t# the De"#!t#ry Partc"ate ' the
de+ateral!at#' reC&e!t -#r+ -#r de+atral!at#' al#'3 2th the
cert-cate! #- !ec&rte! t# be de+ateral7ed5 Be-#re !&b+!!#'. the
cle't t# de-ace the cert-cate! by 2rt'3 %!&rre'dered -#r De+at,5
• The De"#!t#ry Partc"a't 2ll (er-y that the -#r+ ! d&ly -lled '
a'd the '&+ber #- cert-cate!. '&+ber #- !hare! a'd the !ec&rty 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&rty c#&'t ! ' #rder. the "artc"a't 2ll
!cr&t'7e the -#r+ a'd the cert-cate! 2hch '(#l(e! the -#ll#2'36
85 (er-cat#' #- cle't9! !3'at&re #' the De+ateral!ed reC&e!t 2th
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 Partc"a't !h#&ld e'!&re h+!el- #- the
de't-y #- the cle't5 L
:5 c#+"are the 'a+e! #' DRF H the cert-cate! 2th the cle't acc#&'t5
INVESTOR
NSD
L
R > T AGENT
;5 "adE&" !tat&!
<5 ISIN
=5 "ar "a!!& !tat&!
>5 l#c0EI' !tat&!
?5 d!t'ct(e '&+ber!
• I' ca!e !ec&rte! are '#t ' #rder they are ret&r'ed t# the cle't a'd
ac0#2led3e+e't ! #bta'ed5 The De"#!t#ry Partc"a't 2ll 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 +&tlated. #r they are de-eated ' !&ch a 2ay
that the +ateral '-#r+at#' ! '#t readable. the "artc"a't 2ll re$ect
the De+ateral!at#' reC&e!t5 He +ay ad(ce the cle't t# !e'd the
cert-cate! t# the I!!&er4RHT a3e't a'd 3et 'e2 !hare! ' le& there#-5
• The Partc"a't +&!t (er-y the 'at&re #- the !ec&rty. t! "arb&! !tat&!
2th re-ere'ce t# the l!t #- ISIN )I'ter'at#'al Sec&rty Ide't-cat#'
N&+ber* c#de! a(alable 2th t5 Wr#'3 all#cat#' +ay re!< '
a(#dable l#!!e! t# the cle't!5 The ISIN ! e'tered ' !"ace "r#(ded
-#r t ' the De+ateral!at#' reC&e!t -#r+5
• I- "art! #- the cert-cate! "erta''3 t# a !'3le DRF are "artly "adE&"
the "artc"a't! 2ll re$ect a'd ret&r' the DRF al#'3 2th the
cert-cate!5 He +ay ad(ce the cle'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 2th a !'3le DRF5
• I' ca!e the !ec&rte! are -#&'d ' #rder the detal! #- the reC&e!t a!
+e't#'ed ' the -#r+ are e'tered ' the DPM a'd De+ateral!at#'
reC&e!t '&+ber 2ll 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
detal! rec#rded -#r the DRN5 The "artc"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 "artc"a't 2ll "&'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 +ateral
'-#r+at#' #' the cert-cate5
• The "artca"a't 2ll the' d!"atch the cert-cate! al#'3 2th the
reC&e!t -#r+ a'd a c#(er'3 letter l0e 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+aterla!at#' the DM electr#'cally a&th#r7e the creat#' #-
a""r#"rate credt bala'ce! ' the cle't9! acc#&'t5
• The DPM 2ll credt the cle't9! acc#&'t a&t#+atcally5
• The Partc"a't +&!t '-#r+ the cle't the cha'3e! ' the cle'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 2hle a""ly'3 -#r a "r+ary !!&e ha! t# 'dcate the #"t#'
t# rece(e all#t+e't #- !ec&rte! ' electr#'c -#r+ ' the a""lcat#'5. The
acc#&'t '&+ber #- the '(e!t#r a'd the "artc"a't9! de't-cat#' '&+ber
2th NSDL al!# ha(e t# be +e't#'ed ' the a""lcat#' -#r+5
• O' all#t+e't. the I!!&er4RHT a3e't all#cate! the !ec&rte! 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&rte! t# the Mrele(a't
cle't!9 acc#&'t! ' the DPM5
• The "artc"a't '-#r+! the cle't acc#rd'3ly5
• I' ca!e 2here all#cat#' 2ll '#t be credted t# the cle'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 &" 2th the I!!&er4RHT a3e't t# -'d the r3ht
be'e-cary5
• O'ce the r3ht be'e-cary acc#&'t! traced. the r3ht b##0'3 !
re"#rted t# the DM5 The all#cat#' ! +#(ed #&t #- the !&!"e'!e
acc#&'t a'd the DM Credt! the r3ht acc#&'t5
• I- the c#rrect be'e-cary acc#&'t ca''#t be traced -#r +#re tha'
--tee' day!. the I!!&er4RHT a3e't 2ll be a!0ed t# "#!t "hy!cal
cert-cate! t# the c#'cer'ed '(e!t#r! a'd the !&!"e'!e bala'ce 2ll
be red&ced t# 7er#5
P(eca%"i)s/
• H#ld'3! ' th#!e !ec&rte! that ha(e '#t yet bee' ad+tted -#r
de+ateral!at#' by NSDL ca''#t be de+ateral7ed5 L!t #-
!ec&rte! ad+tted -#r de+ateral!at#' !h#&ld be (er-ed be-#re
de-ac'3 the !ec&rte!5
• H#ld'3! ' !treet 'a+e ca''#t be de+ateral7ed5 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'tcal 2th the 'a+e! 'tat'3 the
de+ateral!at#' reC&e!t5
• Se"arate de+ateral!at#' reC&e!t 2ll ha(e t# be -lled -#r l#c0edE
' a'd -ree h#ld'3!5
• Se"arate de+ateral!at#' reC&e!t! 2ll ha(e t# be -lled -#r -&lly
"ad &" a'd "artly "ad &" h#ld'3!5
• Se"arte de+ateral!at#' reC&e!t! 2ll 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 Partc"a't. -#r the -#ll#2'3 rea!#'! that re$ect the De+at
reC&e!t -#r+!5
• I- the cle't ID '#t +e't#'ed5
• I- the h#lder9! !3'at&re ! +!!'35
• I- the "atter' #- the 'a+e! #' the a""lcat#' are ' +!+atch 2th
that #' the !ec&rte!5
• I- the 'a+e t!el- ! ' +!+atch 2th that #' the !ec&rte!5
• I- the C&a'tty #- !hare! ' the a""lcat#' are ' +!+atch 2th that
#- the !ec&rte!5
• I- the cle't ID ! 'c#rrect5
• The !cr" ! '#t &'der De+ateral!at#'5
• I- the '&+ber #- !hare cert-cate! d#e! '#t tally 2th the '&+ber
!"ec-ed #' the a""lcat#'5
• I- detal! !&ch a! -#l#. d!trb&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 cle't ID ! '#t act(e5
• I- the DRF ! rece(ed 2th#&t the !hare cert-cate!5
• I- the a""lcat#' -#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
DRN .e)e(a"e&
A
a
I)$(0a"i)
%1*a&e& "
NSDL
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+ateral!at#' ! the "r#ce!! #- !!&'3 "hy!cal !ec&rte! ' "lace
I#- the !ec&rte! held electr#'cally ' b##0Ee'try -#r+ 2th de"#!t#ry5
U'der th! "r#ce!!. the de"#!t#ry acc#&'t #- a be'e-cal #2'er ! debted
-#r the !ec&rte! !#&3ht t# be re+ateral7ed a'd "hy!cal cert-cate! -#r the
eC&(ale't '&+ber #- !ec&rte! are !!&ed5
A be'e-cal #2'er h#ld'3 the !ec&rte! 2th a de"#!t#ry ha! a r3ht t#
3et h! electr#'c h#ld'3 c#'(erted 't# "hy!cal h#ld'3 at a'y t+e5 The
be'e-cal #2'er de!r'3 t# rece(e "hy!cal !ec&rty 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!crbed Re+ateral!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-cal #2'er! #- the !ec&rte! !h#&ld +a0e the reC&e!t5
:5 There !h#&ld be !&--ce't -ree bala'ce #- !ec&rte! a(alable ' the
be'e-cary 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+ateral!at#' reC&e!t -#r+!)RRF* t#
cle't!5
:5 The cle'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 (aldty. c#+"lete'e!! a'd c#rrect'e!!5
I' "artc&lar. the -#ll#2'3 "#'t! !h#&ld be chec0ed5
• There ! !&--ce't -ree bala'ce a(alable ' the cle't9! acc#&'t
t# h#'#&r the re+ateral!at#' reC&e!t5
• The 'a+e #- the cle't #' RRF ! eBactly the !a+e a! that ' the
cle't acc#&'t5
• I' ca!e #- $#'t h#ld'3. the #rder #- 'a+e! a""ear'3 ' RRF !
the !a+e a! ' the cle't9! acc#&'t5
• Detal! l0e !ec&rty. -ace (al&e. !!&er9! 'a+e a'd l#c0E'
!tat&! are -lledE' c#rrectly5
• The cle't ha! 'dcated h! #"t#' t# rece(e "hy!cal
cert-cate! ether ' $&+b# l#t -#r the e'tre C&a'tty reC&e!ted
#r ' +ar0et l#t5
• Se"arate RRF are !&b+tted -#r
? Free a'd l#c0edE' !ec&tre!
? Sec&trre! l#c0edE' -#r d--ere't rea!#'!
? Each ISIN
? Sec&rte! #- d--ere't "adE(al&e a'd
? Each cle'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#r7ed S3'at#re! ' the ca!e #- c#r"#rate acc#&'t!.
? C#'!tt&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
cle'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 cle't5
>5 DP Sh#&ld e'ter the reE+ateral!at#' reC&e!t ' DPM5 DPM 2ll
3e'erate a re+at reC&e!t '&+ber )RRN* 2hch !h#&ld be +e't#'ed
#' RRF5
?5 A' a&th#r7ed "er!#'. #ther tha' #'e 2h# e'tered the RRF detal! '
DPM. !h#&ld (er-y the detal! #- RRN a'd relea!e a reC&e!t t# the
de"#!t#ry5
@5 The DP !h#&ld c#+"lete the a&th#r7at#' -#r RRF t# the !!&er #r t!
RHT A3e't -#r reE+ateral!at#'5 The DP !h#&ld -#r2ard RRF t# the
!!&er #r t! RHT A3e't 2th' !e(e' day! #- acce"t'3 t -#r+ the
cle't5
D5 The !!&er #r t! RHT A3e't !h#&ld (er-y the RRF -#r (aldty.
c#+"lete'e!! a'd c#rrect'e!!5 It !h#&ld al!# +atch the deal! 2th 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&rty cert-cate! a'd d!"atch the+ t#
the be'e-cal #2'er5
885 The DP. #' rece('3 c#'-r+at#' #- debt e'try ' DPM. !h#&ld
'-#r+ the cle't acc#rd'3ly5
The e'tre "r#ce!! ta0e! a +aB+&+ #- ;Fday!5 N# trad'3 ! "#!!ble #'
the !ec&rte! !e't -#r re+at5
PROCEDURE FOR REMATERIALISATION OF
SECURITIES /
Recei1" $ RRF $(0 c*ie)"
Re5%es" sa#e& i)
DPMARRN .e)e(a"e&
Ve("i$ie& RRN $(4a(&e& "
NSDL
Ne4 ce("i$ica"es 1(i)"e&
b' R>T
Dis1a"chi). $ ce("i$ica"es
" i)#es"(
>
c)$i(0a"i
A
Des c*ie)" ha#e
s%$$icie)"
ba*a)ce i) his
acc%)"
Re!ec" (e5%es"
Re5%es" $(4a(&e& b'
NSDL " R>T
e*ec"()ica**'
STAR
T
A%"h(i2a"i) $
RRF b' DP
Ph'sica* (e5%es"
$(4a(&e& " R>T
A
S"a"%s %1&a"e& " DP
I)"i0a"i) " c*ie)"
b' "he DP
s1
TRADING AND SETTLEMENT IN DEPOSITORY
MODE/
Trad'3 ' De+ateral7ed !ec&rte! ! d--ere't -r#+ trad'3 '
"hy!cal !ec&rte! a'd trade ' #'e -#r+ ca''#t be !ettled ' a'#ther -#r+5
H#2e(er. SEBI ha! a''#&'ced that 2th e--ect -r#+ >
th
A"rl. 8DD@.
de+ateral7ed !ec&rte! ca' be del(ered a3a'!t #bl3at#' ' the "hy!cal
+ar0et #- b#th NSE a'd BSE5 Th! +ea'! a' '(e!t#r 2h# ha! !#ld
!ec&rte! ' "hy!cal +ar0et ca' del(er ether "hy!cal #r de+ateral7ed
!ec&rte!5 B&t "hy!cal !ec&rte! ca''#t be del(ered a3a'!t #bl3at#' '
the +ar0et -#r de+ateral7ed !ec&rte!5
C&rre'tly. de+ateral7ed !ec&rte! ca' be traded #' NSE a'd BSE5
All trade! d#'e ' De"#!t#ry !e3+e't 2th 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 2ll be #' Th&r!day5 S+larly. -#r trade!
eBec&ted #' T&e!day. !ettle+e't 2ll be #' Frday a'd !# #'5
P(ce&%(e $( Se**i). De0a" Sec%(i"ies/
The "r#ced&re -#r !ell'3 De+at !ec&rte! ! (ery !+"le5 A-ter
!ell'3 the !ec&rte! #'e 2#&ld '!tr&ct h!4her DP t# debt h!4her acc#&'t
2th the '&+ber #- !ec&rte! !#ld by h+ a'd credt 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&rte! ' 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# debt y#&r acc#&'t a'd credt 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&rte!5
P(ce&%(e $( P%(chasi). De0a" Sec%(i"ies/
F#r rece('3 De+at !ec&rte! #'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&rte! are t# be rece(ed5 The
tra'!act#' relat'3 t# "&rcha!e #- !ec&rte! are !&++ar7ed5
P(ce&%(e $ 1%(chase sec%(i"ies is as $**4s/
• O#& "&rcha!e !ec&rte! 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! credt #- !ec&rte! ' t! clear'3 c#r"#rat#' #'
the "ayE'Eday5
• O#&r br#0er 3(e! '!tr&ct#' t# t! DP t# debt clear'3 acc#&'t a'd
credt 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#& 2ll ha(e t# 3(e
'!tr&ct#'! t# y#&r DP -#r rece('3 credt5
• O#& !h#&ld e'!&re that y#&r br#0er tra'!-er! the !ec&rte! -r#+ t!
clear'3 acc#&'t t# y#&r de"#!t#ry acc#&'t be-#re the b##0 cl#!&re5
I- the !ec&rte! re+a' ' the clear'3 acc#&'t #- the br#0er the
c#+"a'y 2ll 3(e c#r"#rate be'e-t )d(de'd #r b#'&!* t# the br#0er5
I' that ca!e y#& 2ll ha(e t# c#llect the be'e-t! -r#+ the br#0er5
• Trad'3 ' de+ateral7ed !ec&rte! 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!. 2hch are 'e3#tated 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# "artc"ate ' De"#!t#ry !e3+e't #- the +ar0et ha! t# #"e' a
!"ecal clear'3 +e+ber acc#&'t 2th a "artc"a't5 I- the clear'3 +e+ber
! t!el- ! a "artc"a't. the acc#&'t ca' be #"e'ed ' t! #2' "artc"a't !etE
&"5 Whe' cle't! !ell !ec&rte!. !ec&rte! are +#(ed -r#+ the cle't9!
acc#&'t t# the "##l acc#&'t #- the +e+ber5 At the t+e #- "ayE' the
!ec&rte! are +#(ed t# the clear'3 c#r"#rat#' ba!ed #' the 'et #bl3at#'
#- the clear'3 +e+ber5 I'(arably. the retal cle't! &!e the !er(ce! #- the
!ell'3 br#0er a! a clear'3 +e+ber -#r !ettle+e't #- ther tra'!act#'!5
H#2e(er. the -aclty -#r &!'3 a clear'3 +e+ber #ther tha' the br#0er
2h# eBec&te! the #rder! ! a(alable5 I' !&ch ca!e! the cle't 2ll 'dcate 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! ther 'et #bl3at#'! t# the clear'3 c#r"#rat#'5 O' the
"ay#&t day. the clear'3 c#r"#rat#' 2ll credt the "##l a+#&'t #- the
clear'3 +e+ber 2th 'et rece(able! by the clear'3 +e+ber5
The clear'3 +e+ber 2ll the' 3(e '!tr&ct#'! -#r tra'!-err'3 the bala'ce!
-r#+ the "##l acc#&'t t# the b&y'3 cle'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'tte!. 2hch are
'e3#tated #&t!de the trad'3 !y!te+ #- !t#c0 eBcha'3e bet2ee' trad'3
+e+ber! drectly5 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-cary acc#&'t t# a'#ther be'e-cary acc#&'t a'd bet2ee' a
be'e-cary acc#&'t a'd the h#&!e acc#&'t #- a "artc"a't5
PLEDGE
NSDL "r#(de! be'e-cal #2'er! 2th the -aclty Pled3e4Hy"#thecate
!ec&rte! held ' De+ateral7ed -#r+5
P(ce&%(e $( c(ea"i). a P*e&.e ( H'1"heca"i)6
Whe' the be'e-cal #2'er 'te'd! t# create a Pled3e #r Hy"#thecat#' #' a
!ec&rty #2'ed by h+. he !h#&ld +a0e a' a""lcat#' the DP 2h# ha! a'
acc#&'t ' re!"ect #- !&ch a !ec&rty5
The detal! re3ard'3 the C&a'tty #- !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 '#tce #- "led3e a'd
hy"#thecat#'. -#r2ard! the a""lcat#' #- the be'e-cal #2'er t# the
de"#!t#ry5
O' rece"t #- !&ch a""lcat#' the de"#!t#ry !hall +a0e '(e!t3at#' a! t
+ay c#'!der 'ece!!ary a'd - a""r#(e! the creat#' #- "led3e #r
Hy"#thecat#'. t !hall e'ter the "artc&lar! ' t! rec#rd! a'd 't+ate! the
DP5
The DP ' t&r' '-#r+! the be'e-cal #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-cal #2'er5
• The Partc"a't 2th#&t the c#'c&rre'ce #- the "led3e !hall a--ect '#
tra'!-er #- !ec&rte!. ' re!"ect #- 2hch '#tce #- "led3e #r e'try !
' -#rce5
• The Pled3ed !ec&rte! 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 -al! t# re"ay the l#a'. the "led3ee ca' '(#0e the
"led3e ' acc#rda'ce 2th the "led3e deed5
• O' '(#0'3 the "led3e. the !ec&rte! 2ll 3et tra'!-erred t# the
Pled3ee9! acc#&'t a'd ' t! 'a+e ++edately5
• The "led3#r ca' cl#!e "led3e by +a0'3 a' a""lcat#' 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&rte! ca' be cate3#r7ed 't# : "art!6
• T(a)s0issi) $ Sec%(i"ies/ I' the e(e't #- death #- a'y #- the
$#'t h#lder!. ' 2hch ca!e. the #ther eB!t'3 $#'t h#lder! ca' 3et the
!ec&rte! tra'!+tted ' ther -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 2th
a "artc"a't5
• T(a)s0issi) $ Sec%(i"ies/ I' the e(e't #- death #- a !#le trader. '
2hch ca!e. the cla+a't!4!&cce!!#r!4le3al her! ca' 3et the !ec&rte!
tra'!+tted ' ther -a(#&r by !&b+tt'3 the rele(a't le3al d#c&+e't!
t# the Partc"a't5 The cla+a't!4le3al her!4!&cce!!#r! !h#&ld #"e' a'
acc#&'t 2th a "artc"a't t# 3et !ec&rte! tra'!+tted ' ther -a(#&r5
+a, T(a)s0issi) $ sec%(i"ies $ s*e h*&e( +&ecease&,/
• Where the !#le h#lder 2h# ha! !ec&rte! held ' t! 'a+e !
decea!ed. the' a'y !&cce!!#r!4cla+a't!4le3al her! !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 #- 2ll. !&cce!!#'
cert-cate. letter #- Ad+'!trat#'. #r a'y #ther le3al d#c&+e't
2hch +ay be reC&red al#'3 2th a' atte!ted c#"y #- the Death
Cert-cate t# the Partc"a't5
• The "artc"a't 2ll (er-y all the le3al d#c&+e't! !&b+tted by
the le3al her4cla+a't4!&cce!!#r -#r ther a&the'tcty5 I-
!at!-e! ab#&t the a&the'tcty #- the d#c&+e't! !&b+tted. the
"artc"a't 2ll tra'!+t the !ec&rte! t# the re!"ect(e cle'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&rte! tra'!+tted ' ther -a(#&r #'ly #' -&r'!h'3 a
c#"y #- the death cert-cate )d&ly atte!ted4#r ' #r3'al* thr#&3h the
"artc"a't5
• The "artc"a't 2ll (er-y the d#c&+e't! a'd !at!-y t!el- ab#&t the
a&the'tcty #- 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 2ll 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'#tce!5 The $#'t h#lder! are e'ttled t#
cha'3e the !eC&e'ce #- 'a+e! by +a0'3 a 2rtte' reC&e!t t# the c#+"a'y5
Th! d#e! '#t c#'!tt&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(aled -#r e'tre
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&rte! ' d--ere't !eC&e'ce #-
'a+e!. the!e $#'t h#lder! 2ere earler 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 -aclty t# hel" $#'t h#lder!. t# de+at !ec&rte! ' 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' addt#'al -#r+ called MTra'!"#!t#' -#r+9
!h#&ld be !&b+tted t# the DP5
FREECING OF AN ACCOUNT
A cle't +ay 2!h t# -ree7e t! acc#&'t by deact(at'3 t5 The
"artc"a't ha! a -aclty ' the DPM t# -ree7e a' acc#&'t5 The acc#&'t !
-r#7e' -#r a'y tra'!act#' therea-ter &'tl t ! react(ated #' a reC&e!t -r#+
the cle't5 A' acc#&'t +ay be -r#7e' -#r debt! #r -#r b#th debt! a'd credt!
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#'! ! credted t# the acc#&'t $&!t l0e a'y #ther acc#&'t5
P(ce&%(e $( $(ee2i). a) acc%)"/
• The cle't !&b+t! a reC&e!t -#r+ t# the "artc"a't ' the "re!crbed
-#r+ -#r -ree7'3 t! acc#&'t5
• O' rece"t #- the reC&e!t -#r+. the "artc"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 cle't5
• The "artc"a't c#+"are! the !3'at&re #- the cle't #' the -#r+ 2th
that #- a(alable ' t! rec#rd!5
• I- the reC&e!t -#r+ ! ' #rder the "artc"a't cha'3e! the !tat&! #- the
cle't9! acc#&'t -r#+ MACTI/E9 t# MSUSPENDED FOR DEBIT9 #r
MSUSPENDED FOR ALL9 de"e'd'3 #' the ch#ce #- the cle't -r#+
the date +e't#'ed by the cle't #' the -#r+5 The "artc"a't e'ter!
the rea!#'! -#r cha'3e ' !tat&!5
• The "artc"a't the' 't+ate! t# the cle't ab#&t the cha'3e ' !tat&!5
UNFREECING OF AN ACCOUNT
A cle't 2h#!e acc#&'t ! -r#7e' +ay reC&e!t t# &'-ree7e t5 The
Partc"a't ha! the -aclty ' 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 cle't !&b+t! a reC&e!t t# the "artc"a't ' the "re!crbed -#r+
-#r &'-ree7'3 h! acc#&'t5
• O' rece"t #- the reC&e!t -#r+. the "artc"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 cle't5
• The "artc"a't c#+"are! the !3'at&re #- the cle't #' the -#r+ 2th
that #- a(alable ' t! rec#rd!5
• I- the reC&e!t -#r+ ! ' #rder. the Partc"a't cha'3e! the !tat&! #- the
cle't9! acc#&'t t# MACTI/E9 #' the date +e't#'ed by the cle't #'
the -#r+5 The "artc"a't e'ter! the rea!#' -#r cha'3e ' the !tat&!5
• The "artc"a't 't+ate! the cle't ab#&t the cha'3e ' !tat&!5
SUSPENSION OF AN ACCOUNT
A Partc"a't ha! the -aclty ' the DPM t# !&!"e'd a cle't9! acc#&'t
' ca!e t rece(e! a drect(e #rder t# the e--ect -r#+ NSDL. I'c#+e taB #r
J&dcal a&th#rte!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 credted t# the !&!"e'ded acc#&'t $&!t a! ' a'y #ther
acc#&'t5 The cle't ca''#t +#(e the -r#7e' h#ld'3! #&t #- the acc#&'t5 The
Partc"a't 't+ate! the cle't ab#&t the !&!"e'!#' #- h! acc#&'t!5
P(ce&%(e $( S%s1e)&i). a) Acc%)"/
O' rece"t #- drect(e4#rder -#r !&!"e'd'3 #- a cle't acc#&'t. the
Partc"a't ha! t# cha'3e the cle'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! Mdrect(e4#rder #- the c#'cer'ed
a&th#rty95
The Partc"a't 't+ate! the cle't ab#&t the !&!"e'!#' #- h! acc#&'t5 I'
ca!e #- clear'3 +e+ber9! cle't. the "artc"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 drect(e t#
re(#0e !&ch !&!"e'!#' -r#+ NSDL #r a&th#rte! +e't#'ed ab#(e5
The "artc"a't rec#rd! the rea!#' -#r the !tat&! cha'3e a! a drect(e
-r#+ the c#'cer'ed a&th#rty5
• The Partc"a't 't+ate! the cle't ab#&t the re(#0'3 #- the
!&!"e'!#'5
Depository Reforms -2007
The year &'der re(e2 2t'e!!ed !3'-ca't re-#r+! ' the de"#!t#ry
related area! at the 'tat(e #- SEBI5 S#+e #- the +"#rta't re-#r+! are a!
-#ll#2!6
a* Stre'3the''3 #- S&r(ella'ce Mecha'!+ SEBI had ad(!ed the
de"#!t#re! t# e'ha'ce a'd ad#"t a +<E-aceted a""r#ach ' ther
S&r(ella'ce +echa'!+5 Acc#rd'3ly. y#&r c#+"a'y ha! ta0e' !e(eral !te"!
' th! drect#'. !#+e #- 2hch are +e't#'ed bel#25
CDSL carre! #&t a "r#ce!! #- de't-y'3 +<"le de+at acc#&'t! ba!ed #'
'a+e. addre!! a'd PAN card detal! #- the h#lder!5 De"#!t#re! "artc"a't!
are the' '!tr&cted t# (er-y the 3e'&'e'e!! #- !&ch de+at acc#&'th#lder!5
F&rther. PAN card detal! "r#(ded by acc#&'t h#lder! are 'de"e'de'tly
(er-ed by CDSL 2th the I'c#+e TaB De"art+e't a'd '!ta'ce! 2here
PAN card detal! are '#t +atch'3 2th the I'c#+e TaB De"art+e't9!
Data ba!e. are br#&3ht t# the '#tce #- the c#'cer'ed de"#!t#ry "artc"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 drected that (er-cat#' #- PAN card by de"#!t#ry
"artc"a't! 2a! c#+"&l!#ry ' re!"ect #- all de+at acc#&'t! #"e'ed #' #r
a-ter 8!t A"rl. :FF>5 F&rther. SEBI had drected that 2th e--ect -r#+ 8!t
Oct#ber. :FF> eB!t'3 acc#&'t h#lder! 2#&ld '#t be able t# #"erate ther
de+at acc#&'t! ' ca!e they d# '#t "r#d&ce ther PAN card -#r (er-cat#'
by the c#'cer'ed de"#!t#ry "artc"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" sh4s "he )%0be( $ De1si"('
Pa("ici1a)"s $ CDSL $(0
D; " DEMONTH F YEAR NUMBER OF DEPOSITORY
PARTICIPANTS
APRIL
D; 9G9APRIL
D< :99APRIL
D= :9EAPRIL
DH ;9=APRIL
DE ;H=GRAPH OF THE ABOVE TABLE/
The ab#(e 3ra"h de"ct! the c#'t'&#&! r!e ' the '&+ber #- De"#!t#ry
Partc"a't! re3!tered 2th the CDSL ' I'da -#r the "a!t -(e year!5
I' the year :FF; the t#tal '&+ber #- De"#!t#ry Partc"a't! re3!tered
2th the De"#!t#ry 2a! 8D85. 2hch ha! 3#'e t# :88 ' the year :FF< a'd
!&b!eC&e'tly t# ;>= ' the year :FF?5
D
=D
9DD
9=D
D:=D
;DD
;=D
<DD
D; D< D= DH DEDPs
NUMBER OF BENEFICIAL OWNER ACCOUNTS
MONTH7YEAR NUMBER OF
BENEFICIAL
OWNERACCOUNTS+IN
LAKHS,
APRIL
D; :8=APRIL
D< H8;APRIL
D= 9D899APRIL
DH 9I8H9APRIL
DE :I8E;The ab#(e 3ra"h de"ct! the c#'t'&#&! r!e ' the '&+ber #- Be'e-cal
O2'er! #- CDSL ' I'da -#r the "a!t -(e year!5
I' the year :FF; the t#tal '&+ber #- Be'e-cal O2'er! acc#&'t! 2a! :5=
la0h. 2hch 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) De1si"(' Pa("ici1a)" a)& "he De1si"('
is .#e()e& b' a) a.(ee0e)" 0a&e be"4ee) "he "4 %)&e( "he DP
Ac"8
? A De1si"(' Pa("ici1a)" ca) $$e( &e1si"(' 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 De1si"(' Pa("ici1a)" i) 0(e "ha)
)e &e1si"(' he sh%*& c01*' 4i"h s1eci$ie& )e" 4("h c(i"e(ia
se1a(a"e*' $( each s%ch &e1si"('8
? CDSL (e5%i(es 0i)i0%0 )e" 4("h $ Rs898=c((e " be e*i.ib*e "
bec0e a DP8
? A De1si"(' sha** i)&e0)i$' a be)e$icia* 4)e( a)' *ss ca%se& &%e
" )e.*i.e)ce $ "he b' "he De1si"('8
? CDSL b"ai)s a%&i"e& $i)a)cia* (e1("s $(0 a** i"s De1si"('
Pa("ici1a)"s )ce e#e(' 'ea(8
? De1si"(' 1a("ici1a)"s a(e (e5%i(e& " s%b0i" " CDSL i)"e()a*
a%&i" (e1("s e#e(' 5%a("e(8
? CDSL &e#e*1s s$"4a(e (e5%i(e& b' De1si"(' Pa("ici1a)"sA
C01a)ies a)& C*ea(i). C(1(a"i)s $( c)&%c"i). &e1si"('
1e(a"i)s8
? De1si"(' Pa("ici1a)"s 0a' &e#e*1 s$"4a(e $ "hei( 4)A $( c7
(&i)a"i)A c00%)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 De1si"(' Pa("ici1a)"s8
BIBLIOGRAPHY
De1si"(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
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