Depositary and Dematerialization *

Depository is an institution or a kind of organization which holds securities with it, in which trading is done among shares, debentures, mutual funds, derivatives, F&O and commodities.

The intermediaries perform their actions in variety of securities at Depository on behalf of their clients. These intermediaries are known as Depositories Participants.

Depositories in India -

National Securities Depository Limited (NSDL)

Central Depository Service (India) Limited (CDSL)Depositary

DematDEMAT is a process by which physical share certificates are converted into an electronic form.

Primary market issue of shares, mutual fund units, and secondary market trading of shares are all issued and managed in electronic form only.*

Opening Demat accountAny individual, HUF, minor or even NRI can open a DEMAT account with designated depository participants

Know your client formalities (KYC) (a) Pan card (b) Ration Card (c) Electric Bill (d) Passport (e) Voter ID card (f) Bank pass book *

Depositary ParticipantCDSL operates through DPs i.e. Depository Participants

Depository Participant (DP) is described as an agent of the depository. It is an intermediary between the depositary and the investors.

Public sector, Private sector and Scheduled Co-op. banks work as DPs for CDSL.

Big broking houses - Motilal Oswal, Angel Broking, Asit C.Mehta, India Infoline broking + depository services.*

Bank Account vs. Demat AccountCustomer

Keeps Money

Can withdraw Money

Nomination Allowed

Beneficial Owner

Keeps Shares in Electronic form

Can sell shares

Nomination allowed*Unlike bank account, Demat does not require - No minimum balance requirement

Shares not used by DPs/ Money utilized by banks

Depository Services

Designated DPs such as Banks and Share Broker DPs open clients accounts following stringent KYC formalities

They maintain shares in electronic form and send statement of holding every month.

IPO credit is given in clients accounts Completing market and off-market trades for clients.

Allotment of bonus and rights shares

Loan against shares

REMAT (from electronic to physical)

Freezing of DEMAT account for debits, credits or both.

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Physical to Demat form DPs with DEMAT Request Form convert physical shares. Shares appear in electronic form appear in your holding statement.*

Time and Cost saving

Database management of clients / customers.

Crediting of bonus shares and other corporate actions in the DP accounts.

Crediting of share dividends and other payouts

Transaction costs

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RameshSellerVijayBuyerSMC GLOBALIndiaInfolineBSE

Settlement @ T+2Sellers Broker gives shares to Stock ExchangeBuyers Broker gives money to Stock ExchangePay-InPay-OutStock Exchange gives money to Sellers Broker Stock Exchange gives shares to Buyers Broker

Liquidity Shares held in your DEMAT account can be pledged with your DP to avail loan.

Creation of liquidity.

Payment of loan can be done as per your convenience.

Once the loan is repaid the shares are released back to the owner.*

Nominations and Other Benefits

Now, nomination is made mandatory and is very useful for both i.e. client and DP. Nomination can be done for single as well as joint accounts.

While going out of station for longer periods, you can always freeze your demat account. This avoids frauds and client can rest assure that his account is safe in his absence.

Client need not worry about the depository participants status as even though any DP is declared insolvent actual shares are held with CDSL.

These shares can be accessed through other DP in such event.

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CDSL Smart SMS related to Transactions

With CDSL you can register your mobile number for SMART facility.

You will be informed about the debits in your demat account by sending a SMS directly from CDSL.

SMS for credit in your A/c IPO allotment or corporate benefits such as bonus, rights allotment.

Avail valuation of your shares for holding.

SMS sent twice a day - 7 a.m. &.7 p.m.*

CDSL (EASI)

Electronic Access to Securities Information (EASI)

Through internet facility now Client and Beneficiary Owner (BO) can view his securities in the account

Print transactions for last 7 days.

Valuation of shares portfolio with yesterdays closing rates of BSE.

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CDSL (EASIEST)

(Electronic Access to Securities Information and Execution of Secured Transactions.)

With this facility applied, BO can enter debit instruction to his account without filling up the delivery instruction slip.

Facilities of easi are also available for the users of EASIEST

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Selection of DP

For availing Depository Services you can visit the DP nearest to your house or office.

Compare the charges of DP and additional services.

The list of DPs is available on the website of CDSL i.e. www.cdslindia.com .

With broker DP you can avoid giving delivery instruction slips for every selling transaction, however it is an individual decision to choose the DP.*

Whats New ?

Mutual Funds are now traded through the stock markets as ETF and they are issued in DEMAT form.

Get your MF unit statement in Demat from form your DP.

Get combined statement of holding of shares and MFs.*

MUTUALFUNDUNITSIN DEMAT

Now, very soon life insurance policies will be issued in Demat form

CDSL - Whats New*

CDSL TODAYInvestor Count: 87,46,889

Securities Available for DEMAT Equity: 7308Mutual Fund: 19157Debt Instruments: 6616

Depository Participants: 581CDSL has ISO 27001 CertificationDEMAT in Custody: 1,68,540DEMAT in Value: 99,22,770

CDSL helpdesk

For any of your queries you can contact the helpdesk of CDSL on the number 91-22-2272 3333 Or you can email your queries on : investors@cdslindia.com THANKS *