depository compliance manual june 2011

8/2/2019 Depository Compliance Manual June 2011

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Central Depository Services (India) Limited

Compliance Manual for Depository Participants

June 2011

Version 11


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Compliance Manual for DPs Page 2 of 158

TABLE OF CONTENTS

PREFACE .................................................................................................................................3

LIST OF ABBREVIATIONS / REFERENCES USED ...............................................................4

ACCOUNT OPENING / MODIFICATION .................................................................................5

DEMATERIALISATION ..........................................................................................................47

INSTRUCTION PROCESSING ..............................................................................................55

TRANSMISSION .....................................................................................................................69

STATEMENT OF ACCOUNTS ...............................................................................................78

PLEDGE /UNPLEDGE/ INVOCATION...................................................................................83

REMATERIALISATION ..........................................................................................................86

FREEZE / UNFREEZE............................................................................................................89

ACCOUNT CLOSURE............................................................................................................92

MUTUAL FUND UNITS ........................................................................................................101

INTERNAL CONTROLS / REPORTING TO CDSL .............................................................104

GRIEVANCE REDRESSAL .................................................................................................122

RECORD MAINTENANCE ...................................................................................................125

RECONCILIATION ...............................................................................................................131

SYSTEM / CONNECTIVITY .................................................................................................133

ASSIGNMENT OF BUSINESS .............................................................................................140

CODE OF CONDUCT ...........................................................................................................146

PREVENTION OF MONEY LAUNDERING ACT 2002 (PMLA) ...........151


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LIST OF ABBREVIATIONS / REFERENCES USED

Abbreviation/Reference

Term

AOF Account Opening FormACF Account Closure Form

BO Beneficial OwnerBSE Bombay Stock Exchange Ltd.Bye Law Bye Law of CDSLCDAS / System Central Depository Accounting System.CDSL Central Depository Services (India) LimitedClause Clause of Agreement between CDSL & DPCC Clearing CorporationCH Clearing HouseCM Clearing MemberCM CISA Clearing Member Investors Securities AccountCM USA Clearing Member Unified Settlement Account

Comm. Communiqu i.e. Circulars issued by CDSL to DPsCS Company SecretaryDP Depository ParticipantDRF Dematerialisation Request FormDRN Dematerialisation Request NumberFII Foreign Institutional InvestorFN Foreign NationalFRF Freeze Request FormHUF Hindu Undivided FamilyID IdentityIRF Invocation Request FormISIN International Securities Identification NumberMD Managing DirectorNRI Non-Resident IndianOCB Overseas Corporate BodyOperating Instruction(s) Operating Instruction of DP Operating Instruction ManualPAN Permanent Account NumberPOA Power of AttorneyPRF Pledge Request FormPSN Pledge Sequence NumberRBI Reserve Bank of IndiaRegulation Regulation of SEBI (Depositories and Participants) Regulations, 1996

RRF Rematerialisation Request Form

RRN Rematerialisation Request NumberRTA Registrar & Transfer AgentSEBI Securities & Exchange Board of IndiaSection Section of Depositories Act, 1996SGL Subsidiary General LedgerTRF Transmission Request FormTRPF Transposition Request FormURF Unpledge Request Form


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ACCOUNT OPENING / MODIFICATIONGeneral

Reference Compliance Requirement Remarks

Section 5,Regulation 41,Bye law 5.4.1 &13.1.5 &OperatingInstruction 2.4.3

Before opening an account the DP shallensure that an agreement in the format asspecified under CDSL Bye-Lawshas beenentered with all the prospective BOs,except for the categories of BOs asspecified under Bye Law 5.4.1.1.

Exception One BOagreement forall accountsopened for aCM of anExchange.

Bye law 13.1.4& OperatingInstruction

2.4.4

Comm. 888dated May 03,2007

Comm. 892dated May 04,2007

The DP shall ensure that the BO accountis opened on the basis of an AccountOpening Form, duly complete in all

respects submitted by the prospective BOto the DP along with the prescribeddocuments.

The DP shall ensure that permanentaddress information regarding second andthird account holders, if any, is obtainedwhile opening new accounts.

Separate formsare provided forindividuals and

for entities otherthan individuals.

Operating

Instruction 2.4.4

However, the DPs can obtain a single form

from the CM for opening the multipleaccounts of same Exchange e.g. CMPrincipal, CM USA & CM CISA accountsfor BSE.

Regulation 42 (1),Bye Law 5.3.4 /5.4.6/ 13.1.2 &Clause 9

A separate account must be opened foreach BO and the DP must ensure that thesecurities of the BO are segregated andnot mixed with its own securities.

Operating

Instruction 2.4.1

A Power of Attorney holder cannot open a

demat account on behalf of the BO.

OperatingInstruction 2.4.4

Those sections of Application Form whichare not relevant to a particular type of BO,should be marked Not Applicable (N.A.).


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OperatingInstruction2.4.6

The passport size photograph of eachapplicant should be pasted on the accountopening form. The BO should sign acrossthe photograph and on the account

opening form.Operating

Instruction2.4.13

Photocopies of documents submitted by aBO should be obtained and maintained on

regular paper and not on thermal paper.


The DP shall take special care to checkthe genuineness of the client, ifdisproportionately large number ofaccounts (say more than 20) are openedwith the same name and / or sameaddress and / or with the same bank

account details / PAN card details.OperatingInstruction 2.4.5

BO accounts to hold securities cannot beopened in the name of proprietary concern

/ partnership firms. Such accounts shouldbe opened in the individual names ofproprietor / partner(s).

PAN card details are to be obtained forproprietor / partner(s) as well as for theproprietary / partnership firm. ForPartnership firm, Partnership deed is also

to be obtained. The pan card details of thepartnership firm / proprietorship firm is tobe updated in the CDSL system.

OperatingInstruction 2.4.2& 2.4.8


For opening a beneficial owner account.

A BO wishing to open an accountshould approach a DP.

The staff of the DPs must personallyverify the identity and address whileopening the BO account and the recordof the person who carried out suchverification should be maintained.

The DP must verify the copies of thedocuments with original beforeaccepting the same as valid.

An authorized official of the DP, shallput the verified with the original stampon the copy after verification with theoriginal documents and sign the same.


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OperatingInstruction2.4.8.1

IN-PERSON verification (IPV) ofapplicants at the time of opening demataccounts of non body corporates

The authorized official of the DPshould personally verify thephotograph(s) affixed in the accountopening form and proof of identitydocument(s) with the personconcerned, before opening demataccounts of non-body corporates

After due verification, the DP shouldaffix a stamp on the document(s)collected as proof of identity to the

effect that the identity of theapplicant(s) is verified in person andthe copy of the valid proof of identitydocuments have been verified withoriginal.

The authorized official of the DP whohas done in-person verification andverified the documents with originalshould sign under the DP stamp.

DPs may stamp or print the "in-person"verification details on any page of theaccount opening form so that the otherdetails mentioned in the AOF are notmade illegible. The staff of the DP whohas done "in-person" verificationshould sign under the DP stamp.

Attachment of a separate sheet or asticker to the Account Opening Formhaving done "in-person" verification willnot be allowed.

Web-camera may be used to carry

out in-person verification at the timeof opening of BO accounts, subject tocompliance with other SEBIguidelines/circulars and CDSLs DPOperating Instructions, relating toopening of non-corporate BO accountsincluding verification of documents.


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DPs should note that in-personverification done for opening beneficialowners account by a DepositoryParticipant (DP) will hold good for opening

trading account by a stock broker and viceversa, if the stock broker and DP is thesame entity or if one of them is theholding or subsidiary company of theother.

In case the IPV is carried out by thestockbroker entity who is the holdingcompany or subsidiary of the DP, adeclaration on the letterhead of thestockbroker entity, dated, stamped andsigned by the staff of such entity shouldbe obtained.

The DP shall keep the declaration of in-person verification carried out on recordalong with the given BOs demat accountopening form and other KYC documents.

Operating

Instruction 2.3


Pan Card Details

Obtaining Pan Card details of all the

holders is compulsory for all categories ofdemat account holder(s). The DP officialaccepting the account opening form shallverify the photocopy of the PAN Cardagainst the original, sign and stamp thecopy and write: PAN VERIFIED on thecopy.Details of PAN card submitted by anapplicant should be verified with the nameand other details appearing on the websiteof Income-Tax Department i.e

http://incometaxindiaefiling.gov.in/challan/enterpanforchallan.jsp(IT Department has changed the link forverification which was earlier:http://incometaxindiaefiling.gov.in/portal/knowpan.do )


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OperatingInstruction 2.3

SEBI circular20/2008 dated

June 30, 2008

Photocopies of PAN Cards so obtainedshould be kept on record along with otherdocuments pertaining to the accounts.

In case the names do not match or the

PAN card details are not present in thePAN card database, DP should seekclarifications from the applicant andactivate the account only when thediscrepancy is resolved.

Certain categories of BOs viz Custodian,Governor, Commodity accounts, Presidentof India, Sikkim Resident, UN entities/Multilateral Agencies, Deceased Holderare exempted from obtaining PAN card

details. Further, Central Government, StateGovernment, and the officials appointed bythe courts e.g. Official Liquidator, Courtreceiver etc. (under the category ofGovernment) are exempted from themandatory requirement of PAN fortransacting in the securities market,subject to the DPs verifying the veracity ofthe claim of the specified organizations, bycollecting sufficient documentary evidencein support of their claim for such an

exemption.

The DP shouldensure thatproperdocumentationsupportingexemption iskept on record


In case of BOs having different sub-statusfor different ISINs, the DP must ensure thata separate BO account is opened for eachBO sub-status.


The DP shall scan the signature (s) of theBO(s), authorized signatory(ies) andPower of Attorney holder(s), if any, at thetime of account opening or immediatelythereafter.

In case ofauthorizedsignatories andPOA holders,the mode of

operationsshould also berecorded inCDAS.


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Comm. 2481dated June 02,2011

DPs should collect proof of bank details.Any one of the following documents maybe collected :-

(i) Photocopy of the cancelled cheque

having the name of the account holderwhere the cheque book is issued.

(ii) Photocopy of the Bank Statement havingname and address of the BO and notmore than 4 months old.

(iii) Photocopy of the Passbook having nameand address of the BO.

(iv) Letter from the Bank.

In case of option (ii), (iii) and (iv) aboveMICR code of the branch should be

present/mentioned on the document and itshould be self certified by the BO.

In case of Bank DPs, where a BO is havingbanking relation with the Bank and hasalso provided the same Bank details forthe demat account, then the Bank DP neednot obtain proof of such bank details asmentioned above.

Comm. 1931

dated March22, 2010

DPs should note that bank account details

of PMS should not be captured in place ofbank account details of clients indepository system, in case of PMSaccounts.


The documents / information to besubmitted by various categories of BOswhile opening BO account :-


Individuals :

A. Proof of Identity:

i. Passport

ii. Voter ID Cardiii. Driving License

iv. PAN Card with photograph

v. Identity Card/document with applicantsphoto, issued by

a. Central/State Government and itsDepartments


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b. Statutory / Regulatory Authorities

c. Public Sector Undertakings

d. Scheduled Commercial Banks

e. Public Financial Institutions

f. Colleges affiliated to Universitiesg. Professional Bodies such as ICAI,

ICWAI, ICSI, Bar Council etc. totheir Members

h. Credit cards / Debit cards issued byBanks

B. Proof of Address

i. Ration Card

ii. Passport

iii. Voter ID Card

iv. Driving Licensev. Bank passbook

vi. Verified copies of

a. Electricity bills (not more than twomonths old)

b. Residence Telephone Bills (notmore than two months old)

c. Leave and License Agreement /Agreement for sale

vii. Self-declaration by High Court &

Supreme Court judges, giving theaddress in respect of their ownaccounts.

viii. Identity card / document with address,issued by:

a) Central/State Government and itsDepartments

b) Statutory / Regulatory Authorities

c) Public Sector Undertakings

d) Scheduled Commercial Banks

e) Public Financial Institutionsf) Colleges affiliated to universities

g) Professional Bodies such as ICAI,ICWAI, ICSI, Bar Council etc., totheir Members.

The abovementioned documents are theminimum requirements for opening a


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demat account. The DPs should exerciseCustomer due diligence while establishingthe identity of the persons as given inSEBI Circular No. ISD/AML/CIR-1/2008

dated December 19, 2008 to ensure thesafety and integrity of the depositorysystem.


Comm. 2203dated 16thDecember,2010

Correspondence Address:

A BO has the option of indicating addressof correspondence in the AOF.

This is applicable to all types of investors.

If correspondence address of the BO is notthe same as permanent address, then the

DP should obtain proof of permanentaddress as well as correspondenceaddress and both must be entered in thesystem.

If BO wishes to receive hiscorrespondence at the address of someother entity such as POA holder for NRI,for IPO / Margin financing etc., the abovementioned proof of address documents inthe name of such other entities may beaccepted as proof of correspondenceaddress of the BO, provided the same ismentioned in the account opening form. Inall such cases, the DP should ensure thatproof of permanent address for the BO hasbeen obtained and the same has beenentered in the system.

If BO authorizes the capture of an addressof third party as a correspondenceaddress, the same may be accepted

provided that the DP ensures that allprescribed Know Your Client norms arefulfilled for the third party also. The DPshall obtain proof of identity and proof ofaddress for the third party. The DP shallalso ensure that customer due diligencenorms as specified in Rule 9 of Prevention


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of Money Laundering Rules, 2005 arecomplied with in respect of the third party.

The above provision shall not apply in case

of PMS (Portfolio Management Services)clients as informed earlier vide SEBI letterno. IMD/ MT/ 165502/ 2009 dated June 05,2009. (Refer communiqu no. 1622 dated22nd June, 2009).

OperatingInstruction2.3.3,

Minor

The minor should be the first and soleholder in the account i. e. thereshould not be any joint account where

a minor is a first/second/third holder. Documents to be obtained are :-

PAN card of the minor.

PAN card of the guardian

Birth Certificate of the minor.

Proof of address and proof ofidentity documents of theguardian.

One passport size photographof minor and guardian with theirsignatures across thephotograph. Guardian shouldsign across photograph of theminor.

According to the Hindu Guardians andWards Act, natural parents i.e. fatherand in his absence mother only can bethe guardians. In any other event, theguardian has to be appointed by acourt.

In case of death of Guardian of existing Minoraccount holder :

In the case of death of the guardian of anexisting minor account holder, the followingprocedure shall be followed:

Original Death Certificate of the


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After the minor has attained majority followingprocedure has to be followed :

The account holder should submit proof of

his / her identity and proof of address. The account holder should submit a new

accounting opening form duly complete inall respects along with documentsmentioned for individual and enter into afresh agreement with DP duly signed bythe account holder and DP.

The guardians details should be deletedand guardians signature should bereplaced by account holders signature.

This procedure is to be followed only whenthe word minor is not appearing in thefield in CDAS for account holders name.In case the word minor is appearing in thename of the account then the existingaccount has to be closed and a newaccount will have to be opened.


Comm. 1802datedDecember 1,2009

HUF

The proof of identity documents, as

mentioned above for account opening ofindividual investors, will be required to besubmitted for the Karta of HUF. Theaddress of the karta or the HUF entity maybe updated on the system. In either case,proof of address documents as mentionedabove for account opening of individualinvestors will have to be taken on record.

PAN card and bank passbook of HUFindicating its existence.

PAN card of the Karta. However, PANdetails of the HUF entity to be entered inCDSL system.

Declaration by the Karta giving details ofthe family members of the HUF with theirnames, date of birth, sex and relationshipwith the Karta.

The Karta should sign the AOF and the


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declaration under the stamp of HUF.

The name of the Karta has to be entered inCDSL system.

HUF accounts cannot be opened with joint

holders. No nomination can be made in HUF

account.

On the death of the Karta

An HUF does not cease to exist on death ofthe Karta. The new Karta shall submitfollowing documents along with notarised copyof death certificate of the deceased karta:

(a) a No-Objection letter from the remainingmembers of the HUF authorizing him to act

as the karta.(b) a fresh declaration.

(c) an account modification form requestingthe DP for change in the signature of theKarta in the existing account.

Partition of HUF

Partition of HUF can be either a partialpartition or full partition. In the event of partialpartition, the existing account can be

continued. In the case of full partition theHUF gets dissolved and the existing BOaccount must be closed.

Procedure to be followed in case of POAbeing given by the HUF

The Power of Attorney (POA) documentshould be signed by the Karta of the HUFand all the co-parceners.

Operating

Instruction 2.3.6

NRIs

All the documents as mentioned above forindividual investors

Proof of foreign address and Indianaddress (if any)

In case of foreign address, the addresscontaining Post Office Box Number (P.O.Box. No.) may be accepted as valid


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address provided such P.O. Box No. ismentioned in the valid proof of addressdocuments.

The address with P.O. Box No. may be

accepted as Permanent and/orCorrespondence address. In such cases,additionally the DPs shall obtain thecomplete residential address of the NRIBO, under declaration at the time ofopening of the account.

Such BO shall give an undertaking thatwhenever there is a change in theresidential address, the BO shall informthe DP.

Bank account details.

POA, if any.

A declaration duly signed by the NRI thathe/she has complied with, and willcontinue to comply with, FEMA regulationsand other applicable laws.

In the case of accounts opened in the name(s)of NRIs or FNs, (if the DP cannot personallyverify the NRI/FN client), the DP should

ensure that: photocopies of all the KYC

documents/proofs and PAN card areattested by the Indian Embassy / ConsulateGeneral / Notary Public / Any Court /Magistrate / Judge / Local Banker in thecountry where the NRI or FN resides.

The attesting authority should affix averified with originals stamp on the saiddocuments. The photocopies of the KYCdocuments and PAN card should also besigned by the NRI/FN.

If the NRI or FN comes in person to openthe account, the above attestationrequirement may be waived.

Change of Status

It is the responsibility of NRI account holders


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to inform to the DP the change in his / herstatus as NRI to Resident. The DP shouldopen a new account with the status of the BOas Resident. Holdings in the existing account

should then be transferred to the new account.The old account should then be closed.


Corporate: (Domestic or Foreign)

Memorandum and Articles of Association &Certificate of Incorporation of theCorporate Investor.

Certified True Copy of the BoardResolution, duly certified by ManagingDirector / Company Secretary, authorisingopening of a Demat Account and

specifying name of persons authorized toopen and operate the Demat account. Itshould specify the manner of operation ofthe account by the authorized persons.

Names of authorized signatories, theirdesignation, photographs and theirspecimen signatures duly verified by theManaging Director or the CompanySecretary.

Proof of address evidenced by documentsregistered with registering authority orbank statement or agreement for sale orleave and license agreement oracknowledged copy of income tax return orTelephone bills (Bill date not more thantwo months old) or Electricity bills (Bill datenot more than two months old).


CMs

(a) If the CM is a Corporate Body

Certified true copy of certificate of

registration with SEBI, duly certified by theManaging Director / Company Secretary

Certified true copy of Board Resolutionduly certified by the Managing Director /Company Secretary specifying personsauthorised by the Board to open andoperate the account. The resolution must


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OperatingInstruction 2.3.7(c)

specify the manner of operation of theaccount by the authorized persons.

Names of the authorised signatories,designation, photograph and their

specimen signatures duly verified by theManaging Director / Company Secretary.

Memorandum and Articles of Associationof the Company & Certificate ofIncorporation of the Corporate Investor.

Proof of address evidenced by documentsregistered with registering authority orbank statement or agreement for sale orleave and license agreement oracknowledged copy of income tax return or

Residence Telephone bills (Bill date notmore than two months old) or Electricitybills (Bill date not more than two monthsold).

(b) If CM is not a Corporate Body:

The CM account (CM Pool / CM Principal /CISA / Early Pay-in) to be opened:

either in the name of the partnershipfirm/entity as mentioned on theCertificate of Registration with SEBI, or

in the name of proprietor or partners(Maximum three partners )

Copy of Certificate of Registration withSEBI duly notarized.

One Passport size photograph of eachapplicant / accountholder duly signedacross the photograph.

PAN card of the applicant(s) / accountholder(s)

PAN card of the entity, The PAN details ofthe entity shall be entered in the CDSL

systemc) Asset Management Company (AMC) PoolAccount: This account is linked with a stock

exchange. Following documents are to besubmitted by the AMC for opening thepool account with any DP of CDSL for the


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Comm. 2211dated 22ndDecember,2010

purpose of settlement of mutual fund units Letter / circular / instructions issued by the

concerned Stock Exchange indicating theCM ID.

Certified true copy of Board Resolutionduly certified by the Managing Director /Company Secretary authorizing openingof demat accounts and specifying thename of person(s) authorized by theBoard to operate the said demat account.The resolution must specify the manner ofoperation of the account and authoritygiven to open and operate the demataccount.

Names of the authorized signatories,

designation, and their specimensignatures duly verified by the ManagingDirector/Company Secretary.

Memorandum and Articles of Associationof the Company & Certificate ofIncorporation of the Corporate Investor.

One passport-size photograph of each ofthe authorized signatory (ies) with theirsignature/s across the photograph.

Proof of address evidenced by document

registered with registering authority orbank statement or agreement for sale orleave and license agreement oracknowledged copy of Income Tax return.

PAN card of the corporate entity.AMC Pool accounts should be opened in thesame name that is mentioned by the StockExchanges in their correspondence intimatingthe CMID.

Operating

Instruction 2.3.8

FIIs

Certified True Copy of certificate ofregistration with SEBI, certified byManaging Director / Company Secretary.

Certified true copy of the BoardResolution, duly certified by ManagingDirector / Company Secretary authorizingpersons to open and operate the account


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and specifying the manner of operation ofthe account.

Names of the authorised signatories,designation, photograph and their

specimen signatures duly certified by theManaging Director / Company Secretary.

Memorandum and Articles of Associationof the Company, if any.


OCBs

Copy of RBI Registration Certificate.

Certified true copy of the BoardResolution, certified by Managing Director

/ Company Secretary, authorizing personsto open and operate the account and

specifying the manner of operation of theaccount.

Names of the authorised signatories,designation, photograph and theirspecimen signatures duly verified by theManaging Director / Company Secretary.

Memorandum and Articles of Associationof the Company.

Declaration from the OCB that it meetswith guidelines issued by RBI / Ministry of

finance Certificate from overseas auditors in form

OAC or OAC 1, as may be applicable.

Statement of A/C from the bank.


Registered Societies

Copy of Certificate of Registration underthe Societies Registration Act, 1860.

List of Managing Committee members.

Certified true copy of Resolution of theManaging Committee for persons

authorised to open and operate theaccount and specifying the manner ofoperation of the account.

Names of the Authorised signatories,designation, photograph (with signaturesacross the face of the photograph) andtheir specimen signatures.


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SEBI circular09/06 datedJuly 20, 2006

Copy of Societys Rules and Bye Lawsduly certified by the Chairman / Secretary.

Proof of address evidenced by documentsregistered with registering authority or

bank statement or agreement for sale orleave and license agreement oracknowledged copy of income tax return

Unregistered Society

The account should be opened in thenames of the members under Individualcategory (maximum three persons).

All the documents as applicable foraccount opening under individual category

should be obtained. The proof of address / identity documents

of the individual members should beobtained for account opening.

PAN card of society


Public Trust / Charitable Trust and Trustcapable of holding property in its name:

Account to be opened in the name of theTrust.

Trust Deed and Rules.

List of Members on the Board of Trustees.

Certificate of Registration of Trust underthe Societies Registration Act, 1860 /Bombay Public Trust Act, 1950 / PublicTrust Act, of relevant State.

Certified true copy of Board Resolution toopen the Demat account and specifyingthe persons authorised by the Board to actas Authorised Signatory(ies) to operate thedemat account.

Names of the Authorised Signatories,Designation, photograph (with theirsignatures across the face of thephotograph) and their specimen signaturesduly verified by the Managing Trustee.

PAN card of the trust

Proof of registered office address


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evidenced by documents registered withregistering authority or bank statement oragreement for sale or leave and licenseagreement or acknowledged copy of

income tax return

Private Trust

Account should be opened in the names ofindividual trustees (maximum three), underIndividual category.

The board of trustees shall specify thenames of the trustees who shall hold /operate the demat account.

The proof of address and proof of identity

documents of the trustees should beobtained for account opening.

PAN card of the Trust


Recognised Funds/ Trusts/ Other SimilarEntities:

(i) The Funds/ Trusts/ Entities presentlyincluded under this category are as follows:

(a) Employees Provident Fund, which have

been recognized by the Provident FundCommissioner under EmployeesProvident Funds & MiscellaneousProvisions Act, 1952.

(b) Employees Gratuity Fund, which areformed under Payment of Gratuity Act,1972.

(c) Superannuation Fund which are formedunder the guidelines issued by IncomeTax Department.

(d) Venture Capital Funds which are

registered by SEBI.(e) ESOP Trust formed pursuant to the

guidelines issued by SEBI).

(ii) Accounts of the above Funds/ Trusts/Entities should be opened in the name ofabove Funds/ Trusts/ Entities as they are


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recognized either under the Income Tax Act orSecurities & Exchange Board of India, etc.

(iii) Documents to be furnished by the above

Funds/ Trusts/ Entities and other Funds/Trusts/ Entities which are similarly placed are:

1) Certificate of Registration, if any, issued bythe authority recognizing the Fund/ Trust/Entity as such;

2) Trust Deed and Rules and/or anydocument or charter defining theirconstitution and providing for managementthereof;

3) List of Members on the Board of

Trustees/Governing Body;4) Certified true copy of the Resolution

passed by the Board ofTrustees/Governing Body to open thedemat account and specifying the personsauthorized by the Board to act asAuthorized signatory(ies) to operate thedemat account;

5) Names of the authorized signatories,designation, and their specimen signatures

duly verified by the Managing Trustee;6) One passport-size photograph of each ofthe authorized signatory(ies) with theirsignatures across the face of thephotograph;

7) PAN cards issued to suchFund/Trust/Entity;

8) Proof of registered office addressevidenced by document registered withregistering authority or bank statement oragreement for sale or leave-and-license

agreement or acknowledged copy ofIncome Tax Return.


Banks

Certified true copy of Board Resolution.

OR

Letter on the letterhead of the bank,


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signed by the Chairman / ManagingDirector authorizing the persons to openand operate the account.

Names of the authorised signatories,

designation, photograph and theirspecimen signatures duly verified by theChairman / Managing Director.

Memorandum and Articles of Association&Certificate of Incorporation or copy of RBIregistration in case of Scheduled/Co-operative banks.

Proof of address evidenced by documentsregistered with registering authority oragreement for sale or leave and license

agreement or acknowledged copy ofincome tax return or Telephone bills (Billdate not more than two months old) orElectricity bills (Bill date not more than twomonths old).


Foreign Nationals

Copy of passport or certificate from thebank.

The foreign address containing Post Office

Box Number (P.O. Box No.) may beaccepted, as valid address provided suchP.O. Box No. is mentioned in the validproof of address documents.

The address with P.O. Box No. may beaccepted as Permanent and/orCorrespondence address. In such cases,additionally, the DPs should obtain thecomplete residential address of theForeign National BO, under declaration atthe time of opening of the account.

Such BO shall give an undertaking thatwhenever there is a change in theresidential address, the BO shall informthe DP.

Other documents same as NRI.


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Association of Persons (AOP)

Objects of the association

Powers of the Managing Committee

Resolution authorizing persons to open aDemat account and operate the account.

Names of the authorized signatories,photgraphs with their specimen signatures,duly authorized by a member of thegoverning board.

Copy of Bye-Laws of the AOP.

Copy of the PAN card in the name of AOP


Mutual Funds

SEBI Registration Certificate clearly

indicating the address of the mutual fund. PAN card of the Mutual Fund


Escrow Accounts

DPs are advised to consider followingpoints while opening Escrow Accounts:

The escrow account should beopened in the name and form ofIssuer name.

Reasoning for opening the escrowaccount.

Operated by. Operator name.

Proof of address and proof of identityshould be obtained for the entity who isopening the account

Name, designation along with thephotographs of authorized signatorieswho will be opening the as well as whowill be operating the account should beobtained.

PAN card of both the parties i. e.Corporate entity and Escrow Agent shouldbe obtained. The PAN details of theCorporate entity should be captured in theCDSL system

Copy of the Escrow Agreement dulysigned by the parties should be obtained.


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Validity of escrow account

The escrow account shall be active for thelimited period of the activity for which ithas been opened.

Such period shall be as specified bySEBI / CDSL or any such regulatingauthority from time to time.

After the specified period is over theaccount should be closed by the DPirrespective of whether the closureinstruction is received from the accountholder or not.

Operating

Instruction2.3.18

Demat Account for Unclaimed Shares of a

Listed Company If a listed company wishes to open a

demat account for dealing with"unclaimed shares", such an accountshall be opened as " -Unclaimed Securities SuspenseAccount."

The suspense account shall be heldby the Issuer purely on behalf of theallottees who are entitled for the

shares and the shares held in suchsuspense account shall not betransferred in any manner whatsoeverexcept for the purpose of allotting theshares to the allottee as and whenhe/she approaches the Issuer.

The Board Resolution and all otherdocuments as prescribed by SEBI andCDSL for opening a CorporateAccount shall be obtained.

The Issuer shall furnish a declarationon its letterhead, signed by theauthorized signatories, stating that:"We hereby undertake that we willensure compliance with theprovisions of SEBI Circular no.SEBI/CFD/DIL/LA/1 /2009/24/04dated April 24, 2009 related to the


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procedure for dealing withunclaimed shares. We furtherundertake that the said suspenseaccount will only be used for the

purpose as specified in the saidSEBI circular."

Credits to the demat account:

Any corporate benefits in terms ofsecurities accruing on such unclaimedshares, shall be credited to such dematsuspense account.

Debits to the demat account:

The Issuer shall debit the shares lying inthe suspense account and credit the

same to the demat account of the allotteeto the extent of the allottee's entitlement,after proper verification of theidentity/bonafides of the allottee.


Limited Liability Partnership Firm (registeredunder the Limited Liability Partnership Act(2008))

Such an account shall be opened as or .

The DP should obtain followingdocuments :

Registration Certificate granted bythe Registrar to the LLP under theLLP Act 2008.

Declaration, on the letterhead of theLLP signed by all the designated

partner/s clearly stating that thewithin named persons, who aredesignated partners of the LLP, havebeen nominated as authorizedsignatories to open and operate thesaid demat account on behalf of theLLP.


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The declaration shall specify themanner in which the account will beoperated, that is: jointly or severallyand shall give details of the names,

addresses and DPIN [DesignatedPartner Identification Number allottedby the Registrar for each designatedpartner], along with their signaturesand photographs.

The bank details in the name of theLLP, as sole / first holder in the bankaccount.

PAN Card of the LLP. The details ofthe PAN card to be entered in theCDSL system.

PAN card of the authorizedsignatories to be kept on record.

Proof of address evidenced bydocuments registered with theregistering authority or bankstatement or agreement for sale orleave and licence agreement oracknowledged copy of Income TaxReturns, in the name of the LLP.

In case of change in registered office

address of the LLP, the DP shouldtake on record the notice of changeof address filed by the LLP with theRegistrar.

Joint holders in the demat account isallowed.

Nomination in such demat accounts shallnot be allowed.

Such demat accounts shall be openedunder Corporate status in the CDSLsystem with the sub-status Limited

Liability Partnership.OperatingInstruction 2.3.1

Bank Statement as Proof of Address: A computer-generated statement without

signature/stamp of the bank (showing thename and address of the BO and banktransactions during a period, printed onthe Bank stationery) can be accepted as a


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valid proof of address only if duly attestedby the concerned Bank under the stampand signature of the bank official.

OR

Original bank statement (showing thename of the BO, address of the BO andbank transactions during a period, printedon the bank stationery) self attested bythe BO along with cancelled cheque (inoriginal) pertaining to the said bankaccount, without bank attestation asmentioned above can be accepted asvalid proof of address provided that such

original bank statement is not more than 2quarters old.

OR

A copy of the Bank Statement along with acopy of cheque can be accepted as validproof of address provided that:

a. The authorized official of the DPverifies the photocopies of the bankstatement and cheque submitted, with

their corresponding originals andensure that both pertain to the samebank account and, thereafter, placehis signature, name and date on them,with the remark: VERIFIED WITHORIGINAL

b. The copy of the bank statementclearly displays the logo and name ofthe Bank, the BOs name, address,account number and

transactions/balance. The date on thebank statement should not be morethan two quarters old, based on thedate of receipt of the Account OpeningForm.

In addition to above requirements, in thecase of e-statements the same can be


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accepted as valid proof of address only ifcopy of the cheque with name of the BOpre-printed on it is submitted.

The bank details (including account

number) mentioned on the bankstatement should be identical to thedetails mentioned on the cheque.

Comm. 2516dated 24 June,2011

If BO has added landmark details in theaddress column of the Account Opening /Modification Form / Letter, then DP cancapture the same is CDAS, even thoughthe same is not appearing in the proof ofaddress documents, preceded by wordssuch as:

above adjacent to

behind

near

next to

off

opposite

Comm. 662dated February

25, 2006.

Refunds through ECS and bank details

DP should compulsorily obtain the bank

details from investors when fresh accountsare being opened. In the case of existingaccounts, the bank details have to beobtained from the BO and updated in theCDSL system to ensure credit of refunds tothe correct bank accounts of theapplicants.

BOs should be advised not to change thebank details given in the share applicationtill the record date declared for thecorporate action.

OperatingInstruction 2.4.6& 2.4.24

A demat account can be opened withmaximum three joint holders.

All correspondence/queries relating to BOaccounts shall be made to the First Holderonly at the correspondence addressrecorded in the system.

For exceptionplease refer AccountOpening bymore thanthree Holders


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Bye Law 13.1.6

& OperatingInstruction2.4.23

The DP should record the unique BO-IDgenerated by the system on the originalAOF.

Once the account is activated, the DP

should inform the BO of the BO accountnumber through a system generatedconfirmation letter.

Necessary forms (such as DRF, TRPF,PRF etc) and instructions slips bookletshall be forwarded to BO along with theletter.

The DP should maintain proof of dispatchof such letter alongwith the forms andinstruction slips.

The letter along with other documentsmentioned above may also be given to theBO if the BO wants to collect the same inperson. Proof of such delivery should bemaintained by the DP.

Bye Law 9.1 &9.2

Comm. 1031dated January

25, 2008.

Bye Law 15

Account opening by CMs

A CM who is a participant in CDSL shallopen such accounts as may be specifiedin the Operating Instructions for thepurpose of settlement of trades with the

Clearing Corporation. A CM who is not a participant in CDSL

may open such accounts (as may bespecified in the Operating Instructions) forthe purpose of settlement of trades withthe clearing corporation after entering intoan agreement with the participant inprescribed format.

Account opening for Securities Lending andBorrowing

Any beneficial owner intending to lend orborrow securities, may do so in the mannerlaid down under SEBI (Securities LendingScheme), 1997 or any amendments madethereto from time to time.

BSE Clearing Member will be required toopen three accounts with any DP of CDSL


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namely a) Principal Account b) UnifiedSettlement Account and c) ClearingMember Investor Securities Account(CISA).

NSE Clearing Member will be required toopen two accounts with any DP of CDSLnamely a) CM Settlement Account (CMPool Account) and b) Clearing MemberInvestor Securities Account (CISA).


Opening of accounts for the "survivingholders" of a BO account (TRANSMISSION) with the same DP: In case of "Transmission", the new account

should be opened in the same order ofnames of the surviving holders as given inthe old account. For example: If the oldaccount is in the names of A, B & C and"C" expires, the new account, shouldnecessarily be in the names of A and B.

Agreement: If the surviving BO(s) decideto open the new account with the sameDP, a new Agreement need not be enteredinto. The account opening form and"Agreement" signed at the time of openingof the old account may be used for the newaccount.

Address Proof: If the 1st Holder of thenew account is the same as the oldaccount, the address proofs obtained forpermanent address and correspondenceaddress, as submitted with the oldaccount, may be used for the new account.However, if the 1st Holder is different, theDP should take care to ensure that existing

KYC norms are adhered to in obtaining therequired proofs for recording of permanentand correspondence address. Further, theDP shall ensure that the KYCdocumentation for opening of newaccounts is as per SEBI and CDSLspecifications in force at the time.

SMS Alert: If the 1st holder of the account


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is the same as the old account, the sameregistration form and mobile number maybe continued for receiving SMS Alerts.However, if the 1st holder of the account is

different, the surviving BO(s) will have toprovide the mobile number of the 1st holderof the new account for availing the"SMART" facility.

Nomination: a fresh Nomination form,duly signed by the surviving holders willhave to be obtained for the new accountand duly updated in the CDSL system andNomination Register.

The DP should ensure that any originaldocuments removed from the old account

opening records (and used for KYCpurposes in the new account), arereplaced with photocopies of the same, forfuture co-relation / reference.





Operating

CMs of BSE shall execute a DP-CMagreement whereas CMs of exchangesother than BSE shall execute a DP-BOagreement.

CMs of exchanges other than BSE shall

give an undertaking on their letterheadauthorizing CDSL to debit/credit the CMaccount based on the instructions receivedfrom the exchange. The undertakingshould be stamped and signed by theauthorized signatories/account holder (s)

DP should collect the original and twocopies of the undertaking from the CM.The original should be forwarded to CDSL;one of the copies should be retained by the

DP and the remaining copy should beforwarded to CC / CH.

For each CM account opened by a DP, itshall also open a CM CISA. The CISA canbe opened based on the same accountopening form.

AOF meant for opening account of a


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Instruction 2.6.2 Corporate Body should be used foropening accounts of a CM even though theCM may be an individual / a partnershipfirm.

In the case of Partnership / ProprietorshipFirms, the account should be opened inthe individual name(s) of the partner(s) /proprietor.


MANTRA (MArgin TRAding) accounts

Corporate Brokers with the prescribednetworth who offer margin trading facilitiesto their clients can open Margin TradingAccount in the names of such clients forholding securities purchased through

margin trading.

The account will be operated by thecorporate broker under POA issued by theclients.

Such accounts should be opened underseparate sub-status codes provided forthis purpose.


Nomination

The DP should mandatorily obtain anomination form from the BO (Individual,NRI, FN) duly filled and signed by all theholders.

Only one individual can be appointed as aNominee by submitting the NominationForm signed by all joint holders.

Only individuals can appoint a Nomineeand be appointed as a Nominee.

Nonindividuals including Society, Trust,Body Corporate, Partnership Firm, Karta ofHindu Undivided Family and holder of thePOA can neither nominate nor beappointed as a nominee.

A minor, who is represented by guardian,can be appointed as a nominee.

An NRI can be appointed as a nominee,subject to Exchange Control Regulationsin force and also can appoint a nominee.


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The DP should maintain a record of thenominees registered in a nominationregister. Serial Number as appearing inthe Nomination Register should be noted

on the Nomination Form together with thedate of registering it in the nominationregister.

If a BO does not wish to nominate, theoption: I/WE DO NOT WISH TONOMINATE in the Nomination Formshould be selected. The DP should ensurethat the nomination form is duly signed byall the account holders.

Two witnesses are required to sign the

Nomination Form. Nomination details should be captured in

CDAS after verification of NominationForm and entry in the nomination register .

If the details of nomination are not enteredin CDAS or the same has not beenentered in the Nomination Register, theBO account should be considered aswithout nomination.

The DP should at all times, irrespective ofsubsequent variations and cancellations,maintain an updated Register ofNominations in the prescribed format.


Power of Attorney

A BO may issue a general or a specificpurpose POA for operating the demataccount.

The POA must be duly stamped.Notarization thereof, is at the discretion ofthe DP. In case a copy of the POAdocument is submitted, the same should

be certified as a TRUE COPY by theBO(s).

A record of POAs received should bemaintained in a Register and the DPshould allot a unique POA identificationnumber.

Date of validity of POA as mentioned by

The DP shallkeep a track ofthe expiry dateof POA, if any.

The POAholderssignature(s)should be

scanned inCDAS.


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the BO in Account Modification Form or inthe POA should be captured.

The DP shall, mandatorily, register the BO(or first holder of a joint account) who has

given power of attorney, with the exceptionof accounts held by non-individuals,foreign nationals and NRIs for the SMART[SMS Alert] facility.

If such BO does not have a mobile phone,he/she may provide the mobile number ofany person as per his/her discretion.

The Set up/ modification (cancellationrequest) letter should be dated and timestamped on receipt of the same. After

verification of the documents forsetup/modification/cancellation of Power ofAttorney, particulars of the same should berecorded in the CDSL system within 7 daysof receipt of the documents.

A beneficial owner may revoke the Powerof Attorney executed in favour of the StockBroker / DP / any other entity at any time.Such revocation shall become applicablefrom the date and time the letter,communicating such revocation, is

received by the DP. However, suchrevocation shall not be applicable to anyoutstanding settlement obligation arisingout of the trades carried out prior toreceiving the request for modification /revocation of the POA.

The BO should submit request forrevocation of POA at a DP branch / centrewhich is servicing him. The revocationletter shall be dated and stamped by the

DP branch / centre to ensure proper audittrail.

The DP shall ensure that the POA issigned by all joint holders, if the POA isgranted by all of them.

In the case of a request for change inPOA, additional care should be taken by


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the DP to verify the authenticity of the BOauthorizing the change.

The DP should comply with the provisionsof SEBI circular

no.CIR/MRD/DMS/13/2010 dated April 23,2010 regarding execution of Power ofAttorney (POA) by the client in favour ofDepository Participants to the extentapplicable alongwith clarification issued bySEBI vide circular no.CIR/MRD/DMS/28/2010 dated August 31,2010.

Comm. 505dated

December 16,2004

Power of Attorney in favour of CMs / entitiesother than DPs.

The DP should ensure that :a. Details of such POAs are entered on

the System.

b. The POA holder provides to DPnames and signatures of theauthorized persons who would sign theconsolidated instruction slips.

c. Signatures of the authorized personsare captured in the System.

d. The authorization by BOs by any mode

other than through POA should not beaccepted by DPs.

e. The DPs should issue a separateinstruction slip book to the holders ofsuch power of attorney.

Comm. 631datedDecember 22,2005

In case of Power of Attorney in favour of aDP or a single entity such as CMs, the DPshould ensure that incorporation ofclauses in the power of attorney documentdetrimental to the interest of the beneficialowners are avoided.

In case powers of attorney with detrimentalclauses are already obtained, they shouldbe replaced with fresh POAs after deletingsuch clauses.

DPs shall not act or purport to act inexercise of any powers/authority containedin the aforesaid objectionable clauses


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pending substitution of the existing Powerof Attorney with fresh Power of Attorney asaforesaid.

Account Opening By Temporarily Disabled / Illiterate BO



The DP has to ensure that the BO, if he isilliterate or temporarily disabled at the timeof opening an account, must affix thethumb impression (Left hand thumb incase of male BO and right hand thumb in

case of female),on the agreement as wellas on the account opening form in thepresence of an authorized officer of theDP, who should certify that the thumbimpression was affixed in his presence.

In case of disabled persons, the DP mustensure that the BO has produced amedical certificate about his disability

DP should identify the BO by verifying the

photograph submitted by the BO. If theBO is illiterate / blind the DP should readout / explain to him the contents of theAOF / DP-BO Agreement in presence of awitness who should sign the AOF / DP-BOAgreement as a witness. The DP officialshould put his signature and the remarks Details explained to the BO on thecorresponding AOF.

Account Opening by more than three Holders>



The DP should open a separate account ifthere are more than three joint holders forthe security.

An undertaking has to be obtained by the

It may be notedthat accountsopened in thenames of


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DP from the account holders that therewould not be any credit instruction to thisaccount except for dematerialisation ofsecurities held and corporate action

benefits. The DP should capture the names of the

four or more joint holders by numberingthem and enter the first holder's name inthe first holder's field and accommodatethe rest of the names in the fields forsecond and the third holder.

The purchase confirmation waiver flagshould not be enabled.

After the balances in such account become

nil, the account should be closed.

trustees whohold shares onbehalf of a trustwill not have

restrictions onreceipt ofcredits.

Account Modification


OperatingInstruction

3.4

DP should carry out modifications in theBO accounts only on the basis of AccountModification Form or letter containing alldetails as specified in the AccountModification Form duly signed by all jointholders of the account.

DP should verify signature of BOs on theAccount Modification Form with theirspecimen signatures captured in CDAS.

DP should exercise sufficient control in itsinternal working to ensure that nounauthorized persons can have access tothe system for adding / modifying / deleting

/ viewing any data in CDAS.

Implementation of variable Access RightsScheme is one of the tools for achievingsuch control.

The DP should maintain proper records ofall documents verified with original.

The DP should send letters to BOsconfirming modifications done and should


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maintain the copies of such letters alongwith proof of dispatch.


3.4


3.4.11

Change in name

The DP should not accept modification in

the names of any of the holders of anaccount. If a name change is desired, anew account has to be opened by the BOswith the new names, except in case ofCMs, Corporate and FIIs.

If Corporate, FIIs and CMs desire a namechange, the DP need not open a newaccount. The same can be modified byCDSL. DP should forward to CDSL thefollowing documents:-

i. Letter from Corporate / FIIs / CMsrequesting change of name.

ii. Certified copy of Board Resolutionwhere the change of name has beenapproved.

iii. Certified copy of:

a) fresh Certificate of Incorporationissued by Registrar of Companies(ROC) OR

b) Registration Certificate from SEBI

in case of FIIs / CMsiv. List of authorized signatory (ies) along

with their specimen signature(s) andphotograph(s) duly verified byManaging Director / CompanySecretary.

v. Copy of letter from Stock Exchangewhere the CM is a memberacknowledging change in name in caseof CM.

vi. Covering letter of DP forwarding theabove documents after verifying thesignature(s) of the authorizedsignatories of corporate / FII / CMs inthe format specified by CDSL from timeto time.

In the above cases the DP shall retain theoriginal documents and forward only the


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copies duly countersigned / attested bythem to CDSL.

On receipt of information from CDSL of therejection / updation of change in name, DP

shall inform BO accordingly.

In the case ofCM settlementrelated

accounts, ifSEBIregistrationnumber / CMID

/ Trading IDundergoes achange, newaccount has tobe opened.Name changeshould not becarried out onthe existingaccount


Comm. 1746dated October20, 2009

Comm. 1759

Modification of Bank details

DPs should collect proof of bank details.Any one of the following documents maybe collected :-

(i) Photocopy of the cancelled cheque havingthe name of the account holder where thecheque book is issued.

(ii) Photocopy of the Bank Statement havingname and address of the BO and not morethan 4 months old.

(iii) Photocopy of the Passbook having nameand address of the BO.

(iv) Letter from the Bank.

In case of option (ii), (iii) and (iv) above MICRcode of the branch should bepresent/mentioned on the document and itshould be self certified by the BO.

Updation of New Bank Account Numbers

DPs are advised to inform their BOs /clients to update the new bank accountnumbers in their demat accounts at theearliest, failing which, electronic transfers


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dated October30, 2009

with old account numbers will be rejectedat the ECS centre level itself.

DPs should note that if the new bankaccount number is to be updated due to

the Member Banks migration to the CoreBanking Solution [CBS] platform, therequirement of obtaining an AccountModification Form has been waived.

The new bank account number may beupdated based on the notice/letterreceived from the Bank. All othermodifications to bank details should beeffected as per SEBI guidelines andCDSLs operating instructions.

OperatingInstruction3.4.1, 3.4.12

Change in address

The DP shall obtain the following documentsfor modification of address

i. For Individuals

(a) Request letter for change ofaddress / account modification formduly signed by all the holders

(b) Any of the documents prescribed tobe obtained as proof of address for

opening the account.(c) DP should obtain proof of address

of the first holder.

ii. For Corporates / Clearing Member /Bank :

The account modification form / letterfor change of address should besigned by authorized signatories as perthe Board Resolution and the followingdocuments should be obtained :

a) Proof of address evidenced bydocuments registered withregistering authority or bankstatement or agreement for sale orleave and license agreement oracknowledged copy of Income Taxreturns or Residence Telephone


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bills (Bill date not more than twomonths old) or Electricity bills (Billdate not more than two monthsold).

b) Latest transaction statementreceived from the DP

iii. An authorized official of the DP shallput the verified with original stamp onthe copy after verification with theoriginal documents and sign the same.

iv. A letter intimating the change ofaddress shall be sent at both old andnew addresses.

OperatingInstruction3.4.8, 3.4.13,

Comm 398dated April 16,2004

Change of signaturea. Individuals:

i) DPs should obtain the AccountModification Form / letter specifyingthe reasons for change of signatureduly signed by all the holders.

ii) The BO should visit the DPpersonally with a valid proof ofidentity.

iii) The BO should affix his newsignature in the presence of a DPofficial.

iv) If the BO cannot come in person,the letter or account modificationform containing the old and newsignatures must be attested by theBOs Banker

b. Corporates:

i) The DP should obtain certified truecopy of the Board Resolutionspecifying persons authorized toact as authorized signatories.

ii) Fresh list of authorized signatoriestogether with their photographs andspecimen signatures duly verified


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by the Managing Director /Company Secretary.

iii) In the case of a Bank, a letter onthe letter head of the bank giving

list of authorized signatories andtheir specimen signatures dulyverified by the General Manager orhigher authority.

The DP should then immediatelycapture the new signatures in thesystem.

The DP should send a confirmatoryletter to the BO informing him / her thatthe change in signature has been

recorded in the system. If request for simultaneous change in

address as well as signature isreceived, abundant caution should beexercised in carrying out the requestand the matter should be reported toCDSL.

Comm. 2532dated June 30,2011

DPs can update the prescribed demographicdetails based on a request received from theBO through a secured URL with https with

specific login and password provided by theDP through its website, subject to the followingconditions:

DPs may permit BOs to modify / updateonly those details which do not requireany documentary proof to be submitted bythe BOs to the DPs

For updation of any other details that willrequire supporting documents as

stipulated in DP Operating Instructionssuch as PAN card, change of address,etc., the existing procedure of BOapproaching the DP and submission ofAccount Modification / Deletion Requestform will continue.


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Communiqu Issued / amendments made post-issue of Manual


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DEMATERIALISATIONGeneral

Reference Compliance requirement Remarks

Bye law

13.2.2.1 &OperatingInstruction 4.4.6



4.4.11

DRF duly complete in all respects,

alongwith the certificate of securities to bedematerialized should be submitted by theBO to DP.

If the DRF is complete in all respect, theDP shall give an acknowledgement to theBO indicating the date of receipt on DPsas well as BOs copies. The authorizedofficial of the DP should sign it.

The System generated acknowledgement of the demat request should be given tothe BO after the authorized official of theDP has signed and stamped the same.


Before accepting the securities fordematerialisation the DP shall ensure that :

The securities submitted fordematerialisation have been admitted inCDSL.

In case the securities are not admitted inCDSL, the DP shall inform the same to BOand return the documents.


The DP shall ensure that all the holdershave signed the DRF and their signaturestally with those recorded by the DP.

Signature inRTA signaturecolumn may bedifferent.


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Reference Compliance requirement Remarks

Bye law13.2.2.3 &Operating

Instruction4.4.12

The DP shall deface the certificates byaffixing a rubber stamp Surrendered forDematerialisation along with DP name,

DPID and BOID (except for Governmentsecurities).

The stamp should be put in such a waythat the important details do not getsmudged or become illegible.

Operatinginstruction4.4.13

The certificates should be mutilated bypunching two holes at the top of thecertificate.

Operating

Instruction4.4.14

The DRF shall be authorized by the DP by

putting his seal and signature on DRF.


Separate DRF should be filled up for lock-in securities and free securities.

If certificates with different lock-in reasons /lock-in release dates exist, then a separateDRF should be filled for each lock-inreason / expiry date combination


4.4.15

DP shall capture the dispatch details onCDAS.

Regulation54(4)


DRF along with the security certificatesmust be forwarded to the Issuer/RTAwithin 7 days from the date of receivingphysical documents from the BO.


If the demat request is not processedby the Issuer / RTA within 21 daysafter it has been set up on the system,then the DP should follow up with the

Issuer / RTA.


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OperatingInstruction4.4.19 &4.4.21,4.5 &

Bye law13.2.2.10

Comm. 857dated March 02,2007

Rejection of demat request

a. In case of rejection ofDematerialisation request, the DPshould return the certificates along with

the rejection letter from Issuer/RTA tothe BO within 7 days from receipt ofrejected certificates.

b. If the request has been rejected for areason which can not be rectified bythe BO/DP, the Issuer / RTA will retainthe certificates. In such cases, the DPshould obtain the rejection letter fromthe Issuer/ RTA and hand over thesame to the BO in order to enable the

BO to take up the matter with theIssuer.

c. If the DP does not get the documentswithin 30 days from the date ofrejection by Issuer/ RTA, then the DPshould follow up with the Issuer / RTA.

Review of rejection of demat requests

DPs are advised to exercise care whileprocessing Demat Requests with

regard to set-up details of the DRN andsubsequent dispatch of documents toIssuers/RTAs.

Rejections of demat requests causeshardship and inconvenience toinvestors. Therefore DPs are advisedto put in place proper mechanisms forprocessing of Demat Requests, so asto avoid rejections


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Dematerialisation of Government Securities


Bye law 13.3,Comm. 584dated. October19, 2005

The DP has to ensure that the request hasbeen made by the registered holder, in theDRF-Government Securities (DRF-GS)along with relevant security certificate(s)and Form of transfer as prescribed by RBIor the Central or State Government.

The DP should forward the DRF-GS andother documents along with the securitycertificate(s) to CDSL within seven days of

its receipt.



Comm. 606datedNovember 17,2005

Demat request - Name matching

In case the BOs name on the DRF is notmatching with that on the certificate, (foreg., the holder of the securities may have

opened the depository account in thename of Sushil Ramesh Shah but hisname on the certificate may appear asSushil R. Shah or S.R. Shah, etc.) theDematerialisation request could beaccepted by the DP and processed by theIssuer/RTA, if the BOs signature on theDRF matches with his specimensignatures available on records with theDP.

Demat Request - Change in the name ofthe Company

CDSL provides data of old and newcompany names on CDAS. In case sharecertificates with the old name of companiesare received for dematerialisation, the DPsneed not reject such requests.

This is notapplicable forcompanies thathave merged oramalgamatedwith othercompanies.


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The Memorandum for Transfer column onthe reverse of the certificate should beinscribed with Tendered for Cancellationand credit to SGL A/c No BYSL 0885 of

CDSL, Mumbai. The DP should not punch holes on the

face of the G-Sec certificate or deface thecertificate by affixing the rubber stampSurrendered for dematerialisation.

Transposition cum Dematerialisation


Operating

Instruction 4.6

In case names on the certificates are

matching with the names in the BOaccount but the order of the names on thecertificates is not matching with the patternof holding in the BO account, suchcertificates can be dematerialized by fillingup DRF and Transposition Request Form.

The DP should ensure and verify that :

i) The BO has submitted separateapplication form (TRPF) fortransposition, for each ISIN, alongwith

the DRF & certificates.ii) All the holders have signed the TRPF

which is complete in all respect

iii) The TRPF contains only those names(in any order) that are the holders ofthe BO account.

The DP should maintain a copy of theTRPF along with copy of the DRF.

Transmission cum Dematerialisation



In case of death of one or more jointholders, the surviving joint holder(s) can getthe name(s) of the deceased deleted from thecertificate(s) and get them dematerialised.


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OperatingInstruction no.4.7.1

The DP shall collect following documentsfrom the surviving holder:

Duly filled DRF.

Original or copy of the death certificateof the deceased holder(s) dulynotarized or attested by GazettedOfficer.

Transmission Request Form. (Note:DPs should write Transmission-cum-Demat in the column of from BOID inthe transmission form.)

Physical Securities Lost in Transit

Reference Compliance Requirement RemarksOperatingInstruction 4.5

In cases where the Issuer / RTA hasreceived information aboutdematerialization electronically from CDSLbut physical certificates have not beenreceived, the procedure to be followed isas under :

The DP should execute an IndemnityBond in favor of Issuer/RTA as per theprescribed format.

The DP should provide the Issuer/RTAproof of dispatch and also confirm thatthe certificates are not returnedundelivered at their end.

The DP should setup a fresh dematrequest with the CDSL system in casethe Issuer / RTA has already rejectedthe original demat request.

In case the Securities are lost in transitwhile being sent by RTA to DP,

wherein the dematerialisation requesthas been rejected for the reasonswhich can be rectified by the BO/DP,the DP has to give the Indemnity bondwith prior consent of the Issuer and afresh demat request be setup with theCDSL system.


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Procedure for Dematerialization of Shares, which are held in more thanthree names



In case the number of joint holders aremore than three, the DP has to process thedematerialisation request as per usualprocedure ensuring that the main BOsname is mentioned as 1st Account Holderand the balance joint holders areaccommodated in the two joint holdersName but ensuring that the pattern ofholding as per the certificate tallies with thepattern of holding as per the account.

Such an account should be used only for

the purpose of dematerialisation and onceall the certificates have beendematerialised, such account should beclosed and shares transferred to a newaccount opened in the name of maximumthree holders.


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Communiqu Issued / amendments made post-issue of Manual


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INSTRUCTION PROCESSING



6.5.1.13

Inventory of DIS Booklets

Register for inventory of DIS booklets

should be kept in either electronic ormanual form. Register should be updatedas and when new stock is received / stockissued for delivery to BOs.

Custody of the books as well as registershould be with a senior officer of the DP.

Periodically the physical inventory shouldbe checked and reconciled with the stockas recorded in the register. The sameshould be properly recorded. A senior

official of the DP who is not responsiblefor issuance and maintenance of the DISbooklets should do the said checks.


.

Issue of Instruction Slips

The instruction slips shall be in the formatas specified by CDSL.

The DP must print instruction slips withpre-printed unique serial number on thetop portion and acknowledgement copy ofthe instruction slip.

The DP shall ensure that BO ID is pre-printed or pre-stamped on the instructionslips as well as requisition slip.

DPs name, address and CDSLs nameshall be printed on instruction slip.

Each booklet shall contain a requisitionslip for issue of another booklet. Therequisition slip should have pre-printedserial number range of the currentinstruction slip booklet.

The Instruction slips shall be issued in

booklets and the DP shall maintain arecord of the serial nos. of instruction slipsissued to BO.

Instruction slip booklets shall bedispatched / handed over to the BO oncethe account opening process iscompleted. The DP should maintain proof


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of dispatch / delivery. In case of hand-delivery, the same should be deliveredonly to the BO and the signature of theBO should be kept on record.

If the DIS booklet is lost/ stolen / nottraceable by the BO, the same must beintimated to the DP immediately by BO inwriting. On receipt of such intimation, theDP shall cancel the unused DIS of thesaid booklet.

The DP shall ensure that a new DISbooklet is issued only on the basis of dulysigned requisition slip after verification ofBOs signature and that the requisition slipforms a part of the booklet issued to theBO; unless the request for fresh booklet isdue to loss etc., as referred above.

If the fresh instruction slip booklet is handdelivered to the BO, record of signature ofthe BO of having received the instructionslip booklet should be maintained. Theinstruction slip booklet may be handdelivered to any person other than theBO, only on the basis of a requisition slipforming part of the earlier booklet issued

and signed by the BO. The requisition slipshould contain the signature of the personauthorized by the BO to receive the newinstruction booklet.

In case the instruction slip booklets issuedearlier do not contain the requisition slipor in cases where BOs have lost therequisition slips, a letter to that effectsigned by all the holders shall be taken forissuance of fresh instruction booklets.One of the accountholders shouldpersonally come with such a letter andwith a valid proof of identity. DP shouldcheck the proof of identity and keep thesame on record.

Cautionary note in Delivery Instruction Slip

With a view to safeguarding the interest ofthe investor, DPs are advised to ensure


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that the following cautionary note isprinted / added to the Delivery InstructionSlip in the line above the space allottedfor the BOs signature(s)

Blank & Signed Delivery Instruction Slipsshould not be left with your DP/Broker

Regulation42(2), Bye law5.3.3 / 13.8.1

The DP shall not initiate any debit or credit inthe account of BO without appropriateinstruction from the BO or a person dulyauthorized by BO or CDSL.

In case ofPurchaseconfirmationwaiver given byBO, separateinstruction forcredits is notrequired.

In case anaccount isoperated by aperson as anauthorizedsignatory andnot in hisindividualcapacity, thesignatureshould be under

an appropriatestamp.


If a DIS is received from an account whichhas been dormant, i.e. not operated for along period, SIX months or more or anysuch period specified by CDSL from timeto time, the DP should verify the samewith the account holders independentlybefore executing the instruction.

The authorized official of the DP verifyingsuch transactions with the accountholders shall record the details of theprocess, date, time, etc of the verificationon the instruction slip under his / hersignature.

Moreover, such DIS should be checked


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and countersigned by another employeeof the DP (that is, two step verification).

The DPs shall not accept pre-signed DISwith blank columns from the BO(s)

Comm.846dated February14, 2007

SEBI Circular

SEBI/MRD/Dep/Cir-03/2007

February13,2007

The DPs shall put in place appropriatechecks and balances with regard toverification of signatures of the BOs whileprocessing the DIS

The DPs shall cross check with the BOsunder exceptional circumstances beforeacting upon the DIS.

Comm.846dated February14, 2007

SEBI Circular

SEBI/MRD/Dep/Cir-03/2007

February13,2007

If a DIS is received from an account whichhas been dormant (remained inactive) i.e.where no debit transaction had takenplace for a continuous period of 6 months,whenever all the ISIN balances in thataccount (irrespective of the number ofISINs) are transferred at a time the DPshould mandatorily verify the same withthe account holders independently beforeexecuting the instruction.

However, in case of active accounts such

verification may be made mandatory onlyif the BO account has 5 or more ISINsand all such ISIN balances are transferredat a time.

The authorized official of the DP verifyingsuch transactions with the BO, shallrecord the details of the process, date,time, etc., of the verification on theinstruction slip under his signature.

Operating

Instruction6.5.4.4


DP must appoint an authorized official to

check the DIS received from BO forexecution of the instructions.

Verification of delivery instruction slipshas to be done by the staff of the DPonly.

Authorised official must verify the followingdetails from the instruction slips:

Whether the instruction slip received from

The employee

of the DPprocessing theinstruction slipshall berequired to signthe instructionslip indicatingthat the

8/2/2019 Deposit