Basic Services:

(Brief discription about DP Services)

• Account Maintenance
• Demat/Remat
• Trades
• Pledge
• Corporate Benefits

Account Opening:

Opening a DP Account with Sharekhan

• You can open a Depository Participant (DP) Account, either through sharekhan branches or through Sharekhan Franchisee center.
• There is no fee for opening DP accounts with SharekhanI. However, deposit (refundable) will be levied towards services which can be adjusted towards billing charges.

All investors have to submit their proof of identity and proof of address alongwith the prescribed account opening form.

• I. Proof of Identity : Your signature and photograph must be authenticated by an existing demat account holder with the same DP or by a bank manager. Alternatively, you can submit a copy of Passport, Voters Id Card, Driving Licence or PAN card with photograph.
• II. Proof of Address : You can submit a copy of Passport, Voters Id Card, Driving Licence, PAN card with photograph, ration card or bank passbook as proof of address.
  You must remember to take original documents to the DP for verification.
• III Passport-size photograph.

Dematerialisation:

Dematerialisation is the process by which a client can get physical certificates converted into electronic balances maintained in its account with the DP.
Features:

• Holdings in only those securities that are admitted for dematerialisation by NSDL can be dematerialised.
• Structure of holding in the securities should match with the account structure of the depositoryaccount
  If the shares are in the name of X and Y it cannot be dematerialised in to the account of either X or Y alone. Further, if the shares are in the name of X first and Y second and the account is in the name of Y first and X second, then these shares cannot be dematerialized in this account. The dematerialisation process can be initiated only by X first and Y second and for this a depository account will have to be opened in the name of X first and Y second.
• Only those holdings that are registered in the name of the account holder can be dematerialised.

Rematerialisation:

Rematerialisation is the process by which a client can get his electronic holdings converted into physical certificates. The client has to submit the rematerialisation request to the DP with whom he has an account. The DP enters the request in its system which blocks the client's holdings to that extent automatically. The DP releases the request to NSDL and sends the request form to the Issuer/ R&T agent. The Issuer/ R&T agent then prints the certificates, despatches the same to the client and simultaneously electronically confirms the acceptance of the request to NSDL. Thereafter, the client's blocked balances are debited.
Features:

• A client can rematerialise his dematerialised holdings at any point of time.
• The rematerialisation process is completed within 30 days.
• The securities sent for rematerialisation cannot be traded.

Trades:

When an investor sells in a market trade i.e. through a broker, the flow of securities happens as follows-
The flow of securities (Market Trade) can be shown

This settlement of the trade happens on the investor giving his DP an instruction to debit his account and credit the brokers account for the said quantity of shares and the broker in turn giving his DP the instruction of delivering the sharesto the clearing corporation. Thus, on the respective DPs executing the instructions the transfer of securities takes place.

In case of a market purchase, the securites come into the brokers account from the clearing corporation on payout, then teh broker provides instructions to his DP to transfer stocks into the investor account. If the investor has not availed of automatic credit facility, then he should provide a receipt instruction to his DP.

In case of an off-market trade, the securities move from the seller to the buyer on the execution of respective instructions by the respective DPs.

Thus, the flow of securities essentially depends upon the parties to the trade providing the relevant instruction to the respective DPs at the appropriate time.

Pledge:

Pledge enables you to obtain loans against your dematerialised shares. So you get liquidity without having to sell your shares.

You can pledge your shares and the money can be utilised to finance your personal needs, or you can make further investments.

A highly simplified procedure may be availed of for pledging of securities in the electronic mode. The pledged securities continue to be reflected in the DP account of the pledger but the concerned securities are "blocked" and can not be used for any transactions. As and when the pledge is to be removed, based on confirmations received from both the pledger and the pledgee, the blocked securities will be released to "Free Balance" of the account holder.

Corporate Benefits:

Corporate benefits are benefits given by a company to its investors. These may be either monetary benefits like dividend, interest or non-monetary benefits like bonus, rights, etc. NSDL facilitates distribution of corporate benefits.

Scrips available for Demat:

Download the list of securities

Compulsory demat scrips:

Download Compulsory Settlement for Demat

Charges:

Service	SSKI Charges	Remarks
A/c. Opening	NIL
A/c Closing	Rs.100/-
Dematerialisation	Rs.3/- per Certificate or Rs.15/- per request whichever is higher.	Including Courier Charges
Rematerialisation	Rs.25/- Per certificate or 0.12 % of the value of the securities requested for Rematerialisation, whichever is higher.
Settlement Fee - (Buy)	0.02% or Rs.15/- per transaction whichever is higher.	On Market Value.
Settlement Fee - (Sale)	0.04% or Rs.15/- per transaction whichever is higher.	On Market Value.
Custody Fee	NIL
Off Market - (Buy –Inter DP) – From Other DP	NIL
Off Market - (Buy-Intra DP) – From SSKI	0.02% or Rs.15/- per transaction whichever is higher.	On Market Value.
Off Market - (Sale)	0.04% or Rs.15/- per transaction whichever is higher.	On Market Value.
Account Maintaining fee	Rs.75 Per Quarter
Pledge Creation	0.02% or Rs.15/- per transaction whichever is higher.	On Market Value.
Pledge Closure	0.02% or Rs.15/- per transaction whichever is higher.	On Market Value.
Pledge Invocation	0.03% or Rs.15/- per transaction whichever is higher.	On Market Value.
Lend	Up to 3 months 0.04% and Above 3 Months 0.06%	On Market Value.
Freezing\ De-freezing of account	Rs.25/- per request.
Deposits	Rs.500/-	Upfront
Note: Fee schedule based on existing NSDL charges; if NSDL revises it’s charges, SSKI will reserve the rights for changing its service charges. Value of transaction \ holding will be in accordance with NSDL formulae. Any service not quoted above will be charged separately. Transaction Statement: Free of Cost once every fortnight subject to a transaction having taken place, or once a quarter. Every Extra Statement shall be charged at Rs.10/-. If number of pages exceeds 10, then every additional page will be charged at the rate of Rs.3/- per page.

FAQs:

1. What is a depository?
Depository can be compared to a bank. A depository holds securities [like shares, debentures, bonds and units] of investors in electronic form. Besides holding securities, a depository also provides services related to transactions in securities.

2. What are the benefits of depository System?
The benefits of participation in a depository are:

• immediate transfer of securities.
• no stamp duty on transfer of securities.
• elimination of risks associated with physical certificates such as bad delivery, fake securities, etc.
• reduction in paperwork involved in transfer of securities.
• reduction in transaction cost.
• nomination facility.
• change in address recorded with DP gets registered with all companies in which investor holds securities electronically eliminating the need to correspond with each of them separately
• transmission of securities is done by DP eliminating correspondence with companies.
• convenient method of consolidation of folios/accounts.
• holding investments in equity and debt instruments in a single account.
  

3. What is a DP ?
As an investor you open a securities account with a Depository Participant (DP). DPs are attached to the depositories very much the same way as commercial banks are attached to RBI. All interactions including account opening, dematerialisation, transactions, pledge, etc. are done through the DP.

4. How do I select a DP? Whether all DPs are same?
You can select your DP to open a demat account just like you select a bank for opening a savings account. Some of the important factors for selection of a DP can be:

1. Convenience - Proximity to the office/residence, business hours.
2. Comfort - Reputation of the DP, past association, range of services, etc. whether the DP is in a position to give the specific service you may need?
3. Cost - The service charges levied by DP & the service standard.

5. What should I do when I want to open an account with a DP?
The process of opening an account with a DP is similar to the opening of a bank account. You can approach any DP of your choice and fill up an account opening form. At the time of opening an account,

1. you have to sign an agreement with DP in a NSDL prescribed standard agreement, which details the rights and duties of you and your DP.
2. All investors have to submit their proof of identity and proof of address alongwith the prescribed account opening form.
3. Proof of Identity : Your signature and photograph must be authenticated by an existing demat account holder with the same DP or by a bank manager. Alternatively, you can submit a copy of Passport, Voters Id Card, Driving Licence or PAN card with photograph.
4. Proof of Address : You can submit a copy of Passport, Voters Id Card, Driving Licence, PAN card with photograph, ration card or bank passbook as proof of address. You must remember to take original documents to the DP for verification.
5. Passport-size photograph.

6. What is dematerialisation?
The dematerialisation system is an alternative to the physical existence of securities, where securities are converted in the electronic form and deposited in a depository account in the investors name In order to dematerialise certificates, an investor will have to first open an account with a DP and then request for the dematerialisation of certificates by filling up a Dematerialisation Request Form [DRF], which is available with DP and submitting the same along with the physical certificates. The investor has to ensure that before the certificates are handed over to the DP for demat, they are defaced by marking "Surrendered for Dematerialisation" on the face of the certificates.

7. Can I dematerialise any share certificate?
You can dematerialise only those certificates that are already registered in your name and are in the list of securities admitted for dematerialisation at NSDL. All the scrips included in S&P CNX NIFTY and BSE SENSEX have already joined NSDL. This list has more than 2800 companies and is steadily growing.

8. Can my electronic holdings be converted back into certificates?
Yes. If you wish to get back your securities in physical form, all you have to do is to request your DP for rematerialisation of the same. 'Rematerialisation' is the term used for converting electronic holdings back into certificates. Your DP will forward your request to NSDL after verifying that you have the necessary balances. NSDL in turn will intimate the registrar who will print the certificates and despatch the same to you.

9. What is the procedure for selling dematerialised securities?
The procedure for selling dematerialised securities in stock exchanges is similar to the procedure for selling physical securities. Instead of delivering physical securities to the broker, you instruct your DP to debit your account with the number of securities sold by you and credit your broker's clearing account. This delivery instruction has to be given to your DP using the delivery instruction booklet received from the DP at the time of opening the account. Procedure for selling securities is given here below:

• Investor sells securities in any of the stock exchanges linked to NSDL through a broker.
• Investor gives instruction to DP to debit his account and credit the broker's [clearing member pool] account.
• Before the pay-in day, investor's broker gives instruction to his DP for delivery to clearing corporation.
• The broker receives payment from the stock exchange [clearing corporation].
• The investor receives payment from the broker for the sale in the same manner payment is received for a sale in the physical mode.

10. What should I do if I want to pledge electronic securities?
The procedure is as follows: · Both you (pledgor) as well as the lender (pledgee) must have depository accounts;

• You must initiate the pledge by submitting to your DP the details of the securities to be pledged in a standard format (available with your DP).
• The pledgee should confirm the request through his DP.
• Once this is done, your securities are pledged.
• All financial transactions between the pledgor and the pledgee are handled outside the depository system.
  

11. How will I know that my DP has updated my account after each transaction?
DP will give you a transaction statement periodically, which will givel your current balances and the various transactions you have done through the depository account. If you so desire, your DP may provide the transaction statement at intervals shorter than the stipulated ones probably at a cost.

12. Can I freeze my account?
Yes. The depository system provides the facility to freeze the depository accounts for any debits or for both debits and credits. In an account which is "freezed for debits", no debits will be permitted from the account, till the time it is defreezed. This is the additional security feature for the benefit of the investors.

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