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FAQ


  • Depository
  • PMS
  • 1. What is a depository?
    A Depository provides the facility for holding and/or transacting securities in, book entry form i.e. electronic form by way of dematerialization (so that they exist only as electronic records). A depository functions somewhat similar to a commercial bank.
  • 2. What is dematerialisation (Demat)?
    Dematerialisation is a process by which physical certificates are converted into electronic form.
  • 3. What is Rematerialisation (Remat)?
    Rematerialisation is the process of converting securities held in a demat account in electronic form back into physical certificate form.
  • 4. How can I avail of a depository service?
    To avail of the services offered by a depository, the investor has to open a demat account with a registered DP.
  • 5. What is a DP?
    A Depository Participant (DP) is an agent of the depository who is authorized to offer depository services to investors. Financial institutions, banks, custodians and stockbrokers complying with the requirements prescribed by SEBI/ Depositories can be registered as DP. An investor will always interact with a DP for the services and cannot directly approach the depository for any services.
  • 6. Who is Registered Owner of Securities?
    When securities of a company are held in physical form by an investor, Name of the investor is recorded in the books of the company as a ‘Registered Owner’ of the Securities. Each certificate is identified by Folio number, certificate number and distinctive range numbers.
  • 7. Who is a Beneficial Owner (BO)?
    When physical shares are converted in to electronic form, the depository becomes ‘Registered Owner’ in the books of the company and investors name is removed from books of the company. Depository is holding shares in its records on behalf of the investors who have opened a demat account with the depository. Hence all benefits are given to the actual investor who is called as a ‘Beneficial Owner’ (BO) of the securities.
  • 8. What are the depository services?
    Depository provides following services to the investors through a DP:
    • Opening a demat account.
    • Dematerialization, i.e. converting physical securities into electronic form.
    • Rematerialisation, i.e. converting electronic securities balances held in a BO account into physical form.
    • To maintain record of holdings in the electronic form.
    • Settlement of trades by delivering / receiving underlying securities from / in BO accounts.
    • Settlement of transactions between BOs entered outside the Stock Exchange.
    • Receiving electronic credit in respect of securities allotted by issuers under IPO or otherwise on behalf of demat account holders.
    • Receiving non cash corporate benefits, such as, allotment of bonus and rights shares or any other non cash corporate benefits given by the issuers in electronic form on behalf of its demat account holders.
    • Pledging of dematerialized securities & facilitating loans against shares.
    • Freezing of the demat account for debits, credits, or both.
    • Internet facilities “easi” and “easiest”, if the DP is registered for the same with CDSL.
  • 9. What should I do to open a demat account?
    To open a demat account you need to submit the following forms and documents:
    • Identity Proof (photocopy of any one)
    • Passport
    • Driving license
    • Voter ID
  • 10. Can I open more than one account with the same DP?
    Yes, there is no restriction on the number of accounts you can open with a DP.
  • 11. Am I restricted to having account with only one DP?
    No, there are no restrictions on the number of DPs you can open accounts with
  • 12. What is the legal framework governing the depository functions in India?
    Following are the acts and regulations under which a depository functions:
    • The Depositories Act, 1996
    • SEBI (Depositories and Participant) Regulations
    • CDSL Bye-laws which are framed under the above two documents
    • Prevention of Money Laundering Act (PMLA), 2002.
  • 13. In whose name will the investment be made?
    As per the SEBI Norms all the investments are made in the Investor’s names only. For this purpose, separate bank and demat account are opened, wherein all the stocks are credited and all the non cash benefits like bonus are credited directly to the demat account. Similarly all the cash benefits like dividends are credited to the investor’s account directly.

SEBI Regn – (CASH) INB231367195, (derivatives) INF231367195, (currency) INE231367195 || BSE: Member ID – 3083 | SEBI Regn – (cash) INB011367134, (derivatives) INF011367134, (WDM) Clearing no.: 3083 || MSE: SEBI Regn – (cash) INB041251431 || MCX-SX: Member ID – 32700 | SEBI Regn – (currency) INE261367192 || CDSL DP: SEBI Regn – IN-DP-CDSL-312-2005 || PMS: SEBI Regn – PM/INP 000003856 || MF: AMFI Regn – ARN 3077 || MCX: Member ID - 31420 | FMC Unique Member Code - MCX/TCM/CORP/1175.

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