INVESTOR CHARTER FOR DEPOSITORIES AND DEPOSITORY PARTICIPANTS

Vission

Towards making Indian Securities Market - Transparent, Efficient, & Investor friendly by providing safe, reliable, transparent and trusted record keeping platform for investors to hold and transfer securities in dematerialized form.

Mission

Details of business transacted by the Depository and Depository Participant (DP)

A Depository is an organization which holds securities of investors in electronic form. Depositories provide services to various market participants - Exchanges, Clearing Corporations, Depository Participants (DPs), Issuers and Investors in both primary as well as secondary markets. The depository carries out its activities through its agents which are known as Depository Participants (DP). Details available on the link [https://www.cdslindia.com/DP/dplist.aspx].

Description of services provided by the Depository through Depository Participants (DPs) to investors

(1) Basic Services

S.No.
Brief about the Activity / Service
Expected Timelines for processing by the DP after receipt of proper documents
1. Dematerialization of securities 7 days
2. Rematerialization of securities 7 days
3. Mutual Fund Conversion / Destatementization 5 days
4. Re-conversion / Restatementisation of Mutual fund units 7 days
5. Transmission of securities 7 days
6. Registering pledge request 15 days
7. Closure of demat account 30 days
8. Settlement Instruction Depositories to accept physical DIS for pay-in of securities up to 4 p.m. and DIS in electronic form up to 6 p.m. on T+1 day

(2) Depositories provide special services like pledge, hypothecation, internet-based services etc. in addition to their core services and these include

S.No.
Type of Activity /Service
Brief about the Activity / Service
1. Value Added Services Depositories also provide value added services such as
  • Basic Services Demat Account (BSDA)
  • Transposition cum dematerialization
  • Linkages with Clearing System
  • Distribution of cash and non-cash corporate benefits (Bonus, Rights, IPOs etc.), stock lending, demat of NSC / KVP, demat of warehouse receipts etc.
2. Consolidated Account statement (CAS) CAS is issued 10 days from the end of the month (if there were transactions in the previous month) or half yearly (if no transactions).
3. Digitalization of services provided by the depositories Depositories offer below technology solutions and e-facilities to their demat account holders through DPs:
  • E-account opening: Details available on the link
  • Online instructions for execution: Details available on the link
  • e-DIS / Demat Gateway: Details available on the link
  • e-CAS facility: Details available on the link
  • Miscellaneous services: Details available on the link

Details of Grievance Redressal Mechanism

(1) The Process of investor grievance redressal

1. Investor Complaint/ Grievances Investor can lodge complaint/ grievance against the Depository/DP in the following ways: The complaints/ grievances lodged directly with the Depository shall be resolved within 30 days.
2. Investor Grievance Redressal Committee of Depository If no amicable resolution is arrived, then the Investor has the option to refer the complaint/ grievance to the Grievance Redressal Committee (GRC) of the Depository. Upon receipt of reference, the GRC will endeavor to resolve the complaint/ grievance by hearing the parties and examining the necessary information and documents.
3. Arbitration proceedings The Investor may also avail the arbitration mechanism set out in the Byelaws and Business Rules/Operating Instructions of the Depository in relation to any grievance, or dispute relating to depository services. The arbitration reference shall be concluded by way of issue of an arbitral award within 4 months from the date of appointment of arbitrator(s).

(2) For the Multi-level complaint resolution mechanism available at the Depositories

Details of business transacted by the Depository and Depository Participant (DP)

A Depository is an organization which holds securities of investors in electronic form. Depositories provide services to various market participants - Exchanges, Clearing Corporations, Depository Participants (DPs), Issuers and Investors in both primary as well as secondary markets. The depository carries out its activities through its agents which are known as Depository Participants (DP). Details available on the link [https://www.cdslindia.com/DP/dplist.aspx].

Guidance pertaining to special circumstances related to market activities: Termination of the Depository Participant

S.No.
Type of special circumstances
Timelines for the Activity/ Service
1.
  • Depositories to terminate the participation in case a participant no longer meets the eligibility criteria and/or any other grounds as mentioned in the bye laws like suspension of trading member by the Stock Exchanges.
  • Participant surrenders the participation by its own wish.
Client will have a right to transfer all its securities to any other Participant of its choice without any charges for the transfer within 30 days from the date of intimation by way of letter/email.

Dos and Don’ts for Investors

For Do’s and Don’ts please refer to the link [link to be provided by the DPs]

Rights of investors

For rights, please refer to the link [link to be provided by the DPs]

Responsibilities of Investors

For responsibilities, please refer to the link [link to be provided by the DPs]

Annexure B - INFORMATION CONTAINED IN LINKS TO THE INVESTOR CHARTER FOR DEPOSITORIES AND DPS

This document contains the contents pertaining to the qualifier “[https://www.cdslindia.com/Investors/InvestorCharter.html]” in the Investor Charter main document. The same is to be made available by the Depositories on their websites and web-links to the same is to be provided for incorporation in the Investor Charter. For reasons of convenience, the contents in main Charter and this document have been mapped with the same superscript.

Para 4 (2) of Investor Charter

Point 1: Value Added Services

Point 3: Digitization of services provided by the depositories

Para 5(1) of Investor Charter

Point 2 (Investor Grievance Redressal Committee of Depository):

If no amicable resolution is arrived, then the Investor has the option to refer the complaint/ grievance to the Grievance Redressal Committee (GRC) of the Depository. Upon receipt of reference, the GRC will endeavor to resolve the complaint/ grievance by hearing the parties and examining the necessary information and documents.

Point 3(Arbitration proceedings):

The Investor may also avail the arbitration mechanism set out in the Byelaws and Business Rules/Operating Instructions of the Depository in relation to any grievance, or dispute relating to depository services. The arbitration reference shall be concluded by way of issue of an arbitral award within 4 months from the date of appointment of arbitrator(s).

Para 5(2) of Investor Charter:

Complaint Resolution process at Depositories:

Para 7 of Investor Charter

Dos and Don’ts for Investor

S.No.
Guidance
1. Always deal with a SEBI registered Depository Participant for opening a demat account.
2. Read all the documents carefully before signing them.
3. Before granting Power of attorney to operate your demat account to an intermediary like Stockbroker, Portfolio Management Services (PMS) etc., carefully examine the scope and implications of powers being granted.
4. Always make payments to registered intermediary using banking channels. No payment should be made in name of employee of intermediary.
5. Accept the Delivery Instruction Slip (DIS) book from your DP only (pre-printed with a serial number along with your Client ID) and keep it in safe custody and do not sign or issue blank or partially filled DIS slips.
Always mention the details like ISIN, number of securities accurately. In case of any queries, please contact your DP or broker and it should be signed by all demat account holders.
Strike out any blank space on the slip and Cancellations or corrections on the DIS should be initialed or signed by all the account holder(s).
Do not leave your instruction slip book with anyone else.
Do not sign blank DIS as it is equivalent to a bearer cheque.
6. Inform any change in your Personal Information (for example address or Bank Account details, email ID, Mobile number) linked to your demat account in the prescribed format and obtain confirmation of updation in system
7. Mention your Mobile Number and email ID in account opening form to receive SMS alerts and regular updates directly from depository.
8. Always ensure that the mobile number and email ID linked to your demat account are the same as provided at the time of account opening/updation.
9. Do not share password of your online trading and demat account with anyone.
10. Do not share One Time Password (OTP) received from banks, brokers, etc. These are meant to be used by you only.
11. Do not share login credentials of e-facilities provided by the depositories such as e-DIS/demat gateway, SPEED-e/easiest etc. with anyone else.
12. Demat is mandatory for any transfer of securities of Listed public limited companies with few exceptions.
13. If you have any grievance in respect of your demat account, please write to designated email IDs of depositories or you may lodge the same with SEBI online at https://scores.gov.in/scores/Welcome.html
14. Keep a record of documents signed, DIS issued and account statements received.
15. As Investors you are required to verify the transaction statement carefully for all debits and credits in your account. In case of any unauthorized debit or credit, inform the DP or your respective Depository.
16. Appoint a nominee to facilitate your heirs in obtaining the securities in your demat account, on completion of the necessary procedures.
17. Register for Depository's internet-based facility or download mobile app of the depository to monitor your holdings.
18. Ensure that, both, your holding and transaction statements are received periodically as instructed to your DP. You are entitled to receive a transaction statement every month if you have any transactions.
19. Do not follow herd mentality for investments. Seek expert and professional advice for your investments
20. Beware of assured/fixed returns.

Para 8 of Investor Charter

Rights of investors

Para 9 of Investor Charter

Responsibilities of Investors

Format for Investors Complaints Data to be displayed by Depository Participants on their respective websites

Data for every month ending -

Sr. No. Received from Carried forward from previous month Received during the month Total Pending Resolved* Pending at the end of the month** Average Resolution time^(in days)
Pending for less than 3 months Pending for more than 3 months
1 2 3 4 5 6 7 8
1 Directly from Investors 0 0 0 0 0 0
2 SEBI (SCORES) 0 0 0 0 0 0
3 Depositories 0 0 0 0 0 0
4 Other Sources (if any) 0 0 0 0 0 0
5 Grand Total 0 0 0 0 0 0

Trend of monthly disposal of complaints:

Sr. No. Month Carried forward from previous year Received during particular year Resolved during particular year Pending at the end of particular year
1 April 2021 0 0 0 0
2 May 2021 0 0 0 0
3 June 2021 0 0 0 0
4 July 2021 0 0 0 0
5 August 2021 0 0 0 0
6 Septemper 2021 0 0 0 0
7 October 2021 0 0 0 0
8 November 2021 0 0 0 0
9 December 2021 0 0 0 0
10 January 2022 0 0 0 0
11 February 2022 0 0 0 0
12 March 2022 0 0 0 0
Grand Total 0 0 0 0

*Should include complaints of previous months resolved in the current month, if any.

**Should include total complaints pending as on the last day of the month, if any.

^ Average resolution time is the sum total of time taken to resolve each complaint in the current month devided by total number of complaints resolved in the current month.

Trend of annual (financial year) disposal of complaints (for 3 years on rolling basis):

Sr. No. Year Carried forward from previous year Received during particular year Resolved during particular year Pending at the end of particular year
1 2019-20 0 0 0 0
2 2020-21 0 0 0 0
3 2021-22 0 0 0 0
Grand Total 0 0 0 0

NVS Brokerage SEBI Registration No.: INZ000209331 (BSE-531 | NSE-90098 ) ,

AMFI: ARN-0539 is Registered under “NVS Brokerage Private Limited”

INA000003205 is Registered under “NVS Wealth Managers Pvt. Ltd.”


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