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)
  • The facility of BSDA with limited services for eligible individuals was introduced with the objective of achieving wider financial inclusion and to encourage holding of demat accounts. No Annual Maintenance Charges (AMC) shall be levied, if the value of securities holding is upto Rs. 50,000. For value of holdings between Rs 50,001- 2,00,000, AMC not exceeding Rs 100 is chargeable. In case of debt securities, there are no AMC charges for holding value upto Rs 1,00,000 and a maximum of Rs 100 as AMC is chargeable for value of holdings between Rs 1,00,001 and Rs 2,00,000.
  • Transposition cum dematerialization
  • In case of transposition-cum-dematerialisation, client can get securities dematerialised in the same account if the names appearing on the certificates match with the names in which the account has been opened but are in a different order. The same may be done by submitting the security certificates along with the Transposition Form and Demat Request Form.
  • Linkages with Clearing System
  • for actual delivery of securities to the clearing system from the selling brokers and delivery of securities from the clearing system to the buying broker.
  • 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
  • Account opening through digital mode, popularly known as “On-line Account opening”, wherein investor intending to open the demat account can visit DP website, fill in the required information, submit the required documents, conduct video IPV and demat account gets opened without visiting DPs office.
  • Online instructions for execution: Details available on the link
  • internet-enabled services like Speed-e(NSDL) & Easiest (CDSL) empower a demat account holder in managing his/her securities ‘anytime-anywhere’ in an efficient and convenient manner and submit instructions online without the need to use paper. These facilities allows Beneficial Owner (BO) to submit transfer instructions and pledge instructions including margin pledge from their demat account. The instruction facilities are also available on mobile applications through android, windows and IOS platforms.
  • e-DIS / Demat Gateway: Details available on the link
  • Investors can give instructions for transfer of securities through e-DIS apart from physical DIS. Here, for on-market transfer of securities, investors need to provide settlement number along with the ISIN and quantity of securities being authorized for transfer. Client shall be required to authorize each e-DIS valid for a single settlement number / settlement date, by way of OTP and PIN/password, both generated at Depositories end. Necessary risk containment measures are being adopted by Depositories in this regard.
  • e-CAS facility: Details available on the link
  • Consolidated Account Statements are available online and could also be accessed through mobile app to facilitate the investors to view their holdings in demat form.
  • Miscellaneous services: Details available on the link
  • Transaction alerts through SMS, e-locker facilities, chatbots for instantaneously responding to investor queries etc. have also been developed.

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 Dos and Don’ts for Investor

Rights of investors

For rights, please refer to the link Rights of investors

Responsibilities of Investors

For responsibilities, please refer to the link Responsibilities of Investors

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 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 August 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 2021-22 0 0 0 0
2 April 2022 0 0 0 0
3 May 2022 0 0 0 0
4 June 2022 0 0 0 0
5 July 2022 0 0 0 0
6 August 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
Attention Investors: 1. "KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary." 2. ASBA - "No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account." 3. for Depository Transaction - "Prevent Unauthorized Transactions in your demat account --> Update your Mobile Number with your Depository Participant. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat account directly from CDSL on the same day......................issued in the interest of investors." 4. for Stock Broking Transaction - "Prevent Unauthorized Transactions in your account --> Update your Mobile Number / Email Id with your Stock Broker. Receive alerts on your Registered Mobile / Email for all debit and other important transactions in your demat account directly from Exchanges on the same day......................issued in the interest of investors."

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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