Depository participants

Indian Financial System

1. Depositoty Participants K. Poojitha

2. Depository

3. Depository services Online trading in Shares. Transfer by means of book entry. Accounts of Investors.

4. Depository players

5. Depository in India 1,47,69,804 1,12,24,276 June June 30, 2016 30, 2016

6. A DP is an agent of the Depository through which it interfaces with the investor. A DP can offer depository services only after it gets proper registration from SEBI. Banking services can be availed through a branch whereas depository services can be availed through a DP. At present two depositories viz NSDL and CDSL are registered with SEBI. And the minimum Net Worth required for a depository is Rs.100 crore. Depository Participant As on 31/03/2005, total of 477 DPs are registered with SEBI.

7. In terms of Depositories Act,1996, SEBI Depositories & Participants Regulations,1996, only the following entities are eligible to become a Depository Participant. Public Financial Institution. Banks including Foreign Banks. State Financial Corporation. Conditions to be a Depository Participant

8. Depository. Depository Participant (DP). Securities, Issuers and Registrars and Share Transfer Agents, Stock Exchanges and Stock Brokers, Clearing Corporation/Clearing house and clearing members. Banking System. Investors. Constituents of Depository system

9. Depository Participants in India

10. Depository Structure

11. Depository Structure

12. NSDL was established on 8 November 1996 as the first electronic securities depository in India. It has established a National infrastructure using International Standards that handles most of the securities held and settles in dematerialized form in the Indian capital Market. NSDL is promoted by Industrial Development Bank of India (IDBI) and National Stock Exchange of India Ltd (NSE) & specified undertaking of the Unit Trust of India (SUUIT). NSDL had 1.50 crore investor accounts as per Sept 2016 analysis. National Securities Depository Ltd (NSDL)

13. CDSL was founded on February 1998. CDSL is the second Indian Central Securities Depository based in Mumbai. Its main function is the holding securities either in certificated or uncertificated dematerialized form, to enable book entry transfer of securities. CDSL is promoted by BSE jointly with SBI, BOI, BOB, SCB, Axis bank and Union Bank of India. CDSL had 1.15 crore incestor accounts as per sept 2016 analysis. Central Depository Securities Ltd (CDSL)

14. It is the process by which physical certificates of an investor are converted to an equivalent number of securities in electronic form and credited into the investor’s account with his/her DP. Dematerialisation

15. As per the available statistics at BSE and NSE, 99.9% settlement takes place in Demat mode only. Therefore, in view of the convenience in settlement through demat mode, it is advisable to have a beneficiary owner (BO) account to trade at the exchanges. Is it compulsory to open Depository Account for trading?

16. Benefits of Availing Depository Services

17. Account opening

18. Protection of Investors’ Interest. Cash Corporate Benefits. Investor must ensure that any subsequent change in Bank Account details is informed to the DP. An investor can open more than one account in the same name with the same DP and also with different DPs. If the address of the Investor changes he should immediately inform his/her DP, who in turn will update the records. This will obviate the need of informing different companies. Bank Details of Investor for Account Opening

19. “Transposition cum DEMAT form”. Joint Account on “either or survivor basis”.. Power of Attorney in case of DEMAT Account.. Addition and Deletion of names of accountholders. Transfer of securities from One DP account to another. Charges for account closure and securities transfer. Freezing and Locking of Investors accounts. ISIN (International Securities Identification Number). Opening of Single Account for Securities owned in Different ownership patterns

20. Surrender certificates of Dematerialisation to DP. DP intimates Depository of the request through the system. DP submits the certificates to the registrar of the Issuer company. Registrar confirms the request from Depository and updates accounts and informs depository. Depository updates its account and informs to DP. DP updates the DEMAT account of the investor. Dematerialisation of securities

21. Dematerialisation of odd lot share certificates. Conversion of electronic holding into physical certificates. Dematerialisation of securities

22. In case of purchase. In case of sale. Standing Instruction. Delivery Instruction Slip. SPEED-e and EASI. Trading/Settlement of Dematerialised securities

23. Public Offering. Dividend/Interest (ECS). Non-cash Corporate benefits(Bonus etc). Corporate Benefits

24. Pledging of Dematerialised Securities

25. Closure of Pledge after repayment of loan. Changing of securities offered in a pledge. Corporate benefits on pledged securities. Pledging of Dematerialised Securities

26. Updating of Account. Frequency of receiving Transaction Statement. Discrepancies in Transaction Statement. Complaint/Problem/Query. Transaction Statement

27. Lending and borrowing between two persons. Process of lending securities. Getting back lent securities. Corporate benefits during period of lending. Lending and Borrowing of DEMAT Securities

28. Who can Nominate? Who can be a Nominee?

29. Meaning. Death of Sole holder(TRF)- (a) In case of death of sole holder where he appointed a nominee. (b) In case of death of sole holder who has not appointed a nominee. Inter Depository Transfers. Transmission of DEMAT Securities

30. Thank You..