1. Equity BasicsDepository

2. Depository A depository is an organization where the securities of an investor are held in electronic form, at the request of the investor through the medium of a Depository Participant If an investor wants to utilize the services offered by a depository, he has to open an account with the depository through its Depository Participant. This is similar to opening an account with any of the branches of a bank in order to utilize the services of that bank

3. What is dematerialization? It is process of converting securities from physical form into electronic form

4. Who is a Depository Participant? A Depository Participant (DP) is an agent of the depository and is authorized to offer depository services to investors According to SEBI guidelines, financial institutions, banks, custodians, stockbrokers, etc. can become DP with a depository

5. Who is a Depository Participant? A DP is an interface between customers and the depository A customer opens an account with a DP and commences operations Balances are maintained with the depository and are available through the DP DP intimates customers’ status of holdings or transactions from time to time

6. Depositories in India Central Depository Services (India) Limited - Promoted by BSE, BoI, BoB, SBI and HDFC Bank National Securities Depository Limited (NSDL) - Promoted by UTI, IDBI and NSE Securities and Exchange Board of India (SEBI) is the regulating authority

7. Depository: Bank - an analogy Bank Holds funds in accounts Transfers funds between accounts Transfers without handling cash Safekeeping of money Depository Holds securities in accounts Transfers securities in accounts Transfers without handling physical securities Safekeeping of securities

8. Services offered by a DP Account Opening & Maintenance Dematerialization of Securities Rematerialization of Securities Transfer of Securities Pledging of Securities

9. Types of accounts Beneficiary Account These are ownership accounts, for use of Individuals, Corporates, HUFs etc Pool Account These are commercial accounts , for use of broker, for transfer of securities to and fro, from Exchange or Clearing Corporation All the securities received in the pool account should be transferred to the respective beneficial accounts within 24 hrs

10. How are securities dematerialized? Physical securities are to be submitted to DP, along with DRF Each security certificate should be defaced by the client. Defacing of certificate to be done by putting a stamp ‘Surrendered for Dematerialization’

11. Demat Requisition Form

12. Dematerialization process Client submits DRF and physical certificates to DP DP intimates to depository and sends certificates with DRF to R&T agent R&T agent confirms dematerialization to depository Depository credits securities to beneficial owner Depository Investor DP R & T Agent

13. Dematerialization Process How many copies of DRF are made and who all get them? 3 Copies Client / Account Holder Depository participant R & T agent

14. Trading and settlement Market Trade Trade done through a broker on the exchange. Has to be settled through the exchange Off Market Trade Trade done between two parties without the involvement of a broker. Has to be settled mutually between the two parties, shares moves from one account to another

15. Delivery Instruction Slip- NSDL

16. Delivery Instruction Slip- CDSL

17. Settlement of market trade Seller gives delivery instructions to DP to move securities to broker’s account Securities are transferred to clearing corporation from brokers account On pay out securities are moved from Clearing corporation to buying broker’s account Buying broker credits buyer’s account Clearing Corporation Broker Broker Buyer Seller

18. Off market trade Depository Seller gives Delivery Instruction to his DP Securities are transferred from seller’s DP to Buyer’s DP Buyer gets credit automatically into his account DP1 DP2 Buyer Seller

19. Who can open a demat account? Individuals, NRIs, Minors, HUFs, Trusts (Regd), Corporates can open demat account Proprietary firms, partnership firms and unregistered trusts cannot open a demat account as the Companies Act,1956 prohibits these entities from becoming shareholders of companies

20. Basic documents for account opening Registration form Photograph/s with signatures across it PAN Card Proof of residence-Passport, Voter’s ID card, Driving license, Ration card Proof of identity-Passport, Voter’s ID card, Driving license, PAN card Bank Account Proof-Bank statement, cancelled cheque

21. Depository Charges

22. CDSL charges

23. NSDL charges

24. Thank You