Introduction
SBICAP Securities Limited ( SSL ) With a parentage of leading financial institution SBI Capital Markets Limited and SBI has proven track record in the Broking business, we have reiterated our past success by establishing ourselves as the Depository Participant . Our Depository Participant services address your Dematerialization needs like Transfer of shares in Demat form, dematerialization, rematerialization and pledging of shares.
SSL is a depository participant of CDSL. Customer can open their demat accounts with CDSL through SSL.
Demat Account Opening
Check List for Opening Demat Account
| Type of Accounts |
CDSL |
Remarks |
Mandatory Requirements |
| 1. Individual |
1. Individual Resident
2. Individual director
3. Individual director’s relative
4. Individual HUF/AOP |
For Individual or Jt. holders
Only where shareholder holds physical shares in capacity of Director /Directors Relative
Account will be in the name of HUF. No JOINT HOLDER, no nomination |
1. Proof of Address
2. Proof of Identity
3. Recent Photo of each joint holder Duly signed across
4. Declaration from HUF regarding details of family along with their name and date of birth
5. Identity and address proof of KARTA |
| 2. Corporate |
|
Space is provided for 3 directors. For additional directors we provide an annexure. |
1. Memorandum and Article of association
2. Board Resolution
3. Recent Photograph of each Director authorized to operate account
4. ID and Address Proof of all authorized signatory
5. Copy Of IT Returns/Bank Statement (Showing Recent Transaction)
6. Copy of form 32 in case there is any charge in director |
| 3. NRI |
Repatriable Non-repatriable |
|
Other than above there requirement of individual accounts, Copy of RBI Permission form or Bank account showing NRE/NRO status & Passport, Residential Proof of Indian Address in case of |
| Signatures of Holders on the form |
Signature on account opening forms and agreement (where ever mark is thee) across photo |
Preferably Sign in Black ink only |
In case of HUF or Corporate account, Signatures must be with rubber stamp |
| Note : |
| 1. |
Tariff should be signed by the customers. |
|
| 2. |
PAN Card is Mandatory for all type of account holder. |
|
| 3. |
Board Resolution for Corporate accounts should specify that the directors be authorized to open & operate Demat account with the depository participant and the Mode of Operation. |
|
| 4. |
Copies of following documents to be submitted (Any ONE of A or ONE EACH from B & C). All documents should be verified with original at the time of accepting the AOF. |
| |
I. |
Proof of Identity cum Residence |
| |
|
a. |
Passport |
| |
|
b. |
Election Id Card |
| |
|
c. |
Driving Licence |
| |
|
(Address on these documents should be same as address given on AOF) |
| |
II. |
Proof of Identity |
| |
|
a. |
MAPIN CARD |
| |
|
b. |
Identity card/document with applicant photo issued by |
| |
|
c. |
Central/state Government |
| |
|
d. |
Statutory/Regulatory Authority |
| |
|
e. |
Public Sector Undertaking |
| |
|
f. |
Scheduled Commercial Banks |
| |
|
g. |
Public Financial Institutions |
| |
|
h. |
College Affiliated to University |
| |
|
i. |
Professional Bodies such as ICAI/ICWAI/ICSI/Bar Council etc to their member |
| |
III. |
Proof of Residence |
| |
|
a. |
Ration Card |
| |
|
b. |
Bank Statement |
| |
|
c. |
Last Filed IT Return |
| |
|
d. |
Electricity Bill (Not more than 2 months old & MUST be in the name of Account Holder) |
| |
|
e. |
Land Line Telephone Bill (Not more than 2 months old & MUST be in the name of Account Holder) |
| |
|
f. |
Leave and license agreement/Agreement for sale |
|
| 5. |
Cancel all fields that are being left blank . All columns are filled in. Write NA wherever not applicable. |
|
| 6. |
Confirmation Waiver should always be “YES” to allow credits into account without giving “Buy” instructions for every purchase |
|
| 7. |
There can be a 4th Holder only for conversion of shares after which such account will have to be closed. In such an account there can be no nomination. |
|
| 8. |
Bank Details are compulsory in CDSL. This includes Account no, MICR no, & Address of bank along with Pincode.( If MICR number is not allotted then give only address of bank and attached a cancellation cheque) |
|
| 9. |
Alterations/Corrections in account opening form should be signed by all holders |
|
| 10. |
Account cannot be opened in the name of Partnership Firm/Proprietorship. It must be opened in the name of Partners (Jointly)/Proprietor. |
|
| 11. |
Minor cannot operate Demat Account. In such case Guardian details and Date of Birth of Minor (along with Proof) are to be provided. All Signatures will be of Guardian. When Minor becomes major the signatures will have to be changed & a form will have to be filled for that purpose |
|
| 12. |
Fields for last name, date of birth, pincode, address for correspondence are compulsory. |
|
| 14. |
Provide email id for ease of communication |
|
| 15. |
Once your Demat account is opened a Welcome Letter is sent to the customer along with the Delivery Instruction Slip book. |
Maintenance
| a. |
Change in Permanent/Correspondence address: A request letter signed by all the holders are required. Along with this Photocopy of proof of identification and proof of new address is required. Please also bring the originals with you for verification purpose. Client or the authorized bearer can visit our branch for the same. Copy of the latest transaction statement received from SSL is also required. |
|
| b. |
Change in Signature: Request letter (format available) signed by the client. The new signature to be attested by the bank. The request may be submitted along with the copy of POI. |
|
| c. |
Change of Telephone Number: Request letter signed by all the holders, with a photocopy of the recent telephone bill and proof of identification of one of the holder. |
|
| d. |
Death of Beneficiary account holder(s) - Transmission of account : Transmission of account takes place in the event of death of the beneficiary account holder(s). There can be three situations in transmission of account. See which category you fit into and follow the relevant procedure. |
|
| e. |
Freezing of account : An account is frozen / suspended – |
| |
* |
Only on your instruction. |
| |
* |
By competent authority i.e. by the Depository / SEBI. |
| |
* |
On receipt of court order. |
|
| f. |
Defreezing of account : Defreezing of an account takes place – |
| |
* |
Only on your instruction |
| |
* |
For defreezing pledge accounts your instruction has to be accompanied by the bank authorisation. |
Dematerialization/ Rematerialization
| * |
Dematerialisation of shares – Customer can convert their physical certificate to electronic form by surrendering the physical certificate along with DRF (Demat request forms) at any of our branch. |
|
| * |
Re-materialization: Re-materialization enables you to convert the dematerialised shares into physical form. |
|
| As per SEBI, scrips can be divided as : |
|
| * |
Scrips eligible for demat - These scrips can be traded either in physical or electronic form. |
|
| * |
Scrips falling under compulsory demat.- These scrips can be traded only in electronic form. |
|
| * |
Submit Demat Request Form - Once your demat account is opened with us and you have received your Demat account number, you can start dematerialising your shares. You can submit the shares over the counter at any of our branches.Do go through the tips given on filling up the DRF to avoid rejection. |
|
| * |
After Dematerialisation of shares : When the company gives you credit, these shares will reflect under "free" column. Now you can sell these shares. In case the company is not satisfied with the details furnished, it will reject the shares. |
|
| * |
If your shares have been rejected by the company, SSL will forward the shares to you on receiving them from the company. |
Pledge
You can pledge or hypothecate your dematerialized shares against loan or credit facilities extended by a pledgee who also has an account with a DP
The pledge procedure Pledgor fills in a form requesting the DP to pledge shares and hands it over to the DP If the form is complete in all respects, the DP processes the form and generates a pledge / hypothecation instruction number for the request Securities to the extent of the instruction are debited from the free or locked-in balances and credited as pledged balances of the pledgor so that they cannot be used for any transactions The pledgee will submit a form to its DP to accept / reject the pledge / hypothecation request If the pledgee accepts the request by the pledgor, the acceptance is communicated electronically to the pledgor's DP. Once the pledgee's DP confirms the acceptance of the pledge, the pledgor cannot cancel the pledge / hypothecation order. The pledgee's DP executes the pledge / hypothecation request as per the instructions given In case the pledgee rejects the pledge request, the pledgor's DP is intimated electronically. Now the securities which were earlier credited as pledged balances will be credited to free / locked-in balances Once the loan is repaid by the pledgor, the pledgor initiates the closure of the plegde. The request for closure is transmitted electronically to the pledgee's DP. The pledgee's acceptance / rejection of the request for closure of pledge is transmitted electronically to the pledgor's DP If the pledge is closed, the securities will be reflected as free / locked-in balances In case the pledgor defaults in repaying the loan to the pledgee, the pledgee instructs his DP to invoke the pledge / hypothecation
What you need to do
| If you are a Pledgor |
If you are a Pledgee |
|
| See to it that : |
|
| The pledge / hypothecation request form is complete in terms of agreement number, closure date, pledgee details and details of securities |
The form for accepting / rejecting the pledge / hypothecation request is complete in all respects |
|
| The form submitted for closure of pledge / hypothecation is complete in all respects |
The form for invoking the pledge / hypothecation request is complete in all respects |
Forms to be kept on web site
Format of POA, Modification forms, Account closing forms, Agreement, Declaration of HUF accounts,
Key Points
Dos
| a. |
Ensure that, both, your holding and transaction statements are received periodically. You are entitled to receive a transaction statement every month if you have done any transactions and once a quarter if there have been no transactions in your account. If you are not receiving transaction statement please contact at your nearest branch or write us at dpssl@sbicaps.com or call us on 022-30273404/05/07. |
| b. |
Check the statement on receipt. In case you notice any unauthorized debits or credits, contact us immediately for clarification. |
| c. |
Inform us immediately in case of change in your address, telephone number, etc along with modification forms (you can down load from our website) and please give us proof of new address / new bank details. |
| d. |
While sending securities for demat, keep record of distinctive, folio numbers of the securities sent. |
| e. |
Before sending for demat please check whether company is admitted for demat or not. |
| f. |
Like a cheque book, keep your delivery instruction slip (DIS) book in safe custody. |
| g. |
Accept the DIS book from your DP only if each slip has been pre-stamped with a serial number and your demat account number. |
| h. |
Always mention the details like ISIN, number of securities accurately. If in doubt, contact your broker or us. |
| i. |
Authorize any corrections, over- writing or cancellations on the delivery instruction slips by all account holders. |
| j. |
Ensure that all joint holders of the demat account sign the delivery instruction slip. |
| k. |
Strike out the blank space for furnishing securities details. |
| l. |
Avail Auto Pay in facility by giving POA to us. |
| m. |
Inform us immediately if the delivery instruction misplaced or lost |
Don'ts
| a. |
Do not leave your instruction slip book with anyone else. |
| b. |
Do not sign blank DIS, as it is equivalent to a bearer cheque. |
| c. |
Avoid over-writing, cancellations, misspellings, changing of the name and quantity of securities. |
| d. |
Do not give any signed blank delivery instruction to any body. |
We would request you to meticulously follow the above instructions, to enjoy hassle-free operation of your demat account.
FAQs on Depository
1. What is a ‘Depository and dematerialisation’?
Ans: A depository is an organization where the securities of an investor are held in electronic form. A depository can be compared to a bank. To avail of the services of a depository, an investor has to open an account with the Depository through a depository participant, just as he opens an account with the bank. Holding shares in the account is a kin to holding money in the bank. Dematerialisation is a process in which your physical certificates get converted to an equal number of securities into electronic form which is credited into your demat account with your Depository Participant (DP) In order to dematerialise the certificates, you will first has to open an account with a Depository Participant. Then you have to request for the dematerialisation of your certificates by filling up a dematerialisation request form [DRF], which is available with your DP.
2. Whether it is compulsory for me to dematerialise my physical certificates?
Ans: As per the Depository Act of 1996, you have an option to hold shares either in physical or dematerialized form
3. Which shares I can demat?
Ans: Your share certificates that are already registered in your name and the said securities admitted for dematerialisation by CDSL.
4. Can odd lot shares be demated?
Ans: Yes you can also dematerialise your odd lot shares.
5. Can I demat partly paid shares?
Ans: Yes it can be as required by you
6. What will happen to my original share certificates?
Ans: On dematerialisation, your original share certificates would be cancelled, even if you rematerialise your share certificates you will not receive the certificates with the same distinctive numbers as they become irrelevant on dematerialization
7. What is rematerlisation?
Ans: It is to convert your dematerialised holdings back to the physical form. For rematerialisation you would have to forward your request to us, which will be verified for the balances you possess and your request will forward to the registrar (Share transfer agent) who will print the certificates and dispatch it to you.
8. What benefit I will get by demating my shares ?
On purchase, your account with us will be credited with the requisite shares. Problems of bad delivery, fake certificates, shares under litigation, signature difference of the transferor (s) etc. Physical filling of transfer forms and affixing of share transfer stamps is not required. Also you are relieved from the risks of loss of certificates or fraudulent interception of certificates. Saving of stamp duty on transfer of shares . Easy distribution of corporate benefit ( like Dividend/ bonus shares etc) Low interest rates on loans granted against pledge of dematerialized securities by banks. Fast settlement cycles.
9. Who is a Beneficiary Owner (BO)?
Ans: Any person wish to hold shares in demat forms can be a beneficiary owner . it can be individual , corporate , NRI , HUF , Trust (Partnership firms are not allowed to open demat account)
10. What is a BO Id?
Ans: The demat account number allotted to the beneficiary holder(s) By DP is known as the BO Id. (Beneficiary ID ) . In CDSL it is 16 digits number
11. What is a DP Id?
Ans: A DP Id is the number of the depository participant allotted by the depository. For SSL it is 12047200
12. How do I effect my transactions through the DP?
Ans: Once you have opened an account with a DP you can buy and sell shares in the electronic form, provided the buyer/seller holds shares in the electronic form.You can sell your shares through any broker, all you need to do give a delivery instruction to your DP to transfer shares from your account to your broker account.On buying shares in the depository mode, you must similarly inform the broker about your depository account details so that the shares bought would be recredited to your account with the DP
13. What about rights and bonus shares, how do I get them when allotted?
Ans: You will get a credit to your account with the DP at your option.
14. What about dividends, which the company pays on my dematerialized shares?
Ans: You will get your dividend warrants in the same manner as before the company will sent it to you irrespective of whether your stock are dematerialized or are in physical form.
15. What about corporate benefits? Are there options with regard to the manner in which the benefits will reach me?
Ans: Corporate entitlements will be made in the same form as their original holding. You will have a choice with regards to right issues or optional conversion of debentures to shares between physical or electronic mode. However in case of bonus it will be in the same form as your original holding
