shcil processes the entire paperwork required 1

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SHCIL processes the entire paperwork required with thebank. The service is available at any of over 100 branches ofSHCIL.ADVANTAGES

Our tie ups with banks give you a wider range of banks to choose from. This leads to

a wider range of specified and non-specified shares to get loan against.

The add shares team helps you with the paper formalitiesprecedent to a loan.

You can now get a loan at a competitive interest rates and margins. This is a

resultant of their tie up with a wide range of banks.

Add shares simplify long-winded loan procedures for you andfacilitates early disbursements of funds.

Add shares are available at any of our branches numberingover 120.

(B) EQUIBUYINTRODUCTION

Even after payments have been made we have to wait patiently to see those shares

reflected in the DEMAT account. With the odd surprise of not seeing them at all

which you cannot discount!

As your depository participant SHCIL assures you safe delivery of shares every time

you buy on the exchange. We have lined up a panel of reputed brokers who process

your orders on priorityOur positions as the clearing corporations of leading stockexchanges ensures smooth and sure credits in your account.An initial advance and timely replenishments into the purchaseadvance account take care of the payment for your purchases.Go through the detailed EQUIBUY procedure and you will see howEQUIBUY in a one stop shop for your share purchases.FEATURES

An EQUIBUY instruction from you gets the shares creditedinto your account the next day of payout. Payment for your purchase made from a running account

called purchase advance into which you remit an initial advance of Rs. 1000 and

maintain a minimum balance of Rs. 250 at all times.

Choose one or more brokers from a list of 77 brokers empanelled with SHCIL.

Registration with broker is not necessary if you are already registered under any of

our other product schemes.


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Purchase on BSE or NSE.ADVANTAGES

Buy shares with a single instruction and get an assured credit of shares into your

account the next day of payout. Leave the settlement procedures and broker

interaction to us. Affect a faster turnaround of your portfolio.

EQUIBUY has a very nominal charge attached to it. An initial advance of Rs. 1000 in the purchase advance

account and replenishments, as and when necessary, takecare of payment for your purchases. Choose the exchange you want to buy from- BSE or NSE. Choose from a range of 77 SHCIL empanelled brokers toexecute your purchases.

EQUIBUY from the SHCIL center closest to you. Select from

120 plus SHCIL centers across the country.PROCEDURE If you are not already registered with one or more of our 77

empanelled brokers under any of our other product schemes, register yourself by

filling up a broker registration form.

Fill up a remittance slip to open the purchase advanceaccount by making an initial advance of Rs. 1000. Approach any SHCIL branch and submit a purchase requestslip.

Your request will be good till the end of the day. If the shares are not purchasedbefore the end of the day your request lapses and a fresh request can be submitted

the next day.

Your purchase request is transmitted to the broker as soonas you place request.

The broker executes the trade and confirms trade details to SHCIL. The payment for

the shares purchased along with the service charge is made from the purchase

advance account.

The shares get credited into your account the next day ofpayout

TARIFFOn Delivery Basis 0.65% on the value of transaction on delivery basis with aminimum of Rs. 65 per client per broker settlement.

(C) FUND INVEST


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INTRODUCTION

Fund invest is a basket of financial products ranging from fixed income securities

like fixed deposits, infrastructure bonds and capital gain bonds to variable income

securities like initial public offers (IPOs) of equities and mutual funds. It is an attempt

to offer financial products that that cater to the various investment needs of our

esteemed clients. An effort to guide the investor to a product portfolio that best suits

his risk-return profile. Applications for investments can be sourced from any of the

SHCIL offices. Apart from guiding our investors to pick up the right combination of

investment instruments we help them in after-sales service by acting as an

interlocutor between the investor and the issuer of the securities. SHCIL is an AMFI

registered mutual fund advisor (ARMFA).

FEATURES

At present, SHCIL is distributing schemes of 28 different mutual funds. All these

funds offer a wide variety of investment option depending on the risk appetite of the

investor. Some of the major categories are:

Debt funds: The debt funds have the mandate of investingprimarily in debt papers.Equity funds : The equity funds have the mandate of investingprimarily in equities.Balanced funds: The balanced funds have the mandate ofinvesting both in equities as well as debt papers.


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Capital gain bonds come under 54EC capital gains bonds, where the investors get

exemption from capital gain tax. These are on- tap issues. At present, SHCIL is

distributing capital gain bonds of rural electrification corporation, national housing

bank, small industries development bank of India and national highway authority of

India. Infrastructures bonds are issued by ICICI bank and IDBI, with section 88 asthe main feature.Private placements: debt papers issued for private placement

with structural obligations by the state and central government typically targeted for

trusts and provident funds are distributed by stock holding.

Fixed deposits: fixed deposits with high investment rating and

issued by blue-chip corporate are distributed by us. These papers generally offer 50

to 100 basis points more than bank fixed deposits of comparable period. At present,

we are distributing IDBI SUVIDHA fixed deposits and HDFC fixed deposits.Initial Public Offer: IPOs offered by blue-chip corporate can be

subscribed from stock holding. Issues recently distributed by usare Canara Bank, Allahabad Bank, Bharti Tele and I-Flex.

(D) GOI BONDS

INTRODUCTIONSavings bonds are issued by RBI on behalf of government of Indiain the following series:

8.0% taxable bonds: These bonds are held in electronic form in an account called

bond ledger account (BLA). Bond ledger accounts can be opened and operated withRBI designated receiving offices. SHCIL has been designated as one of the

receiving offices by RBI for this purpose. Subscriptions for savings bonds can be

submitted at any of our branches.

Savings bonds being sovereign in nature are absolutely safe and an attractive

investment option in the current volatile market situation.

The following categories can subscribe to savings bonds:Categoryof

investor

8.0% (taxable)Individual

His or her individual capacity.

Individual capacity on joint basis.


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Individual capacity on anyone or survivor basis.

On basis of a minor as father/mother/legal guardian.HUF

(HinduUndividedFamily )


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Interest option

Tax benefits

Transferability

Nomination

RepaymentPremature encashmentlimit.Payable half yearly on 1st Feb.,

1stAug or cumulative onmaturity.

Interest is taxable under IT Act, 1961. Exempt from wealth tax under Wealth Tax

Act, 1957.

Non- transferable, non tradableandcannotbeused

ascollateral for borrowings.Available. Only sole holder orthesurvivingholdercannominate.


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Repayable on expiry of 6 years from date of issue. No interest would accrue after

maturity.

Not available.ADVANTAGES

Hassle free maintenance: the GOI bonds held in electronic form in an account calledbond ledger account. This ensures smooth investing minus paperwork.

Electronic clearing services: you can avail of electronic clearing system (ECS)

services. This ensures automatic credit of benefits and redemptions when they

accrue.

Easy access: you can apply for subscriptions into thesebonds in any SHCIL center across the country.

Dispatch: certificate of holdings are dispatched to the clientthrough courier on realization of subscription.PROCEDURE

Subscription is a very simple process. Obtain the application form from any of

SHCIL notified centers across India. SHCIL officials will assist you in filling up of

your application form. Fill up all the relevant columns provided in the application

form. E.g. for ECS facility, a proof of the ECS account like cancelled

Cheque/bankers certification authenticating the account number and MICR details.

Attach a Cheque /draft/pay order in accordance with the series of subscription you

want to make for the requisite amount in favor of:

Stock holding corporation of India ltd. a/c GOI 8.0% savings

(taxable) bonds,A certificate of holding will be issued specifying the investment(s) made under the

bond ledger account. The date of investment will be the date of realization of the

instrument(s).CHECKLISTKindly attach the following documents as per the checklist below: Document8.0% (taxable)


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ECS mandate documents

Power of attorney documents (if appointed)

HUF declaration (for HUF investors only)

Certificate of identity for address change and nomineeclaims

Minor birth certificate, legal or natural guardiancertificate

Form 60 or PAN for investments above Rs. 50000. Charitable institutions- TDS exemption certificate from ITdepartment, board resolutions, trust deed

Form 15H (individuals claiming exemption of TDS) Universities incorporation certificate under section 3 ofthe

University Grants Commission Act, 1956.

(E) INSURANCEINTRODUCTION

SHCIL, a company promoted by insurance majors and financial institutions, is a

corporate agent of LIC for life insurance products and NIA for general insurance

products. SHCIL has a dedicated team of IRDA certified insurance advisors to

provide all services relating to insurance. We also provide free professional advice

to clients on need base insurance. SHCIL has 100 odd branches all over India to

take care of all your insurance related queries and needs.FEATURES


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An insurance policy compensates you against the financial impact that can arise

following loss, damage of destruction of your property (such as home or vehicle) or

your health or life.

A fundamental principle of insurance is to put you in the same financial position after

a loss or accident that you enjoyed before the loss. This is relatively easy with repairor replacement of (say) a car, but is much more difficult with the loss of life. The

insurance policy is a contract and like any contract contains clauses and conditions.

Claims are settled in accordance with the conditions detailed in the policy.

SHCIL distributes life insurance policies of LIC and non-lifeinsurance policies of NIA. The service is available at any of over 100 branches ofSHCIL.LIC PRODUCTS

Key ManKEY MAN INSURANCEChildren Insurance Policy

Komal Jeewan plan 159

Jeewan Kishore plan 102

Jeewan Chayya plan 103

Endowment PolicyEndowment with Profits plan 14Limited Payment Endowment

Jeewan Mitra plan 133Jeewan Anand plan 149

Joint Life (Jeewan Saathi)

Policy plan 89Retirement planRetirement plan

NIA PRODUCTS

MEDICLAIM POLICY

FIRE INSURANCE

PRIVATE CAR INSURANCE

HOUSEHOLDERS POLICY

MEDICLAIM POLICYThe insurance policy can be used to protect the insured partyagainstexpensesincurredfor


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hospitalizationfor

Liability for third partys injury or death, third party propertyand towards the paid driver too. Drunken driving.HOUSEHOLDERS POLICY

The householders insurance policy comprises of ten sections covering the insureds

building, fixtures and fittings, contents, jewelry and valuables, television sets and

VCRS, bicycles, accompanied baggage as well as personal accident and public

liability benefits. Of these ten, the insured party must opt for at least three sections

and section 2 is compulsory.

If the insured party opts for cover for more than 4 sections excluding compulsory

sections, a discount of 15 % is on the non tariff sections. For more than 6 sections,

excluding sections 1 and 2, 20 % discount is offered on non tariff sections.(F) STOCK DIRECTINTRODUCTION

Stock direct has changed the way you look at trading in securities. From your

desktop you can now send instructions for buying/selling shares. A three way hands

shake between leading brokers, national and international banks and SHCIL is the

crux of stock direct.

Stock direct Indias first online trading platform was launched in 1999. Today stock

direct is the most secure online trading platform which combines encryption

technology/digital signature features. A few clicks will seamlessly check your funds

and security positions, route the order to the broker of your choice and do the

necessary fund and share movements for you.

FEATURES A single instruction enables you to combine your trading,fund and shares transfer with SHCIL taking care of thesettlement.

Trade from home on the internet with floppy containingstock direct software. Security measures based on encryption and digital signature


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technology make your online deals 100% secure. Open a purchase advance account with SHCIL to facilitateyour fund transfers. Choose the exchange to trade from BSE and NSE.ADVANTAGES

One Stop ShopGive a single instruction towards funds confirmation for buy orders, order routing to

your broker and fund and share movements for settlement purpose.

ConvenienceTrade at home through net.SecurityDigital signature technology based on 128 bit encryption makesyour transactions 100% secure.Cost effectiveNo minimum value of transaction.

Choice of Stock ExchangesBuy/sell shares on BSE/NSE

PROCEDURE

If you already have a DEMAT account with us, fill up a conversion form to convertyour DEMAT account to stock direct. If you do not have a DEMAT account, fill up a

DEMAT account opening form and submit it at any of our branches.

Register with any of our empanelled brokers by filling up the broker registration form

and submit it along with the account opening/conversion form.

Open account with SHCIL, a running account called the purchase advance by

remitting an initial advance of Rs. 1000 by way of Cheque /DD.

TARIFFBrokerage

0.50% with a minimum of Rs.50 per client per broker persettlement*.Normal ISA charges applicable as per clients tariff scheme.Service tax applicable as per GOI notifications.Media charges (one time): Rs.100 + Service tax.

(G) PENSION FUNDSINTR ODUCTION


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SHCIL offers pension fund administration services to pension fund trusts. The

pension fund scheme administered by the trust could be a defined benefit or a

defined contribution scheme. For both the scheme types, SHCIL offers the entire

range of services that

Customized pension fund administration software to meetthe unique features of the pension scheme. Records of members maintained in electronic form to enablequick access and retrieval of data.

System generated pension orders, uniquely referenced withnecessary supporting documents. Employees benefit from timely release of pension orders. Substantial saving in cost achievable through outsourcing.

Benefit from SHCILs vast and rich experience in providing back office services to

the financial services industry as a whole and in the area of pension administrationin a particular.

Application of latest IT technology to smoothen operationsand achieve speedier settlement. Benefit from the wide network of SHCIL offices across thecountry.

SERVICES OF FERED BY SHCIL(1) CUSTODIAL SERVICES


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INTRODUCTIONSHCIL provides first-rate custodial services to Indias leading Financial Institutions,

Insurance Companies, Mutual Funds, Foreign Institutional Investors (FIIs), Banks,

Indian and Foreign Venture Capital Companies, Funds, PF Trusts & Corporate.

SHCIL,s core competence in custodial business spans 18 years, with a dedicated

pool of trained and experienced professionals working literally round the clock using

state-of-the-art computer systems and world class technology. SHCIL maintains

dedicated communication channels, well connected to client institutions, stock

exchanges, clearing houses and depositories, thus maintaining process and quality

leadership.

As a custodian entrusted with sizable assets, SHCIL is continuously leveraging its

scale and capabilities to help its clients mitigate risk and optimize efficiencies with

greater control.CLEARING AND SETTLEMENT SERVICES

POST TRADING SERVICESSHCIL has specially trained personnel handling thousands of trade instructions

involving large values on sophisticated systems using digital signature on STP

(straight through processing) systems, ensuring smooth trade confirmations to stock

exchanges. SHCIL provides the choice of multiple STP service provides enabling

competitive advantage of efficient settlements. SHCIL seamlessly monitors trades

and ensures failed trade management with reporting and resolution of mismatches,

etc. At SHCIL, a client has the flexibility of settlement of funds through a wide panel

of banks having RTGS facility.SETTLEMENT SERVICES

Most of the institutional trades are settled through the clearing house of the stock

exchanges. As a custodian, SHCIL facilitates timely settlement of funds and

securities. Funds are collected /deposited from/to client and settled with the clearing

houses.

Most of the institutional trades are settled in the depository mode. For the

institutional segment alone, SHCIL has a unique clearing code on the two principal

stock exchanges and separate DPM units on both NSDL and CDSL. This ensures

smooth settlement of transactions on both exchanges/depositories, based on the

deliverables and receivables received by them for each settlement. Daily verification

of settlements (auction/normal) facilitates smooth reconciliation of settlements of

clients trades and mitigates systemic risk.

For debt market deals SHCIL ensures timely movement ofsecurities and funds.

If you would like to receive credit of shares purchased


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directly into your account, mark standing instruction as yes.YOUR ACCOUNT IS OPENEDOnce your account is opened, you will be allotted a client identitynumber. You will be sent an operating kit containing: Details of your account as recorded by SHCIL.

Copy of the agreement entered into with SHCIL.Delivery instruction by client booklet allotted to your DEMAT account. This booklet

helps you transfer shares from your account to broker account and other accounts.

Now you are ready to operate your DP account.IMPO R TANT POINTS PAN mandatory. SMS alerts for debits and failed trades provided by NSDL.CDSL is providing only for debits. Hence clients may get theirmobile number and SMS flag updated.

As per the latest NSDL guidelines, client may give local address or correspondenceaddress, depending on his preference to receive the communications from the

companies.

Complete address of the bank branch, bank account number, account type and 9

digit MICR number is mandatory. Please provide the specimen copy of a Cheque for

noting the correct 9 digit MICR code. At the time of account opening, clients are requested toprovide the proofs for identification and address. The listmay be provided.

Thumb impressions should be attested by a magistrate or anotary public or a special executive magistrate.

NSDL does not have the facility to operate a beneficiaryaccount on either or survivor basis.

The power of attorney should either contain a clause which gives power to sell or to

deal with securities generally or a clause which gives power to operate depository

account. NSDL has provided a sample clause in its circular number:

NSDL/PI/2000/982 dated June 23, 2000. The sample clause is as follows:To sell or otherwise deal with or dispose-off and to purchase, subscribe or

otherwise acquire in any manner from the market or under public or rights issue or

otherwise and accept the transfers of any stock, funds, shares, debentures,

government and other promissory notes, securities, bonds, annuities or other

mercantile negotiable instruments which shall or may at any time belong to me or


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which hereafter be transferred to me, whether solely or jointly and whether in my

own right or having any other interest of whatsoever nature and however arising and

in any capacity whatsoever including those belonging to others with my name and

for such purposes to sign, execute or endorse all instruments of transfer and other

documents for any purpose whatsoever by virtue of these present.NOMINATION FOR DP ACCOUNTS INDIVIDUAL(S)BENEFICIARY ACCOUNTS

As per the instructions received from the depositories, we can take cognizance of

nomination only if it is submitted in the prescribed format and the same ahs to be

registered with the depository participant (DP) under a nomination registration

number (NRN). In the absence of NRN, DP will

not be able to transmit the securities in favor of the nominee only if it is registered

and after duly submitting the prescribed documents.

If nomination has not been registered, account holders may submit the nominationform in the prescribed format to the nearest SHCIL center. On registration of the

nomination, the NRN will be communicated to the account holder(s). In case

nomination is not registered, securities can be transmitted to legal documents as per

depository guidelines.MAINTENANCEChange in Permanent/Correspondence Address

A request letter (format available on the site) signed by all the holders are required

along with this photocopy of proof of identification and proof of new address is

required. Please bring the originals with you for verification purpose. Client or the

authorized bearer can visit our branch for the same. Copy of the last transaction

statement received from SHCIL is also required.

Change in Signature


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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 and

the photocopy of the latest transaction statement received from SHCIL.

Addition of P AN /MAPIN

Request letter by the client giving the PAN/MAPIN number

For the occasional delivery and receipt of securities in the physical mode, SHCIL

ensures prompt scrutiny, processing and lodgment of securities with the respective

company/ registrar and transfer agent, with the objective of final transfer to the

purchaser, with objections handling if needed. SHCIL also ensures that delivery of

physical securities to exchanges is handled strictly as per exchange regulations.PHYSICAL CUSTODY (VAULT) SERVICES

DEATH OF BENEFICIARY ACCOUNT HOLDER(S) TRANSMISSION OF ACCOUNT

Transmission of account takes place in the event of the 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:

(1)When the account has joint holders and one dies.

(2)When the account has a sole holder with a nominee.

(3)When the account has a sole holder without a nominee.

If the shares are transmitted to beneficiary account of surviving

holders and this beneficiary account is in a DP other thanSHCIL.

Classify the transmission case into the above categories. Over and above the documents explained above, the clientmaster list from the target DP has to be submitted.Freezing Of AccountAn account is frozen /suspended:

Only on your instruction.

By competent authority, i.e., by the depository/SEBI.


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On receipt of court order.De-freezing Of AccountDe-freezing of an account takes place: Only on your instruction.

For de-freezing pledge accounts, your instruction has to beaccompanied by bank authorization.

(3 ) DEMATDe-materialization is the process of conversion of shares fromphysical form to the electronic mode. Our dedicated DEMAT team

enable you to convert your physical holdings/debentures/bonds/G-

SECS into electronic mode in a quick and hassle free manner.TRANSPOSITION CUM DEMATERIALIZATION

The clients can get the securities dematerialized in the same account if the names

appearing on the certificates match with the names in the DEMAT account but are in

different order. This can be done by submitting the certificates along with the

transposition form and the dematerialization request form (DRF).

TRANSMISSION AND DEMATERIALIZATION


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In case of death of one or more of the joint folders, the surviving holder(s) can get

the name(s) of the deceased deleted from the security certificate and get the same

dematerialized. Notarized copy of the death certificate, transmission form as per

annexure OB and the dematerialization request form (DRF) have to be submitted by

the surviving joint holder(s) along with the security certificates.As per SEBI, scrips can be divided as:

Scrips Eligible For DEMATThese scrips can be traded either in physical or electronic form.

Scrips falling under compulsory DEM ATThese 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 client

identity number, you can start dematerializing 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.

Your Shares Are Dematerialized

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, SHCIL will forward the shares to

you on receiving them from the company.

(4) PLEDGEYou can pledge or hypothecate your dematerialized shares against loan or creditfacilities 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 the sharesand 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 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 thepledge/hypothecation request.

If the pledgee accepts the request by the pledgor, the acceptance is communicated

electronically to the pledgors DP. Once the pledges DP confirms the acceptance of


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the pledge, the pledgor cannot cancel the pledge/hypothecation order. The

pledgees DP executes the pledge/hypothecation request as per the instructions

given

shcil processes the entire paperwork required 1

Documents