there are two depositories and approximately 390 depository participants
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7/28/2019 There Are Two Depositories and Approximately 390 Depository Participants
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There are twoDepositoriesand approximately 390Depository Participants (DP)are registered
with SEBI at present. The two Depositories are:
National Securities Depository Limited Central Depository Services (I) Limited
The benefits of availing Depository Services are as follows:
A safe, convenient way to hold securities; Instant transfer of securities; Stamp duty is not required on transfer of securities; Elimination of risks associated with physical certificates such as bad delivery , fake
securities, Delays, thefts etc.;
Reduction in paperwork involved in transfer of securities; Reduction in the cost of transaction, No odd lot problem, even one share can be sold;
Facility of nomination; Change in address recorded with DP gets registered with all companies in which investor
holds securities electronically eliminating the need to correspond with each of themseparately;
Transmission of securities is done by DP eliminating correspondence with companies; Credited automatically into demat account of shares, arising out-of bonus or split or
consolidation or merger etc.
Opening of an account with any of the depository Participant of any depository is required toavail the services.
Opening of an account
The investor has to approach a Depository Participant and fill up an account opening form with
the support proof of identity and address.
Proof of Identity : Photograph and Signature of investor must be authenticated by investor's bank
or by an existing demat account holder. Alternatively, one can submit a copy of a valid Passport,
Voters Id Card, Driving License or PAN card with photograph.
Proof of Address : A copy of ration card or passport or voter ID or PAN card or driving license
or bank passbook as proof of address.
The investor has to sign an agreement with DP in a depository prescribed standard format, which
holds a detail of investor's and DPs rights and duties. DP provides investor with a copy of the
agreement and schedule of charges for future reference. The DP opens the account for the
investor in the system and give an account number, which is also called BO ID (Beneficiaryowner Identification number).
Kindly note that there is no balance of securities required in the account and more than one
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7/28/2019 There Are Two Depositories and Approximately 390 Depository Participants
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account in the same name can be opened either with the same DP or with other irrespective of
the brokers account.
FAQs on Depositories And Custodians
What is to be done if the investors address changes?
Can an investor open a single account for securities owned in different ownershippatterns ?
What is required to be done if one has physical certificates with the same combination ofnames, but the sequence of names is different i.e. some certificates with 'A' as first holder
and 'B' as second holder and other set of certificates with 'B' as first holder and 'A' as the
second holder?
Whether investors can freeze or lock their accounts?
What is to be done if the investors address changes?
If the Investors address changes it should be immediately informed to his/her DP, who in turnupdates the records.
Can an investor open a single account for securities owned in different ownership patterns
?
No. The demat account must be opened in the same ownership pattern in which the securities are
held in the physical form. e. g. if one share certificate is in your individual name and another
certificate is jointly with some other, two different accounts would have to be opened.
What is required to be done if one has physical certificates with the same combination of
names, but the sequence of names is different i.e. some certificates with 'A' as first holder
and 'B' as second holder and other set of certificates with 'B' as first holder and 'A' as the
second holder?
In such case one may open only one account with 'A' & 'B' as the account holders and lodge the
security certificates with different order of names for dematerialisation in the same account. One
has to fill-up an additional form called "Transposition cum Demat" form. This would help you to
effect change in the order of names as well as dematerialise the securities.
Whether investors can freeze or lock their accounts?
Yes, investors can freeze or lock their accounts for any given period of time. Accounts can befrozen for debits/credits or for both.
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