Investor Charter For Depository Participant

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Disclosure of investor charter for depositories and depository participants

As per the SEBI vide their letter no. SEBI/HO/MIRSD/DOP/OW/P/2021/37347/1 dated December 15, 2021, has advised the Depository and Depository Participants (DPs) to bring the Investor Charter to the notice of clients.

VISION

Towards making Indian Securities Market – Transparent, Efficient, & Investor friendly by providing safe, reliable,transparent and trusted record keeping platform for investors to hold and transfer securities in dematerialized form.

MISSION

  • To hold securities of investors in dematerialized form and facilitate its transfer, while ensuring safekeeping of securities and protecting interest of investors.
  • To provide timely and accurate information to investors with regard to their holding and transfer of securities held by them.
  • To provide the highest standards of investor education, investor awareness and timely services so as to enhance Investor Protection and create awareness about Investor Rights.
Details of Business transacted by the Depository and Depository Participant.(DP).

A Depository is an organization which holds securities of investors in electronic form.Depositories provide services to various market participants – Exchanges, ClearingCorporations, Depository Participants (DPs), Issuers and Investors in both primary as well as secondary markets. The depository carries out its activities through its agents which areknown as Depository Participants (DP). Details available on the link https://www.cdslindia.com/DP/dplist.aspx

Description of Services Provided by the Depository through Depository participants (DPs) to Investors
(1) Basic Services
S.No Brief about the Activity / Service Expected Timelines for processing by the DP after receipt of proper documents
1 Dematerialization of securities 7 Days
2 Rematerialisation of securities 7 Days
3 Mutual Fund Conversion / Destatementization 7 Days
4 Re-conversion / restatementisation of Mutual funds units 7 Days
5 Transmission of Securities 7 Days
6 Registering Pledge Request 15 Days
7 Closure of Demat Account 30 Days
8 Settlement Instructions Depositories to accept physical DIS for pay-in of securities up to 4:00 p.m and DIS in electronic form up to 6:00 p.m on T+1 day

(2) Depositories provide special services like pledge, hypothecation, internet-based services in addition to their core services and these include

S.No Type of Activity / Service Brief about the Activity / Service
1 Value added Service Depositories also provide value added services such as stock lending, demat of NSC /KVP, demat of warehouse receipts etc.
2 Consolidated Account Statement (CAS) CAS is issued 10 days from the end of the month (if there were transactions in the previous month or half yearly (if no transactions).
3 Digitisation of services provided by the depositories Depositories offer below technology solutions and e-facilities to their demat account holders through DPs:
Details of Grievance Redressal Mechanism
(1)The Process of investor grievance redressal
S.No Brief about the Activity / Service Response / Steps
1 Investor can lodge complaint/ grievance against the Depository/DP in the following ways: a. Electronic mode - b. Offline mode [details of link to the form to be provided by DPs] The complaints/ grievances lodged directly with the depository shall be resolved within 30 days.
2 Investor Grievance Redressal Committee of Depository. If no amicable resolution is arrived, then the Investor has the option to refer the complaint/ grievance to the Grievance Redressal Committee (GRC) of the Depository. Upon receipt of reference, the GRC will endeavour to resolve the complaint/ grievance by hearing the parties and examining the necessary information and documents.
3 Arbitration Proceedings The investor may also avail arbitration mechanism set out in the byelaws and Business Rules/Operating instructions of the Depository in relation to any grievance, or dispute relating to depository services. The arbitration references shall be concluded by the way of issue of an arbeal award within 4 months from the date of appointment of arbitrator(s).
(2)For the Multi-level complaint resolution mechanism available at the Depositories – Click Here
Guidance pertaining to special circumstances related to market activities: Termination of the Depository Participant
S.No Type of Special Circumstances Timelines for the Activity/ Service
1 Depositories to terminate the participation in case a participant no longer meets the eligibility criteria and/or any other grounds as mentioned in the bye laws like suspension of trading member by the Stock Exchanges.

Participants surrenders the participation by its own wish.		 Client will have a right to transfer all its securities to any other participant of its choice without any charges for the transfer within 30 days from the date of intimation by the way of letter/email.

DO's and DONT's

DO’s

  • Always deal with a SEBI registered Depository Participant for opening a demat account.
  • Read all the documents carefully documents before signing them.
  • Before granting the power of attorney to operate your demat account to an intermediary like a stock broker, Portfolio management services (PMS) etc, carefully examine the scope and implications of power being granted.
  • Always make payments to registered intermediaries using banking channels.
  • Accept the Delivery Instruction Slip (DIS) book from your DP only (pre-printed with a serial number along with your Client ID) and keep it in safe custody and do not sign or issue blank or partially filled DIS slips.
  • Always mention the details like ISIN, number of securities accurately. In case of any queries, please contact your DP or broker and it should be signed by all demat account holders.
  • Strike out any blank space on the slip and Cancellations or corrections on the DIS should be initialed or signed by all the account holder(s).
  • Do not leave your instruction slip book with anyone else.
  • Do not leave your instruction slip book with anyone else.
  • Inform any change in your Personal Information (for example address or Bank Account details, email ID, Mobile number) linked to your demat account in the prescribed format and obtain confirmation of updation in system.
  • Mention your Mobile Number and email ID in account opening form to receive SMS alerts and regular updates directly from depository.
  • Always ensure that the mobile number and email ID linked to your demat account are the same as provided at the time of account opening/updation.
  • Demat is mandatory for any transfer of securities of Listed public limited companies with few exceptions.
  • If you have any grievance in respect of your demat account, please write to designated email IDs of depositories or you may lodge the same with SEBI online at https://scores.gov.in/scores/Welcome.html
  • Keep a record of documents signed, DIS issued and account statements received.
  • As Investors you are required to verify the transaction statement carefully for all debits and credits in your account. In case of any unauthorized debit or credit, inform the DP or your respective Depository.
  • Appoint a nominee to facilitate your heirs in obtaining the securities in your demat account, on completion of the necessary procedures.
  • Register for Depository’s internet-based facility or download mobile app of the depository to monitor your holdings.
  • Ensure that, both, your holding and transaction statements are received periodically as instructed to your DP. You are entitled to receive a transaction statement every month if you have any transactions.
  • Do not follow herd mentality for investments. Seek expert and professional advice for your investments Beware of assured/fixed returns.

DONT’s

  • No Payment to be made in the name of employee of intermediary.
  • Do not leave your instruction slip book with anyone else.
  • Do not sign blank DIS as it is equivalent to a bearer cheque.
  • Do not share password of your online trading and demat account with anyone.
  • Do not share One Time Password (OTP) received from banks, brokers, etc. These are meant to be used by you only.
  • Do not share login credentials of e-facilities provided by the depositories such as e-DIS/demat gateway, SPEED-e/easiest etc. with anyone else.
  • Do not follow herd mentality for investments. Seek expert and professional advice for your investments.
  • Beware of assured/fixed returns.

Rights of Investors

Investor Rights

  • Receive a copy of KYC, copy of account opening documents.
  • No minimum balance is required to be maintained in a demat account.
  • No charges are payable for opening of demat accounts.
  • If executed, receive a copy of Power of Attorney. However, Power of Attorney is not a mandatory requirement as per SEBI / Stock Exchanges. You have the right to revoke any authorisation given at any time.
  • You can open more than one demat account in the same name with single DP/ multipleDPs.
  • Receive statement of accounts periodically. In case of any discrepancies in statements, takeup the same with the DP immediately. If the DP does not respond, take up the matter withthe Depositories.
  • Pledge and /or any other interest or encumbrance can be created on demat holdings.
  • Right to give standing instructions with regard to the crediting of securities in demat account.
  • Investors can exercise its right to freeze/defreeze his/her demat account or specific securities / specific quantity of securities in the account, maintained with the DP.
  • In case of any grievances, Investor has right to approach Participant or Depository or SEBIfor getting the same resolved within prescribed timelines.
  • Every eligible investor shareholder has a right to cast its vote on various resolutions proposed by the companies for which the Depositories have developed an internet based 'e-voting' platform.
  • Receive information about charges and fees. Any charges/tariff agreed upon shall not increase unless a notice in writing of not less than thirty days is given to the Investor.

Responsibilities of Investors

Investor Responsibilities

  • Deal with a SEBI registered DP for opening demat account, KYC and Depository activities.
  • Provide complete documents for account opening and KYC (Know Your Client). Fill all therequired details in Account Opening Form / KYC form in own handwriting and cancel out the blanks.
  • Read all documents and conditions being agreed before signing the account opening form.
  • Accept the Delivery Instruction Slip (DIS) book from DP only (preprinted with a serial number along with client ID) and keep it in safe custody and do not sign or issue blank orpartially filled DIS.
  • Always mention the details like ISIN, number of securities accurately.
  • Inform any change in information linked to demat account and obtain confirmation ofupdation in the system.
  • Regularly verify balances and demat statement and reconcile with trades / transactions.
  • Appoint nominee(s) to facilitate heirs in obtaining the securities in their demat account.
  • Do not fall prey to fraudsters sending emails and SMSs luring to trade in stocks / securitiespromising huge profits.
Complaints Resolution Process at Depositories:
Complaints Resolution Process at Depositories
DP-Investor Complaints Data Monthly
DP - Investor Complaints Data for Month Ending Jun 2022
S.No Received From Carried Forward from Previous Month Received During the Month Total Pending Resolved Pending At End Of The Month Average Resolution Time (In Days)
1 Directly From Investors 0 0 0 0 0 0
2 SEBI (SCORE) 0 0 0 0 0 0
3 Stock Exchanges 0 0 0 0 0 0
4 Other Sources (If any) 0 0 0 0 0 0
5 Grand Total 0 0 0 0 0 0
DP-Trend of Monthly Disposals of Complaints

S.No Month Carried Forward From Previous Month Received Resolved Pending
1 January - 2022 0 0 0 0
2 February - 2022 0 0 0 0
3 March - 2022 0 0 0 0
4 April - 2022 0 0 0 0
5 May - 2022 0 0 0 0
6 June - 2022 0 0 0 0
7 July - 2022 0 0 0 0
8 August - 2022 0 0 0 0
9 September - 2022 0 0 0 0
10 October - 2022 0 0 0 0
11 November - 2022 0 0 0 0
12 December - 2022 0 0 0 0
13 January - 2023 0 0 0 0
14 February - 2023 0 0 0 0
Grand Total 0 0 0 0
DP-Trend of Annual Disposal of Complaints
DP-Trend of Annual Disposal of Complaints
S.No Year Carried Forward From Previous Year Received During The Year Resolved During The Year Pending At End Of The Year
1 2019-2020 0 0 0 0
2 2020-2021 0 0 0 0
3 2021-2022 0 0 0 0
4 Grand Total 0 0 0 0