Central Depository Services (India) Ltd. (CDSL), is a depository

promoted by BSE Ltd. and sponsored by a cross section of

leading public and private banks. CDSL’s objective is to provide

Convenient, Dependable and Secure depository services at an affordable

cost to investors. CDSL maintains and services Beneficial Owner (BO)

accounts spread across India. These BOs are serviced by Depository

Participants (DPs), who act as agents of CDSL. CDSL publishes from

time to time an updated list of DPs registered with it on CDSL’s website

www.cdslindia.com.

Securities of various companies have been admitted with CDSL for

dematerialisation. These securities include Equities, Debentures, Bonds, Units

of Mutual Funds, Certificate of Deposits, Commercial Paper, Government

Securities and Treasury Bills.

BENEFITS OF HOLDING SECURITIES IN DEMATERIALISED FORM:

Dematerialisation or demat is the process of converting securities held in

physical form into an electronic record or to directly allot securities in electronic

form. The benefits are as follows:

1. Elimination of all risks associated with holding and dealing with physical

certificates.

2. Convenience of holding the entire portfolio consisting of Equity Shares,

Debentures, bonds, Mutual Fund units etc. in one demat account.

3. Immediate transfer / credit of securities into an investor’s demat account

once the pay-out is received from exchange.

4. Shorter Settlement Cycles results in settlement of trades (Currently T+2)

on the 2nd working day from the trade day, which enhances liquidity.

5. Direct credit of securities issued as bonus or on allotment of IPO/Rights,

split and merger into the BO’s demat account.

1CDSL – Your Depository

An Investor's Guide

WELCOME TO THE WORLDOF CDSL SERVICES!

For more details, contact your DP or visit our website www.cdslindia.com

6. No stamp duty is payable by the investors for transfer of any kind of

securities in demat form.

7. Increased participation of investors in the market as even one share can

be bought and sold.

8. Ease of portfolio monitoring as the DP/Depository provides periodic

statement of holdings to the BO, which gives a consolidated position of

all his investments in the demat account.

9. Ease of recording change of demographic details, bank details,

nomination, etc. as the same can be done by giving a single instruction

to the DP. A BO who has already registered his KYC details with the KYC

Registration Agency (KRA) can make necessary changes in his

demographic details by submitting necessary documents to his DP/

Clearing Member (CM).

ADVANTAGES OF OPENING A CDSL DEMAT ACCOUNT:

1. Online depository services offered by wide DP network: CDSL’s

centralised database provides online depository services across the

country. A wide network of CDSL DPs provide convenient, dependable

and secured depository services at the door step of investors.

2. Unique 16 digit BOID: CDSL’s

unique 16 digit demat account

number (BOID) ensures that no

BOID is duplicated in the system.

This eliminates wrong transfer of

securities in a demat account.

3. Pledge: The securities held in a

demat account may be used as

collateral to secure loans and other credits by a BO. The Pledgor

(borrower) and the pledgee (lender) must have a demat account with the

same depository. However, both need not have their demat account with

the same DP.

4. Internet based facilities:

l easi (Electronic Access to Securities Information)– CDSL’s easi

internet facility provides an anytime, anywhere access to the demat

account to BOs. Through the easi login, a BO can:

i) view and print statement of his demat account

ii) status of last 30 days transactions

iii) a daily valuation of his portfolio based on last day’s closing

price on BSE,

iv) monitor corporate announcements for the securities held in

his demat account

l easiest (Electronic Access to Securities Information and Execution

of Secured Transactions)– CDSL’s internet facility easiest enables

a BO to submit online transactions. Through easiest, a BO/CM can

submit debit instructions related to on-market, off-market,

inter-depository and early pay-in transactions. Moreover, all the

facilities and benefits of easi are also available to BOs registered

for easiest.

l e-Locker – is an online document storage facility to store important

documents in electronic form at one central secure location. This

facility is available for easi/easiest users.

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32

l eCAS – an electronic Consolidated Account Statement is provided

to investors giving them a comprehensive view of their investments

in mutual funds and securities in demat account. BOs can also

download this statement from CDSL website.

l e-Voting – an internet based system (www.evotingindia.com)

through which shareholders / members can login and register their

votes on resolutions. The system processes and records votes

automatically, which facilitates faster processing of voting results.

l Corporate Bond Database – provides a common platform for

investors to access a comprehensive and updated database of all

corporate bonds held in CDSL. Kindly visit www.cdslindia.com to

access the database.

6. Mobile based facilities:

l SMS Alerts Related to Transactions (SMART): CDSL’s SMART

facility provides SMS alerts to BOs registered for this facility, for all

debits and/or credits related to corporate actions in his demat

account, which enables better monitoring of his security holdings.

l Myeasi Mobile App is a mobile app for CDSL’s internet facilities

easi and easiest. BOs can log-in to the App using their easi/easiest

log-in credentials. CDSL’s Myeasi app can be downloaded by

Android, iOS and Windows based mobile users.

l m-Voing is a mobile based application for e-voting. The mobile app

can be downloaded by shareholders on their Android, iOS and

Windows based mobile users.

7. Helpdesk: A prompt and courteous helpline facility assists DPs and

investors to obtain any clarification / guidance.

8. Audit and Inspection: CDSL conducts regular audit of its DPs to ensure

compliance of stringent operational and regulatory requirements.

9. Insurance Cover: CDSL has obtained adequate insurance cover for any

unlikely loss occurring to a BO due to the negligence at DP / CDSL.

10. Secured computer systems: CDSL’s state-of-the-art computer systems,

data storage devices and communication networks ensures the security

and integrity of all data uninterruptedly.

OPENING A DEMAT ACCOUNT:

An individual or non-individual investor can

open a demat account with any DP of CDSL.

Individual investors can be resident Indians

or NRIs, whereas, non-individual investors

includes Corporates, FIs, FPIs, Mutual

Funds, Trusts, Societies, HUF etc. While

selecting a DP, an investor should take into

consideration the tariff structure, locational convenience and track record of

the DP. Unlike a Bank account, a demat account can be opened and maintained

with NIL balance.

A BO needs to be KYC Compliant at the time of opening a demat account.

SEBI has mandated all BOs who open account after 01.01.2012 to be KYC

compliant. Further, any existing client who trades/deals/invests in the capital

market should register his KYC details with the KYC Registration Agency (KRA)

within stipulated time as specified in SEBI circulars from time to time. The BO

should submit the relevant KYC registration form along with Proof of Identity

(POI) and Proof of Address (POA) to the Intermediary for all holders. Once the

KYC is verified by the KRA, a BO need not submit POI and POA documents

again to the second intermediary while opening a new demat or trading account.

Nomination: Individuals at the time of account opening, in single or joint names

should make, a nomination/s. This enables easy transmission of securities to

the nominee’s account in an unfortunate event of death of sole or all the joint

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holders. In case one of the joint holder expires, securities are transmitted in

the names of surviving jointholder(s). Only individual investors can nominate

and nominee can be an individual only. In other words, non-individuals such

as FPIs, Corporate, HUF etc. cannot make nomination.

Dematerialisation: In case of conversion of physical securities into demat

form, if certificates are held in Joint names, the demat account should be

opened in the same order of names. If the securities are held by an individual

jointly with different persons, separate demat accounts will have to be opened

for each such combination. If the order of names in the demat account and on

certificates is different, the same can be

dematerialised using transposition-cum-demat

facility.

Documents Required for Demat account

Opening:

Individual Investors:

a) KYC registration form alongwith Proof of

Identity and Proof of Address. (Mandatory for all

holders, if not KYC Compliant.)

b) Copy of PAN card (Mandatory)

b) Demat account opening form.

c) A passport size photograph of the

applicant(s) with their signature(s) put

across the photograph(s).

Corporate Investors:

a) KYC Registration form along with

Proof of Identity and Proof of Address.

b) Demat account opening form.

c) Copy of PAN card (Mandatory)

d) A certified copy of the Memorandum and Articles of Association of the

company.

e) A certified true copy of the Board Resolution authorising opening of demat

account and listing out the name(s) of the official(s) authorised by the

Board to act as authorised signatory/ies.

f) Name(s) of the authorised signatory/ies and their designation(s) with

specimen signature(s).

For additional documents required for opening demat account of NRIs,

Trust, Partnership Firm, Proprietorship firm, FPIs etc., investors may

contact their DP.

BO SHOULD RECEIVE FROM DP:

a) Beneficial Owner Identification number (BOID). This BOID should be

quoted in all correspondences with the DP, Issuer Companies, Registrar

and Transfer Agents and CDSL.

b) Pre-printed instruction slips for effecting various types of transactions

such as on-market, off-market, inter-depository, early pay-in etc. CDSL

has one single debit instruction slip for all type of transactions.

SETTLEMENT FEES

CDSL does not charge fees directly to the BO but collects the depository fees

for debit and pledge transactions from the concerned DP.

REDRESSAL OF INVESTOR GRIEVANCES

In case of any unresolved grievance with the DP, a BO may contact CDSL’s

Investor Grievances Cell at the below mentioned address:

The Investor Grievance Officer

Central Depository Services (India) Limited

Marathon Futurex, A-Wing, 25th Floor, N M Joshi Marg,

Lower Parel, Mumbai 400 013.

Tel : 022 – 2302 3333 Fax : 022- 2300 2043

Toll Free No.: 1800-22-5533

Email : complaints@cdslindia.com;

Website : www.cdslindia.com

Disclaimer - This investor guide contains information, which is subject to

change and cannot be the basis for any claims or demand or cause of action

by any one against CDSL or its DPs. For latest information, BO’s are requested

to contact their DP / CDSL.

An Investor's Guide

8

Any

Queries?