General

What is a Depository?
A depository holds securities (such as shares, debentures, bonds, Government securities, units etc.) of investors in an electronic form. Besides holding securities, a depository also provides services related to transactions in securities.
How can I avail the service of a Depository?
A depository interfaces with the investors through its agents called Depository Participants (DPs). If an investor wants to avail the services offered by the depository, the investor has to open an account with a DP.
What are the benefits of a Depository Account?
The benefits of participation in a depository are: 

   1.    Immediate transfer of securities 
   2.    No stamp duty on transfer of securities 
   3.    Elimination of risks associated with physical certificates such as bad delivery, fake securities, etc. 
   4.    Reduction in paperwork involved in the transfer of securities 
   5.    Reduction in transaction cost 
   6.    Nomination facility 
   7.    Change in address recorded with DP gets registered electronically with all the companies in which the
          investor holds his/her securities eliminating the need to correspond with each of them separately 
   8.    Transmission of securities done by DP thus eliminating correspondence with companies 
   9.    Convenient method of consolidation of folios/accounts 
  10.   Facility to hold investments in equity, mutual fund ,debt instruments and Government securities in a
           single account
  11.   Automatic credit into Demat account of shares, arising out of split/consolidation/merger, etc.
What are the facilities offered by NSDL?
NSDL offers the following facilities: 
   1.   Dematerialization i.e., converting physical certificates to electronic form 
   2.   Rematerialisation i.e., conversion of securities in Demat form into physical certificates

Account Opening

Who is a DP?
NSDL provides its services to investors through its agents called Depository Participants (DPs). These agents are appointed by NSDL with the approval of SEBI. According to SEBI regulations, amongst others, three categories of entities i.e. Banks, Financial Institutions and Members of Stock Exchanges [brokers] registered with SEBI can become DPs.
What should I do when I want to open an account with a DP?
You can approach any DP of your choice and fill up an account opening form. At the time of opening an account, you have to sign an agreement with the DP in an NSDL prescribed standard agreement, which details your and your DP's rights and duties. You have to submit the account opening form along with the documents mentioned in the account opening form.

You must remember to take original documents to the DP for verification. Your DP will carryout in-person verification of account holder(s) at the time of opening your account. You should remember to obtain a copy of the agreement and a schedule of charges for your future reference.
Can I open more than one Demat account with only one DP in identical names?
Yes,, you can open more than one Demat account in identical names. There is no restriction on the number of Demat accounts you can open with the same/other DPs.
Can a depository account be opened with four holder's names?
Yes, a depository account can be opened in the names of four holders but the account can be operated only for dematerialization of shares held in the same combination. No shares can be credited by purchase or transferred from any other account. Hence the standing instruction for credits will be 'N' for such accounts
Can I 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 held in your and your wife's name, two different accounts will have to be opened.
What do I do if I have physical certificates with the same combination of names, but the sequence of names is different e.g. A & B, B & A ?
In this case you may open only one account with A and B as the account holders and lodge the security certificates with different order of names for dematerialization in the same account. You will fillup an additional form called ‘Transposition cum Demat’ form. This will help you to effect change in the order of names as well as dematerialize the securities.
Can someone else operate my account on my behalf on the basis of a power of attorney?
Yes. If you authorize any person to operate your account by executing a power of attorney and submit it to your DP, that person can operate the account on your behalf.
Can I change my address and bank details?
Yes, youcan change your address and bank details in your Demat account. However, you must ensure that any subsequent change in address and bank detail is conveyed to your Depository Participant.
What does 'Standing Instruction' stated in the account opening form stand for?
This is an instruction, if opted for allows you to receive credits automatically to your Demat account.
Can I add or delete names of account holders (second or third account holder) after opening the account ?
No. Names of the account holders for a depository account cannot be changed. If you want to change name or add / delete an account holder, you need to open a new account in the desired holding pattern (names) and transfer the securities to the newly opened account. The old account may be closed.
Can the existing corporate Demat account be continued in case of a name change?
The name of the corporate Demat account can be changed and the account can be continued.

Nomination

Is it mandatory to nominate?
No, it is not mandatory to give nomination but a declaration that the holder does not wish to make a nomination has to be provided.
What is the procedure for nomination?
The nomination form duly filledin should be submitted either at the time of account opening or later. The account holder, nominee and two witnesses must sign this form and submit the name, address and photograph of the nominee.
How many nominees can be appointed?
Only one person can be nominated irrespective of the fact whether the Demat account is held singly/jointly..
Can an NRI be appointed as nominee?
Yes, NRI can nominate directly. But the power of attorney holder cannot nominate on behalf of an NRI.
Can a minor be a nominee?
Yes, a minor can be a nominee. In such a case, the guardian will sign on behalf of the nominee and in addition to the name and photograph of the nominee, the name, address and the photograph of the guardian must be submitted to the DP.
Can the nominee be changed?
Yes, the nomination can be changed anytime by the account holder/s by simply filling up the nomination form once again and submitting it to the DP.

Dematerialization

What do you mean by dematerialization?
Dematerialization is the process by which physical certificates of an investor are converted to an equivalent number of securities in an electronic form and credited in the investor's account with its DP. In order to dematerialize certificates an investor will have to first open an account with a DP and then request for the dematerialization of certificates by filling up a dematerialization request form [DRF], which is available with the DP and submitting the same along with the physical certificates. The investor has to ensure that before the certificates are handed over to the DP for Demat, they are defaced by marking ‘Surrendered for Dematerialization’ on the face of the certificates.
Can I dematerialize any share certificate?
You can dematerialize only those certificates that are already registered in your name and are in the list of securities admitted for dematerialization at NSDL. All the scrips included in S&P, CNX, NIFTY and BSE SENSEX have already joined NSDL. This list has more than 7,000 companies and is steadily growing. You can get an updated list of these companies from your DP or from the NSDL website at www.nsdl.co.in.
Can I cancel my Pending Demat Request?
Yes, pending demat requests (more than 60 days) can be cancelled by filling in Annexure - A
What precautions should I take before defacing a share certificate?
Before defacing the share certificate, you must ensure that it is available for dematerialization. You must therefore check with your Depository Participant (DP) whether the ISIN (code number for the security in a depository system) has been activated and made available for dematerialization by the depository. If yes, then you may deface the share certificate. The certificates are defaced by marking ‘Surrendered for Dematerialization’ on the face of the certificate.
How long does the dematerialization process take?
Dematerialization will normally take about 15 to 30 days.

Rematerialisation

Can my electronic holdings be converted back into certificates?
Yes. If you wish to get back your securities in physical form, all you have to do is to request your DP for Rematerialisation of the same. 'Rematerialisation' is the term used for converting electronic holdings back into certificates. Your DP will forward your request to NSDL, after verifying that you have the necessary balance. NSDL in turn will intimate the registrar who will print the certificates and dispatch the same to you.

Corporate Benefits

How would I get my dividend / interest or other cash entitlements?
The concerned company obtains the details of beneficiary holders and their holdings from NSDL. The payment to the investors will be made by the company through the ECS (Electronic Clearing Service) facility or by issuing warrants on which your bank account details are printed. The bank account details will be those which you would have mentioned in your account opening form or changed thereafter.
How would I get my bonus shares or other non-cash entitlements?
The concerned company obtains the details of beneficiary holders and their holdings from NSDL. Your entitlement will be credited by the company directly in to your NSDL depository account.

Pledge

What should I do if I want to pledge electronic securities?
The procedure is as follows: 
   1.    Both you (pledgor) as well as the lender (pledgee) must have depository accounts 
   2.    You have to initiate the pledge by submitting to your DP the details of the securities to be pledged 
          in a standard format 
   3.    The pledgee has to confirm the request through his DP. It is suggested that after creation of the 
          pledge request, you may inform the pledgee and request him to confirm the request 
   4.    Once this is done, your securities are pledged and all financial transactions between the pledgor 
          and the pledgee are handled as per usual practice outside the depository system
How can I close the pledge after repayment of my loan?
After you have repaid your loan, you can request for a closure of pledge by instructing your DP in a prescribed format. The pledgee on receiving the repayment will instruct its DP accordingly for the closure of the pledge.
Who will receive dividend and bonus shares on the pledged securities?
The pledgor will receive the dividend and bonus shares if any declared on the pledged securities.

Safety Features

How will I know that my DP has updated my account after each transaction?
Your DP will give you a Transaction Statement periodically, which will detail your current balances and the various transactions done by your through your depository account. If you so desire, Transaction Statement can be obtained at intervals shorter than the stipulated ones, probably at a cost.
What is to be done if there are any discrepancies in my transaction statement?
In case of any discrepancy in the transaction statement, you can contact your DP. If the discrepancy cannot be resolved at the DP level, you should approach NSDL.
What security do I have if the only proof of my holdings in the depository is merely a piece of paper indicating my account balance?
No transaction can be effected in your account without your written authorization. Further, if you are away for a long time, you have the facility of freezing your account wherein only credits into your account will be allowed and no debit will be possible.
What will happen if my DP goes bankrupt or stops operation?
In a rare event of your DP going bankrupt or closing the operations, the interests of the investors will be fully protected. In such a situation, the investors will be given an option of either transferring the securities to a new DP or they may rematerialize the securities.
What precautions does NSDL take to protect the data in its depository system?
The data carries high importance in the NSDL depository system. NSDL has taken necessary steps to protect the transmission and storage of data. The data is protected from unauthorized access, manipulation and destruction. The following back up practices are adopted to protect the data: 
   1.    Local Back up 
   2.    Remote Back up 
   3.    Disaster Recovery Site In addition to this, every DP is required to take daily back up at the 
          end of day's operation.
Can I freeze my account?
NSDL system provides the facility to freeze the depository accounts for any debits or for both debits and credits. In an account which is "freezed for debits", no debits will be permitted from the account till the time it is un-freezed.
Do I get any intimation for debit and credit of shares from my account?
Apart from the transaction statement, NSDL has launched SMS Alert facility for demat account holders whereby investors can receive alerts for debits (transfers) to their demat accounts, credits for IPO and offer for sale allotment, sub-division and bonus.

Trading/Settlement

What do you mean by 'Market Trades' and 'Off Market Trades'?
Any trade settled through a clearing corporation is termed as a 'Market Trade'. These trades are done through stock brokers on a stock exchange. 'Off Market Trade' is one which is settled directly between two parties without the involvement of clearing corporation. The same delivery instruction slip can be used either for market trade or off-market trade by ticking one of the two options.
What settlement details are required on the delivery instruction slip?
On every stock exchange, various settlements are effected every day such as daily settlement, auction settlement, etc. Each of these settlements is identified by combination of a market type and a settlement number. You are required to mention the appropriate settlement details on the delivery instruction slip while transferring the shares to your broker's account. These settlement details are available on the contract note issued by the broker.
What is the current rolling settlement cycle?
With effect from 1st April, 2003 SEBI has mandated a T+2 settlement cycle i.e. a trade executed on the floor of the exchange on Day T will have to be settled on Day T+2.
What is an 'Inter Depository' transaction?
Any transaction between two clients not having Demat accounts with the same depository (NSDL/CDSL) is termed as an 'Inter Depository' transaction.
What precautions do I need to observe with respect to Delivery Instruction Slips [DIS]?
The following precautions are to be taken : 
   1.    Ensure and insist with your DP to issue DIS book; do not accept loose slips 
   2.    Ensure that DIS numbers are pre-printed and DP takes acknowledgment from you for 
          the DIS booklet issued to you 
   3.    Ensure that your account number [client id] is pre-stamped 
   4.    If your account is a joint account, all the joint holders have to sign the instruction slips. 
          Instruction cannot be executed if all joint holders have not signed. 
   6.    Avoid using loose slips 
   7.    Do not leave signed blank DIS with anyone viz. broker/sub-broker 
   8.    Keep the DIS book under lock and key when not in use 
   9.    If only one entry is made in the DIS, strike out remaining space to prevent misuse by any one 
 10.    Please fill in target account -Id and all details in the DIS yourself
What does 'execution date' stated in the delivery instruction form stand for?
Execution date is the date on which securities will be actually debited from your account. The execution date written on the delivery instruction has to be entered by the DP, in the DPM system [computer]. DPM system will record the date and will debit your account only on that date. This facility is called future execution date facility.
What benefit do I get by giving delivery instruction with a future execution date?
By giving a future dated instruction the risk of non-execution of instruction due to lack of time or last minute rush is covered.
What is the importance of record dates to me?
In case the securities bought by you are yet to be transferred into your account by your broker before the book closure /record date, you will not be entitled to receive corporate benefits such as dividend or bonus since your name will not figure in the list of beneficial owners. Hence, you must ensure that securities bought by you are transferred into your account before the book closure / record date announced by the company

Conversion of Mutual Fund Units

What do you mean by Conversion of Mutual Fund Units (represented by Statement of Account) ?
If you are holding Mutual Fund Units in physical form, which are represented by Statement of Account, you can convert this Statement of Account into dematerialised form in your demat account with any Depository Participant.
What are the advantages of holding Mutual Fund Units in dematerialised form ?
ü You can hold securities such as equity, debt instruments, Government securities and Mutual Fund Units in 
      a single demat account.
ü  You will receive single transaction statement from your DP, which will display all the securities and Mutual 
      Fund Units held in your demat account. Further, you need not look at multiple Statement of Account received 
      from the Mutual Funds.
ü Change in address recorded with DP will get registered electronically with all companies / Asset Management 
      Company (AMC) / Registrar and Transfer Agent (RTA) in which you hold securities / Mutual Fund Units. 
      Thus, eliminating the need to correspond with each of them separately.
ü  In case you have subscribed for internet based facility viz., IDeAS* (Internet-based Demat Account Statement) 
      of NSDL, you will be able to view latest balances and transactions that have taken place in your demat account 
      in the last 30 days. You will also be able to view the prices and NAV of the securities and Mutual Fund Units 
      respectively held in your demat account.
ü  In case you have availed the SMS Alert facility*, you will receive SMS alerts upon debit and credit of Mutual 
      Fund Units in your demat account.
What is the procedure for converting the Mutual Fund Units (represented by Statement of Account) into dematerialised form through my DP ?
Ø  Obtain Conversion Request Form (CRF) from your DP.
Ø  Fill-up the CRF.
Ø Submit the CRF along with the Statement of Account to your DP.

Speed-e Facility

Is it possible to give delivery instructions to the DP online and if yes how?
Yes. Delivery instructions can be given online through the SPEED-e facility. The account holder has to first register for the Speed-e facility.
How does SPEED-e work?
You can submit delivery instructions electronically, on the SPEED-e website - https://www.speed-e.nsdl.com, after your DP has authorized you to operate your account through the SPEED-e facility. You can monitor the status of such delivery instructions to ensure that the instructions have been executed.
How can I as a Demat Account holder /Clearing Member benefit from SPEED-e?
The benefit offered by SPEED-e to a Demat account holder/Clearing Member is the convenience of conducting Demat account transactions using an Internet connection from anywhere at anytime eliminating paperwork. Time and effort for obtaining delivery instruction forms from your DP and submitting them to the DP every time you sell securities is saved.
How can I register myself for SPEED-e?
For using the SPEED-e facility it is essential that your DP must be registered with NSDL for this facility. There are two types of users for this facility, one is password-based user who logs in with his password and can transfer securities only to three pre-specified broker accounts of his choice. The second is the smart-card based user who is issued a smart card for logging on to the site and can transfer the securities to any account. A password-based user can visit the SPEED-e website, fillup the registration form available on the website. The website would allot a registration number and the DP of the client would authorize him for using the facility upon submission of a request with the registration number.

What is the difference between Smartcard and Password-based access to SPEED-e?
Smart card based access to SPEED-e is more secure as your identification is based both on ‘What you have i.e. smart card’ and ‘what you know i.e. PIN code’ and provides a digital signature to identify you. In the case of password-based access, you should handle your password carefully. In view of this security difference, the password based users have been permitted to transfer securities through SPEED-e facility to only three pre-specified broker accounts. These three accounts can be changed by the user.
Is there any further benefit of the smart card option in SPEED-e facility?
Following are the additional benefits of smart card option in SPEED-e facility : 
   1.    Smart card user can transfer securities to any account unlike password users where 
          transfer of securities is permitted only to three pre-notified broker accounts 
   2.    Single smart card can be used to access all your Demat accounts, opened with the same DP 
   3.    Facility of multiple authorization 
   4.    You can freeze your Demat account or any particular ISIN or specific quantity within an ISIN 
          yourself, through SPEED-e. The account freezed using SPEED-e can be unfreezed only by you.

Thus you get complete control of your account, where you can deliver instructions and transfer securities as and when you wish, lock the account and unlock it only when you need.
How does one operate jointly held Demat Accounts through SPEED-e?
For password based operation, only one user can operate the account. Joint holders will have to give a power of attorney to one joint holder among themselves. For smart card based operation, in addition to what is stated above, all the joint holders can operate the account independently or jointly using multiple authorization facility.
What should I do if I forget my Password?
If you are a Client using SPEED-e/IDEAS, log-on to SPEED-e website, submit your User-Id, click on 'Forgot Password' and fill up an online ' Password Reset Request' form by supplying the new Password, Client Id and other personal details. A printout of this form has to be given to your DP which will then authorize the Password Reset Request.

If you are a Clearing Member using IDEAS, logon to SPEED-e website, submit your User-Id, click on 'Forgot Password' and fillup an online ' Password Reset Request' form by supplying the new Password and CM BP Id. A printout of this form has to be given to NSDL which will then authorize the Password Reset Request.