Investor Charter of Depository Participant

Investor Charter of Depository Participant

Investor Charter of Depository Participant

NSDL DP ID: IN301774
CDSL DP ID: 12030200

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 dematerialised 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, Clearing Corporations, Depository Participants (DPs), Issuers and Investors in both primary as well as secondary markets. The depository carries out its activities through its agents which are known as Depository Participants (DP). Details available on the link: NSDL :-https://nsdl.co.in/dpsch.php CDSL :- https://www.cdslindia.com/DP/dplist.aspx

4. Description of services provided by the Depository through Depository Participants (DP) 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 Rematerialization of securities 7 days
3 Mutual Fund Conversion / Destatementization 5 days
4 Re-conversion / Restatementisation of Mutual fund units 7 days
5 Transmission of securities 7 days
6 Registering pledge request 15 days
7 Closure of demat account 30 days
8 Settlement Instruction For T+1 day settlements, Participants shall accept instructions from the Clients, in physical form up to 4 p.m. (in case of electronic instructions up to 6.00 p.m.) on T day for pay-in of securities.
For T+0 day settlements, Participants shall accept EPI instructions from the clients, till 11:00 AM on T day.
Note: ‘T’ refers ‘Trade Day


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

S.No. Type of Activity /Service Brief about the Activity / Service
1 Value Added Services Depositories also provide value added services such as

a. Basic Services Demat Account (BSDA)1
b. Transposition cum dematerialization2
c. Linkages with Clearing System3
d. Distribution of cash and non-cash corporate benefits (Bonus, Rights, IPOs etc.), 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 Digitalization of services provided by the depositories Depositories offer below technology solutions and e-facilities to their demat account holders through DPs:

a. E-account opening4
b. Online instructions for execution5
c. e-DIS / Demat Gateway6
d. e-CAS facility7
e. Miscellaneous services8
5 Details of Grievance Redressal Mechanism

(1) The Process of investor grievance redressal

1. Investor Complaint/ Grievances Investor can lodge complaint/ grievance against the Depository/DP in the following ways:

a. Electronic mode –

(i) SCORES (a web based centralized grievance redressal system of SEBI) https://scores.sebi.gov.in

(ii) Respective Depository’s web portal dedicated for the filing of compliant for NSDL : https://investor.nsdl.com/portal/en/home
CDSL : https://www.cdslindia.com/Footer/grievances. aspx

(iii) Emails to designated email IDs of Depository for NSDL : relations@nsdl.com
CDSL : complaints@cdslindia.com aspx

The complaints/ grievances lodged directly with the Depository shall be resolved within 21 days.

b. Offline mode [details of link to the form to be provided by DPs]
2 Online Dispute Resolution (ODR) platform for online Conciliation and Arbitration If the Investor is not satisfied with the resolution provided by DP or other Market Participants, then the Investor has the option to file the complaint/ grievance on SMARTODR platform for its resolution through by online conciliation or arbitration.
https://smartodr.in/register
3 Steps to be followed in ODR for Review, Conciliation and Arbitration
  • Investor to approach Market Participant for redressal of complaint
  • If investor is not satisfied with response of Market Participant, he/she can escalate the complaint on SEBI SCORES portal.
  • Alternatively, the investor may also file a complaint on SMARTODR portal for its resolution through online conciliation and arbitration.
  • Upon receipt of complaint on SMARTODR portal, the relevant MII will review the matter and endeavour to resolve the matter between the Market Participant and investor within 21 days.
  • If the matter could not be amicably resolved, then the Investor may request the MII to refer the matter case for conciliation.
  • During the conciliation process, the conciliator will endeavor for amicable settlement of the dispute within 21 days, which may be extended with 10 days by the conciliator.
  • If the conciliation is unsuccessful, then the investor may request to refer the matter for arbitration.
    The arbitration process to be concluded by arbitrator(s) within 30 days, which is extendable by 30 days.


(2) For the Multi-level complaint resolution mechanism available at the Depositories9

6. 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.

Participant 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 way of letter/email.
7. Dos and Don’ts for Investors10

8. Rights of investors11

9. Responsibilities of Investors12

10. Code of Conduct for Depositories14

11. Code of Conduct for Participants15

10. 2022-104-Policy-NSDLs various investor centric initiatives – Do’s and Don’t for investors demat account holders

Annexure C

Investor Complaints Data – Depository Participants

Data for Every Month Ending – November, 2024



S.No.Received fromCarried forward from previous monthReceived during the monthTotal pendingResolvedPending at the end of the month**Average resolution time
Pending for less than 3 monthsPending for More than 3 months
12345678
1Directly from Investors0101000
2SEBI (SCORES)0303001.66
3Depositories0101002
4Other Sources (if any)0000000
5Grand Total0505001.4


Trend of monthly disposal of complaints

Depository Participant
S. No.MonthCarried forward from previous monthReceivedResolved*Pending**
123456
1Apr-2301082
2May-232671
3Jun-231340
4Jul-230770
5Aug-2301091
6Sep-23110110
7Oct-23010100
8Nov-230220
9Dec-23014104
10Jan-2449130
11Feb-240422
12Mar-24210111
13Apr-24115160
14May-240330
15Jun-240440
16July-240880
17Aug-240972
18Sep-24213141
19Oct-241560
20Nov-240550
Grand Total1415715714


*Should include complaints of previous months resolved in the current month, if any. **Should include total complaints pending as on the last day of the month, if any. ^Average resolution time is the sum total of time taken to resolve each complaint in the current month divided by total number of complaints resolved in the current month.

Trend of Annual disposal of complaints

S. No.YearCarried forward from previous yearReceived during the yearResolved during the yearPending at the end of the year
12017-18471750
22018-1901121102
32019-20278791
42020-21183822
52021-2221331350
62022-23072720
72023-24095941
82024-25162630
Grand Total107067106