vSecurities & Exchange Board of India Act 1992vThe Depositories Act, 1996vSecurities & Exchange Board of India (Depositories & Participant) Regulations 1996vDepository (NSDL) Bye-LawsvBusiness Rules framed by the Depository (NSDL)
The Depository through the Depository participants is offering the following services to their clients:
vOpening of AccountvDe-materialisationvRe-materialisationvSettlement of transactionsvPledge and HypothecationvStock lending and borrowing.
vImmediate transfer of securities;vNo stamp duty on transfer of securities;vElimination of risks associated with loss, forged transfer, bad delivery, fake certificates etc;vReduction in paperwork involved in transfer of securities;vReduction in transaction cost;vNomination facilities;vEasy and fast recording of change of address and avoids multiple correspondence;vEasy and cost effective transmission of securities;vConvenient method of consolidation of folios and accounts;vNeed to maintain one account for equity and debt instruments;vEasy follow-up and verification with pass book.
1.4 Types of Accounts:
The following types of Accounts may be opened:
vIndividual in sole namevIndividuals in joint namesvCompaniesvTrusts
Some of the important features of Depository accounts are as follows:
vMore than one depository account can be opened in the same name or joint namevMaintenance of minimum balance is not requiredvOne time standing instructions for receiving credits to the account/s
1.6 Procedure to open DP account:
vFill and sign the prescribed account opening form;vNRIs should furnish attested copy/original Power of Attorney for operation of account;vSubmit proper introduction and documents as proof of address;vExecution of required agreement
On opening the depository account, account holder will be provided with the following:
vAccount No.- a unique combination of account no. with DP identification (I D);vPre-printed instruction slips for depository service viz: dematerialisation, delivery instructions for trades etc., re-materialisation;vProvided with list of deadlines for giving instructions for various depository activities i.e. transfer for affecting sale, purchase etc.