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DEMAT OF SHARES Introduction: Indian investor community has undergone sea changes in the past few years.

India now has a very large investor population and ever increasing volumes of trades. However, this continuous growth in activities has also increased problems associated with stock trading. Most of these problems arise due to the intrinsic nature of paper based trading and settlement, like theft or loss of share certificates. This system requires handling of huge volumes of paper leading to increased costs and inefficiencies. Risk exposure of the investor also increases due to this trading in paper. Some of these risks are: Delay in transfer of shares. Possibility of forgery on various documents leading to bad deliveries, legal disputes etc. Possibility of theft of share certificates. Prevalence of fake certificates in the market. Mutilation or loss of share certificates in transit. This has made the investors as well as broker wary of Indian capital market. In this scenario dematerialized trading is certainly a welcome move. What is Dematerialization?

Dematerialization or Demat is a process whereby your securities like shares, debentures etc, are converted into electronic data and stored in computers by a Depository.

What is a Depository? Depository functions like a securities bank, where the dematerialized physical securities are traded and held in custody. This facilitates faster and low cost settlement. Depository is much like a bank and performs many activities that are similar to a bank. Following table compares the two. Bank Holds funds in accounts Transfers funds between accounts Transfers without handling money Safekeeping of money Depository Holds securities in account Transfers accounts Transfers without handling securities Safekeeping of securities securities between

Dematerialisation or demat is a process to convert the securities held in physical form into an electronic record form or to directly allot securities in electronic record form. These electronic records of securities are shown as "electronic balances" in the demat account of investors. Any investor (Beneficial Owner or BO) can open a demat account through a depository participant (DP). DP provides a link on one hand between the BO, Company and CDSL and on the other hand between the BO, the BO's broker and the Stock Exchange. CDSL publishes from time to time an updated list of DP's registered with it. NSDL and CDSL At present there are two depositories in India, National Securities Depository Limited (NSDL) and Central Depository


Services Limited (CDSL). NSDL is the first Indian depository; it was inaugurated in November 1996. NSDL was set up with an initial capital of US$28mn, promoted by Industrial Development Bank of India (IDBI), Unit Trust of India (UTI) and National Stock Exchange of India Ltd. (NSEIL). Later, State Bank of India (SBI) also became a shareholder. The other depository is Central Depository Services (CDS). It is still in the process of linking with the stock exchanges. It has registered around 20 DPs and has signed up with 40 companies. It had received a certificate of commencement of business from SEBI on February 8, 1999. In order to facilitate transfers between investors having accounts in the two existing depositories in the country the Securities and Exchange Board of India has asked all stock exchanges to link up with the depositories. The NSDL and CDS have signed an agreement for inter-depository connectivity. What is a DP? NSDL carries out its activities through various functionaries called business partners who include Depository Participants (DPs) Who can be a DP? Public Financial Institutions. Scheduled banks. RBI Approved Foreign banks operating in India. State financial corporations. Institutions engaged in providing financial services, promoted by any of the institutions mentioned above either jointly or severally.


Custodians of securities who are registered with SEBI. Clearing Corporations or Clearing Houses of Stock Exchanges. Stock Brokers registered with SEBI. Non Banking Finance Companies.

1. 2. 3. 4. 5. 6. 7. investor.

Investors surrenders defaced certificate along with DP intimates Depository of the request through DP submits the certificate with DRF to registrar. Registrar confirms the Demat from Depository. Registrar validates the request, updates records & Depository credits the DP a/c & informs DP. DP updates the investors a/c & informs the

Dematerialisation Request Form (DRF) to his DP. the system.

informs the Depository.

Trading in dematerialized shares results in substantial savings for the investors. Following tables gives an idea about these savings.


Savings for a person who buy shares for long term investment (On a purchase of Rs10000) Item Brokerage *Stamp Duty Postal Charges Company Objection (Courier etc.) Settlement charges #Custody (5 years) Total Stamp duty of 0.5% Custody charge of 0.05%- 0.1% Savings for an investor who sells dematerialized shares (For a sale of Rs10000) Item *Brokerage Company Physical (Rs) 75-100 Objection 10-30 Depository (demat) Savings (Rs) 50-75 -(5-10) (Rs) 25-50 10-30 -(5-10) 25-75 Physical (Rs) 75-100 50 10-30 10-30 Depository (demat) (RS) 50-75 5-10 10-50 Savings (Rs) 25-50 50 10-30 10-30 -(5-10) -(10-50) 35-100

(courier, etc.) Settlement charges Total

Sub-Brokers: Sub-Brokers have two options:


1. Arrange to deliver the securities directly from the pool account of main broker to the beneficial owner account of the buying clients.

2. Arrange to deliver the securities from the pool account of the main client. CM POOL A/C Client A A/c Client B A/c Client C A/c Client D A/c Sub Brokers Beneficiary A/c broker to beneficial owner account of the sub-broker kept for trading purpose and then forward the same to buying


Benefits of Holding Securities in the Dematerialised Form : Elimination of all risks associated with physical certificates: There is no risk of loss, mutilation or theft of certificates of securities. Elimination of bad deliveries: In the depository environment, securities cannot be returned "under objection" for any reason and hence the question of bad delivery does not arise nor does the investor face any uncertainty on the genuinity of securities purchased by him. Effects immediate transfer and registration of securities: After the payout, once securities are credited to the investors BO account maintained with a DP, the investor becomes the legal owner of the securities as there is no further need to seek registration from the company or its registrar. Faster settlement cycles: All stock exchanges currently follow T+2 rolling settlement cycle i.e. settlement of trades is done on the 2nd working day from the trade day. This has become possible because of demat which enables faster turnover of securities and enhances liquidity.


Faster receipt of securities in case of bonus / split/ mergers etc: Direct credit of securities issued as bonus or on allotment of IPO/rights, split and merger ensures faster receipt of securities and avoids risk of loss of certificates in transit. Waiver of stamp duty: No stamp duty is payable by investors for transfer of any kind of securities received in demat form. Facilitate recording of change of address, transmission, etc.: For all investments held in the a/c, instead of advising each company separately about the change in address, bank account particulars, nomination, deletion of name in case of joint holder, one single advice to the DP takes care of all such changes. Ease of portfolio monitoring: The statement of account periodically sent by the DPs provides the investor the consolidated position of all his investments in the demat account. This makes it convenient for an investor to compare and monitor his portfolio. Why Should an Investor Open a Demat Account? The CDSL system incorporates a number of distinct features which provide BOs a convenient, dependable and secure depository services at affordable cost. Convenience:
Wide DP Network:

CDSL has over 275 DPs offering services from over 100


cities/towns across the country and thus providing investors a wide choice for selecting a DP, depending on his locational and other conveniences. Many more DPs are expected to get registered with CDSL shortly. On-line DP Services: CDSL DPs provide on-line depository services from over 500 branches. All these branches are electronically connected to CDSL thereby taking the depository services to the door-step of investors. DP branches facilitate quicker execution of demat instructions. Availability of Wide Spectrum of Securities: The equity shares of over 5000 companies are available for dematerialisation on CDSL. CDSL extends demat facilities practically for all categories of securities which include bonds, debentures, commercial papers, government securities and certificates of deposit. Competitive Fees Structure:

CDSL's fee is very reasonable and competitive, which makes it possible for DPs to offer demat services to investors at affordable cost. CDSL DPs are not required to pay any custody or ISIN fees to CDSL. Internet Access:

Through CDSL's unique internet facility "electronic access to securities information" -. "Easi", a BO by registering himself through his DP (who in turn will have to be registered with CDSL for use of this facility) can know and even print statements of his

demat account. The BO can also know the status of his previous 7 days transactions at any time by logging into easi. BO gets a unique facility of knowing the daily valuation of the securities held in their demat account, at the previous day's closing price on the BSE. Dependability:

On-line Information to Users:

With the CDSL's centralised database architecture; on-line depository services are available to BOs with up-to-the-minute status of his BO accounts. Safety of data:

Even if any system-related problems develop at the DPs end, it does not affect the BOs interest in any way as the CDSL database is maintained centrally. The DP can also avail of the facility of contingency terminals available at CDSL's Mumbai office for executing instructions. Audit and inspection:

CDSL conducts regular audit of its DPs to ensure compliance of the stringent operational and regulatory requirements. Helpdesk:

CDSL's prompt and courteous helpline facility is available to DPs and investors to obtain any clarifications and guidance. Always meeting user's requirements:

Continuous updation of procedures and processes in tune with the



evolving market practices is another hallmark of the CDSL's system. Security:

Computer Systems:

CDSL has installed state-of-the-art computer system, data storage devices, communication networks which ensure the security and integrity of all data uninterruptedly. All data at CDSL is auto mirrored separately and also transmitted to a Disaster Recovery Site which is located at a different place away from the main site. System Access: As the system does not provide for dial-up access, only authorised users can access CDSL system. In other words, only a person at DP end who has been pre-authorised by CDSL can access the CDSL system. Unique BO Account Number: Each BO in the CDSL system is allocated a unique account number. This avoids wrong transfer of securities in the event the transferor's account number is keyed-in wrongly at the DP end. Insurance Cover: CDSL has obtained adequate insurance cover for any unlikely loss occurring to a BO due to the negligence at CDSL and/or its DP.



Dematerialisation Process and Procedure: Opening a Depository Account Investors, both individuals and non-individuals, have a choice to open a demat account with any CDSL DP. Individual investors could be Indian residents or NRIs. Non-individual BO includes Corporates, FIs, FIIs, Mutual Funds, Trusts etc. Under two way fungibility of ADR/GDR, non-residents can also open a demat account with a CDSL DP. A BO should consider fee structure, locational convenience and the track record of the DP before selecting a DP for opening his BO account. More than one demat account can be opened in identical names with the same or different DPs with the same depository and/or with both the depositories. A demat account can be maintained even with 'nil' balance as there is no requirement of holding any minimum-security balance in a demat account. If securities are already held in joint names, the demat account should be opened in the order of names in which the securities are held. If the securities are held by an individual jointly with different persons, separate demat accounts will have to be opened for each such combinations. However, if the same persons hold securities in different order of their names, one single demat account in names of all these persons (not exceeding 3 persons) would be sufficient, provided the facility of transposition-cum-demat is used.

At the time of opening a demat account or anytime


thereafter, individuals having a BO account in a single or joint name/s, a nomination can be made. In the unfortunate event of demise of one of the joint holders, the securities can be transmitted in the names of the surviving holders. But, in the event of demise of the sole holder or all the joint holders, the securities can be transmitted in the name of the nominee. A resident Indian can nominate an NRI or another resident Indian and similarly an NRI can nominate a resident Indian or another NRI. Non-individuals including societies, trusts, body corporates, kartas of HUF, holders of power of attorney, cannot make nomination. Documents required to be submitted at the time of opening a CDSL demat account: Individual Investors :

An application in the prescribed form duly completed. Certified copy of an election-ID card / passport / ration

card /PAN card or in the absence of these documents, an introduction by an existing account holder of the DP giving the introducer's name, address, and contact number. A certified copy of birth certificate and guardian's name, in A passport size photograph of each of the applicants with In case of any attestation by a Magistrate / Notary Public / case of a minor. his/their signature/s put across the photograph/s Special Executive Magistrate, the name, address and telephone number of the Magistrate/Notary Public/Special Executive Magistrate.

A copy of the power of attorney, if desired. And agreement


in the prescribed form duly executed. Corporate investors An application in the prescribed form duly completed. A certified copy of the Memorandum and Articles of Association of the company. A certified true copy of the board resolution authorising opening of demat account and listing out the names of the officials authorised by the board to act as authorised signatory(ies) Names, designation of the authorised signatories with specimen sign. A copy of power of attorney duly executed. In case of attestation by any Magistrate/Notary, Public/Special Executive Magistrate, their name, address and telephone number. Agreement in the prescribed form duly executed. Additional Requirements for Some Categories of Investors BO Category Non Indian nationals persons of or Additional Requirement jointly with another NRI and/or resident Indian, a declaration by the first or sole NRI applicant who is eligible to invest on repatriable basis in terms of FEMA

Resident In case of a NRI opening BO a/c singly or

Indian notification no. 20/2000-RB dated 03/05/2002 together with a proof of origin(NRI) residence outside India. HUF Name of the 'karta', if the account is



opened in the name of a HUF. Trust A certified copy of the trust deed along with the list of authorised signatories with specimen signatures. Partnership firm The account has to be opened in the names of the partners. Proprietorship firm The account should be opened in the name of the sole proprietor. Clearing Members A certified copy of SEBI registration along (CM) with a conduct certificate from each of the exchanges F. I. Investors and Overseas Corporate Bodies where the CM is a member/registered. A Certified copy of SEBI/RBI registration.

On Opening of The Demat Account, A DP Would Provide To The BO A/C Holder The Following : A copy of the signed agreement.

Issues "BO-ID" (i.e. Beneficial Owner Identification Number or. demat account number). This BO-ID should be quoted in all future correspondence with the DP, Issuer Companies and/or their Registrar & Transfer agents or CDSL.
Pre-printed instruction slips for affecting various types of

transactions viz. form for dematting physical holdings,



transaction slips, etc. CDSL has one single debit instruction slip both for 'on-market' and 'off-market' transactions. BOs Should Carefully Note The Following :
BOs may consider issuing one time instruction to their DPs

for getting securities in the demat account automatically credited to their account. Purchased securities are credited to the BO account after payout of the securities by the clearing house/corporation of the stock exchange. Securities purchased on any of the stock exchanges connected to CDSL can be directly received in the BO account. CDSL currently has connectivity with 16 stock exchanges. For sale of securities in demat form, after the broker confirms the trade, the BO should immediately issue debit instruction to his DP using a debit instruction slip. For maintaining the cut-off time for submitting delivery instructions for trades done on the stock exchange (on-market trades) as per SEBI requirement, delivery instructions need to be issued latest by 24 hours before the pay-in time of the exchange where transaction has been done. Any delay in issuing instructions to the DP might result in non-delivery of shares/securities resulting in auctioning of such securities and consequent loss to the investor. This is more so in T+2 settlement cycle. Any change in address and/or bank account should be intimated to DP together with supporting documents as evidence.
While accepting the Delivery Instruction (DI) slip book



issued by the DP, Bo should ensure that his BO-ID is prestamped on all the pages along with the serial number. The DI book should be kept safely. BOs should not issue to anyone blank DI slips duly signed. BOs should also strike out the empty space, if any, in the DI slip, before submitting to DP. Fees: CDSL does not charge any fee directly to the beneficial account holder but collects the depository fees for debit and pledge transactions in any BO account from the concerned DP. The charges indicated by DPs are generally is inclusive of CDSL fee, if any. Redressal Of Investor Grievances: In case of any unresolved grievance with your DP, please contact the compliance officer of your DP or Investor Relations Officer. Disclaimer: This brochure contains information, which is subject to change without prior notice and cannot be the basis for any claims or demand or cause of action by anyone against CDSL or its DPs.
CDSL's demat services are extended through its agents called

Depository Participants (DP). The DP is the link between the investor and CDSL. An investor who opens a demat account with a DP can utilise the services offered by CDSL. While the DP processes the instructions of the investor, the account and records thereof is maintained with CDSL. A DP is thus a "service centre" for the investor. DSLs system is based on



centralised database architecture with on-line connectivity with DPs. Because of this centralised architecture, the cost for setting up a DP outfit under CDSL system is significantly lower. Similarly, the recurring costs to be incurred by a CDSLDP in terms of maintaining back-ups and the related data storage are minimal. This enables a CDSL-DP to offer depository services to investors at an attractive price and at the same time achieve break-even faster at much lower volumes. The centralised architecture also allows CDSL-DP to make available to the investors a to-the-minute status of their account and transactions. DSL-DPs can also set up branches with direct electronic connectivity with CDSL.
Any Individual eligible to acquire and hold securities in his

name can open a demat account in the CDSL system through a registered DP of CDSL of his choice. While choosing his DP the individual may take into consideration the service standards, charges and convenience of location. Some basic facts for the demat accounts Number of Accounts : More than one demat accounts can be opened in the similar / identical name and order with the same DP or different DPs. Minimum Account Balance : There is no requirement of holding minimum-security balance in a demat account; you can maintain zero balance in your account. Ready availability of account enhances your transaction making ability. Nomination : Individuals holding beneficial accounts on their own behalf either



singly or jointly have the facility of making nomination. (Nonindividuals including societies, trusts, body corporate, partnership firms, kartas of HUF, holders of power of attorney however, cannot nominate). In the event of the death of one of the joint holders, the securities will be transmitted in the names of the surviving holders. If the sole or all the joint holders are deceased, the shares will be transmitted in the name of the nominee. Statement of Account: A periodical statement of holdings and transactions is provided by DP. This can also be asked for from the DP. Credit Confirmation: In order to receive all the credits coming to demat account automatically, a one time standing instruction can be given to the DP at the time of opening your account. Change of Address: For any change of address, if any, communication to your DP in writing is sufficient. The DP will ensure that the change is incorporated for all securities held in your demat account. You need not write to all the companies separately. Points To Be Noted for Opening a Demat A/C Obtain and submit the duly completed account opening form to the DP. Provide to DP a copy of your passport or driving license or voterID card or ration card for establishing your identity and as a proof of address. Execute the DP-Investor agreement to be made available by DP.



Collect your unique account number (BO-ID) from your DP. Collect pre-printed slips both for effecting dematerialisation as well as delivery of securities. Understand the cut-off timings from DP for depositing delivery instructions for trades done by you on the stock exchange.

A Depository is like a bank where securities are held in electronic (dematerialised) form. In India, there are two Depositories -National Securities Depositories Limited (NSDL) and Central Depository Services Limited (CDSL). Under the Depositories Act, investors can avail of the services of the Depositories through Depository Participants (DP) such as ICICI Bank. DPs are like bank branches wherein shares in physical form need to be deposited for converting the same to electronic (demat) form. ICICI Bank Demat Services boasts of an ever-growing customer base of over 11.5 lacs account holders. In their continuous endeavor to offer best of the class services to their customers they offer the following features: E-Instructions: Customers can transfer securities 24 hours a day, 7 days a week



through Internet & Interactive Voice Response (IVR) at a lower cost. Now with Speak to transfer, customers can also transfer or pledge instructions through banks customer care officer. Consolidation Demat Account: Dematerialise physical shares in various holding patterns and consolidate all such scattered holdings into primary demat account at reduced cost. Digitally Signed Statement: Receive account statement and bill by email. Corporate Benefit Tracking: Track dividend, interest, bonus through account statement. Mobile Request: Accesses demat account by sending SMS to enquire about Holdings, Transactions, Bill & ISIN details. Mobile Alerts: Receive SMS alerts for all debits/credits as well as for any request which cannot be processed. Dedicated customer care executives specially trained at call centre, to handle all their queries. Countrywide network of over 235 branches, you are never far from an ICICI Bank Demat Services outlet. Customers will find banks service charges very competitive - offering the best value for your money



Account Opening

Please write to ICICI Bank or visit any of their service

centres to open an account. There is no fee for opening a DP account with ICICI. However, a nominal fee will be levied towards services, as per their tariff. Customers can choose between Standard Rate Card or Frequent Trader Rate Card as per theiur trading volume. Or if you wish to hold your Bonds in Demat form you can choose Bond Rate Card. Account Opening Form to Open Securities Account

Resident Non Corporate Account Opening

Form Resident Corporate Account Opening Form NRI Account Opening Form Declaration Cum Undertaking Form for NRI Repatriable Account Checklist for Filling NRI Demat Account Opening Form * Submission of Passport and Valid Visa Copy is mandatory for NRI Customers for opening a Depository Participant (DP) Account with effect from 7th May 2007

Account Opening Form to open Commodities Account in NSDL

Resident Non Corporate Account Opening

Form Resident Corporate Account Opening Form Clearing Member Account Opening Form Note: The DP Client Agreement form should be franked with stamp

duty applicable to the state mentioned in the correspondence address. DP account number will be intimated to customers by e-mail if the mail-id is written on the application form or by Courier or by post.

For NRIs

No approval from the Reserve Bank of India (RBI) is

required for opening a Depository Participant (DP) Account. However, if customers do not hold any shares at the time of opening the account, 1. enter in the account opening form as follows: 1. Submission of Passport and Valid Visa Copy is mandatory for NRI customers for opening a Depository Participant (DP) Account with effect 2. 3.

from 7th May 2007. RBI reference no: No Holdings RBI approval date: Present date' If hold shares that were allotted in the primary market (under

the Direct Investment Scheme), enter in the account opening form as follows: 1. RBI reference no: Under General Permission

2. RBI approval date: Present date If customers are providing their foreign address as their address of communication. NRI rate card will be applicable to them. Else they can open account in Standard Rate Card. Tips for deciding NRI account combinations. NRI Investments are classified on the following basis: A.

Repatriability and


Mode of investment

A. Repatriable

Repatriable funds (i.e. those which can be taken abroad) need to be kept in a separate bank account, i.e. NRE Bank account. Typically, funds brought in from abroad are permitted in such an account. Investments made from such funds can be repatriated, i.e. proceeds from sale or otherwise from such investments can be taken abroad. Such investments are maintained in a Repatriable Demat account.

B. Non-repatriable Non-repatriable funds (i.e. those which cannot be taken abroad) need to be kept separate from repatriable funds in a separate bank account i.e. NRO Bank account. Investments made from such funds cannot be repatriated, i.e. proceeds from sale or otherwise from such investments cannot be taken abroad. Such investments are maintained in a Non-Repatriable Demat account. Money once transferred from NRE account to NRO account loses its reparability and hence, cannot be transferred back to NRE account. Mode of Investment : A. Portfolio Investment Scheme (PINS) Portfolio Investment Scheme (PINS) is a scheme of the Reserve Bank of India (RBI) under which the Non Resident Indians (NRIs) and Person of Indian Origin (PIOs) can purchase and sell shares and convertible debentures of Indian Companies on a recognized stock



exchange in India by routing all such purchase/sale transactions through their account held with a Designated Bank Branch. The Designated Bank maintains a record of all investments done under PINS (PINS portfolio).

B. Non - PINS Any investment other than under PINS is Typically, this includes: 1. Subscription to Primary market offerings

(IPOs) 2. Investments made when resident in India. 3. Investments in Mutual funds 4. Investments in derivatives 5. Gifts and Inheritance Deciding Combination : Customers may have to open demat accounts of a specific combination if they already hold physical shares in that combination. The physical shares can be converted into electronic form demat account by submitting the certificates along with a demat request form. Customers should also open the required combination under the correct type of demat account : PINS NRE: basis. PINS NRO: repatriation For shares acquired earlier under PINS on nonbasis. For shares acquired earlier under PINS on repatriation

Non-PINS NRE: For shares acquired earlier other than under PINS on

repatriation non- repatriation basis and also when Resident in India.


Non-PINS NRO: For shares acquired earlier other than under PINS on

Procedure for Demat Form Submit a completely filled up Demat Request Form (DRF) in triplicate for each ISIN along with defaced physical securities. We have provided you with one blank Dematerialisation Request Form (DRF). Additional forms are available at any of the ICICI Bank branches offering Demat Services. Filling up the form

Ensure that security mentioned on the certificates is

eligible for Demat. For being eligible for demat, the company has to sign up with NSDL. You can check eligibility on www.icicibank.com or ask the nearest Branch.



Use a separate DRF for each security having a

unique International Security Identification Number (ISIN). Verify the certificates carefully and mention the correct ISIN. In case two or more sets of certificates of the same security have different ISIN (this is possible in case of partly paid up shares and non-pari passu shares), use separate DRFs for each ISIN. However, you can dematerialise multiple folio nos. of the same pattern of holders relating to the same ISIN under a single DRF. Submit certificates under lock-in under separate DRF. Do not mix the same with free securities. In case of locked-in securities, fill up the lock-in reason & lock-in release date on the DRF. Amongst lock-in securities belonging to the same ISIN but having different lock-in release dates or lock-in reason, make separate DRF requests. Demat requests received from client(s) with name(s) not matching exactly with the name(s) appearing on the certificates merely on account of initials not being spelt out fully or put after or prior to the surname, can be processed. However, this is possible only if the signature(s) of the client(s) on the DRF tallies with the specimen signature(s) available with the Issuer or its Registrar. For example, the shareholder may have opened the depository account in the name of Sushil Ramesh Shah but his name on the share certificate may appear as S. R. Shah or Sushil R Shah etc. The combination and the order of holders names on DRF and as printed on the Certificates should be identical with that in the DP account.

For example, if the shares are in the name of X, Y (X

as first holder and Y and second holder) it cannot be dematerialised in the account of either X or Y alone. Also if the shares are in the name of X, they cannot be dematerialised in the account of X, Y (X as first holder and Y as second holder). However, where the combination of holders is the same in the certificates and in the demat account, and the difference is only in the order in which the name of the holders appear on the share certificates and in the demat account, dematerialisation is possible. Here, you have to submit a Transposition Request Form along with the DRF. The form is also available at the nearest Branch. The DRF must be signed by all the account holders and should be in the same order. The signature on the DRF should match with the specimen signature with ICICI Bank. If the signature differs, you should sign the DRF in the presence of the Branch Officer. If you have a doubt that the signature on the DRF may not match with that registered with the Registrar, you can get the signature on the DRF attested by your banker. the DRF. Submitting the form

The details of certificates such as the folio no.,

certificate no., & distinctive no. must be filled up correctly on

You must deface the certificates by putting a stamp or by Surrendered for Dematerialisation. However




defacing should be done only after checking the eligibility of security, as defaced securities cannot be sold in physical form. If defacing has been done by mistake then you should send the same to registrar for replacement. *NSDL Business Rule 11.1.7. : (The Participant shall ensure that the certificates submitted for dematerialisation are marked by the Client (customer) with the words Surrendered for Dematerialisation.) Certificates should not be mutilated or defaced in such a way that the material information is not readable.

Ensure that the certificates are attached in the same order as in the DRF.


You should submit the DRF in triplicate. You can submit the DRF at any ICICI Bank branch. The acknowledgement slip at the bottom of the form will be stamped and handed over to you after verification by the ICICI Bank official. Credit in the Demat Account

The defaced shares along with the DRF are sent by ICICI

Bank to the registrar who will then credit the customers account. The normal time taken for credit of shares to the account after confirmation by the Registrar is about 30 days. However the time taken would vary from one registrar to another over which ICICI Bank has no control.



To check whether your account has been credited, you can

refer to the transaction statement (Refer # 12, below). The same will be reflected in pending demat balance on receiving your request. After dematerialisation, the same will be reflected under free balance. Alternatively you can use the web (register on www.icicibank.com), phone us or visit the ICICI Bank branch. In case your account does not get credited within a month of submission, you can either phone us or send an email to customer.care@icicibank.com In case there is a delay beyond 40 days, if you so wish, ICICI Bank can give you the registrars name and telephone number as well as your Demat Request Number (DRN). Rejection of Demat Requests

Your request may get rejected for various reasons either at

the Central Processing Office of ICICI Bank or by the Registrar. Dematerialisation is done by the Registrar only when it is satisfied of genuineness of securities & ownership status. On a rejection, the securities are sent back to you stating the reason for the rejection. You can resubmit the certificates for dematerialisation after resolving the reason for the rejection. Please resubmit on a fresh DRF. Do not use the same DRF on which the objection was made. Transmission-cum-Demat



In case of certificates held jointly, on the death of any one or more of the joint holder(s) mentioned on the certificate, the surviving joint holder(s) can get the name(s) of the deceased deleted from the physical certificate(s) and get the securities dematerialised in the DP account of the surviving holder(s) by submitting the following documents along with the DRF: A copy of the death certificate duly notarised A copy of the Succession certificate duly notarised or

an order of a court of competent jurisdiction where the deceased has not left a Will or A copy of the Probate or Letter of Administration duly notarised. Sale / Delivery of Securities Securities transactions can be settled in demat form for the transactions done on stock exchanges connected to NSDL. At present, NSE, BSE, CSE, DSE, LSE, BgSE, OTCEI, MSE, ISE & ASE are connected to NSDL. Trading in dematerialised securities is done through your broker just like trading in physical securities. Sell dematerialised securities choice.

You can sell your dematerialised securities in any of

the stock exchanges linked to NSDL through a broker of your You need to give a delivery instruction to your DP

for debit of your depository account and credit of your brokers clearing member account. You receive payment from the broker for the sale in



the same manner you would receive payment for a sale in the physical mode.

Buy dematerialised securities

You can purchase securities in any of the stock exchanges

connected to NSDL through a broker of your choice and make payment to your broker. Make sure you tell your broker you want only demat shares. Broker receives credit in his clearing account with his DP on the day of payout. He can immediately transfer these securities to your depository account, provided your account is already active. Broker gives instructions to his DP to debit his clearing member account and credit your depository account.



Delivery of securities To deliver securities in electronic form, you have to

authorise the DP to transfer balances from your account.

You must give a debit authorisation to ICICI Bank in the

booklet of instruction slips provided to you. The slip should be given physically at the nearest Branch. (You can also register for the e-Instruction facility to submit transfer instructions through Internet / IVR (Interactive Voice Response System) on Phone and with Speak to Transfer through our Phone Banking Officer ) In the instruction slip, you have to mention the counterparty account details. The counter-party account may be within the same DP (Intra-DP transfers) or with a different DP (Inter-DP transfers) within NSDL or with another depository - CDSL (Inter Depository Transfers). For transfers within NSDL, a TIFD (transfer instruction for delivery) is required. For transfers to a CDSL account, an IDT (inter-depository transfer instruction) is required. Getting instruction slips (TIFD/IDT booklets) You are provided a Personalized TIFD booklet at the time

of opening the account. You will need to use slips from this booklet for all your transfers. For IDT (Inter Depository Transfer slips), request for the same in writing to the nearest Branch. The request should be signed in presence of the Branch Officer. Ensure you use slips allotted to your demat account only as per business rules of NSDL. Please do not use someone elses slip since that will not be