Demat Services - Personal Banking (2024)

General

What is a Depository?

A depository is an organisation which holds securities of investors in electronic form at the request of the investors through a registered Depository Participant. It also provides services related to transactions in securities.

How is a depository similar to a bank?

It can be compared with a bank, which holds the funds for depositors. A Bank Depository Analogy is given in the following table:

How many Depositories are registered with SEBI?

At present two Depositories viz. Central Depository Services (I) Limited (CDSL) and National Securities Depository Limited (NSDL) are registered with SEBI.

Who is a Depository Participant ?

A Depository Participant (DP) is an agent of the depository through which it interfaces with the investor. A DP can offer depository services only after it gets proper registration from SEBI. Banking services can be availed through a branch whereas depository services can be availed through a DP.

What is the minimum net worth required for a depository?

The minimum net worth stipulated by SEBI for a depository is Rs.100 crore

How many Depository Participants are registered with SEBI?

As on 31/03/2006, total of 538 DPs are registered with SEBI. A list of DP's and their addresses can be downloaded from SEBI website.

Is it compulsory for every investor to open a depository account to trade in the capital market?

As per the available statistics at BSE and NSE, 99.9% settlement takes place in demat mode only. Therefore, in view of the convenience in settlement through demat mode, it is advisable to have a beneficiary owner (BO) account to trade at the exchanges.

What are the benefits of availing depository services?

The benefits are enumerated below :-

• A safe and convenient way to hold securities;
• Immediate transfer of securities;
• No stamp duty on transfer of securities;
• Elimination of risks associated with physical certificates such as bad delivery, fake securities, delays, thefts etc.;
• Reduction in paperwork involved in transfer of securities;
• Reduction in transaction cost;
• No odd lot problem, even one share can be sold;
• Nomination facility;
• Change in address recorded with DP gets registered with all companies in which investor holds securities electronically eliminating the need to correspond with each of them separately;
• Transmission of securities is done by DP eliminating correspondence with companies;
• Automatic credit into demat account of shares, arising out of bonus/split/consolidation/merger etc.
• Holding investments in equity and debt instruments in a single account

Account Opening & Operations

How can services of a depository be availed?

To avail the services of a depository an investor is required to open an account with a depository participant of any depository.

First an investor has to approach a DP and fill up an account opening form.

The account opening form must be supported by copies of any one of the approved documents to serve as proof of identity (POI) and proof of address (POA) as specified by SEBI. Besides, production of PAN card in original at the time of opening of account has been made mandatory effective from April 01, 2006.

All applicants should carry original documents for verification by an authorized official of the depository participant, under his signature.

Further, the investor has to sign an agreement with DP in a depository prescribed standard format, which details rights and duties of investor and DP. DP should provide the investor with a copy of the agreement and schedule of charges for their future reference. The DP will open the account in the system and give an account number, which is also called BO ID (Beneficiary Owner Identification number).

The DP may revise the charges by giving 30 days notice in advance. SEBI has rationalised the cost structure for dematerialisation by removing account opening charges, transaction charges for credit of securities, and custody charges vide circular dated January 28, 2005.

Further, SEBI has vide circular dated November 09, 2005 advised that with effect from January 09, 2006, no charges shall be levied by a depository on DP and consequently, by a DP on a Beneficiary Owner (BO) when a BO transfers all the securities lying in his account to another branch of the same DP or to another DP of the same depository or another depository, provided the BO Account/s at transferee DP and at transferor DP are one and the same, i.e. identical in all respects. In case the BO Account at transferor DP is a joint account, the BO Account at transferee DP should also be a joint account in the same sequence of ownership.

Why should an investor give his bank account details at the time of account opening?

It is for the protection of investor's interest. The bank account number will be mentioned on the interest or dividend warrant, so that such warrant cannot be encashed by any one else. Further, cash corporate benefits such as dividend, interest will be credited to the investors account directly through the ECS (Electronic Clearing Service) facility, wherever available, by the company.

Can an investor change the details of his bank account?

Yes. Since in the depository system monetary benefits on the security balances are paid as per the bank account details provided by the investor at the time of account opening, the investor must ensure that any subsequent change in bank account details is informed to the DP.

What should be done if the address of the investor changes?

Investor should immediately inform his/her DP, who in turn will update the records. This will obviate the need of informing different companies

Can multiple accounts be opened?

Yes. An investor can open more than one account in the same name with the same DP and also with different DPs.

Does the investor have to keep any minimum balance of securities in his/her accounts?

No.

Is it necessary to have account with the same DP as broker has?

No. Depository / DP can be chosen by investor as per convenience irrespective of the DP of the broker.

Can an investor open a single account for securities owned in different ownership patterns

such as securities owned individually and securities owned jointly with others?

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 the individual name and another certificate is jointly with somebody, two different accounts would have to be opened.

What is required to be done if one has physical certificates with the same combination of names, but the sequence of names is different i.e. some certificates with 'A' as first holder and 'B' as second holder and other set of certificates with 'B' as first holder and A' as the second holder?

In this case the investor may open only one account with 'A' & 'B' as the account holders and lodge the security certificates with different order of names for dematerialisation in the same account. An additional form called "Transposition cum Demat" form will have to be filled in. This would help you to effect change in the order of names as well as dematerialise the securities.

Can an investor operate a joint account on "either or survivor" basis just like a bank account?

No. The demat account cannot be operated on "either or survivor" basis like the bank account.

Can someone else operate the account on behalf of the BO on the basis of a power of attorney?

Yes. If the BO authorises any person to operate the account by executing a power of attorney and submit it to the DP, that person can operate the account on behalf of the BO.

Can addition or deletion of names of accountholders is permitted after opening the account?

No. The names of the account holders of a BO account cannot be changed. If any change has to be effected by addition or deletion, a new account has to be opened in the desired holding pattern (names) and then transfer the securities to the newly opened account. The old account may be closed.

Can an investor close his demat account with one DP and transfer all securities to another account with another DP?

Yes. The investor can submit account closure request to his DP in the prescribed form. The DP will transfer all the securities lying in the account, as per the instruction, and close the demat account.

What would be the charges for account closure and securities transfer due to account closing?

SEBI vide Circular No. MRD/DoP/Dep/Cir-22 /05 dated November 09, 2005 advised that with effect from January 09, 2006, no charges shall be levied by a depository on DP and consequently, by a DP on a Beneficiary Owner (BO) when a BO transfers all the securities lying in his account to another branch of the same DP or to another DP of the same depository or another depository, provided the BO Account/s at transferee DP and at transferor DP are one and the same, i.e. identical in all respects. In case the BO Account at transferor DP is a joint account, the BO Account at transferee DP should also be a joint account in the same sequence of ownership.

All other transfer of securities consequent to closure of account, not fulfilling the above-stated criteria, would be treated like any other transaction and charged as per the schedule of charges agreed upon between the BO and the DP.

Whether investors can freeze or lock their accounts?

Investors can freeze or lock their accounts for any given period of time, if so desired. Accounts can be frozen for debits (preventing transfer of securities out of accounts) or for credits (preventing any movements of hindrances into accounts) or for both.

How do I register a change in my signature with SBI Demat account?

You would have to make a request in writing. You would also have to get your signature duly attested by your banker, with whom you hold the bank account that has been specified for receipt of dividend.

Dematerialisation

What is dematerialisation?

Dematerialisation is the process by which physical certificates of an investor are converted to an equivalent number of securities in electronic form and credited into the investor's account with his/her DP.

How can one convert physical holding into electronic holding i.e how can one dematerialise securities?

In order to dematerialise physical securities one has to fill in a DRF (Demat Request Form) which is available with the DP and submit the same along with physical certificates one wishes to dematerialise. Separate DRF has to be filled for each ISIN Number. The complete process of dematerialisation is outlined below:

• Surrender certificates for dematerialisation to your depository participant.
• Depository participant intimates Depository of the request through the system.
• Depository participant submits the certificates to the registrar of the Issuer Company.
• Registrar confirms the dematerialisation request from depository.
• After dematerialising the certificates, Registrar updates accounts and informs depository of the completion of dematerialisation.
• Depository updates its accounts and informs the depository participant.
• Depository participant updates the demat account of the investor.

What is an ISIN?

ISIN (International Securities Identification Number) is a unique identification number for a security.

Can odd lot shares be dematerialised?

Yes, odd lot share certificates can also be dematerialised.

Do dematerialised shares have distinctive numbers?

Dematerialised shares do not have any distinctive numbers. These shares are fungible, which means that all the holdings of a particular security will be identical and interchangeable.

Can electronic holdings be converted back into Physical Certificates?

Yes. The process is called rematerialisation. If one wishes to get back his securities in the physical form one has to fill in the RRF (Remat Request Form) and request his DP for rematerialisation of the balances in his securities account. The process of rematerialisation is outlined below:

• One makes a request for rematerialisation.
• Depository participant intimates depository of the request through the system.
• Depository confirms rematerialisation request to the registrar.
• Registrar updates accounts and prints certificates.
• Depository updates accounts and downloads details to depository participant.
• Registrar dispatches certificates to investor.

Can I dematerialise all my depository eligible securities through the same account?

Yes. You can choose to have all your securities deposited in a single account provided that the securities have the same holders.

Can I dematerialise shares, which are pledged with a bank, which is a DP as well?

Yes, you can, with the permission of the bank with whom such shares are pledged.

How do I demat shares with Pre-Marital / Maiden names?

In such cases you need to submit a certified true copy of the marriage certificate along with the Demat Request Form (DRF), when you give your shares for dematting. Also provide an attested new specimen signature.

How do I get Demat Request Form?

We can e-mail you one blank Dematerialisation Request Form (DRF) or alternatively DRF forms are available at any of the SBI branches offering Demat Services.

Dematerialisation Request Form

Submit a completely filled up Demat Request Form (DRF) in duplicate for each ISIN along with defaced physical securities.

How do I fill 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 CDSL/NSDL. You can check eligibility from the nearest Branch of SBI branches offering Demat Services.
• 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 Vilas Vinshupati Joshi but his name on the share certificate may appear as V. V. Joshi or Vilas V Joshi 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. We can e-mail you one blank Transposition Request Form to be submitted alongwith DRF, alternatively the form is also available at the Demat Branch.

Transposition Application Form

• The DRF must be signed by all the account holder's and should be in the same order. The signature on the DRF should match with the specimen signature with SBI 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 details of certificates such as the folio no., certificate no., & distinctive no. must be filled up correctly on the DRF.

How do I Submit the form?

• You should submit the DRF in duplicate along with the relative certificates. You can submit the DRF at any SBI Bank branches offering Demat Services. Ensure that the certificates are attached in the same order as mentioned in the DRF.
• The acknowledgement slip at the bottom of the form will be stamped and handed over to you after verification by the Bank official.

How do I get credit in the Demat Account?

• The defaced shares along with the DRF are sent by Bank to the registrar who will then credit the customer's 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 Bank has no control.
• To check whether your account has been credited, you can refer to the transaction statement. The same will be reflected in pending demat balance on receiving your request. After dematerialisation, the same will be reflected under free balance.
• In case your account does not get credited within a month of submission, you can either phone us @ 1800 22 04 88 or send a mail at querydp@sbi.co.in or view your 'Statement of Holding' in www.onlinesbi.com under Demat Services Tab. In case there is a delay beyond 40 days, if you so wish, Bank can give you the registrar's name and telephone number as well as your Demat Request Number (DRN).

Can there be a rejection of Demat Requests?

• Your request may get rejected for various reasons either at the DP Centralised Processing Cell (DPCPC) 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.

In case of certificates held jointly, on the death of any one or more of the joint holder(s) mentioned on the certificate, can the surviving joint holder(s) can get the securities dematerialised in the DP account of the surviving holder(s)?

Yes, you can do so by filling up a Transmission-cum-Demat Form. We can e-mail you the form or you may alternatively get the same from your nearest SBI Demat branch.

Transmission-cum-Demat Form

The following documents must be submitted along with the DRF:

• A copy of the death certificate duly notarised.
• Transmission along with Dematerialisation Form.

What is the procedure for buying and selling dematerialised securities?

The procedure for buying and selling dematerialised securities is similar to the procedure for buying and selling physical securities. The difference lies in the process of delivery (in case of sale) and receipt (in case of purchase) of securities.

In case of purchase:-

• You can purchase securities in any of the stock exchanges connected to CDSL/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. The date of credit will depend on your broker's instructions and SBI has no control on the same.
• Broker gives instructions to his DP to debit his clearing member account and credit your depository account.

In case of sale:-

• You can sell your dematerialised securities in any of the stock exchanges linked to CDSL/NSDL through a broker of your choice.
• You need to give a 'delivery instruction' to your DP for debit of your depository account and credit of your broker's 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.

Please Note for Delivery of security:-

• 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 Bank in the booklet of instruction slips provided to you. The slip should be given physically at the nearest branch offering Demat Services.
• In the instruction slip, you have to mention the counter-party account details.

Can I buy and sell shares through SBI Demat Account?

No, shares can be bought and sold only through a stockbroker. SBI Demat account helps in delivering the shares against a sell transaction or receiving the shares for a buy transaction. You can open an account with our broking partners M/s MotiLal Oswal Securities Ltd. or SBI CAPS securities Ltd. to avail of seamless trading and settlement.

Can I deliver dematerialised securities against an obligation in physical segment, in all stock exchanges?

Yes, SEBI has permitted dematerialised securities to be delivered against obligations in the physical segment at the stock exchanges connected to the depository.

Is the facility of delivering dematerialised securities in the physical segments of the stock exchanges, available only for those securities that are to be compulsorily sold in the demat segment of stock exchanges by institutions?

No, dematerialised securities of all the companies that are eligible for dematerialisation can be delivered against obligations in the physical segment. This also applies to delivery against auction of securities in the physical segment.

Delivery Instructions Slip

What is delivery instructions slip (DIS)?

To give the delivery one has to fill a form called Delivery Instruction Slip (DIS). DIS may be compared to cheque book of a bank account. Please remember that the securities that you have in your demat account are similar to the money that you hold in your bank account.

How do I get DIS booklet?

You are provided a "Personalized DIS booklet" at the time of opening the account. You will need to use slips from this booklet for all your transfers.

• If you are nearing exhaustion of all slips in the booklet, you can request for reissue of a new booklet by visiting nearest bank branch offering Demat Services.
• Submit the request on the requisition slip present in your existing booklet.
• Where you are unable to present the request on the requisition slip, you can submit a letter.
• The booklet will be couriered to you and will reach you within a week from the date of submitting the request.

What precautions do one need to observe with respect to Delivery Instruction Slips?

You need to exercise all the precautions for your demat transactions which you exercise for your bank transactions.

• Please keep the DIS booklet safely just like a cheque book and do not give it to anyone else.
• Accept the DIS booklet only if it has a pre-printed serial number as well as your Demat account number pre-stamped on each slip.
• You should personally fill in counter BO-id and all details in the DIS.
• When you are writing your instructions on the DIS slip, strike out the empty space on the slip.
• Do not sign on a DIS slip unless it is completely filled up.
• Do not leave signed blank DIS with anyone viz., broker/sub-broker.
• Please do not use someone else's slip as it is account-specific & it WILL NOT BE ACCEPTED by the system and also cannot be processed as per business rules of Depositories.
• If the account is joint, all the joint holders have to sign the instruction slip. Instruction cannot be executed if all joint holders have not signed.
• Take the acknowledgement copy from the SBI official.

How do I fill a DIS?

Instructions to fill DIS are as follows:

1. SBI Bank DP-ID and SEBI Registration No.: Your DPID and the SEBI Registration No. should be pre-printed before the booklet is issued to you.

BO Name and A/c No.: Your Name and A/c No. should be pre-stamped before the booklet is issued to you. If the same is not pre-stamped, immediately bring it to the notice of the Branch Official.

Date: Specify the date of submitting the DIS. This can be earlier from the 'Execution Date'.

Client Phone No.: Please specify your current / immediate contact no.

Tick appropriate Box :

• ON MKT: When securities are delivered to clearing house directly for the purpose of pay-in, the transaction is ON-MARKET.
• OFF MKT: When securities move from one BO account to another BO account within CDSL, the transaction is OFF MARKET. The Receiving account is not with a clearing house or clearing corporation.
• INT. DP: When securities move from one BO account in CDSL to another BO account with NSDL, the transaction is INTERDEPOSITORY.

Counter BO Id : Specify the BO/Client ID of the target account

Settlement No. : Specify the settlement no. in which the trade was done by your broker. The DIS should be submitted before the pay-in deadline for the settlement no.

Settlement Type : Specify the settlement type on which the trade was done. Ascertain particulars from your broker.

CM/CM-BP-Id : Specify the CM / CM BP ID of the broker to whose pool account securities are to be transferred.

CM-Name: Specify the name of the broker to whose pool account securities are to be transferred.

Common Details

ISIN : Specify the ISIN (International Securities Identification Number) of security to be transferred. Confirm this with your transaction statement/your Broker. Be careful in specifying the correct ISIN as various securities issued by Issuer/Company have different ISINs.

Security Name: Specify the name of the security to be transferred.

Quantity (in Figures and words): Specify the quantity in figures as well in words

Execution Date: Specify the date on which the securities are to be transferred. Please fill this up in consultation with your broker. Submit the DIS well in advance to avoid failure in execution. If DIS is received for same day Execution or after 4.00 pm on T+1 day, it will be executed/accepted at client's risk on best effort basis.

Total Instructions used (In Words and In Figures): Specify the total no. of ISINs to be delivered in words and in figures. This is required to safeguard against unauthorized alteration. Strike out the unused space for ISINs.

Signature and Name of All holders: The holders should sign in the order of their pre-stamped names in the account. The signature should match with that recorded as the specimen signature with SBI. Authenticate all alterations on the form with your full signature.

Cash Transfer: In case of transfers from BO/Client to BO/Client, NOT RELATED TO Stock Exchange transactions, it is mandatory to specify if the consideration is money or otherwise. Amount to be specified in case consideration is money and reason to be specified in case of consideration is otherwise.

Sample-filled OFF-MARKET DIS-

What if I make a mistake in filling up the DIS?

If you make a mistake, alter it clearly, preferably by crossing it out and rewriting the altered word or figure. Sign your name against each alteration, initials only are insufficient. Bank will not be liable for losses arising from alterations which cannot be readily detected by visual inspection. White ink should not be used.

When can I submit a DIS?

• You may issue the instruction well in advance of the date on which you want the securities to be debited from your account. By giving a future dated instruction you cover the risk against non-execution of instruction due to lack of time or last minute rush.
• You should submit the slip latest by 4 p.m. on business day prior to the execution date. DIS received after 4 p.m. will be accepted as 'Received Late. Accepted on best effort basis at Client Risk' and SBI does not undertake any liability for its non-execution.
• Transfer instructions should not be submitted for execution day as holiday. If there is a holiday in between, instruction should be submitted one day in advance.

Can my Delivery Instruction fail, after it has been accepted at the branch?

Yes, an instruction can fail either at the DP Centralised Processing Cell (DPCPC) of SBI or at Depository.

• A failure can happen at the DPCPC on account of signature mismatch or if the DIS slip is incomplete or not properly filled up. Please take due care while filling up the DIS.
• There can be a failure at Depository if your account does not have the required number of specified securities or any other problem.

What if I lose/run out of DIS ?

• If you lose your booklet, report the same in writing to the nearest Demat Branch immediately.
• In case you are unable to present the requisition slip for issue of a new DIS booklet, you can submit a letter (under signatures of all account holders).
• Where you have exhausted your DIS booklet and cannot wait for the time required to fulfill your request for a new booklet, you can also get DIS slips issued across the counter for emergency use. For getting an emergency slip from your branch:
  • You have to personally visit your demat branch
  • You have to request for the slip on the prescribed form available at the branch.
  • DIS issued in such a manner are valid only for immediate use

Is it possible to give delivery instructions to the DP over Internet and if yes, how?

Yes. SBI will recently launch this facility for delivering instructions to your DP over Internet, called eZ-instructions. You can register for eZ-Instructions wherein you can specify upto five accounts to which you can transfer securities through the Internet Banking facilities by registering for the same and paying Rs. 100/- for the POA to avail the service.

When will my Demat Account be Debited?

There will be a debit in your account on the execution date specified in the instruction. You can check the same in your transaction statement. You can also check the 'Statement of Holding' on www.onlinesbi.com or visit the nearest Branch offering Demat Services.

What is Rematerialisation?

Rematerialisation is the process of converting the securities held in electronic form in a demat account to an equivalent number of securities in physical form (certificates) after debiting the same from the demat account.

How do I get a Rematerialisation form?

We can e-mail you the blank rematerialisation or alternatively you may get the same from the Demat Branch - Submit a completely filled up Remat Request Form (RRF) in triplicate for each ISIN. Forms are available at any of the SBI Demat branches.

Rematerialisation Request Form

How do I fill up the form ?

• Ensure that the RRF is completely filled up. Incomplete details may lead to rejection of the remat request.
• Use a separate RRF for each eligible security. Please ensure that name of the security and the ISIN number is entered correctly.
• Submit requests for balances under lock-in through a separate RRF. Do not mix the same with free securities. Amongst lock-in securities belonging to the same ISIN but having different lock-in release dates or lock-in reason, make separate RRF requests.
• You should mention the lot types whether Jumbo or Market Lot clearly. If the same is not filled up then the registrar will send certificates in market lot.
• You must have sufficient free balance in your account for the ISIN for which the RRF is submitted.
• The RRF must be signed by the entire account holder's and should be in the same order. The signature on the RRF should match with the specimen signature with SBI.

How do I submit the form?

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

How do I receive Physical Shares ?

• The RRF is forwarded to the registrar. On acceptance of the remat request by the registrar, your account will be debited. The physical share certificate will be sent directly to you by the registrar. You can also check the same on www.onlinesbi.com or phone us or visit the nearest Branch offering Demat Services.
• The normal time taken for receipt of the physical shares is within a period of 30 days. However the time taken would vary from one registrar to another over which SBI has no control.
• In case you do not receive the physical shares within a month of submission, you can either phone us or write to us, so that we can check with the registrar.
• In case there is a delay beyond 40 days, if you so wish, SBI can give you the registrar's name and telephone number as well as your Remat Request Number (RRN).

Can my Remat request get rejected ?

• Your request may get rejected for various reasons either at the DP Centralised Processing Cell of SBI or by the Registrar. On a rejection, you will be informed about the reason for rejection of the request.
• You can submit a fresh request after resolving the reason for the rejection.

What is Pledge?

Securities held in demat form can be pledged by the client to avail of loan/credit facility. Pledge of securities in CDSL depository requires that both the borrower (pledgor) and the lender (pledgee) should have a demat account with any of the DPs with CDSL. The facility for Inter Depository pledge (where pledgor and pledgee has a demat account with different depositories) is not available.

Please note that financial transactions are handled outside the depository system. However, even after the securities are pledged, the pledgor continues to remain the beneficiary holder of those securities and will receive benefits of a corporate action, if any.

What are the steps involved in Pledge ?

Following are the steps involved in Pledge

• Creation of Pledge:The pledgor submits duly filled in Pledge Request Form to his DP for Creation of Pledge. On execution of the instruction by the DP a pledge sequence no. is generated for each ISIN.
• Confirmation of Pledge Instruction:The pledgee submits duly filled in Pledge Request Form quoting the Pledge sequence No. (given by the pledgor) to his DP. On execution of the instruction the shares are marked as pledged in the pledgor's account. Pledge balances cannot be transferred.
• Closure of Pledge Instruction:The pledgor submits duly filled in UnPledge Request Form to the DP for release of pledge. The pledgor does this after he has repaid the loan received from the pledgee.
• Closure Confirmation of Pledge Instruction: The pledgee submits duly filled in UnPledge Request Form for confirmation of release of pledge to his DP. The pledgee would do this after ensuring that the pledgor has repaid the loan/credit facility extended to him. On execution of instruction the shares move from pledge balance to free balance in the Pledgor's account.
• Invocation of Pledge Instruction: The Pledgee submits duly filled in Invocation Request Form quoting the pledge sequence no. to his DP. On execution of instruction the shares moves from the pledged balance of the Pledgor's account to free balance in the Pledgee's account. The pledgee does this when the pledgor has failed to repay the loan as per his obligations.

How do I get a Pledge Request Form and Unpledge Request Form?

Pledge Request Form and Unpledge Request Forms are also available at all the SBI branches offering Demat Services.

Pledge Request Form Unpledge Request Form

How do I fill up the form?

• Ensure that the Pledge/ Un pledge form is completely filled up. Incomplete details may lead to rejection of the pledge/ Un pledge request.
• You should enter the DPID and Account number correctly on the space provided in the form.
• You should enter the counter-party details correctly on the space provided in the form.
• You must fill up the Agreement number as provided by the pledgee. This refers to the pledge agreement signed between the pledgor and the pledgee.
• You must fill up the Pledge Expiry date and Pledge value as provided by the pledgee. This is referred in the pledge agreement signed between the pledgor and the pledgee.
• You must fill up the ISIN & security name of the security to be pledged.
• If the shares are under lock-in then you should tick in the appropriate box in the space provided.
• The no. of securities should be filled up correctly in the space provided. In case of pledge creation, you must have free balance in the ISIN mentioned.
• The instruction must be signed by all the account holder's and should be in the same order. The signature on the request should match with the specimen signature with SBI.
• You must enter the Pledge sequence number for all types of pledge instructions other than pledge creation instruction.

How do I Submit the form ?

You can submit the pledge/Un pledge request at any SBI branch offering Demat Services. The acknowledgement portion will be stamped and handed over to you after verification by the Bank official.

How does my Instruction get executed?

The instruction is executed at the DP Centralised Processing Cell of SBI. On execution the balances move as mentioned above.

Can my Instruction get rejected ?

• Your request may get rejected for various reasons either at the DP Centralised Processing Cell of SBI or by the counter-party. On a rejection at the Central Processing Office, you will be informed about the reason for rejection of the request.
• You can submit a fresh request after resolving the reason for the rejection.
• If a creation request is rejected by the counter-party the balance will get transferred from the pledged balance to the free balance.

What is freeze/Defreeze of Demat Account?

The client has an option to freeze his account in case he does not intend to do any transaction in the near future. These helps in curbing unauthorised use of demat account & prevention of frauds. Once freezed the account can be unfreezed only on the instruction of the account holders.

How many types of Freezing is Possible?

Following types of Freezing is possible:

Freezed for Debit: In this case any debit instruction cannot be passed unless the account is unfreezed. However the credit in the account will be received provided a standing instruction for credit is given for the account.

Freezed for All : In this case no transfer to & from the account can be done.

ISIN Freezing : In this case a specified ISIN can be freezed, blocking the ISIN for debit.

Quantity Freezing : In this case a specified quantity of a specified ISIN can be freezed, blocking the quantity for debit.

Unfreezing of the account is required to enable the account again for transaction.

How do I get the forms?

The request for freezing & unfreezing must be submitted in the prescribed form.

Freeze-Unfreeze Request Form

Is it possible to get securities allotted in public offering directly in the electronic form?

Yes, it is possible to get securities allotted to in Public Offerings directly in the electronic form. In the public issue application form there is a provision to indicate the manner in which an investor wants the securities allotted. He has to mention the BO ID and the name and ID of the DP on the application form. Any allotment made will be credited into the BO account.

How are cash corporate benefit such as dividend / interest received?

The concerned company obtains the details of beneficiary holders and their holdings as on the date of the book closure / record date from Depositories. The payment to the investors will be made by the company through the ECS (Electronic Clearing Service) facility, wherever available. Thus the dividend / interest will be credited to your bank account directly. Where ECS facility is not available dividend / interest will be given 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 one receive non-cash corporate benefit such as bonus etc.?

The concerned company obtains the details of beneficiary holders and their holdings as on the date of the book closure / record date from depositories. The entitlement will be credited by the company directly into the BO account.

Who should be contacted in case of discrepancies in corporate benefits?

In case of discrepancies in corporate benefits, one can approach the company / its R&T Agent.

What is nomination ?

You can make a nomination of your account in favour of any person by filing up the nomination details in the account opening form. This is to enable the nominee to receive the securities after the death of all the holder(s) of the demat account.

Who can nominate?

Nomination can be made only by individuals holding beneficiary accounts either singly or jointly. Non-individuals including society, trust, body corporate, karta of Hindu Undivided Family, holder of power of attorney cannot nominate.

Who can be a nominee?

Only an individual can be a nominee. A nominee shall not be a society, trust, body corporate, partnership firm, Karta of Hindu Undivided Family or a power of attorney holder.

Can Minor be a nominee?

Where a minor is appointed as a nominee, the name and address of the guardian is also required to be obtained.

Can Nomination be changed?

Where a nomination has not earlier been made or where an earlier nomination is ought to be changed, you can submit a duly filled-in nomination form at the nearest Branch. The account holder and two witnesses must sign this form and the name and address of the nominee must be submitted.

In case of death of account holder(s), how can the securities be transferred to the account of the nominee?

In case of the death of the sole holder or all the joint holders, the nominee must submit a duly filled-in transmission request form along with the notarised copy of death certificate. After verifying these documents, the securities will be transferred to the account of the nominee.

What is transmission of demat securities?

Transmission is the process by which securities of a deceased account holder are transferred to the account of his legal heirs / nominee. Process of transmission in case of dematerialised holdings is more convenient as the transmission formalities for all securities held in a demat account can be completed by submitting documents to the DP, whereas in case of physical securities the legal heirs/nominee/surviving joint holder has to independently correspond with each company in which securities are held.

In the event of death of the sole holder, how the successors should claim the securities lying in the demat account?

The claimant should submit to the concerned DP an application Transmission Request Form (TRF) along with the following supporting documents

Transmission Request Form

Any one of the below mentioned documents.

The DP, after ensuring that the application is genuine, will transfer securities to the account of the claimant.

The major advantage in case of dematerialised holdings is that the transmission formalities for all securities held with a DP can be completed by interaction with the DP alone, unlike in the case of physical share certificates, where the claimant will have to interact with each Issuing company or its Registrar separately.

What are the advantages of Transmission?

The major advantage in case of dematerialised holdings is that the transmission formalities for all securities held with a DP can be completed by interaction with the DP alone, unlike in the case of physical share certificates, where the claimant will have to interact with each Issuing company or its Registrar separately.

In cases of Transmission to whom are the securities transferred?

Transmission of securities refers to the transfer of securities from an account to another as a result of the death of the sole/any of the holder of the former account. For this the latter need not approach each issuing company or it's R & T Agent. Only the DP of the former account needs to be approached. Here the transfer may be done to :

Surviving holders

If the former account is a joint holding account and there is at least one survivor, the survivor(s) can request the DP for the securities to be transferred to his/their demat account.

Nominee where a nomination has been made

If there is no survivor amongst the account holders and a nomination had been made by the holder(s) earlier, the nominee can request the DP for the securities to be transferred to his demat account.

Legal heir where a nomination has not been made

If there is no survivor amongst the account holders and a no nomination had been done by the holder(s) earlier, the legal heirs can request the DP for the securities to be transferred to his demat account. In addition to the documents specified under Common Requirements below, a true copy of the Succession certificate or Probate or Letter of administration duly notarised should be submitted by the claimant.

Are there any transaction charges for transmission?

No transaction charges will be levied for transfer of shares from the old account to the account of the claimant.

What if the Demat account of the claimant does not exist?

If the demat account of the claimant does not exist, a new demat account will need to be opened. If the claimant is having a demat account but with another DP, a proof of the same is required from the other DP. (Client master from the DPM)

Does the claimant have to lodge a claim for transmission separately with each issuing company or its R&T Agent?

The claimant only needs to approach the DP. He need not lodge a claim for transmission separately with each issuing company or its R&T Agent. The following documents should be submitted with the request :

When do I get a transaction statement?

If there is a transaction in the previous 30 days. The customer is sent a transaction statement.

What if there is no transaction in the last 30 days?

If there is no transaction in the previous 30 days but more than 90 days have passed since ending date of the last statement sent to the customer, a quarterly statement is sent if there are some holdings in the customer's account.

What are the options/channels available to get statements?

You have the option of receiving statements either

You can register for option 2 and 3 above by filling the application of demat services through alternate channels.

Demat Services through Alternate Channels

In the event of opting for statements by e-mail -

What are the demat services/features available through the Internet Banking i.e. www.onlinesbi.com ?

Registration for Internet:

To increase convenience to the customers, there is a facility for the customer to directly access his demat account 24 hours a day, 365 days a year through the internet, the features of which are

Account Details :

Provides your account related information like BO/Client Id, PAN No, Joint Holders name, Account Type, Bank Account Details, Nominee Details etc. for a given BO/Client Id.

Holding details:

Gives the details of the all scrips (description and ISIN) held in dematerialized form along with information on the status of the holdings like Current, Free, Frozen, Pledge, Lockin, Earmark, Pending Demat and Pending Remat.

Statement of transaction:

You can view your transaction in your account by choosing date range. The results would display information about the description of the scrip alongwith the date of credit or debit and the resultant balance available.

Billing statement:

You can view your billing statements month wise. The results would display information about the description of the bill alongwith transaction details.

Status of Requests:

You can also view status of your transactions by using Status of Requests by specifying the Transaction Type and Date Range.

ISIN Lookup :

In case you are not aware about the ISIN no. of particular scrip you can search for the same. Just enter first few characters of the ISIN of the security and click on submit. A pop-up would display the results and you can select the ISIN from the list.

Settlement Calendar :

Informs you about payin and payout date for a settlement on all the exchanges electronically connected to NSDL. The facility keeps you updated on settlement cycle & delivery cycle for a given settlement.

DIS Booklet Request :

You can request for physical DIS booklets using DIS Booklet Request link. You can select the booklets and the booklet size you require and personalized booklet of for the account will be delivered to your door step by courier.

eZ-Instructions:

This is a facility that allows you to submit Delivery and Pledge instructions from the comfort of your home / office to five pre-notified target accounts. For accessing the above facilities, the application for registration should be done in the prescribed form. The form can be submitted at any SBI branch offering demat services. In some cases, client may already have an User ID for his existing Bank account with SBI and he may request for his Demat account to be linked to the same User ID (which he is the first holder). In such cases, after the linking he will start seeing his demat account also through the same User name.

What are the demat services/features available through the Mobile Banking i.e. SBI Freedom?

Mobile Banking to be offered shortly

What are the demat services/features available through the Mobile Banking i.e. SBI Freedom? With Mobile Banking you have an option to remain updated while you are on the move, without even having to make a phone call or a visit or logging on the Internet.

Please fill Form Registration for Demat Services through Alternate Channels and submit to any SBI branch offering demat services. The facility is completely FREE. You are not charged a single rupee by SBI for alerts received by you.

Alert Facility

Through this facility, you will receive a mobile alert in the form of SMS whenever there is a significant event in your demat account. You will receive mobile alerts when shares have got credited in your account or if there is an issue with your transfer instruction.

Schedule of Charges, Billing & Payments :

• What is the demat schedule of charges after 31st of July 2008 ?
• What is the periodicity of billing?
• What are the bill details ?
• What if the bill payment could not be recovered ?

What is the demat schedule of charges after 31st of July 2008 ?

Conditions :

Present NSDL and CDSL charges are :

What is the periodicity of billing ?

The bills are generated in the beginning of each month for the previous month. The payment will be directly recovered from the Bank Account specified in the Demat Account Opening Form.

What are the bill details?

The bills contain the following details :-

Bill Head :- Account Maintenance, Demat Mail, Demat Request ,Inter dep., Off Market etc..

Transaction Date:- The date on which transaction has been made.

ISIN Code and Script name:- The ISIN CODE & Script names are displayed for which billing has been made.

Quantity:- This is quantity of shares for which transaction has been made

Rate :- This is the rate at which billing has been made.

Amount:- Amount billed head wise is shown in this column.

Gross Bill Amount:- It is a sum of all bill heads.

Service Tax:- Service Tax has been changed to 12.36% as per the finance bills received. This % may change depending on government notification.

Bill Total:- This is the amount you have to pay.

What if the bill payment could not be recovered ?

If the payment has not been received after 15 days of due date. The intimation letter sent to client to clear his outstanding within 7 days from the receipt of the letter otherwise the account would be suspended. If the payment has been received within 7 days the account will not be suspended. If the payment not received account will be suspended. On receipt of the payment the account will be resumed .

Addition / Modification / Deletion

How do I modify any of my account details?

If you need to add/modify/delete existing details in your demat account, you should make the request for the same in the prescribed form. The account modification form is available at the SBI Branches offering Demat services. Submit the duly filled up form at the Branch.

Addition-Modification-Deletion Request From

You can request for the following through a common form :

The following requirements should be complied with:-

What proofs do I need to submit ?

The following documents should be submitted along with the request

Change of Bank Details for receiving dividend

Change of Address

Permissible proof of Addresses as specified in Page 6.

Closure of Account

What is the procedure to close a Demat Account ?

If you need to close your demat account, you should make the request for the same in the prescribed form. The account closure form is available at the SBI Branches offering Demat services. Submit the duly filled up form at the Branch.

Account Closure Request Form

Please ensure that

There are no holdings in the account or you have requested for transfer of all holdings in your account closure request

You have paid all your dues

Charges on transferring securities on closure of the account are the same as for normal transfers.

Disclaimer : These FAQs are not the interpretation of law but provide only a simplistic explanation of terms /concepts related to the depository system. SEBI does not certify the authenticity of the information present in this section. All information has been updated till March 31, 2006. For full particulars of laws governing the depository system, please refer to the Acts/Regulations/Guidelines/Circulars appearing under the Legal Framework Section.