Investor Charter

1. Vision

Towards making Indian Securities Market - Transparent, Efficient, & Investor friendly by providing safe, reliable, transparent and trusted record keeping platform for investors to hold and transfer securities in dematerialized form.

2. Mission

• To hold securities of investors in dematerialised form and facilitate its transfer, while ensuring safekeeping of securities and protecting interest of investors.
• To provide timely and accurate information to investors with regard to their holding and transfer of securities held by them.
• To provide the highest standards of investor education, investor awareness and timely services so as to enhance Investor Protection and create awareness about Investor Rights.

3. Details of business transacted by the Depository and Depository Participant (DP)

A Depository is an organization which holds securities of investors in electronic form. Depositories provide services to various market participants - Exchanges, Clearing Corporations, Depository Participants (DPs), Issuers and Investors in both primary as well as secondary markets. The depository carries out its activities through its agents which are known as Depository Participants (DP). Details available on the link

NSDL Site : [https://nsdl.co.in/dpsch.php]

CDSL Site : [https://www.cdslindia.com/DP/dplist.aspx]

4. Description of services provided by the Depository through Depository Participants (DP) to investors

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

5. Details of Grievance Redressal Mechanism

(1) The Process of investor grievance redressal

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

6. Guidance pertaining to special circumstances related to market activities: Termination of the Depository Participant

7. Dos and Don’ts for Investors

8. Rights of investors

9. Responsibilities of Investors

Format of Complaints against DPs to be displayed on their websites

A. Data for the Month ending Mar’23 -

B. Trend of Monthly disposal of complaints for the Financial Year-

C. Trend of Annual (FY) disposal of complaints (For 3 years on rolling basis)-

Investor Grievance Redressal mechanism - Escalation Matrix

INFORMATION CONTAINED IN LINKS TO THE INVESTOR CHARTER

Basic Services Demat Account (BSDA) : The facility of BSDA with limited services for eligible individuals was introduced with the objective of achieving wider financial inclusion and to encourage holding of demat accounts. No Annual Maintenance Charges (AMC) shall be levied, if the value of securities holding is upto Rs. 50,000. For value of holdings between Rs 50,001- 2,00,000, AMC not exceeding Rs 100 is chargeable. In case of debt securities, there are no AMC charges for holding value upto Rs 1,00,000 and a maximum of Rs 100 as AMC is chargeable for value of holdings between Rs 1,00,001 and Rs 2,00,000.

Transposition cum dematerialization : In case of transposition-cum- dematerialisation, client can get securities dematerialised in the same account if the names appearing on the certificates match with the names in which the account has been opened but are in a different order. The same may be done by submitting the security certificates along with the Transposition Form and Demat Request Form.

Linkages with Clearing System for actual delivery of securities to the clearing system from the selling brokers and delivery of securities from the clearing system to the buying broker.

E-account opening : Account opening through digital mode, popularly known as “On-line Account opening”, wherein investor intending to open the demat account can visit DP website, fill in the required information, submit the required documents, conduct video IPV and demat account gets opened without visiting DPs office.

Online instructions for execution : internet-enabled services like Speed-e (NSDL) & Easiest (CDSL) empower a demat account holder in managing his/her securities ‘anytime-anywhere’ in an efficient and convenient manner and submit instructions online without the need to use paper. These facilities allows Beneficial Owner (BO) to submit transfer instructions and pledge instructions including margin pledge from their demat account. The instruction facilities are also available on mobile applications through android, windows and IOS platforms.

e-DIS / Demat Gateway : Investors can give instructions for transfer of securities through e-DIS apart from physical DIS. Here, for on-market transfer of securities, investors need to provide settlement number along with the ISIN and quantity of securities being authorized for transfer. Client shall be required to authorize each e-DIS valid for a single settlement number / settlement date, by way of OTP and PIN/password, both generated at Depositories end. Depositories are adopting necessary risk containment measures in this regard.

e-CAS facility : Consolidated Account Statements are available online and could also be accessed through mobile app to facilitate the investors to view their holdings in demat form.

Miscellaneous services: Transaction alerts through SMS, e-locker facilities, chat bots for instantaneously responding to investor queries etc. have also been developed.

Complaint Resolution process at Depositories:

Dos and Don’ts for Investor

Rights of investors

• Receive a copy of KYC, copy of account opening documents.

• No minimum balance is required to be maintained in a demat account.

• No charges are payable for opening of demat accounts.

• If executed, receive a copy of Power of Attorney. However, Power of Attorney is not a mandatory requirement as per SEBI / Stock Exchanges. You have the right to revoke any authorization given at any time.

• You can open more than one demat account in the same name with single DP/ multiple DPs.

• Receive statement of accounts periodically. In case of any discrepancies in statements, take up the same with the DP immediately. If the DP does not respond, take up the matter with the Depositories.

• Pledge and /or any other interest or encumbrance can be created on demat holdings.

• Right to give standing instructions with regard to the crediting of securities in demat account.

• Investor can exercise its right to freeze/defreeze his/her demat account or specific securities / specific quantity of securities in the account, maintained with the DP.

• In case of any grievances, Investor has right to approach Participant or Depository or SEBI for getting the same resolved within prescribed timelines.

• Every eligible investor shareholder has a right to cast its vote on various resolutions proposed by the companies for which Depositories have developed an internet based ‘e-Voting’ platform.

• Receive information about charges and fees. Any charges/tariff agreed upon shall not increase unless a notice in writing of not less than thirty days is given to the Investor.

Responsibilities of Investors

• Deal with a SEBI registered DP for opening demat account, KYC and Depository activities.

• Provide complete documents for account opening and KYC (Know Your Client). Fill all the required details in Account Opening Form / KYC form in own handwriting and cancel out the blanks.

• Read all documents and conditions being agreed before signing the account opening form.

• Accept the Delivery Instruction Slip (DIS) book from DP only (preprinted with a serial number along with client ID) and keep it in safe custody and do not sign or issue blank or partially filled DIS.

• Always mention the details like ISIN, number of securities accurately.

• Inform any change in information linked to demat account and obtain confirmation of updation in the system.

• Regularly verify balances, demat statement, and reconcile with trades / transactions.

• Appoint nominee(s) to facilitate heirs in obtaining the securities in their demat account.

• Do not fall prey to fraudsters sending emails and SMSs luring to trade in stocks / securities promising huge profits.