National Securities Depository Limited · BSE:NSDL
National Securities Depository — Investor Presentation (July 2023)
62 slides from National Securities Depository's investor presentation, July 2023
Slide 1: Transfers, Pledge and Margin Pledge of Securities
Transfers, Pledge and Margin Pledge of Securities Be A Prudent Investor
Slide 2: Indian Securities Market - Overview
Indian Securities Market - Overview Market Regulator SEBI Stocks and Commodities Other Depositories Derivative Intermediaries Exchanges Stock Brokers, RTAs, Mutual NSE, BSE, MSE, NSDL, CDSL Funds, MCX etc. Investment Advisors etc.
Slide 3: Starting Investment in Securities Market
Starting Investment in Securities Market Accounts Required Bank Account Trading or Broking Account Demat Account Many DPs offer a 3-in-1 account opening facility which gives you the convenience of opening a trading, demat and bank account – all together. Now many DPs are offering online demat accoun
Slide 4: About NSDL
About NSDL 1996 Demat accountholders First One of the leading present in 99.27% of Depository in Depositories in the world pincodes in India India Wide service network – all States and UTs No. of Service Centres – 59,682
Slide 5: Growing Custody Value
Growing Custody Value > 89% 294.45 337.39 Market Share 227.51 119.30 67.56 Dec. Dec. 2015 Dec. 2020 Dec. June 2023 2010 2021 Total Value of All Assets Held In All NSDL Demat Accounts in ₹ Lakh Crore
Slide 6: NSDL's Progress
NSDL’s Progress 350 Bank deposits and 302 300 NSDL Custody Value 250 244 200 186 172 169 160 155 146 150 140 Aggregate Bank Deposits 129 of All Scheduled Banks (in 117 ₹ Lakh Crore) 110 100 NSDL Demat Custody Value (in ₹ Lakh Crore) 50 Bank Deposit Source : RBI 0 Bulletins Mar. 31, 2017 Mar. 31, 201
Slide 7: NSDL's Progress
NSDL’s Progress GDP and NSDL GDPCustody Value and NSDL Custody Value 350 302 300 250 244 237 201 198 GDP at Market Price (in ₹ Lakh Crore) 200 190186 NSDL Demat Custody Value (in ₹ Lakh 171172 Crore) 154 160 146 150 100 50 GDP Source : https:// dbie.rbi.org.in/ 0 2016-17 2017-18 2018-19 2019-20 2020
Slide 8: Indian Securities Market - Depository System
Indian Securities Market - Depository System Issuer Company / RTA Clearing Corporation (NSE Clearing Other Depository Limited/ Indian Clearing Corporation Limited) DP 1 DP 2 Stock Broker / Stock Broker / Trading Member 1 Investor 1 Investor 2 Clearing Member 2
Slide 9: Services offered by Depository Participant
Services offered by Depository Participant Account Opening Change in account details Demat*, Remat of Account freeze securities, (Account level, ISIN Conversion & Redemption level of Mutual Fund Units and Quantity level) Transfer of securities** Pledge and Margin Pledge of securities *Even unlisted
Slide 10: Key points on Anti-Money Laundering
Key points on Anti-Money Laundering Legislative and Regulatory References • Prevention of Money Laundering Act, 2002 • Prevention of Money Laundering (Rules), 2005 • SEBI Master Circular – October 15, 2019 What is Money Laundering (ML)? • Money Laundering is “the process in which the proceeds of cri
Slide 11: Key points for all Investors
Key points for all Investors Individuals: • Provide officially valid documents for proof of identity and address • Furnish correct information on income, occupation, business, marital status, etc. • Provide accurate financial information – salary or business income as applicable • Inform about any c
Slide 12: Be a Prudent Investor
Be a Prudent Investor Keep record of documents signed, account statements, contract notes received and payments made. Save important emails and take periodic back up of data. Change password of your online accounts frequently. Never share your passwords, OTP, CVV and PIN with any one. Never click on
Slide 13: Be a Prudent Investor
Be a Prudent Investor Inform your DP about any change in your Personal Information such as address, bank account immediately. Always mention your Mobile Number and email ID in account opening form and keep them updated. NSDL publications and presentations are available in Hindi, English and other la
Slide 14: Be a Prudent Investor – Don'ts
Be a Prudent Investor – Don’ts Never deal with any unregistered or unauthorised market intermediary. Check on the SEBI’s website that your stock broker / authorised person, mutual fund distributor, investment advisor are registered with SEBI. Never invest with borrowed money. Avoid unnecessary loans
Slide 15: Be a Prudent Investor
Be a Prudent Investor Nominate Karo - Surakshit, Samajhdaar, | a NSDL aur Atmanirbhar Niveshak Bano! Tecate Hurry!! Last date is 30% September, 2023 ; r NOMINATE YOUR LOVED ONES TODAY!! Opting-in/Opting-out of nomination is mandatory in your Demat Account to avoid your account becoming inactive SCAN
Slide 16: Be a Prudent Investor
| Be a Prudent Investor @ NSDL Technology, Trust & Reach [PT Do Not Fall Prey To Stock Tips, Hot Picks etc. Circulated on Twitter, Instagram, WhatsApp, Telegram, Unsolicited SMS, YouTube Channels etc. Be a Prudent Invest nsult a SEB/ intsgiist red Investment Advisor and D i e Investing
Slide 17: Be a Prudent Investor
| Be a Prudent Investor @ NSDL Technology, Trust & Reach [PT Do Not Invest In Any Ponzi Scheme, Unregistered Collective Investment Scheme or Any Other Schemes Promising Unrealistic Returns
Slide 18: NSDL Newsletter for Investors
NSDL Newsletter for Investors The Financial Kaleidoscope – Free monthly newsletter Newsletter – The www.nsdl.co.in Education Financial Kaleidoscope
Slide 19: SEBI's Mobile App for Investor Education
SEBI’s Mobile App for Investor Education
Slide 20: If You are holding Securities in Paper form
If You are holding Securities in Paper form 1. Provide PAN, KYC information and Nomination to RTA / Company for all joint holders. 2. Get PAN and Aadhaar linked for all joint holders. 3. Folio may be frozen if not complied. 4. Electronic interface provided by company / RTA for various service reques
Slide 21: Grievances Redressal
Grievances Redressal Read Investor Charter at www.nsdl.co.in Education 1. Lodge your complaint with SEBI at www.scores.gov.in/ or SEBI Mobile App - SCORES 2. SEBI Toll free helpline - 18002667575 / 1800227575 3. NSDL helpline - 022-48867000/022- 24997000 4. Online submission of Grievances at www.n
Slide 22: Transfers, Pledge and Margin Pledge of Securities
Transfers, Pledge and Margin Pledge of Securities
Slide 23: Transfer of Securities in Demat Form
ansfer of Securities in Demat Form 1. As per Depositories Act, securities held in demat form are fungible and freely transferable. 2. This means shares etc. held in demat form can be transferred from one person to another or from one demat account to another demat account freely except when they are
Slide 24: Transfer of Securities in Demat Form
ansfer of Securities in Demat Form 1. Off Market transfers are transfers between two beneficial owners’ demat account. None of the parties to transfer (Source and Target accounts) are Clearing Member. Examples – Transfer by father to his child’s account as gift. 2. Market Transfer means transfer bet
Slide 25: Transfer of Securities in Demat Form: Inter Depository Transfers
ansfer of Securities in Demat Form 3. Inter Depository Transfers i. Transfer of securities where source and target accounts are in two different depositories. ii. For inter depository transfers, ISIN should be active in both depositories. iii. These instructions are exchanged online between two depo
Slide 26: How to Transfer Securities in Demat Form?
ow to Transfer Securities in Demat Form? 1. Transfer is possible only upon an instruction from the demat account holder. 2. Instruction can be given by the demat account holder himself or by his Power of Attorney holder. 3. Instruction can be given in paper form (through a Delivery Instruction Slip)
Slide 27: Format of Delivery Instruction Slip
Format of Delivery Instruction Slip
Slide 28: DIS Contents
DIS Contents Ensure to fill up the DIS completely - 1. Source and target account details 2. Market type and settlement number (for market transfers only) 3. ISIN(s) and quantity 4. Reason / purpose and Consideration (for off market transfers only) 5. Execution date 6. DIS must be signed by all the j
Slide 29: Check Your DIS
Check Your DIS 1. Issue of Delivery Instruction book i. Pre-printed serial no. ii. Pre-stamped Client ID 2. Re-issue of Delivery Instruction book Submit signed Requisition Form to DP for another Delivery Instruction book 3. Mapping of client ID with DIS number will be recorded in depository system
Slide 30: Settlement of Off Market Transactions
Settlement of Off Market Transactions Depository 2 3 DP 1 DP 2 1 4 Client A’s demat account Client B’s demat account Funds movement between clients happen outside the depository system
Slide 31: Off Market Transaction
Off Market Transaction Source Target Account Client Client Instruction Delivery instruction by Standing Instruction or Client Receipt-in instruction Movement One client’s account to another client’s account Remarks Additional verification if value > ₹ 5 Lakh 1. Off market instructions wait for adequ
Slide 32: What is Power of Attorney?
What is Power of Attorney? 1. It is a legal instrument to delegate authority to other person to do something what he/she can do himself / herself. PoA is generally used for the purpose of convenience. 2. Can be given to any person or entity for specified or general purposes. Donee can act on behalf
Slide 33: Need of PoA in favour of Stock Broker
Need of PoA in favour of Stock Broker 1. When you sell, you need to give shares to your broker so that he / she can deliver the same to clearing corporation. 2. As the shares are held in your demat account, you need to arrange to transfer shares from your demat account to your broker’s demat account
Slide 34: PoA for Demat Account - SEBI's Guidelines
PoA for Demat Account - SEBI’s Guidelines The POA executed by client in favour of stock broker should be limited to the following: Related to Securities 1. Transfer of securities held in demat account(s) of the client(s) towards stock exchange related margin / delivery obligations arising out of tra
Slide 35: PoA for Demat Account - SEBI's Guidelines
PoA for Demat Account - SEBI’s Guidelines The POA executed by client in favour of stock broker should be limited to the following: Related to Funds 1. For recovering any outstanding amount due from the client(s) arising out of clients trading activities on the stock exchanges through the same stock
Slide 36: PoA for Demat Account - SEBI's Guidelines
PoA for Demat Account - SEBI’s Guidelines 1. Giving PoA in respect of demat account is optional. Except where client wishes to avail internet based trading facility, giving PoA is at the choice of the demat account holder(s). 2. No stock broker or depository participant shall deny services to the cl
Slide 37: PoA for Demat Account - SEBI's Guidelines
PoA for Demat Account - SEBI’s Guidelines 6. PoA should be executed and stamped as per the rules / law prevailing in the place where the PoA is executed or the place where the PoA is kept as a record, as applicable. 7. PoA should contain a clause by which the stock broker would return to the client(
Slide 38: PoA for Demat Account - SEBI's Guidelines
PoA for Demat Account - SEBI’s Guidelines The POA executed by client in favour of stock broker should NOT facilitate stock broker to do the following: 1. Transfer of securities for off market trades. 2. Transfer of funds from the bank account(s) of the Clients for trades executed by the clients thro
Slide 39: PoA for Demat Account - SEBI's Guidelines
PoA for Demat Account - SEBI’s Guidelines The POA executed by client in favour of stock broker should NOT facilitate stock broker to do the following: 5. Prohibit issue of Delivery Instruction Slip to client. 6. Prohibit client(s) from operating the demat account. 7. Merge balances (dues) under vari
Slide 40: Safeguards for Demat Account with PoA to Broker
Safeguards for Demat Account with PoA to Broker 1. Satisfy yourself that you really need to give PoA. If you really need to give, ensure that it is drafted as per SEBI’s guidelines. 2. Obtain a duplicate / certified true copy of the PoA after execution. 3. Register your email ID and mobile number in
Slide 41: Safeguards for Demat Account with PoA to Broker
Safeguards for Demat Account with PoA to Broker 6. Check your Consolidated Account Statement (CAS), Contract Note and Trading Account Ledger regularly. 7. Contact broker / exchange / depository if you do not get the above or find any error therein. 8. Consider splitting your portfolio in more than o
Slide 42: SPEED-e – A Powerful Alternate to DIS and PoA
SPEED-e – A Powerful Alternate to DIS and PoA 1. SPEED-e is a powerful and effective alternate to paper based DIS and PoA. 2. Its an internet based facility which enables demat account holders to submit instruction to DP electronically. 3. Most NSDL DPs offer SPEED-e facility to their demat account
Slide 43: NSDL e-DIS – Demat Gateway
NSDL e-DIS – Demat Gateway Salient features of e-DIS - 1. e-DIS facility can be used by any NSDL demat account holder. 2. No need to give POA to stock broker. 3. Secured communication between broker’s portal and NSDL system. 4. Securities can be moved to broker’s pool account only towards obligation
Slide 44: e-DIS Process
e-DIS Process 1. Client Broker’s Client Login Trading Portal 2. Client re-direction 3. Trigger for 4. Authentication by Client Client Authentication NSDL Demat 6. Debit of Securities Gateway 7. Securities Credited to CM Pool Account 5. Response to Broker NSDL Depository Module
Slide 45: Pledge of Physical Shares
Pledge of Physical Shares Loan Pledgee Agreement Pledgor (Lender) (Borrower) Shares
Slide 46: Pledge Creation and Confirmation
Pledge Creation and Confirmation Depository Pledgee’s DP Pledgor’s DP Pledge created Request Confirmation* Pledgee Agreement Pledgor (Lender) (Borrower) Loan * Not needed if Pledge Standing Instruction is enabled
Slide 47: Pledge Closure (Normal)
Pledge Closure (Normal) Depository Pledgee’s DP Pledgor’s DP Confirmation Pledge closed Request Pledgee Agreement Pledgor (Lender) (Borrower) Repayment of Loan
Slide 48: Pledge Closure (Unilateral)
Pledge Closure (Unilateral) Depository Pledgee’s DP Pledgor’s DP Request Pledge closed Pledgee Pledgor (Lender) (Borrower) Repayment of Loan
Slide 49: Pledge Invocation
Pledge Invocation Depository Pledgee’s DP Pledgor’s DP Request Pledge invoked Securities Pledgee Pledgor (Lender) (Borrower) Notice
Slide 50: Hypothecation Invocation
Hypothecation Invocation Depository Hypothecatee’s DP Hypothecator’s DP Request Invocation upon Hypothecatee Agreement Confirmation Hypothecator (Lender) (Borrower) Notice
Slide 51: Pledge - Points to Remember
Pledge - Points to Remember 1. Pledge instruction can be given in two ways – i. By submission of Pledge instruction form in physical form ii. By submission of Pledge instruction in electronic form through SPEED-e (by e-token users) 2. Pledgor and Pledgee both should have demat account with same / di
Slide 52: Pledge - Points to Remember
Pledge - Points to Remember 7. Pledged shares are blocked in pledgor’s account in favour of pledgee till closure / invocation. 8. Holdings statement of pledgor will reflect pledged balances. 9. Corporate action benefits belong to pledgor. 10.On account of Automatic Corporate Action (e. g. Bonus, Spl
Slide 53: Margin Pledge
Margin Pledge 1. As per SEBI’s guidelines, w.e.f. August 1, 2020 Trading Members and Clearing Members (stock brokers) can accept margin payment in form of securities from their clients, only through a Pledge created in depository system. 2. Earlier, either Title transfer collateral arrangements was
Slide 54: Margin Pledge
Margin Pledge 3. W.e.f. August 1, 2020, collaterals in form of securities can be accepted by stock brokers in form of margin pledge created on the securities held in client’s demat account. 4. Instruction to create margin pledge on securities can be given by client or by the person holding the Power
Slide 55: How to Submit Margin Pledge Instruction?
How to Submit Margin Pledge Instruction? There are three ways to submit Margin Pledge Instruction – 1. You may fill up, sign and submit Form 43 – Margin Pledge Form in paper form to your DP. 2. You may submit Margin Pledge Instruction electronically using NSDL SPEED-e platform, if you are a register
Slide 56: How to Submit Margin Pledge Instruction?
How to Submit Margin Pledge Instruction? 3. Your stock broker (Trading Member) may initiate Margin Pledge instruction on your behalf if you have given a Power of Attorney (POA) in his favour. In this case, you will need to confirm the Margin Pledge instruction using OTP received on your registered
Slide 57: Margin Pledge Confirmation
Margin Pledge Confirmation Receive Confirmation Link On receipt of margin pledge Verify Confirm the Pledge information 5 1 instruction, NSDL shall send a link displayed and if satisfied, to ‘Confirm Margin Pledge confirm the instruction to Transaction’ through SMS and create pledge with the OTP emai
Slide 58: Margin Re-Pledge
Margin Re-Pledge 1. A Trading Member (stock broker) can re- pledge the securities margin pledged by its clients in his / her account, in favour of Clearing Member (CM). A CM can re-pledge the same securities in favour of Clearing Corporation (CC) in respect of approved securities. Re-pledge is possi
Slide 59: Closure of Margin Pledge / Re-pledge
Closure of Margin Pledge / Re-pledge Submit Closure Confimation by Instruction Pledgee Instruction by Broker Client can submit instruction for Pledge will be closed when Alternatively, stock broker can give Closure of Margin Pledge existing in it is confirmed by the an instruction for unilateral clo
Slide 60: Invocation of Margin Pledge / Re-pledge
Invocation of Margin Pledge / Re- pledge TM SUBMITS IF RE- SECURITIES INSTRUCTIO PLEDGED BY VALIDATION DEBIT N TM Stock Broker (TM) Upon successful If the securities Validation of the can submit execution of have been re- margin pledge instruction for Pledge Invocation pledged by TM in instruction w
Slide 61: Follow us on
Demat Ki Paathshala - An initiative by NSDL for Investor Education Follow us on
Slide 62: THANK YOU
THANK YOU We welcome your feedback and suggestions about this program at www.nsdl.co.in / info@nsdl.com
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