National Securities Depository Limited · BSE:NSDL

National Securities Depository — Investor Presentation (May 2024)

44 slides from National Securities Depository's investor presentation, May 2024

1. Slide 1: Let’s Understand Margin Requirements and Margin Trading

   Let’s Understand Margin Requirements and Margin Trading

2. Slide 2: Indian Securities Market - Overview

   Indian Securities Market - Overview Market Regulator SEBI Stocks and Commodities Other Depositories Derivative Intermediaries Exchanges Stock Brokers, NSE, BSE, MSE, RTAs, Mutual NSDL, CDSL MCX etc. Funds, Investment Advisors etc.

3. 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

4. Slide 4: About NSDL

   About NSDL 1996 Demat accountholders present First Depository One of the leading Depositories in in 99.27% of pincodes in India in India the world Wide service network – all States and UTs No. of Service Centres – 61,298

5. Slide 5: Growing Custody Value

   Growing Custody Value 423.44 > 87% Market 294.45 Share 227.51 119.30 67.56 Dec. 2010 Dec. 2015 Dec. 2020 Dec. 2021 Mar 2024 Total Value of All Assets Held In All NSDL Demat Accounts in ₹ Lakh Crore

6. Slide 6: NSDL’s Progress

   NSDL’s Progress 350 Bank deposits and 302 300 NSDL Custody Value 244 250 200 186 172 169 160 155 146 Aggregate Bank Deposits of All 150 140 129 Scheduled Banks (in ₹ Lakh 117 Crore) 110 100 NSDL Demat Custody Value (in ₹ Lakh Crore) 50 Bank Deposit Source : RBI 0 Mar. 31, 2017 Mar. 31, 2018 Mar. 31,

7. Slide 7: NSDL’s Progress

   NSDL’s Progress 350 GDP and NSDL Custody Value 302 300 250 244 237 201 198 200 190 186 171 172 GDP at Market Price (in ₹ Lakh Crore) 160 154 146 NSDL Demat Custody Value (in ₹ Lakh Crore) 150 100 50 GDP Source : https://dbie.rbi.org.in/ 0 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22

8. Slide 8: Indian Securities Market - Depository System

   Indian Securities Market - Depository System Issuer Company / RTA Clearing Corporation (NSE Clearing Limited/ Other Depository Indian Clearing Corporation Limited) DP 1 DP 2 Stock Broker / Stock Broker / Trading Member 1 Investor 1 Investor 2 Clearing Member 2

9. Slide 9: Services offered by Depository Participant

   Services offered by Depository Participant Account Opening Change in account details Demat*, Remat of securities, Account freeze Conversion & Redemption of (Account level, ISIN level Mutual Fund Units and Quantity level) Transfer of securities** Pledge and Margin Pledge of securities *Even unlisted

10. 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

11. 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

12. 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

13. 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

14. 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

15. Slide 15: Be a Prudent Investor

    Be a Prudent Investor @ NSDL Technolowy, Teust & Rewett wrt Nominate Karo - Surakshit, Samajhdaar, | @ NSDL aur Atmanirbhar Niveshak Bano! B.. Hurry!! Last date is ca ___ June 30, 2024 NOMINATE YOUR LOVED ONES TODAY!! | Teen st Opting-in/Opting-out of nomination is mandatory in your Demat Account to

16. Slide 16: Be a Prudent Investor

    Be a Prudent Investor @ NSDL Technolowy, Teust & Rewett ier Do Not Fall Prey To Stock Tips, Hot Picks etc. Circulated on Twitter, Instagram, WhatsApp, Telegram, Unsolicited SMS, YouTube Channels etc. Be a Prudent Investor ult a SEBI Regist E t Advisor and Do You Homework Bef

17. Slide 17: Be a Prudent Investor

    Be a Prudent Investor @ NSDL Technolowy, Teust & Rewett ier Do Not Invest In Any Ponzi Scheme, Unregistered Collective Investment Scheme or Any Other Schemes Promising Unrealistic Returns

18. 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

19. Slide 19: SEBI Investor Website

    SEBI Investor Website Learn to Manage Your Money for Financial well-being. For more information, please visit SEBI’s Investor website https://investor.sebi.gov.in

20. Slide 20: SEBI’s Mobile App for Investor Education

    SEBI’s Mobile App for Investor Education

21. Slide 21: 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

22. Slide 22: Grievances Redressal

    Grievances Redressal 1. Read Investor Charter at www.nsdl.co.in → Education 2. Lodge your complaint with SEBI at https://scores.sebi.gov.in/ or SEBI Mobile App – SCORES. 3. For filing dispute for resolution by conciliation and arbitration, visit SEBI’s Securities Market Approach for Resolution Throu

23. Slide 23: Be cautious

    Be cautious while scanning QR codes to make payments. Be alert of online loan apps and quick-win lottery schem Be alert. Never click on ) unknown links... you may risk expo: your bank account to frauds. Unauthorised Digital Lena App Fake Lottery Schemes Beware of unknown links: * Delete SMS/emails w

24. Slide 24: Margin and Margin Trading

    © NSDL Margin and Margin Trading

25. Slide 25: What is Margin?

    What is Margin? 1. Margin is the amount and / or security an investor must pay to his / her stock broker before executing a trade. 2. Margin requirements are prescribed by SEBI and enforced by the stock exchanges. 3. Margin requirements do vary for different kinds of securities and investor category

26. Slide 26: What is Margin Trading?

    What is Margin Trading? 1. It is a facility provided by stock broker to clients whereby an client can buy or sell securities without paying 100% amount upfront towards purchase consideration or 100% shares that are sold. 2. The part paid by the investor is called ‘Margin’ and the portion that is not

27. Slide 27: What is the Purpose behind Margin Requirements?

    What is the Purpose behind Margin Requirements? 1. Margin requirements help investors to buy securities of their choice without paying the full amount of money beforehand. 2. Margin Trading helps in increasing trade volumes. 3. By enforcing margin requirements, exchange controls the trading activity

28. Slide 28: Types of Margins for Cash Segment

    Types of Margins for Cash Segment 1. Value at Risk (VaR) Margin or Initial Margin • It is intended to cover the largest loss that can be encountered on 99% of the days. For liquid stocks, the margin covers one-day losses while for illiquid stocks, it covers three-day losses to allow the exchange to

29. Slide 29: What is Peak Margin?

    What is Peak Margin? 1. Peak Margin is the minimum margin that must be collected by brokers from their clients in advance of placing any intraday / delivery order in the Cash and Derivatives segments. 2. Clearing corporations take alteast four random snapshots of all margin status during the trading

30. Slide 30: Implementation of Peak Margin

    Implementation of Peak Margin Phase 1 Phase 2 Phase 3 Phase 4 • 25% of the • 50 % of the • 75 % of the • 100 % of the upfront upfront upfront upfront margin to be margin to be margin to be margin to be available available available available before the before the before the before the trade is being

31. Slide 31: How to Calculate Margin?

    How to Calculate Margin? 1. Stock exchanges provide online margin calculation tools on their website. 2. Most brokers also enable clients to know the margin requirement before undertaking the trade through their website and mobile apps. 3. Certain margins are dynamic and changes depending upon the m

32. Slide 32: How to Calculate Margin? Example

    How to Calculate Margin? Example

33. Slide 33: What is Daily Margin Statement?

    What is Daily Margin Statement? 1. All stockbrokers are required to send a daily margin statement to their clients. 2. This statement provides details of various margin applicable to trades undertaken by client through that broker. 3. It includes - i. Client code and name, Trade day (T) ii. Total ma

34. Slide 34: How to Read Margin Statement?

    How to Read Margin Statement?

35. Slide 35: How to fulfil Margin Requirement?

    How to fulfil Margin Requirement? 1. Once you know your margin obligation, you should fulfil it at the earliest to avoid penal interest. 2. If a client does not pay the margin obligation and broker is penalised by clearing corporation due to this, then the broker may pass on the actual penalty to th

36. Slide 36: How to fulfil Margin Requirement?

    How to fulfil Margin Requirement? 1. Free and unencumbered Balances (funds and securities) available with the Broker in different segments of the Exchange. 2. Bank guarantee issued by any approved bank and discharged in favor of the Broker. 3. Fixed deposit receipts issued by any approved bank and l

37. Slide 37: How to fulfil Margin Requirement?

    How to fulfil Margin Requirement? 7. Free and Unencumbered funds / securities in the demat or bank account of the client for which the client has given POA in favor of the broker may be considered as fulfilment of margin requirements by client if broker or its associate company is a DP. 8. Securitie

38. Slide 38: Margin Requirement for Buy Today, Sell Tomorrow

    Margin Requirement for Buy Today, Sell Tomorrow In case client buys a share on T day with upfront payment of applicable margin and if client sells the same shares on T+1 day, then 1. Client needs to pay separate margin for sale trades also, as Buy and Sell trades are executed in different settlement

39. Slide 39: What is Margin Pledge?

    What is Margin Pledge? 1. 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. 2. Instruction to create margin pledge on securities can be given by client or by the person holding

40. Slide 40: 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

41. Slide 41: How to Submit Margin Pledge Instruction?

    How to Submit Margin Pledge Instruction? 3. Your stock broker (Trading Broker) 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

42. Slide 42: Margin Pledge Confirmation

    Margin Pledge Confirmation Receive Confirmation Link Confirm Pledge 5 On receipt of margin pledge instruction, 1 NSDL shall send a link to ‘Confirm Margin Verify the information displayed and Pledge Transaction’ through SMS and email if satisfied, confirm the instruction to to Client. create pledge

43. Slide 43: Follow us on

    Demat Ki Paathshala - An initiative by NSDL for Investor Education Follow us on

44. Slide 44: THANK YOU

    THANK YOU We welcome your feedback and suggestions about this program at www.nsdl.co.in / info@nsdl.com

National Securities Depository — Investor Presentation (May 2024) on 6ix