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Demat Facility

Depository Services

Majority of security related transactions in the Indian Capital market has been shifted to the De-materialised form. Therefore, it has become all the more necessary for Investors to maintain Depository accounts. To facilitate our clients including NRIs and investors in general, Corporation Bank has started depository services by opening a Specialised branch in association with National Securities Depositors Ltd. at Mumbai – 45, Nariman Bhavan, 227, Backbay Reclamation, Nariman Point, Mumbai – 400 021 (Telephone Nos: 022 2288 1817 and 2288 5299, Fax No.2288 5298).

The physical security certificates are converted into electronic form that is called as "De-materialised form" ( Demat). The depository service is a facility for holding securities (tradeable in Stock Exchanges) in electronic form and transactions are processed by book entry. Under the arrangement, the depository acts as registered owner of the securities in electronic form in the books of issuing company and the client is the beneficial owner.

The Depository Participant through whom the Demat accounts are operated acts as an agent of the Depository. The National Securities Depository Ltd. (NSDL) and Central Securities Depository Ltd. are the two recognised depositories in India. Corporation Bank has started the depository services in association with NSDL who is the major player in the market.

The Depository and the Depository Participants are bound by regulations framed under the following:

vSecurities & Exchange Board of India Act 1992
vThe Depositories Act, 1996
vSecurities & Exchange Board of India (Depositories & Participant) Regulations 1996
vDepository (NSDL) Bye-Laws
vBusiness Rules framed by the Depository (NSDL)

1.2 Activity:

The Depository through the Depository participants is offering the following services to their clients:

vOpening of Account
vSettlement of transactions
vPledge and Hypothecation
vStock lending and borrowing.

1.3 Benefits:

vImmediate transfer of securities;
vNo stamp duty on transfer of securities;
vElimination of risks associated with loss, forged transfer, bad delivery, fake certificates etc;
vReduction in paperwork involved in transfer of securities;
vReduction in transaction cost;
vNomination facilities;
vEasy and fast recording of change of address and avoids multiple correspondence;
vEasy and cost effective transmission of securities;
vConvenient method of consolidation of folios and accounts;
vNeed to maintain one account for equity and debt instruments;
vEasy follow-up and verification with pass book.

1.4 Types of Accounts:

The following types of Accounts may be opened:

vIndividual in sole name
vIndividuals in joint names

1.5 Features:
Some of the important features of Depository accounts are as follows:

vMore than one depository account can be opened in the same name or joint name
vMaintenance of minimum balance is not required
vOne time standing instructions for receiving credits to the account/s

1.6 Procedure to open DP account:

vFill and sign the prescribed account opening form;
vNRIs should furnish attested copy/original Power of Attorney for operation of account;
vSubmit proper introduction and documents as proof of address;
vExecution of required agreement

On opening the depository account, account holder will be provided with the following:

vAccount No.- a unique combination of account no. with DP identification (I D);
vPre-printed instruction slips for depository service viz: dematerialisation, delivery instructions for trades etc., re-materialisation;
vProvided with list of deadlines for giving instructions for various depository activities i.e. transfer for affecting sale, purchase etc.

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