Demat Account : Services Offered

Services Offered

Various services offered by DPs with respect to these accounts are as follows:

Standing Instruction Facility

DP enters the advice for the transfer of securities to or from a beneficial owner's account only on receipt of instructions from the client. The clients need to give delivery instruction to transfer securities from their account and receipt instruction to get credit into their account. However, for ease of operation, a facility of standing instruction is provided to the clients for receiving securities to the credit of their accounts without any further instruction from them.

Dematerialisation

Dematerialisation is the process by which a client can get physical certificates converted into electronic balances.

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.

Transposition cum Demat

This is a facility whereby securities held jointly can be dematerialised in an account of same joint holders but having different sequence of names. e.g. securities held in joint names of X and Y can also be dematerialised in an account opened in the names of Y and X by submitting an additional form called transposition form along with dematerialisation request form (DRF) to the DP.

Consolidation of Accounts

Some clients could have opened multiple accounts to dematerialise their shares held in multiple combinations and sequence of names. However, they may not need so many accounts after they have dematerialised their securities and may want to bring all their shareholdings into one or fewer accounts. Using off-market account transfer instruction such consolidation can be done.

Closure of Account

If you want to close your demat account, you need to make a request for it in the prescribed form. The account closure form is available on website and at any Branch providing demat services. Please submit the duly filled-up form at the branch where your demat is maintained.

Before submitting the form, please ensure that:

Either there are no holdings in the account or you have requested transfer of all the holdings present in the account in the account-closure form (transferring the holding balance to the credit of another demat account opened by the same account holder(s) either with the same DP or with a different DP.)

You have paid all your dues..

Freezing of Accounts

Account freezing means suspending any further transaction from the depository account till the account is de-frozen. 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 and prevention of frauds. Once freezed, the account can be de-freezed only on the instruction of the account holders.

De-freezing of the account is required to enable the account again for transaction.

A depository account maintained with a DP can be frozen if the DP receives a freeze request form from the client. A frozen account can be de-frozen or re-activated if the client submits unfreeze request form to the DP.

Demat Services/Utilities

IDeAS(NSDL): facility to check balance and transactions online.

SPEED-e (NSDL): facility to submit delivery instructions to us through SPEED- e website https//eservices.nsdl.com/

Easi (CDSL): Access of Demat account through the internet to check the details of their holdings/ valuation and transactions, corporate announcements, anytime anywhere,       through CDSL’s website www.cdslindia.com

Easi/Easiest(CDSL): electronic access to securities information and execution of secured transactions.

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Demat Account : About Demat

What is Dematerialisation of Securities (demat)? and How does it work?

Dematerialisation of Securities (demat)

Process of dematerialisation

Availability of forms

Filling up the form

Submitting the form

Rejection of demat requests

Transmission-cum-demat

Dematerialisation of Securities (Demat)

Dematerialisation is the process of converting the securities held in physical form (certificates) to an equivalent number of securities in electronic form and crediting the same to the investor's demat account.

Selected securities announced by SEBI can be delivered only in demat form in the stock exchanges connected to NSDL/CDSL.

All the names on the demat account opening form should be exactly the same as stated on the physical certificates to ensure seamless dematerialization of securities.

Process of Dematerialisation

An investor intending to dematerialise its securities needs to have a demat account with a DP.

To convert the physical shares into electronic/demat form, a dematerialization request form (DRF), has to be filled in and deposited along with share certificates. The investor has to deface and surrender the certificates registered in its name to the DP. On each share certificate, 'surrendered for dematerialization' needs to be mentioned.

The DP needs to process this request along with the share certificates to the company and simultaneously to registrars and transfer agents through the depository.

After intimating depository electronically, the DP sends the securities to the concerned issuer/R&T agent.

If the issuer/R&T agent finds the certificates in order, they communicate to depository the confirmation of dematerialisation request electronically and the share certificates in the physical form will be destroyed.

The depository will then confirm the dematerialization of shares to the DP. Once this is done, a credit in the holding of shares will reflect in the investor's demat account electronically.

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.

Availability of Forms

Submit a completely filled-up demat request form (DRF) in triplicate for each ISIN along with the defaced physical certificates. The forms are available at any Bank of Baroda branch offering demat services.

Filling 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 NSDL/CDSL.

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 and 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 Tanmay Kumar Shah but his name on the share certificate may appear as T.K. Shah or Tanmay Shah, 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. The form is also available at the nearest Branch.

The DRF must be signed by all the account holders and should be in the same order. The signature on the DRF should match with the specimen signature with Bank of Baroda. If the signature differs, you should sign the DRF in the presence of the Branch Officer

The details of certificates such as the folio no., certificate no., and distinctive no. must be filled up correctly on the DRF.

Submitting the form

You must deface the certificates by putting a stamp or by writing ''Surrendered for Dematerialisation". However, defacing should be done only after checking the eligibility of security, as defaced securities cannot be sold in physical form. If defacing has been done by mistake then you should send the same to registrar for replacement.

*NSDL Business Rule 11.1.7.

The Participant shall ensure that the certificates submitted for dematerialisation are marked by the Client (customer) with the words "Surrendered for Dematerialisation".

Certificates should not be mutilated or defaced in such a way that the material information is not readable. Ensure that the certificates are attached in the same order as mentioned in the DRF. You should submit the DRF in triplicate to the branch. The acknowledgement slip at the bottom of the form will be stamped and handed over to you after verification by Bank official.

Rejection of Demat Requests

Dematerialisation request may get rejected for various below mentioned reasons either at the demat back office of Bank of Baroda or by the Registrar. Dematerialisation is done by the Registrar only when it is satisfied of genuineness of securities and ownership status.

On a rejection, the securities are sent back to DP stating the reason for the rejection. DP returns the rejected DRF request to branch and customer can collect from branch.

Customer 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.

Some common reason for Rejection of DRF request:

A dematerialisation request can be rejected in the case of the following objections:

Transmission-cum-Demat

In case of certificates held jointly, on the death of any one or more of the joint holder(s) mentioned on the certificate, the surviving joint holder(s) can get the name(s) of the deceased deleted from the physical certificate(s) and get the securities dematerialised in the DP account of the surviving holder(s) by submitting the following documents along with the DRF:

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 holders of the former account. For this the latter need not approach each issuing company or its 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. Surviving holder(s) has to request the DP vide a form called the transmission form along with a copy of notarised death certificate and original client master having demat account details of surviving holder to transmit the securities lying in the account of the deceased holder. For this purpose, the surviving clients must have a depository account, which can be with the same DP or with a different DP.

Nominee where a nomination has been made

Upon the death of sole account holder or 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.

The nominee must request the DP in writing along with a certified true copy of the death certificate and transmission form and original client master having demat account details to transmit the securities covered by the nomination to the account of the nominee. The DP will ensure the completeness of the form and validity of the signature of the client and then execute the transmission request. Thus, transmission of securities where nomination has been made eliminates the need of cumbersome legal documents such as will, succession certificate, etc.

In addition to the documents specified under above, an affidavit duly completed by the nominee in the format specified by NSDL/CDSL and attested by a notary/magistrate should be submitted by the claimant.

Legal heir where nomination has not been made

In case of death of the sole holder, the legal heir(s) or legal representative(s) of the deceased must request the DP to transmit the balances lying in the client account of the deceased to the account of the legal heir(s) or legal representative(s). For this, the legal heir (s) or the legal representative(s) of such securities must submit an instruction called the transmission form to the DP along with the following documents:

However, if the legal heir(s) or the legal representative(s) express inability to produce either of the documents mentioned under (b) and (c) above, and the market value of the securities held in each account of the deceased as on the date of application for transmission does not exceed Rs. 1 lakh, then the DP will process the transmission request on the basis of the following documents:

The DP will ensure that the documents submitted by the legal heir(s) or the legal representative(s) are in order and will then effect a transfer of the balances to the client account of the legal heir(s) or the legal representative(s). After effecting the transmission, the DP will close the account of the deceased.