Investor Charter For Depositories And Depository Participants

1. Vision

Towards making Indian Securities Market - Transparent, Efficient, & Investor friendly by providing safe, reliable, transparent and trusted record keeping platformfor investors to holdand 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 https://www.cdslindia.com/DP/dplist.aspx

4. Description of services providedby the Depository through Depository

Participants (DPs) to investors

1) Basic Services

Sr. No.	Brief about the Activity / Service	Expected Timelines for processing by the DP after receipt of proper documents
1	Dematerialization of securities	7 days
2	Rematerialization of securities	7 days
3	Mutual Fund Conversion / Destatementization	5 days
4	Re-conversion / Restatementisation of Mutual fund units	7 days
5	Transmission of securities	7 days
6	Registering pledge request	15 days
7	Closure of demat account	30 days
8	Settlement Instruction	For T+1 day settlements, Participants shall accept instructions from the Clients, in physical form up to 4 p.m. (in case of electronic instructions up to 6.00 p.m.) on T day for pay-in of securities. For T+0 day settlements, Participants shall accept EPI instructions from the clients, till 11:00 AM on T day. Note: ‘T’ refers ‘Trade Day’

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

Sr. No.	Type of Activity /Service	Brief about the Activity / Service
1	Value Added Services	Depositories also provide value added services such as a. Basic Services Demat Account (BSDA) b. Transposition cum dematerialization c. Linkages with Clearing System d. Distribution of cash and non-cash corporate benefits (Bonus, Rights, IPOs etc.), stock lending, demat of NSC / KVP, demat of warehouse receipts etc.
2	Consolidated Account statement (CAS)	CAS is issued 10 days from the end of the month (if there were transactions in the previous month) or half yearly(if no transactions) .
3	Digitalization of services provided by the depositories	Depositories offer below technology solutions and e-facilities to their demat account holders through DPs: a. E-account opening b. Online instructions for execution c. e-DIS / Demat Gateway d. e-CAS facility e. Miscellaneous services

5. Details of Grievance Redressal Mechanism

The Process of investor grievance redressal
1	Investor Complaint/ Grievances	Investor can lodge complaint/ grievance against the Depository/DP in the following ways: a. Electronic mode - (i) SCORES 2.0 (a web based centralized grievance redressal system f SEBI) Two Level Review for complaint/grievance against DP: - First review done by Designated Body - Second review done by SEBI (ii) Respective Depository’s web portal dedicated for the filing of compliant (iii) Emails to designated email IDs of Depository - complaints@cdslindia.com b. Offline mode : Email to IGRD@psplonline.com Investors can send physical letters to CDSL on our registered office address.
2	Online Dispute Resolution (ODR) platform for online Conciliation and Arbitration	If the Investor is not satisfied with the resolution provided by DP or other Market Participants, then the Investor has the option to file the complaint/ grievance on SMARTODR platform for its resolution through by online conciliation or arbitration. SMART ODR -https://smartodr.in/login
3	Steps to be followed in ODR for Review, Conciliation and Arbitration	Investor to approach Market Participant for redressal of complaint If investor is not satisfied with response of Market Participant, he/she can escalate the complaint on SEBI SCORES portal. Alternatively, the investor may also file a complaint on SMARTODR portal for its resolution through online conciliation and arbitration. Upon receipt of complaint on SMARTODR portal, the relevant MII will review the matter and endeavour to resolve the matter between the Market Participant and investor within 21 days. If the matter could not be amicably resolved, then the Investor may request the MII to refer the matter case for conciliation. During the conciliation process, the conciliator will endeavor for amicable settlement of the dispute within 21 days, which may be extended with 10 days by the conciliator. If the conciliation is unsuccessful, then the investor may request to refer the matter for arbitration. The arbitration process to be concluded by arbitrator(s) within 30 days, which is extendable by 30 days.

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

Sr. No.	Type of special circumstances	Timelines for the Activity/ Service
1	Depositories to terminate the participation in case a participant no longer meets the eligibility criteria and/or any other grounds as mentioned in the bye laws like suspension of trading member by the Stock Exchanges. Participant surrenders the participation by its own wish.	Client will have a right to transfer all its securities to any other Participant of its choice without any charges for the transfer within 30 days from the date of intimation by way of letter/email.

7. Dos and Don’ts for Investors

For Do’s and Don’ts please refer to the link Dos and Don’ts for Investor

8. Responsibilities of Investors

For rights please refer to the link Rights of investors

9. Code of Conduct for Depositories (Part D of Third Schedule of SEBI (D & P) regulations, 2018)

For rights please refer to the link Code of Conduct for Depositories

10. Code of Conduct for Participants
For responsibilities please refer to the link Code of Conduct for Participants

11. Policy on processing of claims from IPF

Annexure B -

INFORMATION CONTAINED IN LINKS TO THE INVESTOR CHARTER FOR DEPOSITORIES AND DPS

This documentcontains the contentspertaining to the qualifier “[https://www.cdslindia.com/Investors/InvestorCharter.html]” in the Investor Charter main document. The same is to be made available by the Depositories on their websites and web-linksto the same is to be providedfor incorporation in the InvestorCharter.

For reasons of convenience, the contents in main Charter and this document have been mappedwith the same superscript.

Para4 (2) of Investor Charter

Point1: Value Added Services

Basic Services Demat Account (BSDA)1: The facility of BSDA with limited services for eligible individuals was introduced with the objective of achieving wider financial inclusion and to encourage holdingof demat accounts.No Annual Maintenance Charges (AMC) shall be levied, if the value of securities holding isupto 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 AMCcharges for holding value upto Rs 1,00,000 and a maximum of Rs 100 as AMC is chargeable for valueof holdings betweenRs 1,00,001 and Rs 2,00,000.
Transposition cum dematerialization2: 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 System3 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.

Point3: Digitization of services providedby the depositories

E-account opening: Accountopening through digitalmode, popularly knownas “On-line Accountopening”, wherein investorintending to open the demat account can visit DP website, fill in the required information, submit the requireddocuments, 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 accountholder in managinghis/her securities ‘anytime-anywhere’ in an efficient and convenient manner and submitinstructions online withoutthe 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 availableon mobile applications through android, windowsand IOS platforms.
e-DIS / DematGateway: Investorscan give instructions for transfer of securities through e-DIS apart from physical DIS. Here, for on-market transferof securities, investors need to providesettlement number along with the ISIN and quantity of securities being authorized for transfer. Clientshall be requiredto authorize each e-DIS valid for a single settlement number / settlement date, by way of OTP and PIN/password, both generated at Depositories end. Necessary risk containment measures are being adopted by Depositories in this regard.
e-CAS facility: Consolidated Account Statements are available onlineand could also be accessed through mobile app to facilitate the investors to view their holdings in dematform.
Miscellaneous services: Transaction alerts through SMS, e-locker facilities, chatbots for instantaneously responding to investor queries etc. have also been developed.

Para 5(1) of Investor Charter

Point 2 (InvestorGrievance Redressal Committeeof Depository)

If no amicable resolution is arrived, then the Investor has the option to refer the complaint/ grievance to the Grievance RedressalCommittee (GRC) of the Depository. Upon receipt of reference, the GRC will endeavor to resolve the complaint/ grievanceby hearing the parties and examining the necessary information and documents.

Point 3(Arbitration proceedings)

he Investor may also avail the arbitration mechanism set out in the Byelaws and Business Rules/Operating Instructions of the Depository in relation to any grievance, or dispute relatingto depository services.The arbitration reference shall be concluded by way of issue of an arbitral award within 4 months from the date of appointment of arbitrator(s).

Para5(2) of Investor Charter

Complaint Resolution processat Depositories

Para7 of Investor Charter

Dos and Dont's for Investor

Sl No.	Guidance
1.	Always deal with a SEBI registered Depository Participant for opening a demat account.
2.	Read all the documents carefully before signing them.
3.	Before granting Power of attorney to operate your demat account to an intermediary like Stockbroker, Portfolio Management Services (PMS) etc., carefully examine the scopeand implications of powers beinggranted.
4.	Always makepayments to registered intermediary using banking channels. No paymentshould be madein name of employee of intermediary.
5.	Accept the Delivery Instruction Slip (DIS) bookfrom your DP only (pre-printed with a serialnumber along withyour Client ID) and keepit in safe custody anddo not sign or issue blank or partially filledDIS slips. Always mention the details likeISIN, number of securities accurately. In case of any queries, please contact your DP or broker and it should be signed by all demataccount holders. Strike out any blank spaceon the slip and Cancellations or corrections on the DISshould be initialed or signed by all the account holder(s). Do not leaveyour instruction slipbook with anyoneelse. Do not sign blank DIS as it is equivalent to a bearercheque.
6.	Inform any change in your Personal Information (for exampleaddress or BankAccount details, emailID, Mobile number)linked to yourdemat account in the prescribed format and obtainconfirmation of updation in system
7.	Mention your MobileNumber and emailID in account opening formto receive SMSalerts and regular updates directly from depository.
8.	Always ensure thatthe mobile numberand email ID linked to your demataccount are the same as provided at the time of accountopening/updation.
9.	Do not share password of your onlinetrading and demataccount with anyone.
10.	Do not share One Time Password (OTP) received from banks,brokers, etc. These aremeant to be usedby you only.
11.	Do not sharelogin credentials of e-facilities provided by the depositories such as e-DIS/demat gateway, SPEED-e/easiest etc.with anyone else.
12.	Demat is mandatory for any transfer of securities of Listed publiclimited companies with few exceptions.
13.	If you have any grievance in respect of your demataccount, please writeto designated email IDs of depositories or you may lodge the same with SEBI onlineat https://scores.gov.in/scores/Welcome.html
14.	Keep a record of documents signed, DIS issued andaccount statements received.
15.	As Investors you are required to verify the transaction statement carefully for all debits and credits in your account. In case of any unauthorized debit or credit, inform the DP or your respective Depository.
16.	Appoint a nomineeto facilitate yourheirs in obtaining the securities in your demataccount, on completion of thenecessary procedures.
17.	Register for Depository's internet-based facility or download mobileapp of the depository to monitor your holdings.
18.	Ensure that,both, your holdingand transaction statements are received periodically as instructed to your DP. You are entitled to receive a transaction statement every month if you have any transactions.
19.	Do not followherd mentality for investments. Seekexpert and professional advice for your investments
20.	Beware of assured/fixed returns.

Para8 of Investor Charter

Rights of investors

Receive a copy of KYC, copy of accountopening documents.
No minimumbalance is requiredto be maintained in a demat account.
No chargesare 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 statementof accounts periodically. In case of any discrepancies in statements, take up the same with the DP immediately. If the DP does not respond, takeup the matter with the Depositories.
Pledge and /or any other interest or encumbrance can be created on demat holdings.
Right togive standing instructions with regardto the crediting of securities in demat account.
Investor can exercise its right to freeze/defreeze his/herdemat account or specific securities / specific quantityof securities in the account,maintained with the DP.
In case of any grievances, Investorhas right to approach Participant or Depository or SEBI for getting the same resolved within prescribed timelines.
Every eligibleinvestor shareholder has a right to cast its vote on variousresolutions 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 shallnot increase unless a notice in writing of not less than thirty days is given to the Investor.

Para 9 of Investor Charter

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 detailsin Account OpeningForm / 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 mentionthe details like ISIN, numberof securities accurately.
Inform any change in information linkedto demat accountand obtain confirmation of updation in the system.
Regularly verify balances and demat statementand reconcile with trades / transactions.
Appoint nominee(s) to facilitate heirs in obtaining the securities in their demataccount.
Do not fall prey to fraudsterssending emails and SMSs luring to trade in stocks / securities promising huge profits.

Investor helpline details of Depositories

Toll free helpline of depositories
NSDL-18001020990 / 1800224430 | CDSL-1800-22-5533
Emails of depositories for grievances
relations@nsdl.co.in | complaints@cdslindia.com