To follow highest standards of ethics and compliances while facilitating the trading by clients in securities in a fair and transparent manner, so as to contribute in creation of wealth for investors.
S.No. | Activities | Expected Timelines |
---|---|---|
1. | KYC entered into KRA System and CKYCR | 10 days of account opening |
2. | Client Onboarding | Immediate, but not later than one week |
3. | Order execution | Immediate on receipt of order, but not later than the same day |
4. | Allocation of Unique Client Code | Before trading |
5. | Copy of duly completed Client Registration Documents to clients | 7 days from the date of upload of Unique Client Code to the Exchange by the trading member |
6. | Issuance of contract notes | 24 hours of execution of trades |
7. | Collection of upfront margin from client | Before initiation of trade |
8. | Issuance of intimations regarding other margin due payments | At the end of the T day |
9. | Settlement of client funds | 30 days / 90 days for running account settlement (RAS) as per the preference of client. If consent not given for RAS - within 24 hours of pay-out |
10. | 'statement of Account's for Funds, Securities and Commodities | Weekly basis (Within four trading days of following week) |
11. | Issuance of retention statement of funds/commodities | 5 days from the date of settlement |
12. | Issuance of Annual Global Statement | 30 days from the end of the financial year |
13. | Investor grievances redressal | 30 days from the receipt of the complaint |
Sr.No | DOs | DON'Ts |
1. | Read all documents and conditions being agreed before signing the account opening form. | Do not deal with unregistered stock broker. |
2. | Receive a copy of KYC, copy of account opening documents and Unique Client Code. | Do not forget to strike off blanks in your account opening and KYC. |
3. | Read the product / operational framework / timelines related to various Trading and Clearing & Settlement processes. | Do not submit an incomplete account opening and KYC form. |
4. | Receive all information about brokerage, fees and other charges levied. | Do not forget to inform any change in information linked to trading account and obtain confirmation of updation in the system. |
5. | Register your mobile number and email ID in your trading, demat and bank accounts to get regular alerts on your transactions. | Do not transfer funds, for the purposes of trading to anyone other than a stock broker. No payment should be made in name of employee of stock broker. |
6. | If executed, receive a copy of Power of Attorney. However, Power of Attorney is not a mandatory requirement as per SEBI / Stock Exchanges. Before granting Power of Attorney, carefully examine the scope and implications of powers being granted. | Do not ignore any emails / SMSs received with regards to trades done, from the Stock Exchange and raise a concern, if discrepancy is observed. |
7. | Receive contract notes for trades executed, showing transaction price, brokerage, GST and STT etc. as applicable, separately, within 24 hours of execution of trades. | Do not opt for digital contracts, if not familiar with computers. |
8. | Receive funds and securities / commodities on time within 24 hours from pay-out. | Do not share trading password. |
9. | Verify details of trades, contract notes and statement of account and approach relevant authority for any discrepancies. Verify trade details on the Exchange websites from the trade verification facility provided by the Exchanges. | Do not fall prey to fixed / guaranteed returns schemes. |
10. | Receive statement of accounts periodically. If opted for running account settlement, account has to be settled by the stock broker as per the option given by the client (30 or 90 days). | Do not fall prey to fraudsters sending emails and SMSs luring to trade in stocks / securities promising huge profits. |
11. | In case of any grievances, approach stock broker or Stock Exchange or SEBI for getting the same resolved within prescribed timelines. | Do not follow herd mentality for investments. Seek expert and professional advice for your investments. |
S. No | Type of Activity | Timelines for activity |
---|---|---|
1. | Receipt of complaint | Day Of complaint (C Day) |
2. | Additional information sought from the investor, if any, and provisionally forwarding to stock broker | C +7 Days working |
3. | Registration of the complaint and providing to the stock broker | C +8 Days working i.e T day. |
4. | Amicable Resolution | T +15 Days Working Day |
5. | Refer to Grievance Redressal Committee(GRC),in case of no applicable resolution | T +16 Days Working Day |
6. | Complete resolution process post GRC | T +30 Days Working Day |
7. | In case where the GRC member requires, Additional information,GRC order shall be completed within | T +45 Days Working Day |
8. | Implementation of GRC order | On the receipt of GRC order,if the order is in favor of investor,debit the fund of the stock broker.Order for debit is issued immediately or as per direction given in GRC order |
9. | In case stock broker is aggrieved by the GRC order,will provide intension to avail arbitration | Within 7days from receipt of order |
10. | If intention from stock broker is received and the GRC order amount is upto Rs.20 lakhs | Investor is eligible for interim relief from Investor Protection Fund (IPF).The interim relief will be 50% of the GRC order amount or Rs.2 lakhs whichever is less. The same shall be provided after obtaining an Undertaking from the investor |
11. | Stock Broker shall file for arbitration | Within 6 months from the date of GRC recommendation |
12. | In case the stock broker does not file for arbitration within 6 months | The GRC order amount shall be released to the investor after adjusting the amount released as interim relief, if any. |
1. Vision
Towards making Indian Securities Market - Transparent, Efficient, & Investor friendly by providing safe, reliable, transparent and trusted record keeping platform for investors to hold and transfer securities in dematerialized form.
2. Mission
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 provided by 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 | Depositories to accept physical DIS for pay-in of securities up to 4 p.m. and DIS in electronic form up to 6 p.m. on T+1 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 | Expected Timelines for processing by the DP after receipt of proper documents |
---|---|---|
1. | Value Added Services | Depositories also provide value added services such as
|
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:
|
5. Details of Grievance Redressal Mechanism (DP)
1) 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 -
|
2. | Investor Grievance Redressal Committee of Depository | If no amicable resolution is arrived, then the Investor has the option to refer the complaint/ grievance to the Grievance Redressal Committee (GRC) of the Depository. Upon receipt of reference, the GRC will endeavor to resolve the complaint/ grievance by hearing the parties and examining the necessary information and documents. |
3. | Arbitration proceedings | The 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 relating to 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). |
2) For the Multi-level complaint resolution mechanism available at the Depositories please refer to link [link to be provided by DPs]
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 also provide value added services such as
|
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 [link to be provided by the DPs]
8. Rights of investors
For rights, please refer to the link [link to be provided by the DPs]
9. Responsibilities of Investors
For responsibilities, please refer to the link [link to be provided by the DPs]
Annexure B - INFORMATION CONTAINED IN LINKS TO THE INVESTOR CHARTER FOR DEPOSITORIES AND DPS
This document contains the contents pertaining 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-links to the same is to be provided for incorporation in the Investor Charter.
Para 4 (2) of Investor Charter
Point 1: Value Added Services
Point 3: Digitization of services provided by the depositories
Para 5(1) of Investor Charter
Point 2 (Investor Grievance Redressal Committee of Depository):
If no amicable resolution is arrived, then the Investor has the option to refer the
complaint/ grievance to the Grievance Redressal Committee (GRC) of the Depository.
Upon receipt of reference, the GRC will endeavor to resolve the complaint/ grievance
by hearing the parties and examining the necessary information and documents
Point 3 (Arbitration proceedings)
:
The 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 relating to 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).
Para 5(2) of Investor Charter
Complaint Resolution process at Depositories1
Para 7 of Investor Charter
Dos and Don'ts for Investor
Sr.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 scope and implications of powers being granted. |
4 | Always make payments to registered intermediary using banking channels. No payment should be made in name of employee of intermediary. |
5 | Accept the Delivery Instruction Slip (DIS) book from your DP only (pre-printed
with a serial number along with your Client ID) and keep it in safe custody and
do not sign or issue blank or partially filled DIS slips Always mention the details like ISIN, number of securities accurately. In case of any queries, please contact your DP or broker and it should be signed by all demat account holders. Strike out any blank space on the slip and Cancellations or corrections on the DIS should be initialed or signed by all the account holder(s). Do not leave your instruction slip book with anyone else. Do not sign blank DIS as it is equivalent to a bearer cheque. |
6 | Inform any change in your Personal Information (for example address or Bank Account details, email ID, Mobile number) linked to your demat account in the prescribed format and obtain confirmation of updation in system. |
7 | Mention your Mobile Number and email ID in account opening form to receive SMS alerts and regular updates directly from depository. |
8 | Always ensure that the mobile number and email ID linked to your demat account are the same as provided at the time of account opening/updation. |
9 | Do not share password of your online trading and demat account with anyone. |
10 | Do not share One Time Password (OTP) received from banks, brokers, etc. These are meant to be used by you only |
11 | Do not share login 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 public limited companies with few exceptions. |
13 | If you have any grievance in respect of your demat account, please write to designated email IDs of depositories or you may lodge the same with SEBI online at https://scores.gov.in/scores/Welcome.html |
14 | Keep a record of documents signed, DIS issued and account 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 nominee to facilitate your heirs in obtaining the securities in your demat account, on completion of the necessary procedures. |
17 | Register for Depository's internet-based facility or download mobile app of the depository to monitor your holdings. |
18 | Ensure that, both, your holding and 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 follow herd mentality for investments. Seek expert and professional advice for your investments. |
20 | Beware of assured/fixed returns. |
Para 8 of Investor Charter
Rights of investors
Para 9 of Investor Charter
Rights of investors