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With effect from August 6, 2010, NSDL has enhanced its SMS Alert facility whereby Pledgor Clients will receive alerts upon invocation of pledged securities in their demat accounts.

Sample text message of SMS Alert is given below

On __________ (date, dd/mm/yy), ___ (Quantity) ________ (Company Name), debited due to invocation of pledged securities from ur demat a/c no xxxx4086..NSDL

With the above addition, SMS alerts are now being sent by NSDL to demat accountholders for the following

• All Debits and Credits (transfers)
• Credits for IPO, bonus & sub-division
• Failed instructions
• Overdue instructions
• Change of mobile number
• Change of address
• Credit/debit of Mutual Fund units
• Alerts upon invocation of pledged securities to Pledgor Clients

This has been informed to Participants vide Circular No. NSDL/POLICY/2010/0088 dated August 3, 2010.

NSDL had informed its Participants regarding procedure for conversion of Mutual Fund units represented by Statement of Account (SoA) into dematerialised form - through Asset Management Company (AMC) / Registrar and Transfer Agent (RTA) and through Participants for ISINs (security type code '20').

With effect from September 10, 2010, existing procedure for conversion of Mutual Fund units represented by SoA into dematerialised form - through AMC / RTA for ISINs (security type code '20') will be discontinued. Thereafter, conversion requests can be submitted only through Participants.

This has been informed to Participants vide Circular No. NSDL/POLICY/2010/0104 dated September 8, 2010.

SEBI vide its letter no. MRD/DoP/MAS-OW/16723/2010 dated August 17, 2010 had informed that many entities (including promoters of listed companies) transfer shares on off-market basis which leads to change in beneficial ownership and these transfers are stated as pledge. The manner of creating pledge of shares held in a dematerialised form is clearly enumerated under section 12 of the Depositories Act, 1996 and Regulation 58 of the SEBI (Depositories and Participants) Regulations, 1996. In view of the aforesaid, Participants are advised to inform the beneficial owners that any procedure followed other than as specified under the aforesaid provisions of law shall not be treated as pledge.

Further detail about this facility is mentioned in Circular No. NSDL/POLICY/2010/0102 dated September 6, 2010, which is posted on NSDL website www.nsdl.co.in.

In order to ensure better compliance with the Know Your Client (KYC) norms, SEBI had specified that depository accounts which are PAN non-compliant shall also be 'suspended for credit' other than the credits arising out of automatic corporate actions. NSDL has provided with a utility to facilitate Participants to execute freeze instructions, i.e "Suspended for Debit and Credit", in respect of accounts that are non-compliant with PAN requirement.

Further details about this facility are mentioned in Circular No. NSDL/POLICY/2010/0093 dated August 11, 2010.

SEBI vide Circular no. CIR/MRD/DMS/13/2010 dated April 23, 2010 had issued guidelines regarding execution of Power of Attorney (PoA) by the client in favour of Stock Broker / Stock Broker and Depository Participant. Based on the representation received from Market Participants, SEBI vide Circular no. CIR/MRD/DMS/28/2010 dated August 31, 2010 clarified on the issues highlighted in the representations to facilitate implementation of the provisions in the aforesaid circular.

This has been informed to Participants vide Circular Nos. NSDL/POLICY/2010/0045 dated April 30, 2010 and NSDL/POLICY/2010/0100 dated September 1, 2010, which is posted on NSDL website www.nsdl.co.in.

DIRECT (Direct Ideas REgistration of Client accounT) facilitates registration of depository accounts activated under the individual category for IDeAS facility directly at NSDL. For this purpose, registration details are sent at the email address of the Client that is captured by the Participant in the DPM System. Some of these emails do not reach the intended recipient and are returned undelivered / bounced. One of the reasons for bouncing / non-delivery of email is that Client may not have provided the correct email address or it is not properly captured by the Participant. A report is now being made available at intranet site of NSDL (i.e. http://sqlassist/) for emails that have bounced / returned undelivered.

Further details about this facility are mentioned in Circular No. NSDL/POLICY/2010/0089 dated August 4, 2010.

NSDL vide its Circular No. NSDL/POLICY/2009/0091 dated October 5, 2009 had informed its Participants regarding capturing of new bank account numbers in case of change in the existing bank account numbers for ensuring that instructions of ECS/NECS are not rejected on account of old/legacy bank account numbers.

To facilitate identification of Client accounts where the bank account numbers captured in the DPM System are more than 15 digits, a file named 'Legacy Bank Account Numbers' is being provided at the intranet site of NSDL i.e., https://sqlassist. Participants will be required to enter the existing 'Maker' User ID i.e., DP ID and Password to access the file. The file will contain DP ID, Client ID, Client Name, Bank Name and Bank Account Number.

Participants have been requested to inform their Clients to provide the latest bank account numbers in case there is a change in the existing bank account numbers.

This has been informed to Participants vide Circular No. NSDL/POLICY/2010/0101 dated September 3, 2010.

National Spot Exchange Limited (NSEL) has vide Circular No. NSEL/CNS/2010/113 dated August 2, 2010 specified that with effect from August 1, 2010, there will be no storage charge on demat units of E-Gold and E-Silver Contracts.

This has been informed to Participants vide Circular No. NSDL/POLICY/2010/0094 dated August 13, 2010.

NSDL conducts training and certification programmes for Participants to increase the availability of trained personnel for depository operations. In August 2010, such programmes were conducted in Ahmedabad, Bangalore, Calicut, Chennai, Coimbatore, Dehradun, Goa, Hyderabad, Jalandhar, Jamshedpur, Kochi, Kolkata, Lucknow, Mumbai, New Delhi, Palakkad, Rajkot, Ranchi, Thrissur, Trivandrum and Vijayawada. 1,815 persons attended the training programmes conducted at these locations.

In September 2010, The Calcutta Stock Exchange Limited (DP ID IN001027) became operational as a Participant of NSDL. It will conduct its depository operations from Kolkata. This takes the total number of operational Participants to 287 and the total number of DPM set-ups to 360.

NSDL has informed all its Participants that pursuant to the closure of Participant operations by Novel Securities Private Limited, the Participant ID (IN302228) of Novel Securities Private Limited has been deleted from the Depository System.

This has been informed to Participants vide Circular No. NSDL/PI/2010/1791 dated August 18, 2010.