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To have a better understanding & to adopt uniform approach in implementing the guidelines for simplification of demat account opening process, SEBI has clarified that separate acknowledgment for having received the ‘Rights and Obligations of the Beneficial Owner and Depository Participant’ be obtained for each account if single Client is holding multiple accounts. As each account is treated as a different client, acknowledgement is to be obtained for each account separately.

Further, in case demat account is operated by Custodians, client will have to submit / acknowledge ‘Rights and Obligations of the Beneficial Owner and Depository Participant’ document. If POA holder has signed the account opening form (as authorized by the power of attorney), then the acknowledgment can be given by the POA holder. This will typically be applicable for non-individual accounts. In case of entities which were exempted from signing Depository Participant – Beneficial Owner agreement, acknowledgement for having received the ‘Rights and Obligations of the Beneficial Owner and Depository Participant’ document, is not required.

(Ref: Circular No. NSDL/POLICY/2014/0031 dated March 21, 2014)

DIRECT (Direct Ideas REgistration of Client accounT) facilitates registration for IDeAS facility directly at NSDL for new as well as existing depository accounts activated in Individual category (i.e. Resident-Ordinary, Resident-HUF, NRI-Repatriable, NRI-NonRepatriable and Foreign National-FN). An email for IDeAS registration is sent to the email address captured in the DPM System in respect of the sole holder or one of the account holder in case of joint accounts.

At present, if the accountholder does not login to IDeAS facility within 30 days of sending of the email, the registration link gets invalid / expired & the accountholder will have to opt for usual method for IDeAS registration. Based on the recommendations received from Participants/clients, with effect from March 15, 2014, NSDL has extended the period for registration of IDeAS facility through DIRECT from 30 days to 60 days.




(Ref: Circular No. NSDL/POLICY/2014/0022 dated March 4, 2014)

As per earlier KRA Regulations, Participants have an option available to access the centralised KRA system in case of a client who is already KYC compliant or carry out fresh KYC process. SEBI has now notified that the option to the Participant of taking fresh KYC documents again from the client has been done away with. However, Participant can undertake enhanced KYC measures commensurate with the risk profile of its clients.

(Ref: Circular No. NSDL/POLICY/2014/0038 dated March 28, 2014)

Government of India vide its notification dated December 18, 2013 in terms of clause 7 (2) of the Rajiv Gandhi Equity Savings Scheme, 2013 informed that ‘The eligible securities shall be held for a period called the fixed lock-in period which shall commence from the date of purchase of such securities in the relevant financial year and end on the 31st day of March of the year immediately following the relevant financial year’. Further, in terms of notification dated November 23, 2012 for the Rajiv Gandhi Equity Savings Scheme, 2012, the fixed lock-in was for a period of one year.

Accordingly, to implement the fixed lock-in for one year, the ‘quantity level freeze’ was executed for ‘Fixed Lock-in’ period of which one year was applicable from the Date of Credit (say December 26, 2012) till the period of one year (i.e. till the EOD of December 25, 2013). However, in view of the notification dated December 18, 2013, the quantity level freeze executed in respect of RGESS eligible securities for fixed lock-in period will continue to remain in ‘Freeze’ status till March 31st and the aforesaid securities will be unfreezed in the BOD of April 1st.

(Ref: Circular No. NSDL/POLICY/2014/0035 dated March 27, 2014)

In addition to providing facility to beneficiary holders to hold dated Government Securities (G-Secs) in dematerialised form in NSDL system, NSDL has now commenced the dematerialisation of Treasury Bills (T-Bills). Since T-Bills are also a form of G-Secs as per Government Securities Act, 2006, the operational procedure(s) in respect of T-Bills for transfer of securities from Subsidiary General Ledger (SGL) / Constituent Subsidiary General Ledger (CSGL) account to the depository account or vice versa, reimbursement of maturity proceeds to the investor(s) etc. will be similar to the procedure(s) currently followed for dated G-Secs.

(Ref: Circular No. NSDL/POLICY/2014/0028 dated March 13, 2014)

• NCDO/NISM training / certification programmes for Participants

To facilitate officials of Participants to prepare and appear for NISM-Series VI Depository Operations Certification Examination (DOCE), NSDL conducted two such training programmes in March 2014 at Mumbai which were attended by 41 officials of Participants.

• CPE Training Programme for Participants

NSDL, an approved NISM Accreditated Continuing Professional Education (CPE) Provider offers CPE training programmes for eligible associated persons of Participants. In March 2014, NSDL conducted eight such training programmes at various locations viz., Chandighar, Chennai, Hyderabad, Jaipur, Kochi, Mumbai, New Delhi and Noida which were attended by 222 officials of Participants.

• KYC Training Programme for Participants

In March 2014, NSDL conducted a ‘KYC requirements for Account Opening’ training programme at Kolkata which was attended by nine officials of Participants. The program focuses on latest developments viz., procedure for opening various depository accounts, BSDA, RGESS, etc., to facilitate efficient functioning of depository operations of Participants.

• SHR Training Programme for Issuers and Registrar & Transfer Agents (RTA)

Training programme for Issuers and Registrar & Transfer Agents (RTA) i.e. SHR training programme focuses on day-to-day operations with respect to various operations modules and aspects of NSDL depository system viz., demat/remat, settlement, Beneficiary Positions, Corporate Action, Reconciliation, Record Maintenance etc. which also covers the various system modules viz., Connectivity, Installation procedure, Fault logging and System Security. In March 2014, NSDL conducted one such training programme in Mumbai which was attended by seven officials.

• Investor Depository Meets (IDMs):

NSDL interacts with investors throughout the country through a series of ‘Investor Depository Meets’. These programs are organised to spread awareness amongst the accountholders and others about the new facilities introduced by NSDL, the safety features and precautions to be taken by accountholders while operating in the depository environment. During March 2014, NSDL organised 11 such IDMs at Sivakasi, Sivagangai and Ramanathapuram in Tamil Nadu, Sibsagar and Tinsukia in Assam, Durg and Rajnandgaon in Chhattisgarh, Chiplun, Ratnagiri and Malvan in Maharashtra, Faridabad in Haryana which were attended by around 300 investors.

• Joint Awareness Programmes with Securities and Exchange Board of India (SEBI):

In order to reach out to masses spread across the country and to apprise them about the facilities available in NSDL depository system, NSDL conducted a Joint Awareness Programme with SEBI in March 2014 at Tirupati in Andhra Pradesh which was attended by around 240 investors.

• Participation in events conducted by Institutions:

In March 2014, NSDL sponsored two events viz., “Cognizance 2014” at Indian Institute of Technology Roorkee, Uttarakhand organised by IIT Roorkee & “Crossroads 2014” at Shri Ram College of Commerce (SRCC), Delhi. Over 900 participants visited the NSDL stall at these events. Various aspects on Depository related services were explained to these participants attending these events.

• Training Programme conducted for college students:

In March 2014, NSDL conducted three training programmes for around 270 college students from different Institutes viz., Joshi Bedekar College of Management Studies, Mumbai, Centre for Management Studies, Dibrugarh University, Assam and Shivaji University, Kolhapur. Various aspects on Depository related services were addressed to these students attending these programmes.

• Training Programme organized by Institutions:

In March 2014, NSDL conducted training programmes on recent developments and the various features available in the NSDL Depository system for 96 Indian Revenue Service (IRS) officers at the request of National Institute of Securities Markets (NISM).

• Corporate Awareness Programme (CAP):

During March 2014, NSDL conducted a Corporate Awareness Programme (CAP) for around 50 employees of “Jack In The Box” in Mumbai. Various aspects on Depository related services were explained to these employees attending this programme.

• NSDL Cricket Extravaganza – 2014

NSDL hosted its annual cricket tournament titled “NSDL Cricket Extravaganza-2014” for its DPs across Mumbai, Ahmedabad, Chennai, Delhi & Kolkata in March 2014. Many DPs participated in this tournament making it a grand success. The categories & list of winners of NSDL Cricket Extravaganza – 2014 are as follows: