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Redemption or Repurchase

Clients can redeem mutual fund units held in demat accounts through two modes i.e., through their Participants or Stock Brokers. To redeem the mutual fund units through Participants, Clients are required to submit Repurchase / Redemption Form (RF) to Participants. The current procedure requires the Participants to execute electronic redemption request in the eDPM System and forward the physical copy of the RF to the Issuer / Registrar and Transfer Agent (RTA). In this regard, the redemption process has been simplified as follows

• As per SEBI's advice, Participants need not forward the physical copy of the RF to the Issuer / RTA. After due verification, the RF submitted by Clients will be retained by the Participants. Participants are required to only execute electronic redemption request in the eDPM System.
• The RF has been re-designed to make it simpler for Clients and Participants to fill and process the RF respectively.

Accordingly, necessary amendments have been carried out in Business Rules.

(Ref: Circular No. NSDL/POLICY/2010/0140 dated December 30, 2010, which is posted on NSDL website www.nsdl.co.in.)

Extension of NSDL deadline time from 10.40 am to 10.50 am for various settlements of NSE, BSE and CSE

With effect from January 3, 2011, the NSDL deadline time for Pay-in of securities for various settlements of NSE, BSE and CSE has been extended from 10.40 am to 10.50 am in respect of the following market types:

(Ref: Circular Nos. NSDL/POLICY/2009/0082 dated September 9, 2009, NSDL/POLICY/2010/0128 dated December 11, 2010 and NSDL/POLICY/2010/0129 dated December 11, 2010.)

Extension of deadline time for submission of instructions on SPEED-e on a Pay-in day

With effect from January 3, 2011, the deadline times for submission of pay-in instructions on SPEED-e on the pay-in day are as follows

In case there are multiple pay-ins of same market type for a stock exchange scheduled on the same day, the deadline time of submission of instructions on SPEED-e on the pay-in day will be 8.00 am for all multiple pay-ins of same market type. The new deadline time is displayed on the SPEED-e website.

(Ref: Circular No. NSDL/POLICY/SPEED-e/2011/0001 dated January 1, 2011.)

Extension in EOD timings for Participants from 8.30 pm to 9.30 pm on weekdays

With effect from January 3, 2011, the EOD time at the eDPM / Local DPM System has been extended from 8.30 pm to 9.30 pm on weekdays. Further, the EOD at DM will commence at 10.00 pm on weekdays. EOD for Saturday will be remain unchanged at 4.30 pm.

(Ref: Circular No. NSDL/POLICY/2011/0001 dated January 1, 2011.)

Deadline time for submission of instructions for Mutual Fund units on SPEED-e facility

Further to NSDL Circular No. NSDL/POLICY/2010/0137 dated December 24, 2010 regarding transactions in Mutual Fund (MF) schemes through the Stock Exchange infrastructure, the deadline time for submission of instructions on SPEED-e in respect of MF units (Security type Code '20') are as follows

(Ref: Circular No. NSDL/POLICY/SPEED-e/2011/0002 dated January 24, 2011.)

Format for application to SEBI for opening of wholly owned subsidiaries or entering into joint ventures in other countries

SEBI has vide its email dated January 12, 2011 informed about the format for application to SEBI for opening of wholly owned subsidiaries or entering into joint ventures in other countries.

Ref: Circular No. NSDL/POLICY/2011/0006 dated January 14, 2011, which is posted on NSDL website www.nsdl.co.in.)

SEBI's Discussion Paper on outsourcing of activities related to Intermediation Services

SEBI has prepared a discussion paper on outsourcing of activities related to the intermediation services. The paper proposes certain principles for outsourcing, and indicates activities presently being outsourced by the intermediaries along with the suggested list of activities which should not be outsourced by them.

The discussion paper is available for public comments on SEBI's website www.sebi.gov.in under the heading "Reports for Public Comments"

(Ref: Circular No. NSDL/POLICY/2011/0009 dated January 20, 2011.)

SEBIs Clarification on opening of account in case of HUF

SEBI vide Master Circular no. CIR/MRD/DP/ 41 /2010 dated December 31, 2010 for Depositories has clarified the following in case of Beneficial Owner (BO) account

HUF, Association of Persons (AoP), Partnership Firm, unregistered Trust, Registered Trust, Corporate Bodies, minors, etc.

The BO account shall be in the name of natural persons, PAN card details of the respective HUF, AoP, Partnership Firm, Unregistered Trust, etc shall be obtained. The PAN number of Registered Trust, Corporate Bodies and minors shall be obtained when accounts are opened in their respective names."

Opening of demat account in case of HUF

It is noted that as per law, in case of HUF, shares can be held in the name of Existing Karta on behalf of HUF. Therefore, HUF demat accounts can be opened in the name of Existing Karta but not in the name of Deceased Karta and HUF entity."

Accordingly, for an HUF, the accounts have to be opened under the type "HUF" in the name of Karta (i.e. natural person) who is alive and not in the name of HUF entity.

(Ref: Circular No. NSDL/POLICY/2011/0013 dated February 1, 2011, which is posted on NSDL website www.nsdl.co.in.)

NCDO training / certification programmes for Participants

NSDL conducts training and certification programmes for Participants to increase the availability of trained personnel for depository operations. In January 2011, such programmes were conducted in Ahmedabad, Bangalore, Coimbatore, Dehradun, Kolhapur, Lucknow, Mumbai, Nashik, New Delhi, Raipur, Trivandrum and Vijayawada. In all, 828 persons attended the training programmes conducted at these locations.

Two Participants became operational in NSDL during January 2011

In January 2011, following two Participants became operational in NSDL.

The above additions take the total number of operational Participants to 291 and the total number of DPM set-ups to 363.

Name Change of Participant