National Securities Depository Limited
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Statistics

August 31, 2019

arraw Investor Accounts - 1,89,16,477
arraw DP Service Centres - 31,205
arraw Demat Custody Value - 177.44
(₹ Lakh Crore)(US$ 2,483 billion)
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NSDL News

The following DPs have subscribed to the SPEED-e facility of NSDL in the month of February 2008:

  • Marck Securities Private Limited
  • JRG Securities Ltd.
  • MF Global Sify Securities India Private Limited
  • Master Capital Services Limited
  • The Federal Bank Limited
  • Union Bank of India

Clients of the above mentioned DPs can now avail of the facility of submitting various instructions through SPEED-e facility. This takes the total number of DPs who have subscribed to SPEED-e to 79.

SEBI, vide its letter no. F.No.47-2006/ISD/SR/118153/2008 dated February 22, 2008 has issued clarification about 'inperson' verification (IPV) of Clients (marked below in italics). NSDL, vide its Circular No. NSDL/POLICY/2008/0010 dated February 27, 2008, has issued clarifications to DPs, extracts of the same are as under:

1.IPV in case of Non Resident Indians (NRIs) / Foreign Nationals (FN):

In the case of NRIs/FNs, considering the infeasibility of carrying out IPV by DP staff, attestation of KYC documents by Notary Public, any Court, Magistrate, Judge or Local Banker of the Client may be permitted.

Further explanation provided by NSDL : Attention of DPs is invited to point no. (I) (7) (7.1) of NSDL Circular No.NSDL/POLICY/2007/0077 dated December 19, 2007 regarding attestation of KYC documents by Indian Embassy / Consulate General of the country where NRI/FN is residing. In light of the SEBI clarification, if DPs find it infeasible to carry out IPV of the NRI/FN Clients, in such a situation, NRI/FN Clients should get their KYC documents attested by any one of the seven mentioned entities viz; Notary Public, any Court, Magistrate, Judge, Local Banker, Indian Embassy / Consulate General of the country where NRI/FN is residing.

2. IPV carried out by the staff of holding or subsidiary company of a DP:

The staff of holding company or subsidiary company (as defined in Companies Act, 1956) of a DP may do the verification pursuant to a written agreement with the DP and after obtaining the Depository's permission. However, the responsibility of KYC compliance will remain with the DP.
Further explanation provided by NSDL: DPs are advised to obtain prior approval of NSDL with a request letter which states that the DP has a written arrangement with its holding / subsidiary company as the case may be and shall ensure compliance of SEBI / NSDL regulations and circulars.

3. IPV carried out by the staff of a group company of a DP :

The term 'group company' is not defined in Companies Act or SEBI Act or Depositories Act. The scope of common parlance understanding of group company may be very wide defeating the objective of tightening of KYC compliances while opening beneficial owner (BO) accounts. Therefore, the staff of a group company of the DP may not be permitted to conduct KYC on behalf of the DPs.
No further explanation required.

4. IPV carried out by the staff of franchisees/ direct selling agents :

The staff of a franchisee or direct selling agents may not be permitted to conduct KYC on behalf of the DPs. Further explanation provided by NSDL : As all DPs are aware, the staff of NSDL approved franchisees or direct selling agents is not permitted to carry out IPV of the Clients / Applicants, at the time of opening demat accounts. However, such an entity may provide other depository related services as prescribed by NSDL in its various circulars.

5. IPV carried out by the SEBI-registered brokers acting as franchisees of DPs :

As per the Depository submissions, it is seen that the brokers of stock exchanges act as franchisees of DPs. Since the brokers have a regulatory obligation to conduct KYC verifications of their secondary market clients, the very same brokers who act as franchisees of DPs may be allowed to conduct IPV while opening BO accounts with the DPs. No further explanation required.

In light of the above clarification issued by SEBI, DPs have been requested to note that in case IPV has been carried out by the holding/subsidiary company of the DP or SEBI registered brokers acting as franchisees of the DP (franchisees approved by NSDL), all DPs have been advised that point no. (I) (1) (1.1) (c) (ii) of NSDL Circular No. NSDL/POLICY/2007/0077 dated December 19, 2007 i.e. IPV details will undergo certain changes wherein the name of the entity including category i.e. holding/subsidiary company of the DP or SEBI registered brokers acting as franchisees of the DP, staff details of the entity and signature in presence of the staff of the entity, would be required to be incorporated/mentioned in the IPV details.

SEBI circular on safeguards to address the concerns of the investors on transfer of securities in dematerialized mode

SEBI has vide its circular no. SEBI/MRD/Dep/Cir-3/2008 dated February 28, 2008 informed NSDL that it has decided to do away with the limits mentioned under Para 2 (c) and (e) of SEBI Circular No. SEBI/MRD/Dep/Cir-03/2007 dated February 13, 2007 and thereby, the provisions of the SEBI Circular dated February 13, 2007 which are reproduced below stand withdrawn. "(c) The DPs shall issue only one DIS booklet containing not more than 20 slips for individual account holders and not more than 100 slips for non-individual account holders, at a time.

(e) The DPs can issue subsequent DIS booklet to a BO only after the BO has used not less than 75% of the slips contained in the previous DIS booklet. The DP shall also ensure that a new DIS booklet is issued only on the strength of the DIS instruction request slip (contained in the previous booklet) duly complete in all respects, unless the request for fresh booklet is due to loss, etc., as referred to in clause (d) above.

This has been informed to DPs vide NSDL Circular No. NSDL/POLICY/2008/0011 dated February 29, 2008.