December 31, 2020
Investor Accounts 2,08,96,069
DP Service Centres 31,281
Demat Custody Value 227.51 (₹ Lakh Crore)
(US$ 3114 billion)

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NSDL has advised Canny Securities Private Limited (CSPL) (DP Id IN302695), a DP of NSDL to close down its depository operations.

Clients of CSPL are requested to get their securities transferred to the account opened with any other DP or get them rematerialized by May 31, 2007.

NSDL conducted NCFM (NSEs Certification in Financial Markets - NSDL-Depository Operations Module) oriented training programmes for DPs to facilitate them for the NCFM examination. The programme was conducted in Bangalore on April 14, 2007, which was attended by 34 persons representing six DPs.

If DPs find that carrying out 'in-person' verification of NRI/FN Client by their staff is infeasible, then in such a situation, DPs have to verify and ensure that;

  • the KYC documents (account opening form, Proof of Identity and Proof of Address) are duly signed by all the account holders,
  • the KYC documents are attested by the Indian Embassy/Consulate General of the country where NRI and FN is residing, and
  • the attestation is to the effect that copies have been verified with the originals.

DPs should open the depository accounts only after it is satisfied with the authenticity of the documents (Proof of identity and Proof of Address duly attested).

In case where in-person verification for these categories of Clients has been carried out by the staff of the DP, then NRI/FN would be exempted from obtaining attestation.

This has been informed to DPs vide Circular No. NSDL/POLICY/2007/0022 dated April 18, 2007.

DPs were advised to update the MICR code in the DPM system, if not updated, in respect of Clients residing in 15 centers where clearing houses are managed by Reserve Bank of India (RBI). Securities and Exchange Board of India (SEBI) vide its letter no. MRD/DEP/PP/91405/07 dated April 17, 2007 has informed NSDL to instruct DPs to update MICR code while updating the bank account details of the demat account holders. Extract from the letter is reproduced herewith:

"Some of the Merchant Bankers & Registrars to Issue had brought to SEBI's notice that in some cases, when the investors change their bank accounts, the DPs do not update the corresponding change in MICR code while updating their bank account details. This results in the refund advice sent through Electronic Clearance System (ECS) being rejected or credit done to wrong bank account."

In view of the aforesaid, NSDL has advised DPs to :

  • Communicate to all Clients residing at 15 centers (for the list of centers refer RBI website under Electronic Clearing Service) to provide details of MICR code, if not already updated in the DPM system.
  • Ensure that the details of MICR code are updated in the DPM system for all new accounts as well as changes in bank details of existing accounts with respect to Clients residing in 15 centres.

This has been informed to DPs vide Circular No. NSDL/POLICY/2007/0023 dated April 24, 2007.

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