NSDL News
New guidelines issued by NSDL
NSDL has issued detailed guidelines on "servicing Illiterate Clients" and "executing fax instructions" vide Circular No. NSDL/PI/2002/0709 dated May 3, 2002 and Circular No. NSDL/PI/2002/0740 dated May 9, 2002 respectively. Summary of these guidelines is given hereunder:
Servicing Illiterate Clients
- At the time of account opening, the illiterate person(s) must affix his/her thumb impression (left hand thumb in case of a male and right hand thumb in case of a female) on the agreement as well as on the account opening form.
- Accounts opened by illiterate Clients must be either introduced by an existing account holder or must be attested by applicant's bank.
- The applicant(s) must come in person to open the account and submit instruction forms and affix his/her thumb impression in the presence of the official of the DP. The DP should identify the Client(s) and read out/explain the contents of the account opening form, DP-Client agreement and delivery instruction form to the Client(s).
- In case such Client(s) is/are temporarily or permanently disabled due to which he/she cannot come in person to submit the instruction form as mentioned above, the thumb impression of the Client(s) on the instruction forms must be attested by a Magistrate or a Notary Public or a Special Executive Magistrate or a similar authority holding a Public Office and authorised to use the Seal of his office or a manager of the account holder's bank. The Client should also produce a medical certificate about his/her disability.
Executing Fax Instructions
- DPs should execute fax instructions only for those Clients who have submitted a fax indemnity to the DP.
- The fax instructions should be marked "This is a fax instruction" on the face of the delivery instruction form.
- The fax instruction should be submitted only on the delivery instruction forms bearing pre-stamped serial number and Client ID, issued to the Client by the DP.
- The Client should submit the original instruction form subsequently, latest within two days from the date of submission of the fax instruction. The DP may withdraw this facility for those Clients who do not submit the original instruction form within the stipulated time.
NSDL introduces Deferred Delivery Order feature.
NSDL has introduced Deferred Delivery Order (DDO) feature w.e.f. April 27, 2002. Operating instructions on the usage of this facility are given in Circular No. NSDL/PI/2002/0754 dated May 13, 2002 which is available on NSDL website www.nsdl.co.in. This feature allows the DP of the delivering Client to block securities and intimate receiving Client's DP about the details of the securities intended to be delivered by the delivering Client. The DP of the receiving Client can view on its DPM system, the details of the securities to be received on the execution date of the DDO. Only on confirmation of the DDO by the delivering Client, the securities get transferred to the account of the receiving Client. The operating instructions for DDO are as under:
(I) Initiation of DDO :
- For initiation of DDO instructions, the delivering Client should submit a DDO form as prescribed in Annexure LA of the Business Rules of NSDL.
- On execution date of the DDO instruction, the delivering Client's free holding is blocked to the extent of the requested quantity.
- On blocking the delivering Client's free holding, the receiving Client's Participant will be intimated about the DDO instruction and can view the instruction in its DPM system.
- If the delivering Client's account does not have sufficient balance on the execution date, the status of the instruction will change to "Overdue". Such an instruction will get triggered if the account of the delivering Client gets sufficient balance before the end of the day (EOD) of the execution date of DDO instruction or else it will be marked as "Closed, failed during settlement" at the EOD.
(II) Confirmation of DDO :
For confirmation of DDO instructions, the delivering Client should submit a separate DDO form as prescribed in Annexure LA of the Business Rules of NSDL. DDO instruction can be confirmed after the status of DDO instruction becomes "Accepted by NSDL".
On receipt of the electronic intimation of DDO through DPM, the Participant of the receiving Client may intimate the same to its Client.
The annual cross-training programme of Asia Pacific Central Securities Depository Group (ACG)
ACG is a group of depositories in the Asia Pacific region consisting of 24 members from 17 countries. NSDL is one of the founder members of this group. NSDL is hosting "ACG Cross-Training Seminar 2002" for the members of the group. The objective of the seminar is to mutually share the experiences and technology of different participating members. The theme for this year's programme is "Risk Management".
De-activation of The Ludhiana Stock Exchange Limited (DP ID IN001043)
The Ludhiana Stock Exchange Limited DP Id (IN001043) has been de-activated from the NSDL depository system.
