NSDL vide its Circular No. NSDL/PI/2003/0282 dated February 18, 2003 had advised DPs to obtain prior approval from NSDL for appointing franchisee/service centre, etc. In this regard, DPs had sought clarification about the meaning of franchisee/service centre, etc. and whether an NCFM qualified person is required to be appointed at all such places.
NSDL has clarified that any depository related services offered to the investors whereby they can interact with a person (who could be an employee of the DP or of an outside agency appointed by the DP) for submitting various documents and receiving acknowledgment thereof, will be treated as a Branch/franchisee/service centre. In such circumstances, a DP can offer services to its clients only if one employee of the DP or any other person providing the service has qualified in the NCFM (depository module) examination.
NSDL has further clarified, that in case the services are offered to clients where there is no personal contact or interaction (no acknowledgment is given for documents submitted) e.g. drop box kept in a place in which clients can drop their documents, the requirement of NCFM qualified person is not necessary.
This has been communicated to the DPs vide NSDL Circular No. NSDL/PI/2003/1047 dated June 25, 2003.
