PROJECT REPORT

ON
DEMAT SERVICES BY BANKS
Submitted to University of Mumbai
in
2016-2017
Partial fulfillment of the requirement of the Degree of
Bachelor of Banking and Insurance
Under Guidance Of
----

K. M. AGRAWAL COLLEGE OF ARTS, COMMERCE & SCIENCE.

GANDHARE, KALYAN (W)

BY-
PALLAVI MANJAREKAR

ROLL NO:39

EXAM SEAT NO:

1
K.M.AGRAWAL COLLEGE OF ARTS, COMMERCE& SCIENCE , KALYAN

(Conducted by HINDI BHASHI JANKALYAN SHIKSHAN SANSTHA KALYAN)

(Affiliated by University of Mumbai)

Bachlor of Banking and Insurance

CERTIFICATE
This is to certify that Ms. Pallavi Manjarekar , Roll no. 39, Seat No. , has
satisfactorily carried out the project work of the topic Demat Services By
Banks for the 5th semester of T.Y.B.B&I ,in the Academic year 2016-2017

PLACE: KALYAN
DATE : __________ Principal
(Mrs. Anita Manna)

Signature of Examiner B&I Coordinator

2
 CERTIFICATE

I, Mr. hereby certify that Ms. Pallavi Manjarekar , Roll no. 39, of
T.Y.B.B&I (SemV), Roll No. 58 has completed project on Demat Services By
Banks in the academic year 2016-2017. The information submitted is true and
original to the best of my knowledge.

Place: Kalyan

Date:

___________________
Signature of Project Guide

3
 DECLARATION

I, Ms. Pallavi Manjarekar , Roll no. 39 student of T.Y.B.B&I semester V (2016-

2017) hereby declare that I have completed the project on Demat Services By
BanksI further declare that the information imparted is true and fair to the best of
my knowledge.

SIGNATURE
(Nihal)
ROLL NO.

4
 . ACKNOWLEDGEMENT

I hereby express my heartiest thanks to all sources who have contributed to the
making of this project. I oblige thanks to all those who have supported, provided their
valuable guidance and helped for the accomplishment of this project. I also extent my
hearty thanks to my family, friends, our coordinator MR. SUJEET SINGH, college
teachers and all the well-wishers.
I also would specially like to thanks my project guide Mr. MAHENDRA PANDEY
for his guidance and timely suggestion and the information provided by him on this
particular topic.
It is matter of outmost pleasure to express my indebt and deep sense of gratitude to
various person who extended their maximum help to supply the necessary information
for the present thesis, which became available on account of the most selfless
cooperation.
Above all its sincere thanks to the UNIVERSITY OF MUMBAI for which this
project is given consideration and was done with outmost seriousness.

5
 INDEX
SR. NO. PARTICULAR PAGE NO.
1. INTRODUCTION
2. NSDL AND CDSL
3. BENEFITS OF DEMAT SERVICES
4 WHY SHOULD AN INVESTOR OPEN A
DEMAT A/C

5 DEMATERIALIZATION PROCESS AND

PROCEDURE

6 DEMAT SERVICES PROVIDED BY ICICI

BANK

7 CORPORATE BENEFIT

8 REDRESSAL OF DEMAT HOLDERS

9 BIBLOGRAPHY

6
 INTRODUCTION:

Dematerialization or
DEMAT in short, is the process by which the
physical share certificates (share certificate in
paper form) are converted to an equivalent
number of securities in electronic form. The
situation is somewhat similar to replacing paper
money with an electronic bank account.
Conversion of physical certificates to electronic form benefits investors
immensely. Dematting of shares eliminates risks associated with bad
deliveries, postal delays, handling problems, loss in transit, forgery,
counterfeiting, loss due to fire, theft, mutilation, etc. Investors also do not
have to pay stamp duty on transfers of shares and they can be transferred
instantaneously. Also, brokers charge a lower brokerage fee for selling
dematerialized share since the risk of bad delivery is minimized.
Investors also receive other benefits such as bonus and rights directly
credited to their accounts, thus reducing a great del of paper work and
associated delays. Lastly, the difficulty and disadvantage of trading odd
lot shares is also eliminated, as the market lot for dematerialized is just
one share!

What is Dematerialization?

Dematerialization or Demat is a process whereby your securities like

shares, debentures etc, are converted into electronic data and stored in
computers by a Depository.

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What is a Depository?
Depository functions like a
securities bank, where the dematerialized physical
securities are traded and held in custody. This
facilitates faster and low cost settlement. Depository
is much like a bank and performs many activities that
are similar to a bank. Following table compares the two.

Bank Depository

Holds funds in accounts Holds securities in account

Transfers funds between accounts Transfers securities between

accounts
Transfers without handling money Transfers without handling securities

Safekeeping of money Safekeeping of securities

Dematerialization or demat is a process to convert the securities held in

physical form into an electronic record form or to directly allot securities
in electronic record form. These electronic records of securities are
shown as "electronic balances" in the demat account of investors. Any
investor (Beneficial Owner or BO) can open a demat account through a
depository participant (DP). DP provides a link on one hand between the
BO, Company and CDSL and on the other hand between the BO, the
BO's broker and the Stock Exchange. CDSL publishes from time to time
an updated list of DP's registered with it.

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 NSDL AND CDSL

At present there are two depositories in India, National Securities

Depository Limited (NSDL) and Central Depository Services Limited
(CDSL). NSDL is the first Indian depository; it was inaugurated in
November 1996. NSDL was set up with an initial capital of US$28mn,
promoted by Industrial Development Bank of India (IDBI), Unit Trust of
India (UTI) and National Stock Exchange of India Ltd. (NSEIL). Later,
State Bank of India (SBI) also became a shareholder.
The other depository is Central Depository Services (CDS). It is
still in the process of linking with the stock exchanges. It has registered
around 20 DPs and has signed up with 40 companies. It had received a
certificate of commencement of business from SEBI on February 8, 1999.
In order to facilitate transfers between investors having accounts in the
two existing depositories in the country the Securities and Exchange
Board of India has asked all stock exchanges to link up with the
depositories. The NSDL and CDS have signed an agreement for inter-
depository connectivity.

What is a DP?
NSDL carries out its activities through various functionaries called
business partners who include Depository Participants (DPs)
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Who can be a DP?
Public Financial Institutions.
Scheduled banks.
RBI Approved Foreign banks operating in India.
State financial corporations.
Institutions engaged in providing financial services, promoted
by any of the institutions mentioned above either jointly or
severally.
Custodians of securities who are registered with SEBI.
Clearing Corporations or Clearing Houses of Stock Exchanges.
Stock Brokers registered with SEBI.
Non Banking Finance Companies.

Investors surrenders defaced certificate along with Dematerialisation

Request Form (DRF) to his DP.
1. DP intimates Depository of the request through the system.
2. DP submits the certificate with DRF to registrar.
3. Registrar confirms the Demat from Depository.
4. Registrar validates the request, updates records & informs the
Depository.
5. Depository credits the DP a/c & informs DP.
6. DP updates the investors a/c & informs the investor.

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Trading in dematerialized shares results in substantial savings for the
investors.

Following tables gives an idea about these savings.

Savings for a person who buy shares for long term investment
(On a purchase of Rs10000)

Item Physical Depository Savings

(Rs) (demat) (RS) (Rs)
Brokerage 75-100 50-75 25-50
*Stamp Duty 50 - 50
Postal Charges 10-30 - 10-30
Company Objection 10-30 - 10-30
(Courier etc.)
Settlement charges - 5-10 -(5-10)
#Custody (5 years) - 10-50 -(10-50)
Total 35-100
Stamp duty of 0.5%
Custody charge of 0.05%- 0.1%

Savings for an investor who sells dematerialized shares

(For a sale of Rs10000)

Item Physical Depository (demat) Savings

(Rs) (Rs) (Rs)
*Brokerage 75-100 50-75 25-50
Company Objection 10-30 - 10-30
(courier, etc.)
Settlement charges - -(5-10) -(5-10)
Total 25-75
Sub-Brokers:
Sub-Brokers have two options:
1. Arrange to deliver the securities directly from the pool account of
main broker to the beneficial owner account of the buying clients.

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 2. Arrange to deliver the securities from the pool account of the main broker
to beneficial owner account of the sub-broker kept for trading purpose and
then forward the same to buying client.

CM POOL A/C
Client A A/c
Client B A/c
Client C A/c
Client D A/c
Sub Brokers Beneficiary A/c

BENEFITS OF DEMAT SERVICES.

A safe, convenient way to hold securities;

Immediate transfer of securities;
Reduction in paperwork involved in transfer of securities;
No stamp duty on transfer of securities;
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 Reduction in other transaction cost such as postage, courier, Xerox;
delivery, fake securities, delays, thefts, etc.;
No odd lot problem, even one share can be sold;
Nomination facility;
Change in address recorded with DP gets registered with all
companies in which investor holds securities electronically.The
investor did not correspond with each company separately.
Transmission of securities is done by DP eliminating
correspondence with company
Automatic credit into demat account when new share are issued on
account of bonus, split consolidation, merger etc.
Investors can even freeze or lock their accounts for any given
period of time, if so desired. Account can be frozen for debits or for
credits or for both.

Why Should an Investor Open a Demat Account?

The CDSL system incorporates a number of

distinct features which provide BOs a convenient,
dependable and secure depository services at affordable
cost.

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 Convenience:
1. Wide DP Network:
CDSL has over 275 DPs offering services from over 100
cities/towns across the country and thus providing investors a
wide choice for selecting a DP, depending on his locational and
other conveniences. Many more DPs are expected to get
registered with CDSL shortly.

2. On-line DP Services:

CDSL DPs provide on-line depository services from over 500

branches. All these branches are electronically connected to
CDSL thereby taking the depository services to the door-step of
investors. DP branches facilitate quicker execution of demat
instructions.

3. Availability of Wide Spectrum of Securities:

The equity shares of over 5000 companies are available for

dematerialisation on CDSL. CDSL extends demat facilities
practically for all categories of securities which include bonds,
debentures, commercial papers, government securities and
certificates of deposit.

4. Competitive Fees Structure:

CDSL's fee is very reasonable and competitive, which makes it

possible for DPs to offer demat services to investors at
affordable cost. CDSL DPs are not required to pay any custody
or ISIN fees to CDSL.

5. Internet Access:

14
 Through CDSL's unique internet facility "electronic access to
securities information" -. "Easi", a BO by registering himself
through his DP (who in turn will have to be registered with
CDSL for use of this facility) can know and even print
statements of his demat account. The BO can also know the
status of his previous 7 days transactions at any time by logging
into easi. BO gets a unique facility of knowing the daily
valuation of the securities held in their demat account, at the
previous day's closing price on the BSE.

Dependability:
1. On-line Information to Users:

With the CDSL's centralised database architecture; on-line

depository services are available to BOs with up-to-the-minute
status of his BO accounts.

2 Safety of data:

Even if any system-related problems develop at the DPs end, it

does not affect the BOs interest in any way as the CDSL
database is maintained centrally. The DP can also avail of the
facility of contingency terminals available at CDSL's Mumbai
office for executing instructions.

2. Audit and inspection:

CDSL conducts regular audit of its DPs to ensure compliance of

the stringent operational and regulatory requirements.

3. Helpdesk:

15
 CDSL's prompt and courteous helpline facility is available to
DPs and investors to obtain any clarifications and guidance.

4. Always meeting user's requirements:

Continuous updation of procedures and processes in tune with

the evolving market practices is another hallmark of the CDSL's
system.

Security:
1. Computer Systems:

CDSL has installed state-of-the-art computer system, data

storage devices, communication networks which ensure the
security and integrity of all data uninterruptedly. All data at
CDSL is auto mirrored separately and also transmitted to a
Disaster Recovery Site which is located at a different place
away from the main site.

2. System Access:

As the system does not provide for dial-up access, only

authorised users can access CDSL system. In other words, only
a person at DP end who has been pre-authorised by CDSL can
access the CDSL system.

3. Unique BO Account Number:

Each BO in the CDSL system is allocated a unique account

number. This avoids wrong transfer of securities in the event the
transferor's account number is keyed-in wrongly at the DP end.

4. Insurance Cover:

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 CDSL has obtained adequate insurance cover for any unlikely
loss occurring to a BO due to the negligence at CDSL and/or its
DP.

DEMATERIALIZATION PROCESS AND

PROCEDURE:
Opening a Depository Account.
Investors, both individuals and non-individuals, have a
choice to open a demat account with any CDSL DP.
Individual investors could be Indian residents or NRIs. Non-
individual BO includes Corporates, FIs, FIIs, Mutual
Funds, Trusts etc. Under two way fungibility of ADR/GDR,
non-residents can also open a demat account with a CDSL
DP.

17
 A BO should consider fee structure, locational convenience
and the track record of the DP before selecting a DP for
opening his BO account.
More than one demat account can be opened in identical
names with the same or different DPs with the same
depository and/or with both the depositories.
A demat account can be maintained even with 'nil' balance as
there is no requirement of holding any minimum-security
balance in a demat account.
If securities are already held in joint names, the demat
account should be opened in the order of names in which the
securities are held. If the securities are held by an individual
jointly with different persons, separate demat accounts will
have to be opened for each such combinations. However, if
the same persons hold securities in different order of their
names, one single demat account in names of all these
persons (not exceeding 3 persons) would be sufficient,
provided the facility of transposition-cum-demat is used.
At the time of opening a demat account or anytime
thereafter, individuals having a BO account in a single or
joint name/s, a nomination can be made. In the unfortunate
event of demise of one of the joint holders, the securities can
be transmitted in the names of the surviving holders. But, in
the event of demise of the sole holder or all the joint holders,
the securities can be transmitted in the name of the nominee.
A resident Indian can nominate an NRI or another resident
Indian and similarly an NRI can nominate a resident Indian
or another NRI. Non-individuals including

Documents required to be submitted at the time of

opening a CDSL demat account:
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Individual Investors:

An application in the prescribed form duly completed.

Certified copy of an election-ID card / passport / ration card
/PAN card or in the absence of these documents, an introduction
by an existing account holder of the DP giving the introducer's
name, address, and contact number.
A certified copy of birth certificate and guardian's name, in case
of a minor.
A passport size photograph of each of the applicants with
his/their signature/s put across the photograph/s
In case of any attestation by a Magistrate / Notary Public /
Special Executive Magistrate, the name, address and telephone
number of the Magistrate/Notary Public/Special Executive
Magistrate.
A copy of the power of attorney, if desired. And agreement in
the prescribed form duly executed.

Corporate investors:

An application in the prescribed form duly completed.

A certified copy of the Memorandum and Articles of
Association of the company.
A certified true copy of the board resolution authorising opening
of demat account and listing out the names of the officials
authorised by the board to act as authorised signatory(ies)
Names, designation of the authorised signatories with specimen
sign.
A copy of power of attorney duly executed.

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 In case of attestation by any Magistrate/Notary, Public/Special
Executive Magistrate, their name, address and telephone
number.
Agreement in the prescribed form duly executed.

ADDITIONAL REQUIREMENTS FOR SOME

CATEGORIES OF INVESTORS
BO Category Additional Requirement
Non Resident Indian In case of a NRI opening BO a/c singly or jointly
with another NRI and/or resident Indian, a
nationals or persons
declaration by the first or sole NRI applicant who
is eligible to invest on repatriable basis in terms
of Indian origin(NRI)
of FEMA notification no. 20/2000-RB dated
03/05/2002 together with a proof of residence
outside India.
HUF Name of the 'karta', if the account is opened in
the name of a HUF.
Trust A certified copy of the trust deed along with the
list of authorised signatories with specimen
signatures.
Partnership firm The account has to be opened in the names of the
partners.
Proprietorship firm The account should be opened in the name of the
sole proprietor.
Clearing Members A certified copy of SEBI registration along with a
(CM) conduct certificate from each of the exchanges
where the CM is a member/registered.
F. I. Investors and A Certified copy of SEBI/RBI registration.

Overseas Corporate

Bodies

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 On Opening of The Demat Account, A DP Would
Provide To The BO A/C Holder The Following :
A copy of the signed agreement.
Issues "BO-ID" (i.e. Beneficial Owner Identification Number
or. demat account number). This BO-ID should be quoted in all
future correspondence with the DP, Issuer Companies and/or
their Registrar & Transfer agents or CDSL.
Pre-printed instruction slips for affecting various types of
transactions viz. form for dematting physical holdings,
transaction slips, etc. CDSL has one single debit instruction slip
both for 'on-market' and 'off-market' transactions.

BOs Should Carefully Note The Following :

BOs may consider issuing one time instruction to their DPs for
getting securities in the demat account automatically credited to
their account. Purchased securities are credited to the BO
account after payout of the securities by the clearing
house/corporation of the stock exchange. Securities purchased
on any of the stock exchanges connected to CDSL can be
directly received in the BO account. CDSL currently has
connectivity with 16 stock exchanges.
For sale of securities in demat form, after the broker confirms
the trade, the BO should immediately issue debit instruction to
his DP using a debit instruction slip.
For maintaining the cut-off time for submitting delivery
instructions for trades done on the stock exchange (on-market
trades) as per SEBI requirement, delivery instructions need to
be issued latest by 24 hours before the pay-in time of the
exchange where transaction has been done. Any delay in issuing

21
 instructions to the DP might result in non-delivery of
shares/securities resulting in auctioning of such securities and
consequent loss to the investor. This is more so in T+2
settlement cycle.
Any change in address and/or bank account should be intimated
to DP together with supporting documents as evidence.
While accepting the Delivery Instruction (DI) slip book issued
by the DP, Bo should ensure that his BO-ID is pre-stamped on
all the pages along with the serial number. The DI book should
be kept safely. BOs should not issue to anyone blank DI slips
duly signed. BOs should also strike out the empty space, if any,
in the DI slip, before submitting to DP.
Fees:
CDSL does not charge any fee directly to the beneficial account
holder but collects the depository fees for debit and pledge
transactions in any BO account from the concerned DP. The
charges indicated by DPs are generally is inclusive of CDSL fee, if
any.
Redressal Of Investor Grievances:
In case of any unresolved grievance with your DP, please contact
the compliance officer of your DP or Investor Relations Officer.

Disclaimer:
This brochure contains information, which is subject to change
without prior notice and cannot be the basis for any claims or
demand or cause of action by anyone against CDSL or its DPs.
CDSL's demat services are extended through its agents called
Depository Participants (DP). The DP is the link between the
investor and CDSL. An investor who opens a demat account
with a DP can utilise the services offered by CDSL. While the
DP processes the instructions of the investor, the account and
22
 records thereof is maintained with CDSL. A DP is thus a
"service centre" for the investor. DSLs system is based on
centralised database architecture with on-line connectivity with
DPs. Because of this centralised architecture, the cost for setting
up a DP outfit under CDSL system is significantly lower.
Similarly, the recurring costs to be incurred by a CDSL-DP in
terms of maintaining back-ups and the related data storage are
minimal. This enables a CDSL-DP to offer depository services
to investors at an attractive price and at the same time achieve
break-even faster at much lower volumes. The centralised
architecture also allows CDSL-DP to make available to the
investors a to-the-minute status of their account and
transactions. DSL-DPs can also set up branches with direct
electronic connectivity with CDSL.
Any Individual eligible to acquire and hold securities in his
name can open a demat account in the CDSL system through a
registered DP of CDSL of his choice. While choosing his DP
the individual may take into consideration the service standards,
charges and convenience of location.

Some basic facts for the demat accounts

Number of Accounts :
More than one demat accounts can be opened in the similar /
identical name and order with the same DP or different DPs.
Minimum Account Balance :
There is no requirement of holding minimum-security balance
in a demat account; you can maintain zero balance in your
account. Ready availability of account enhances your
transaction making ability.
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 Nomination :
Individuals holding beneficial accounts on their own behalf
either singly or jointly have the facility of making nomination.
(Non-individuals including societies, trusts, body corporate,
partnership firms, kartas of HUF, holders of power of attorney
however, cannot nominate). In the event of the death of one of
the joint holders, the securities will be transmitted in the names
of the surviving holders. If the sole or all the joint holders are
deceased, the shares will be transmitted in the name of the
nominee.
Statement of Account:
A periodical statement of holdings and transactions is provided
by DP. This can also be asked for from the DP.
Credit Confirmation:
In order to receive all the credits coming to demat account
automatically, a one time standing instruction can be given to
the DP at the time of opening your account.
Change of Address:
For any change of address, if any, communication to your DP in
writing is sufficient. The DP will ensure that the change is
incorporated for all securities held in your demat account. You
need not write to all the companies separately.

Points To Be Noted for Opening a Demat A/C

Obtain and submit the duly completed account opening form to the
DP.
Provide to DP a copy of your passport or driving license or voter-ID
card or ration card for establishing your identity and as a proof of
address.

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 Execute the DP-Investor agreement to be made available by DP.
Collect your unique account number (BO-ID) from your DP.
Collect pre-printed slips both for effecting dematerialisation as well
as delivery of securities.
Understand the cut-off timings from DP for depositing delivery
instructions for trades done by you on the stock exchange.

DEMAT SERVICES PROVIDED BY

ICICI BANK

A Depository is like a bank where securities are held in electronic

(dematerialised) form. In India, there are two Depositories -National
Securities Depositories Limited (NSDL) and Central Depository Services
Limited (CDSL).

Under the Depositories Act, investors can avail of the services of the
Depositories through Depository Participants (DP) such as ICICI Bank.

25
DPs are like bank branches wherein shares in physical form need to be
deposited for converting the same to electronic (demat) form.

ICICI Bank Demat Services boasts of an ever-growing customer base of

over 11.5 lacs account holders. In their continuous endeavor to offer best
of the class services to their customers they offer the following features:

E-Instructions:

Customers can transfer securities 24 hours a day, 7 days a week through

Internet & Interactive Voice Response (IVR) at a lower cost. Now with
Speak to transfer, customers can also transfer or pledge instructions
through banks customer care officer.

Consolidation Demat Account:

Dematerialise physical shares in various holding patterns and

consolidate all such scattered holdings into primary demat account at
reduced cost.

Digitally Signed Statement:

Receive account statement and bill by email.

Corporate Benefit Tracking:

Track dividend, interest, bonus through account statement.

Mobile Request:

Accesses demat account by sending SMS to enquire about Holdings,

Transactions, Bill & ISIN details.

Mobile Alerts:

26
 Receive SMS alerts for all debits/credits as well as for
any request which cannot be processed.

Dedicated customer care executives specially trained at call

centre, to handle all their queries.
Countrywide network of over 235 branches, you are never
far from an ICICI Bank Demat Services outlet.

Countrywide network of over 235 branches, you are never far from an
ICICI Bank Demat Services outlet.

Account Opening

Please write to ICICI Bank or visit any of their service

centres to open an account.
There is no fee for opening a DP account with ICICI.
However, a nominal fee will be levied towards services, as
per their tariff. Customers can choose between Standard Rate
Card or Frequent Trader Rate Card as per theiur trading
volume. Or if you wish to hold your Bonds in Demat form
you can choose Bond Rate Card.

Account Opening Form to Open Securities Account

Resident Non Corporate Account Opening Form

Resident Corporate Account Opening Form
NRI Account Opening Form
Declaration Cum Undertaking Form for NRI Repatriable
Account
Checklist for Filling NRI Demat Account Opening Form

27
Submission of Passport and Valid Visa Copy is mandatory for NRI
Customers for opening a Depository Participant (DP) Account with effect
from 7th May 2007

Account Opening Form to open Commodities Account in

NSDL

Resident Non Corporate Account Opening Form

Resident Corporate Account Opening Form

Clearing Member Account Opening Form

Note: The DP Client Agreement form should be franked with stamp duty
applicable to the state mentioned in the correspondence address. DP
account number will be intimated to customers by e-mail if the mail-id is
written on the application form or by Courier or by post.

Mode of Investment :

Portfolio Investment Scheme (PINS)

Portfolio Investment Scheme (PINS) is a scheme of the Reserve Bank of India

(RBI) under which the Non Resident Indians (NRIs) and Person of Indian Origin
(PIOs) can purchase and sell shares and convertible debentures of Indian
Companies on a recognized stock exchange in India by routing all such
purchase/sale transactions through their account held with a Designated Bank
Branch. The Designated Bank maintains a record of all investments done under
PINS (PINS portfolio).

Non PINS

Any investment other than under PINS is Typically, this includes:

Subscription to Primary market offerings (IPOs)

Investments made when resident in India.

Investments in Mutual funds

28
 Investments in derivatives

Gifts and Inheritance

Procedure for Demat

Form

Submit a completely filled up Demat Request Form (DRF) in triplicate for each ISIN
along with defaced physical securities. We have provided you with one blank
Dematerialisation Request Form (DRF). Additional forms are available at any of the
ICICI Bank branches offering Demat Services.

Filling up the form

Ensure that security mentioned on the certificates is eligible for Demat. For
being eligible for demat, the company has to sign up with NSDL. You can
check eligibility on www.icicibank.com or ask the nearest Branch.

Use a separate DRF for each security having a unique International Security
Identification Number (ISIN). Verify the certificates carefully and mention the
correct ISIN. In case two or more sets of certificates of the same security have
different ISIN (this is possible in case of partly paid up shares and non-pari
passu shares), use separate DRFs for each ISIN. However, you can
dematerialise multiple folio nos. of the same pattern of holders relating to the
same ISIN under a single DRF.
Submit certificates under lock-in under separate DRF. Do not mix the same
with free securities. In case of locked-in securities, fill up the lock-in reason &
lock-in release date on the DRF. Amongst lock-in securities belonging to the
same ISIN but having different lock-in release dates or lock-in reason, make
separate DRF requests.
Demat requests received from client(s) with name(s) not matching exactly
with the name(s) appearing on the certificates merely on account of initials not
being spelt out fully or put after or prior to the surname, can be processed.
However, this is possible only if the signature(s) of the client(s) on the DRF
tallies with the specimen signature(s) available with the Issuer or its Registrar.
For example, the shareholder may have opened the depository account in the

29
 name of Sushil Ramesh Shah but his name on the share certificate may appear
as S. R. Shah or Sushil R Shah etc.
The combination and the order of holders names on DRF and as printed on
the Certificates should be identical with that in the DP account.
For example, if the shares are in the name of X, Y (X as first holder and Y and
second holder) it cannot be dematerialised in the account of either X or Y
alone. Also if the shares are in the name of X, they cannot be dematerialised in
the account of X, Y (X as first holder and Y as second holder).
However, where the combination of holders is the same in the certificates and
in the demat account, and the difference is only in the order in which the name
of the holders appear on the share certificates and in the demat account,
dematerialisation is possible. Here, you have to submit a Transposition
Request Form along with the DRF. The form is also available at the nearest
Branch.
The DRF must be signed by all the account holders and should be in the same
order. The signature on the DRF should match with the specimen signature
with ICICI Bank. If the signature differs, you should sign the DRF in the
presence of the Branch Officer. If you have a doubt that the signature on the
DRF may not match with that registered with the Registrar, you can get the
signature on the DRF attested by your banker.
The details of certificates such as the folio no., certificate no., & distinctive no.
must be filled up correctly on the DRF.

Submitting the form

You must deface the certificates by putting a stamp or by writing Surrendered

for Dematerialisation. However defacing should be done only after checking
the eligibility of security, as defaced securities cannot be sold in physical form.
If defacing has been done by mistake then you should send the same to
registrar for replacement.

*NSDL Business Rule 11.1.7. :

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 (The Participant shall ensure that the certificates submitted for
dematerialisation are marked by the Client (customer) with the words
Surrendered for Dematerialisation.)

Certificates should not be mutilated or defaced in such a way that the material
information is not readable.

Ensure that the certificates are attached in the same order as mentioned in the
DRF.
You should submit the DRF in triplicate. You can submit the DRF at any
ICICI Bank branch. The acknowledgement slip at the bottom of the form will
be stamped and handed over to you after verification by the ICICI Bank
official.

Credit in the Demat Account

The defaced shares along with the DRF are sent by ICICI Bank to the registrar
who will then credit the customers account. The normal time taken for credit
of shares to the account after confirmation by the Registrar is about 30 days.
However the time taken would vary from one registrar to another over which
ICICI Bank has no control.

To check whether your account has been credited, you can refer to the
transaction statement (Refer # 12, below). The same will be reflected in
pending demat balance on receiving your request. After dematerialisation, the
same will be reflected under free balance. Alternatively you can use the web
(register on www.icicibank.com), phone us or visit the ICICI Bank branch. In
case your account does not get credited within a month of submission, you can
either phone us or send an email to customer.care@icicibank.com

In case there is a delay beyond 40 days, if you so wish, ICICI Bank can give
you the registrars name and telephone number as well as your Demat Request
Number (DRN).

Rejection of Demat Requests

Your request may get rejected for various reasons either at the Central
Processing Office of ICICI Bank or by the Registrar. Dematerialisation is done

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 by the Registrar only when it is satisfied of genuineness of securities &
ownership status.

On a rejection, the securities are sent back to you stating the reason for the
rejection.

You can resubmit the certificates for dematerialisation after resolving the
reason for the rejection. Please resubmit on a fresh DRF. Do not use the same
DRF on which the objection was made.

Transmission-cum-Demat

In case of certificates held jointly, on the death of any one or more of the joint
holder(s) mentioned on the certificate, the surviving joint holder(s) can get the
name(s) of the deceased deleted from the physical certificate(s) and get the securities
dematerialised in the DP account of the surviving holder(s) by submitting the
following documents along with the DRF:

A copy of the death certificate duly notarised

A copy of the Succession certificate duly notarised or an order of a court of
competent jurisdiction where the deceased has not left a Will or
A copy of the Probate or Letter of Administration duly notarised.

Sale / Delivery of Securities

Securities transactions can be settled in demat form for the

transactions done on stock exchanges connected to NSDL. At
present, NSE, BSE, CSE, DSE, LSE, BgSE, OTCEI, MSE, ISE
& ASE are connected to NSDL. Trading in dematerialised
securities is done through your broker just like trading in physical securities.

Sell dematerialised securities

You can sell your dematerialised securities in any of the stock exchanges
linked to NSDL through a broker of your choice.
You need to give a delivery instruction to your DP for debit of your
depository account and credit of your brokers clearing member account.
You receive payment from the broker for the sale in the same manner you
would receive payment for a sale in the physical mode.

Buy dematerialised securities

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 You can purchase securities in any of the stock exchanges connected to
NSDL through a broker of your choice and make payment to your broker.
Make sure you tell your broker you want only demat shares.
Broker receives credit in his clearing account with his DP on the day of
payout. He can immediately transfer these securities to your depository
account, provided your account is already active.
Broker gives instructions to his DP to debit his clearing member account and
credit your depository account.

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 Delivery of securities

To deliver securities in electronic form, you have to authorise the DP to

transfer balances from your account.

You must give a debit authorisation to ICICI Bank in the booklet of

instruction slips provided to you. The slip should be given physically at the
nearest Branch.
(You can also register for the e-Instruction facility to submit transfer
instructions through Internet / IVR (Interactive Voice Response System) on
Phone and with Speak to Transfer through our Phone Banking Officer )
In the instruction slip, you have to mention the counter-party account
details. The counter-party account may be within the same DP (Intra-DP
transfers) or with a different DP (Inter-DP transfers) within NSDL or with
another depository - CDSL (Inter Depository Transfers). For transfers
within NSDL, a TIFD (transfer instruction for delivery) is required. For
transfers to a CDSL account, an IDT (inter-depository transfer instruction)
is required.

Getting instruction slips (TIFD/IDT booklets)

You are provided a Personalized TIFD booklet at the time of opening the
account. You will need to use slips from this booklet for all your transfers.
For IDT (Inter Depository Transfer slips), request for the same in writing to
the nearest Branch. The request should be signed in presence of the Branch
Officer. Ensure you use slips allotted to your demat account only as per
business rules of NSDL.
Please do not use someone elses slip since that will not be accepted by the
system and also cannot be processed as per business rules of NSDL.
Please do not give your blank slip to anyone as this may lead to frauds and
associated complications. If you lose your booklet, report the same in
writing (under signature of all account holders) to the nearest Branch
immediately.
If you are nearing exhaustion of all slips in the booklet, you can request for
reissue of a new booklet by visiting nearest bank branch. Submit the request
on the requisition slip present in your existing booklet. Where you are
unable to present the request on the requisition slip, you can submit a letter.
However, the letter should be signed in presence of the Branch Officer You
can also register for the Internet Banking and Phone Banking facilities to
submit the request on Internet / Phone.
The booklet will be couriered to you and will reach you within a week from 34
the
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