NATIONAL SECURITIES DEPOSITORY LIMITED

Compliance Manual for Depository Participants 14th Edition March 2011

PREFACE

The Depositories Act 1996, SEBI (Depositories and Participants) Regulations, 1996, the Bye Laws of NSDL, Business Rules of NSDL, Circulars issued by NSDL etc. require the Depository Participants (DPs) to comply with certain procedures relating to functions in depository system. This manual is a compilation of relevant sections of The Depositories Act, 1996, SEBI (Depositories and Participants) Regulations, 1996, Bye Laws, Business Rules and circulars issued by NSDL (upto 28.02.2011) arranged topic wise. A further segregation is made at sub-topic level wherever possible for the convenience of the readers.

A subject wise index based on circulars is given separately to facilitate direct access to the circulars. Additional space is provided at the end of each topic/ sub-topic for manually updating the details of circulars issued after 28.02.2011.

As per Bye Law 6.2.1 (vi), the depository may make it mandatory for a DP to appoint a Compliance Officer who shall interact with the depository on behalf of the DP for compliance with the Bye Laws and Business Rules. This manual will be particularly useful for the compliance officers of the DPs.

We request the readers to send to us feedback on the usefulness of this manual and enhancement/improvement suggested in future editions of this manual.

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DISCLAIMER

This Manual provides information solely as a reference guide and is meant to supplement the efforts of the Compliance Officer in carrying out his/her duties as a Compliance Officer. While every effort has been made to compile various relevant statues, this manual is not meant to be a substitute to the provisions of The Depositories Act 1996, SEBI (Depositories and Participants) Regulations, 1996, the Bye Laws of NSDL, Business Rules of NSDL and Circulars issued by NSDL. NSDL does not hold out that this compliance manual is exhaustive. Compliance Officers are advised to study original source for the sake of completeness on any compliance related matters. This Manual includes circulars issued by NSDL up to 28.02.2011. Compliance Officers should refer the circulars issued after that date to update themselves. The titles given in the manual are meant to draw attention of the reader and does not purport to summarize the contents of the circulars. Compliance Officers are advised to study the circulars thereof.

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INDEX
1. Account Opening a. General .............................................................................................. 1 b. PAN ............................................................................................... 50 c. Power of Attorney ............................................................................... 80 d. Others .............................................................................................. 84 Dematerialisation a. General ............................................................................................ 91 b. Transfer-cum-demat ............................................................................ 106 c. Transposition-cum-demat ..................................................................... 108 d. Transmission-cum-demat ...................................................................... 109 Instructions Processing a. General ........................................................................................... 111 b. Controls on DI Forms ........................................................................... 149 c. Others ............................................................................................. 151 Transmission ............................................................................................ 217 Provision of transaction statement ................................................................ 227 Internal Controls/Reporting to NSDL/SEBI a. General ........................................................................................... 257 b. Internal / Concurrent Audit ................................................................... 306 c. Grievance Redressal ............................................................................ 331 d. Termination of Participant .................................................................... 335 e. SEBI Annual Fees ................................................................................ 335 f. Information to SEBI ............................................................................. 336 Grievance Redressal .................................................................................. 339 DP Service Centres .................................................................................... 359 Charges .............................................................................................. 373

2.

3.

4. 5. 6.

7. 8. 9.

10. Anti Money Laundering ............................................................................... 393 11. Connectivity/Reconciliation ......................................................................... 427 12. Record Keeping ........................................................................................ 431 13. Systems a. General ........................................................................................... 437 b. Backup ............................................................................................ 527 c. Anti-virus ......................................................................................... 536 d. Capacity Planning ............................................................................... 540 14. Renewal of registration .............................................................................. 557 15. Mutual Funds ........................................................................................... 563 [ iii ]

CIRCULARS INDEX
Subject ACCOUNT OPENING
Clarifications/guidelines issued after Master circular February 1, 2011 ....................... 1 December 15, 2010 .................... 2 September 6, 2010 .................... 2 September 3, 2010 .................... 3 January 19, 2010 ...................... 3 October 5, 2009 ........................ 4 August 28, 2009 ........................ 5 July 20, 2009 ........................... 5 July 6, 2009 ............................. 5 May, 2010 ................................ 7 March 19, 2010 ....................... 38 February 9, 2010 ..................... 38 October 16 2008 ..................... 39 June 4, 2008 .......................... 40 April 7, 2008 .......................... 40 April 30, 2002 ........................ 41 April 24, 2007 ........................ 42 February 23, 2006 ................... 42 March 4, 2010 ........................ 44 January 9, 2009 ...................... 44 March 26, 2008 ....................... 45 November 25, 2005 .................. 45 September 15, 2005 ................. 45 August 12, 2002 ...................... 46 October 1, 2004 ...................... 46 June 18, 2007 ........................ September 7, 2010 .................. December 24, 2009 .................. October 29, 2009 .................... February 3, 2009 ..................... February 3, 2009 ..................... March 13, 2007 ....................... August 11, 2010 ...................... July 30, 2010 ......................... November 16, 2009 .................. June 12, 2009 ........................ January 9, 2009 ...................... 46 48 48 48 49 49 50 50 52 52 53 53

Date(s)

Page No.

Master Circular on 'Account Opening' Bank Account details

Bank account details - MICR Account opening Forms and New Features

HUF accounts with joint holdings Clarification regarding capturing address in the client master - IPO financing Exemption from obtaining latest transaction statement SEBI Order

PAN

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Subject

Date(s)

Page No.
54 54 55 55 56 59 60 61 62 64 66 70 71 75 78 78 79 80 82 83 84 85 86 88

Account operation - Power of attorney

Others

November 18, 2008 .................. Septemer 29, 2008 .................. July 8, 2008 ........................... June 30, 2008 ........................ September 13, 2007 ................. August 14, 2007 ...................... August 2, 2007 ....................... May 10, 2007 ......................... February 2, 2007 ..................... December 29, 2006 .................. September 27, 2006 ................. September 18, 2006 ................. August 9, 2006 ....................... July 24, 2006 ......................... July 18, 2006 ......................... May 22, 2006 ......................... March 25, 2006 ....................... September 1, 2010 .................. August 9, 2010 ....................... September 22, 2007 ................. July 30, 2010 ......................... December 3, 2009 ................... May 7, 2009 ........................... November 10, 2008 ..................

DEMATERIALISATION
Conversion of Mutual funds units represented by statement of Account Facility for Cancellation of Pending Demat requests Demat request - POA holders Demat request - Handling request in bulk Demat request - Name matching Demat request - Internal control on despatch Demat Processing - Certificates submitted for demat Demat processing - SEBI directive to R&T Agent Demat processing - Time standard for rejected demat requests Demat request - due care Demat request - wrong release [v] March 9, 2010 ........................ 92 March 4, 2010 ........................ 95 December 5, 2009 ................... 96 September 19, 2009 ................ 100 January 1,1998 ...................... 102 January 6,1998 ...................... 102 January 11,1999 .................... 102 February 25, 1999 .................. 102 April 12,2004 ........................ 103 May 28, 1999 ........................ 103 October 21,1999 .................... 103 November 18, 1999 ................. 104 June 26,2000 ........................ 104

Subject
Companies delaying demat request confirmation

Date(s)

Page No.

August 9, 2008 ...................... 104 June 4, 2004 ......................... 105 March 1,2004 ........................ 105 November 6, 2001 .................. 105 February 22, 2003 .................. 105 February 11, 2004 .................. 107

Request for rejection of pending demat & account closure Transfer-cum-demat - Withdrawal of Scheme INSTRUCTIONS PROCESSING Circulars issued after Master Circular on DIS and relevant Circulars

Instructions - Guidelines Instructions - Guidelines for Participants having CM accounts Instructions - Acceptance deadline for Rolling Settlements

February 3, 2011 .................... 112 January 1, 2011 ..................... 112 December 30, 2010 ................. 113 December 11, 2010 ................. 114 October 30, 2010 ................... 125 September 9, 2009 ................. 125 March 26, 1999 ...................... 143 March 10, 2000 ...................... 144 September 17, 1999 ................ 146 April 8, 2002 ......................... 147 January 7, 2000 ..................... 147 October 29, 1999 ................... 147 June 30, 2009 ....................... 148 October 28, 2005 ................... 148

Instructions - Procedure for Online Inter Depository Transfer of Securities Precaution while processing DIS and Despatch of transaction statement Instructions - Serial number validation for Inter-depository instructions & NCFM certificates Instructions - DI form - Serial number control Instructions - SEBI's stipulated procedures for issuance and verification Instructions - Revised DI forms

March 3, 2003 ....................... 149 January 25, 1999 ................... 149 June 2, 2000 ......................... 149 March 26, 2008 ...................... 150 October 30, 2002 ................... 151 July 13, 2002 ........................ 151 July 31, 2009 ........................ 151 July 17, 2009 ........................ 152 January 11, 2010 ................... 152 November 5, 2008 .................. 153 April 16, 2008 ....................... 155

Transactions in Warehouse Receipts (Commodities) after Final Expiry Date Securities Lending & Borrowing Scheme (SLBS)

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Subject

Date(s)

Page No.

Delivery of Instructions through SPEED-e

January 29, 2008 ................... 156 June 3, 2010 ......................... 171 May 28, 2010 ........................ 171 May 26, 2010 ........................ 175 March 9, 2010 ....................... 176 January 19, 2010 ................... 176 December 31, 2009 ................. 177 December 7, 2009 .................. 200 September 10, 2009 ................ 201 June 15, 2009 ....................... 202 May 15, 2009 ........................ 203 April 11, 2009 ....................... 203 April 1, 2009 ......................... 204 March 21, 2009 ...................... 206 March 13, 2009 ...................... 207 December 13, 2008 ................. 208 September 26, 2008 ................ 209 June 26, 2008 ....................... 209 April 11, 2008 ....................... 210 April 04, 2008 ....................... 210 April 03, 2008 ....................... 211 January 3, 2008 ..................... 212

Auto Cancellation of Unconfirmed Pledge/ Hypothecation/SLB Orders due to Auto Corporate Actions Auto Corporate Action for redemption Stipulated time for transfer of securities from CM Pool Account & Penalty

October 13, 2001 ................... 212 October 12, 2001 ................... 212 May 14, 2002 ........................ 213 April 22, 2004 ....................... 214

TRANSMISSION
Transmission of securities in case of nomination RBI Clarification on Transmission of Government Securities Capturing of PAN details in the DPMAS in case of transmission Transmission - Processing pending cases Transmission cum Demat - Removal of time limit September 1, 2009 ................. 222 March 19, 2009 ...................... 222 January 23, 2007 ................... 223 January 18, 2007 ................... 223 November 3, 2000 .................. 224 June 25,2001 ........................ 224

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Subject PROVISION OF TRANSACTION STATEMENT

Transaction Statements to clients through Internet (Web-based or Email)

Date(s)

Page No.

May 21, 2008 ........................ 228 March 7, 2002 ....................... 229 Transaction statement - Provisions through Internet September 22, 1998 ................ 230 Internet-based Demat Account Statement - IDeAS July 1, 2010 .......................... 232 June 25, 2010 ....................... 232 May 25, 2010 ........................ 233 May 25, 2010 ........................ 234 February 3, 2010 .................... 235 September 22, 2009 ................ 235 April 11, 2009 ....................... 236 April 1, 2009 ......................... 236 October 5, 2007 ..................... 239 September 29, 2007 ................ 239 October 5, 2006 ..................... 239 June 29, 2004 ....................... 240 December 20, 2003 ................. 240 Exemption from sending physical transaction statement to subscribers of IDeAS March 24, 2006 ...................... 241 Transaction Statement - Controls on despatch October 20, 1999 ................... 242 Transaction Statement - Provide transaction statement and not holding statement January 31, 2000 ................... 242 Transaction Statement - RBI directive on providing Transaction Statement to Bank clients February 22, 2003 .................. 242 Transaction Statements - Footnote in the January 4, 2010 ..................... 243 transaction statements sent to Clients December 23, 2004 ................. 243 June 21, 2004 ....................... 243 Providing Statement of transaction to Beneficial Owner consequent to account closure May 11, 2006 ........................ 244 Transaction Statements - Exemption from giving hard copies of transaction statements to Beneficial Owners by DPs August 24,2004 ...................... 244 Transaction Statements - Exemption from providing transaction statements July 11, 2009 ........................ 245 April 1, 2009 ......................... 245 January 15, 2009 ................... 246 September 9, 2005 ................. 246 August 24, 2004 ..................... 247 SMS Alert Facility August 3, 2010 ...................... 247 March 4, 2010 ....................... 247 January 6, 2010 ..................... 248 August 29, 2009 ..................... 248 [ viii ]

Subject

Date(s)

Page No.

May 6, 2009 .......................... 249 April 22, 2009 ....................... 253 June 5, 2008 ......................... 253 April 22, 2008 ....................... 254 September 29, 2007 ................ 254 September 21, 2007 ................ 254 August 10, 2007 ..................... 255

INTERNAL CONTROLS/REPORTING TO NSDL/SEBI

Alteration in memorandum of Association (MOA) for permitting the participant to undertake Depository participant activities Format for application to SEBI for opening of wholly owned subsidiaries or entering into joint venture in other countries SEBIs Master Circular for Depositories

July 22, 2010 ........................ 257

Submission of Form-B in softcopy (through email) Compliance Schedule for reports/ certificates by Participants Written communication to NSDL Compliance Officer details Submission of Compliance Certificate by Participants Acknowledgment by NSDL for submission of Compliance reports by Depository Participants Format for filing charge structure Audited networth certificate - Financial statement Off-market transactions report Internal / Concurrent Audit

January 14, 2011 ................... 258 January 4, 2011 ..................... 259 December 31, 2010 ................. 260 May 19, 2010 ........................ 295 August 17, 2009 ..................... 295 July 28, 2009 ........................ 296 August 3, 2005 ...................... 297 September 9, 2002 ................. 297 December 29, 2005 ................. 298 February 22, 2010 .................. 299 July 6, 2006 .......................... 302 October 19, 2006 ................... 303 January 8, 2007 ..................... 303 September 16, 2009 ................ 304 December 11, 2003 ................. 304 January 1, 1998 ..................... 306 November 10, 2009 ................. 306 November 3, 2008 .................. 317 March 22, 2007 ...................... 327 June 24, 2006 ....................... 329 April 20,2000 ........................ 331 April 4, 2001 ......................... 331 April 19, 2010 ....................... 331 November 25, 2003 ................. 334

Internal Audit - Management comments Grievance redressal - Reporting

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Subject

Date(s)

Page No.

Schedule of payment of SEBI Annual Fees Weekly demat information to SEBI not to be furnished GRIEVANCE REDRESSAL SEBI Circular - Exclusive E-mail Id for redressal of Investor Complaints Grievance redressal - reporting

January 31, 2001 ................... 335 October 6, 1998 ..................... 335 January 3, 2003 ..................... 335 December 20, 2003 ................. 336

June 18, 2010 ....................... 339 February 23, 2010 .................. 339 December 27, 2006 ................. 351 April 19, 2010 ....................... 353 November 25, 2003 ................. 356 January 31, 2001 ................... 356 October 6, 1998 ..................... 356

DP SERVICE CENTRES Adequate internal controls for the branches of Depository Participants Branch direct connectivity - More than 5000 accounts SEBI directive on creating awareness among demat account holders for PAN card Qualified personnel - Mandatory

July 9, 2007 .......................... 359 August 27,1999 ...................... 361 November 21, 2006 ................. 361 June 30, 2000 ....................... 361 June 6, 2000 ......................... 361 August 13,1999 ...................... 362 June 5, 2006 ......................... 362 January 13, 2010 ................... 362 September 25, 2007 ................ 364 August 24, 2000 ..................... 369 February 11, 2009 .................. 369 June 25, 2003 ....................... 369 March 6, 2003 ....................... 370 May 10, 2010 ........................ 370 February 26, 2002 .................. 370

List of holidays Submission of details of all places from where depository services are offered Branch services - Display of type of services Requirement of NCFM/NSDL certified personnel at service centres Clarification regarding franchise/service centre and NCFM qualifier person Branch Services - SEBI directive on Branch connectivity Discontinuation of depository service from service centers Procedure for Termination of Franchisee

CHARGES
Payment of bills by Participants Policy-SEBI Circular regarding Account Maintenance Charges collected upfront on annual or half yearly basis on BO accounts [x] August 31, 2010 ..................... 374

July 2, 2010 .......................... 376

Subject
Service tax on fees/charges payable by Participants Format for filing charge structure with NSDL Charges - waiver request to be submitted within one month SEBI Directive on reduction in Charges

Date(s)

Page No.

March 23, 2010 ...................... 377 January 8, 2007 ..................... 377 October 23, 2009 ................... 377 December 29, 2003 ................. 378 June 29, 1999 ....................... 379 April 29, 2010 ....................... 379 December 27, 2007 ................. 380 August 12, 2005 ..................... 381 December 29, 2003 ................. 382 March 4, 2002 ....................... 384 October 5, 2007 ..................... 385 January 30, 2006 ................... 388 January 5, 2006 ..................... 388 November 1, 2002 .................. 389 December 18, 2002 ................. 389 March 5, 2004 ....................... 389 July 3, 2009 .......................... 390 January 10, 2011 ................... 393 August 16, 2010 ..................... 393 June 18, 2010 ....................... 403 March 26, 2010 ...................... 403 January 19, 2010 ................... 406 December 2, 2009 .................. 410 October 29, 2009 ................... 410 October 15, 2009 ................... 410 September 18, 2009 ................ 412 June 9, 2009 ......................... 412 January 29, 2009 ................... 414 December 30, 2008 ................. 415 October 16, 2008 ................... 416 July 26, 2008 ........................ 418 April 23, 2008 ....................... 418 January 17, 2008 ................... 419 November 12, 2007 ................. 420 July 11, 2007 ........................ 422

Closure of accounts with zero balances SEBI directive on non levy of charges for transfer of securities consequent to account closure

Closure of accounts - SEBI Directive on abolishing account closure charges Closure of accounts - Request received on plain paper Monthly Bills Fees for Rematerialisation of Securities

ANTI MONEY LAUNDERING

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Subject

Date(s)

Page No.

August 25, 2006 ..................... 424 July 17, 2006 ........................ 424

CONNECTIVITY / RECONCILIATION
Readiness for Dial-up connectivity WAN to WAN Connectivity Nov 11, 2006 ......................... 427 October 9, 2002 ..................... 428 December 18, 2001 ................. 428

RECORD KEEPING
SEBI circular on maintenance of records and documents December 12, 2009 ................. 433 August 12, 2005 ..................... 434

SYSTEMS
Hardware Software Bandwidth Requirements for New DPM System Direct connectivity of DPM System with the Back Office System of the Participant September 29, 2010 ................ 438 June 30, 2010 ....................... 439 May 21, 2010 ........................ 439 December 7, 2009 .................. 441 December 5, 2009 .................. 441 November 14, 2009 ................. 441 November 9, 2009 .................. 441 November 6, 2009 .................. 442 August 21, 2009 ..................... 442 August 9, 2008 ...................... 442 September 29, 2009 ................ 444 December 29, 2008 ................. 445 October 10, 2008 ................... 445 September 6, 2008 ................. 447 July 10, 2008 ........................ 448 June 9, 2008 ......................... 449 January 1, 2011 ..................... 450 October 10, 2008 ................... 450 May 30, 2008 ........................ 451 October 28, 2010 ................... 451 July 16, 2010 ........................ 452 July 2, 2010 .......................... 452 June 25, 2010 ....................... 452 June 24, 2010 ....................... 464 April 8, 2010 ......................... 464 March 27, 2010 ...................... 465 October 1, 2009 ..................... 469

Master Circular on back office file formats Multi Protocol Label Switching (MPLS)

EOD timing for Participants

Version Releases and Features

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Subject

Date(s)

Page No.

PAN Import Utility to upload PAN details Report on bounced / undelivered email addresses for registration for IDeAS facility through DIRECT Software utilities for making queries in DPM system November 24, 2006 ................. 505 October 16, 2006 ................... 507 September 23, 2006 ................ 510 Caution to be exercised while executing freeze in Client accounts using Freeze Utilities December 20, 2006 ................. 511 DPM Software - Modification only with prior permission of NSDL September 13, 1997 ................ 514 Additional Software permitted on DPM System September 7, 2002 ................. 515 March 8, 2002 ....................... 515 DPM System - General operating instructions December 28, 1997 ................. 516 DPM system - Guidelines for monitoring hard-disk space August 13,1998 ...................... 520 DPM system - Monitoring hard-disk failure July 29, 2002 ........................ 521 May 18, 2001 ........................ 522 DPM system - Monitoring messages & Releasing instructions June 22, 2002 ....................... 522 DPM System - Reporting problem to NSDL Helpdesk December 15, 2009 ................. 524 October 12, 1998 ................... 524 DPM System - Upgrading DPM hardwarePrior permission of NSDL February 18, 1999 .................. 524 DPM System - Security administration October 26, 2002 ................... 524 May 31, 2000 ........................ 524 DPM setup after upgradation Checklist for Compliance April 10,2004 ........................ 525 NSDL email server April 19,2004 ........................ 526 Phasing out of CISCO Router 2500 series July 27, 2005 ........................ 527 August 9,2004 ....................... 527 Creation of Automated System Recovery backup in Windows 2003 server October 10, 2008 ................... 527

September 14, 2009 ................ 470 September 5, 2009 ................. 471 June 17, 2009 ....................... 473 June 1, 2009 ......................... 473 February 27, 2009 .................. 473 December 16, 2008 ................. 475 September 1, 2008 ................. 478 February 5, 2008 .................... 481 October 5, 2007 ..................... 493 July 21, 2006 ........................ 502 August 4, 2010 ...................... 504

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Subject
Backup on holidays & Penalty FAQs for backup DPM System - Backups

Date(s)

Page No.

March 21,2002 ....................... 528 January 6,1998 ...................... 528 June 5, 1998 ......................... 529 December 7, 2009 .................. 533 August 28, 2009 ..................... 534 August 27, 2009 ..................... 534 July 21, 2009 ........................ 534 March 3,2003 ........................ 535 May 13, 2002 ........................ 535 August 31,1999 ...................... 535 October 3,2002 ...................... 536 October 28,2002 .................... 538 April 26, 2008 ....................... 540

Anti-virus
FAQs on Anti-virus Disablement of User IDs that are not complying to System Security Policy DPM Systems - Capacity planning and operational guidelines for performance optimization DPM Capacity Enhancement - server configuration

January 29,1999 .................... 540 June 16, 2008 ....................... 542 March 24, 2006 ...................... 542 DPM System-Recommended hardware configuration November 6, 2002 .................. 547 May 12, 2000 ........................ 548 January 12,2000 .................... 549 Low End DPM System - Recommended hardware configuration February 21, 2003 .................. 550 DPM Systems - Recommended hardware configuration after implementing archival system November 28, 2000 ................. 550 Upgradation of DPM Server operating system (OS) software from Windows 2000 server OS to Windows 2003 Server OS May 20, 2008 ........................ 551 Change in Operating System for DPM Server to Windows 2000 and changes in Server Configurations December 2, 2002 .................. 552 July 18, 2002 ........................ 553 November 6, 2001 .................. 554 July 30, 2001 ........................ 554

RENEWAL OF REGISTRATION
Submitting Documents Or information to SEBI March 4, 2005 ....................... 557 December 30, 2010 ................. 563 December 24, 2010 ................. 565

MUTUAL FUNDS

Subject

Date(s)

Page No.

Conversion of Mutual funds units represented by statement of Account Facility for holding mutual fund units in dematerialised form

December 22, 2010 ................. 566 December 11, 2010 ................. 567 December 10, 2010 ................. 569 December 10, 2010 ................. 569 December 30, 2010 ................. 569 November 27, 2010 ................. 569 September 30, 2010 ................ 571 September 8, 2010 ................. 571 July 20, 2010 ........................ 571 July 16, 2010 ........................ 573 July 7, 2010 .......................... 573 July 1, 2010 .......................... 573 March 9, 2010 ....................... 577
December 5, 2009 ....................... 579

1. Account Opening
a. General Section 5 Any person, through a participant, may enter into an agreement, in such form as may be specified by the bye-laws, with any depository for availing its services. Every participant shall enter into an agreement with a beneficial owner before acting as a participant on his behalf, in a manner specified by the depository in its bye-laws. Separate accounts shall be opened by every participant in the name of each of the beneficial owners and the securities of each beneficial owner shall be segregated, and shall not be mixed up with the securities of other beneficial owners or with the participant's own securities. No Participant shall conduct business as a Participant with its Clients unless it has entered into an agreement with its Clients. The Participant shall maintain separate accounts in respect of each Client and its own account. The Participant shall intimate the balances held in its own account and Client account to Depository on a daily basis. The Client will be required to enter into an agreement with the Participant in accordance with the provisions of Chapter 6 of these Bye Laws. Once the application has been accepted by the Participant, the applicant will be issued a Client account number. The Participant shall ensure that the application form submitted by the Client is completely filled, including the Bank Account particulars of the Client, and properly signed.

Regulation 41

Regulation 42 (1)

Bye Law 6.4.1 Bye Law 9.1.2

Bye Law 9.1.5 Bye Law 9.1.6 Rule 12.1.2

Master circular on Account Opening version 2.6 was issued in July 2010. Circulars issued thereafter and other relevant circulars are listed below Circular No: NSDL/POLICY/ 2011/0013 Date: February 1, 2011 Sub: SEBIs Clarification on opening of account in case of HUF Attention of Participants is invited to SEBIs Master Circular no. CIR/MRD/ DP/ 41 /2010 dated December 31, 2010 for Depositories [refer NSDL Circular no. NSDL/POLICY/2011/0003 dated January 4, 2011], which is a compilation of circulars / communications issued by SEBI up to December 31, 2010. SEBI has vide point nos. 1.2.6 and 4.3 of aforesaid Master Circular clarified the following in case of Beneficial Owner (BO) account: 1.2.6 HUF, Association of Persons (AoP), Partnership Firm, unregistered Trust, Registered Trust, Corporate Bodies, minors, etc. The BO account shall be in the name of natural persons, PAN card details of the respective HUF, AoP, Partnership Firm, Unregistered Trust, etc shall be obtained. The PAN number of Registered Trust, Corporate Bodies and minors shall be obtained when accounts are opened in their respective names. 4.3. Opening of demat account in case of HUF It is noted that as per law, in case of HUF, shares can be held in the name of Existing Karta on behalf of HUF. Therefore, HUF demat accounts can be opened in the name of Existing Karta but not in the name of Deceased Karta and HUF entity. In view of the aforesaid, Participants are advised to continue to ensure that for an HUF, the accounts are opened under the type HUF in the name of Karta (i.e. natural person) who is alive and not in the name of HUF entity.

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Circular No: NSDL/POLICY/ 2010/0132 Date: December 15, 2010 CIR/MRD/DP/ 37 /2010 To, All Depositories Dear Sir / Madam,

Sub: Acceptance of third party address as correspondence address All Participants are hereby informed that SEBI has issued Circular No. CIR/ MRD/DP/37/2010 dated December 14, 2010 (copy enclosed) regarding acceptance of third party address as correspondence address. Participants are requested to take note of the same and ensure compliance. CIRCULAR December 14, 2010

Sub: Acceptance of third party address as correspondence address 1. SEBI has received representations from Market Intermediaries seeking guidance and clarifications whether to accept and capture the address of some person (hereinafter referred to as third party) other than the beneficial owner(BO) as a correspondence address in the details of the demat account of the BO. 2. In this regard, it is stated that SEBI has no objection to a BO authorizing the capture of an address of a third party as a correspondence address, provided that the Depository Participant (DP) ensures that all prescribed Know Your Client norms are fulfilled for the third party also. The DP shall obtain proof of identity and proof of address for the third party. The DP shall also ensure that customer due diligence norms as specified in Rule 9 of Prevention of Money Laundering Rules, 2005 are complied with in respect of the third party. 3. The depository participant should further ensure that the statement of transactions and holding are sent to the BOs permanent address at least once in a year. 4. However, the above provision shall not apply in case of PMS (Portfolio Management Services) clients as informed earlier vide letter no. IMD/ MT/165502/ 2009 dated June 05, 2009. 5. The Depositories are advised to: 5.1. make necessary amendments, if required, to the relevant byelaws/ rules and regulations/ circulars for the implementation of the above decision immediately. 5.2. bring the provisions of this circular to the notice of all the Depository Participants and same may also be disseminated on the website. 6. This circular shall come into force from the date of its issue. 7. This circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992 read with Section 19 of the Depositories Act, 1996 to protect the interests of investors in securities and to promote the development of, and to regulate the securitiesmarket. This circular is available on SEBI website at www.sebi.gov.in. Circular No: NSDL/POLICY/ 2010/0102 Date: September 6, 2010 Sub: Pledge of shares through depository system All Participants are hereby informed that SEBI has vide its letter no. MRD/ DoP/MAS-OW/16723/2010 dated August 17, 2010 (copy enclosed) informed that many entities (including promoters of listed companies) transfer shares on off-market basis which leads to change in beneficial ownership and these transfers are stated as pledge. The manner of creating pledge of shares held in a dematerialised form is clearly enumerated under section 12 of the Depositories Act, 1996 and Regulation 58 of the SEBI (Depositories and Participants) Regulations, 1996. In view of the aforesaid, Participants are advised to inform the beneficial owners that any procedure followed other than as specified under the aforesaid provisions of law shall not be treated as pledge.

DEPUTY GENERAL MANAGER Market Regulation Department - Division of Policy Email : harinib@sebi.gov.in MRD/DoP/MAS - OW/16723/2010 August 17, 2010

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Mr. Samar Banwat, Vice President National Securities Depository Ltd. Trade World, Kamala Mills Compound Senapati Bapat Marg, Lower Parel Mumbai, 400013 Dear Sir, 1. Sub : Pledge of Shares through depository system It is observed in the present depository mode that many entities (including promoters) are transferring shares off-market and these transfers are stated as pledge. As you are aware, under the Depositories Act. the beneficial owner is a person in whose account shares are held. However, the aforesaid offmarket transfer will lead to change in beneficial ownership and therefore cannot be termed as pledge. Further, Section 12 of the Depository Act and Regulation 58 of the SEBI (Depositories and Participants) Regulations, 1996 along with the relevant Bye Laws of the Depositories clearly enumerate the manner of creating pledge. It is felt that there is a need to communicate to the BOs that any procedure followed other than as specified under the aforesaid provisions of law shall not be treated as pledge. In order to clarify the same, you are advised to issue a communique to the DPs advising them to inform BOs about the procedure for pledging of shares held in demat form as enumerated in The relevant sections of the Depositories Act and SEBI (Depositories and Participants) Regulations, 1996. You may also advise DPs that an off-market transfer of shares leads to change in ownership and cannot be treated as pledge. Further, this issue may also be taken up in your investor awareness programs wherein the manner of creation of pledge can be effectively communicated to the BOs directly.

2.

3.

Yours faithfully, Harini Balaji Circular No: NSDL/POLICY/ 2010/0101 Date: September 3, 2010 Sub: Capturing of old/legacy bank account numbers in Client Accounts AAttention of Participants is invited to NSDL Circular No. NSDL/POLICY/2009/ 0091 dated October 5, 2009 regarding capturing of new bank account numbers in case of change in the existing bank account numbers for ensuring that instructions of ECS/NECS are not rejected on account of old/legacy bank account numbers. To facilitate identification of Clients accounts where the bank account numbers captured in the DPM System are more than 15 digits, a file named 'Legacy Bank Account Numbers' is being provided at the intranet site of NSDL i.e., https://sqlassist. Participants will be required to enter the existing 'Maker' User ID i.e., DP ID and Password to access the file. The file will contain DP ID, Client ID, Client Name, Bank Name and Bank Account Number. Participants are requested to inform their Clients to provide the latest bank account numbers in case there is a change in the existing bank account numbers. At the time of capturing of new bank account details in the DPM system, Participants are advised to ensure compliance with point no. (I) (2) (2.3) of NSDL Master Circular No. NSDL/POLICY/2009/0029 dated April 16, 2009. For any information/clarifications, Participants are requested to contact NSDL Help Desk at (022) 2499 4600 or email at helpdesk@nsdl.co.in Sub: Mandatory requirement of 'In-person' verification of Clients Attention of Participants is invited to NSDL Circular No. NSDL/POLICY/2008/ 0030 dated April 30, 2008 wherein Participants were advised that 'in-person' verification of Beneficial Owners at the time of account opening should be carried out by the Participant staff only.

Circular No: NSDL/POLICY/ 2010/0009 Date: January 19, 2010

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SEBI has now clarified vide its Circular No. SEBI/MIRSD/Cir. No. 02/2010 dated January 18, 2010 (copy enclosed) that the 'in-person' verification done for opening Beneficial Owners account by a Participant will hold good for opening trading account by a stock broker and vice versa, if the stock broker and Participant is the same entity or if one of them is the holding or subsidiary company of the other. Participants are advised to take the note of the above and ensure compliance. General Manager Market Intermediaries Regulation and Supervision Department II Email: sundaresanvs@sebi.gov.in SEBI/MIRSD/Cir. No. 02/2010 January 18, 2010 1. 2. The Managing Directors of Stock Exchanges Managing Directors and CEOs of Depositories Sub : Mandatory requiremtn of In-person verification of clients 1. Pursuant to SEBI letter F. No. 47-2006/ISD/SR/122539/2008 dated April 04, 2008 (addressed to Depositories) and SEBI letter NO.MIRSD/DPSIII/130466/2008 dated July 02, 2008 (addressed to Stock Exchanges), SEBI has received requests and suggestions from various market participants on the captioned subject. Accordingly, it is clarified that the in person verification done for opening beneficial owners account by a Depository Participant (DP) will hold good for opening trading account by a stock broker and vice versa, if the stock broker and DP is the same entity or if one of them is the holding or subsidiary company of the other. Stock Exchanges & Depositories are advised to : (a) (b) (c) 4. issue necessary instructions to bring the provisions of this Circular to the notice of their constituents and also disseminate the same on their websites; make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above; and communicate to SEBI, the status of the implementation of the provisions of this Circular by January 31, 2010 .

Dear Sir/s

2.

3.

This Circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992 and Section 19 of the Depositories Act, 1996, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and shall come into effect from the date of this Circular. Sub: RBI intimation - Updation of new bank account numbers Participants may be aware that Reserve Bank of India (RBI) has introduced a new variant of Electronic Clearing System (ECS) called National Electronic Clearing Services (NECS) which aims to centralize the ECS operation and bring in uniformity and efficiency to the system. RBI has informed that with effect from January 1, 2010 necessary validations will be built into the ECS/NECS process flow to ensure that instructions with old/legacy account numbers are rejected at the ECS centre level itself. RBI has advised member banks participating in ECS/NECS to initiate necessary steps to update the old information pertaining to customer account numbers by December 31, 2009. In view of the aforesaid, Participants are advised to inform their Clients to provide the new bank account numbers in case of change in the existing bank account numbers to ensure that instructions of ECS/NECS are not rejected on account of old/legacy account numbers. At the time of updation of new bank

Circular No: NSDL/POLICY/ 2009/0091 Date: October 5, 2009

[4]

account details in the DPM system, Participants are advised to ensure compliance with point no. (I) (2) (2.3) of NSDL Master Circular No. NSDL/ POLICY/2009/0029 dated April 16, 2009 for capturing of Bank details. Circular No: NSDL/POLICY/ 2009/0073 Date: August 28, 2009 Sub: Capturing of Indian Financial System Code (IFSC) in the depository account of the Client As Participants are aware, the activities related to distribution of dividends, interest payments, IPO refunds etc., are carried out by the Issuers / R & T Agents. In this regard, NSDL has been providing to the Issuers / R & T Agents a mapping file containing MICR code and IFSC of the depository accountholders to facilitate them to process the payments through RTGS / NEFT. In light of the above, Participants are not currently required to undertake the task of capturing the IFSC in the depository accounts. Circular No: NSDL/POLICY/ 2009/0060 Date: July 20, 2009 Sub: SMS alert for depository accounts operated by Power of Attorney Further to Circular Nos. NSDL/POLICY/2009/0035 dated May 7, 2009, NSDL/ POLICY/2009/0039 dated May 14, 2009 and NSDL/POLICY/2009/0041 dated May 29, 2009, SEBI has clarified vide its letter no. SEBI/MRD/DEP/VM/169784/ 09 dated July 15, 2009 that SMS alert is mandatory for all depository accounts operated through Power of Attorney except in case of accounts held by nonindividuals, foreign nationals and NRIs. For any information/clarifications, Participants are requested to contact NSDL officials on telephone numbers (022) 2499 4488 / 4494 / 4214 / 4348 (email: participant-interface@nsdl.co.in). Circular No: NSDL/POLICY/ 2009/0054 Date: July 6, 2009 Sub: Amendment in Annexure JA to Business Rules. All Participants are hereby informed that minor modifications are carried out in the "Form for Nomination / Cancellation of Nomination" i.e. Annexure JA to Business Rules so as to incorporate certain details which are already a part of the nomination portion of the "Application for opening an account (for individuals only)" i.e. Annexure J to Business Rules. The revised "Form for Nomination / Cancellation of Nomination" i.e. Annexure JA is enclosed. ANNEXURE JA FORM FOR NOMINATION / CANCELLATION OF NOMINATION (To be filled in by individual applying singly or jointly) I/We _________________ and _______________ the holders of beneficiary owner account bearing Client Id No. ___________ held with M/s ___________________ a NSDL Depository Participant bearing DP Id No; _________________ wish to *make a nomination / cancel the nomination dated ________ and do hereby *nominate / cancel the nomination made by me/ us on the ______ day of _______ the following person in whom all rights of transfer and / or amount payable in respect of securities held in the Depository by me/ us in the said beneficiary owner account shall vest in the event of my/our death /* and consequently all rights and liabilities in respect of beneficiary ownership in the securities held by me/ us in the said account shall vest in me/us. (* strike out whichever is not applicable)

Photograph of Nominee Signature of Nominee across Photograph

Photograph of Guardian (in case of minor) Signature of Guardian across Photograph

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Name and Address of Nominee Name: .................................................................................... Relationship with the Applicant (if any) : ........................................... Address: .................................................................................. Date of Birth* : .......................................................................... (to be furnished in case the Nominee is a minor) Signature of the Nominee : .......................................................... **The Nominee is a minor whose guardian is : Address of the Guardian ............................................................... ............................................................................................. Signature of the guardian: .................................. (in case of guardian his photograph should be affixed) (to be deleted if not applicable) Beneficial Owner Sr. No. 1. Name Address Signature with date

2.

3.

Signature of two Witnesses Name and Address 1. 2. Instructions: 1. The nomination can be made only by individuals holding beneficiary owner accounts on their own behalf singly or jointly. Non- individuals including society, trust, body corporate, partnership firm, karta of Hindu Undivided Family, holder of power of attorney cannot nominate. If the account is held jointly all joint holders will sign the nomination form. A minor can be nominated. In that event, the name and address of the Guardian of the minor nominee shall be provided by the beneficial owner. The Nominee shall not be a trust, society, body corporate, partnership firm, karta of Hindu Undivided Family or a power of Attorney holder. A non-resident Indian can be a Nominee, subject to the exchange controls in force, from time to time. Nomination in respect of the beneficiary owner account stands rescinded upon closure of the beneficiary owner account. Similarly, the nomination in respect of the securities shall stand terminated upon transfer of the securities. Signature with date

2.

3.

4.

[6]

5. 6.

Transfer of securities in favour of a Nominee shall be valid discharge by the depository against the legal heir. The cancellation of nomination can be made by individuals only holding beneficiary owner accounts on their own behalf singly or jointly by the same persons who made the original nomination. Non- individuals including society, trust, body corporate, partnership firm, karta of Hindu Undivided Family, holder of power of attorney cannot cancel the nomination. If the beneficiary owner account is held jointly, all joint holders will sign the cancellation form. On cancellation of the nomination, the nomination shall stand rescinded and the depository shall not be under any obligation to transfer the securities in favour of the Nominee.

7.

Master Circular on Account Opening Version 2.6 May 2010 Sr.No (I) Topic

Guidelines in respect of account opening in case of individuals (Non-Body Corporate) 1 Individuals, Karta of HUF, Partners in case of Partnership firm, Guardian in case of minor account 1.1 In-person verification of applicant(s) at the time of opening depository account 1.2 Execution of agreement 1.3 Submission of valid proof of identity / proof of address 1.4 Collection of KYC documents in case of joint holdings 1.5 Verification of Documents 1.6 Exercising of due diligence 1.7 Application of stricter criteria in selecting KYC documents 1.8 Concurrent Audit with respect to account opening 2 Procedure for capturing of demographic details of the account holder(s) 2.1 Capturing of PAN details 2.2 Capturing of local and correspondence address 2.3 Capturing of Bank details 3 Mode of capturing the details in the DPM System 4 Procedure for opening HUF account 5 Procedure for opening of a minor account 5.1 Procedure to be followed by Participants on minor attaining majority 6 Accounts opened in the names of Partners for holding securities that belong to a Partnership firm 7 Non-Resident Indian / Foreign National (NRI/FN) 7.1 KYC documentation and PAN for NRI and FN Clients 7.2 Opening of NRI (Repatriable/Non- Repatriable) account 7.3 Reserve Bank of India (RBI) Clarification with respect to NRI / FN 8 Opening of account of an illiterate person 9 Opening of an account of a Blind person 10 Procedure to be followed with respect to Nomination 11 Procedure for change in demographic details 11.1 Change of address 11.2 Change of Signature 11.3 Change in status of Standing Instruction 11.4 Change in bank details such as account type, account number, name, address and MICR 11.5 Change in SMS flag and/or mobile numbers 11.6 Addition / Deletion / Modification of Power of Attorney holder(s) 11.7 Make a nomination / Cancel the Nomination

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(II) Guidelines in respect of account opening in case of Body-Corporate 1 Procedure for opening account of a Body-Corporate 1.1 Documents to be obtained at the time of opening depository account 1.2 Verification of documents 1.3 Verification of PAN, address and bank details 2 Additional requirement with respect to Foreign Corporate Bodies 3 Other Types of Body Corporate Accounts 3.1 Opening of an Escrow Account 3.2 Procedure for opening depository account for unclaimed shares of listed companies 4 Procedure for opening depository account for Limited Liability Partnership (LLP) 5 Procedure for change in demographic details 5.1 Change of address 5.2 Change of authorised signatory 5.3 Change in status of standing instruction 5.4 Change in bank details such as account type, account number, name, address and MICR 5.5 Addition / Deletion / Modification of Power of Attorney holder(s) 6 Change in name of Body-Corporate Accounts (III) Depository accounts opened in the capacity of Individual/Body Corporate as applicable 1 Opening of depository accounts in case of Trusts such as Provident Fund trusts, Gratuity trusts, Superannuation trusts etc. 2 Opening of promoter account 3 Opening of DR account 4 Opening of a Commodity Account 5 Procedure regarding operation of account through Power of Attorney 5.1 Sample Clause 5.2 General points regarding Power of Attorney 5.3 Review of Power of Attorney document (IV) Procedure for opening and shifting/closing of Clearing Member (CM) Account 1 Opening of CM Account 1.1 Shifting/Closure of CM Account 1.2 Procedure for change of name of CM account 2 Opening of Margin Account (V) FAQs related to Account opening Annexure I (I) Guidelines in respect of account opening in case of individuals (Non-Body Corporates) (1) Individuals, Karta of HUF, Partners in case of Partnership firm, Guardian in case of minor account (1.1) In-person verification of applicant(s) at the time of opening depository account (NSDL/POLICY/2007/0016 dated March 16, 2007, NSDL/POLICY/2008/0030 dated April 30, 2008 NSDL/POLICY/2008/0076 dated October 27, 2008 & NSDL/POLICY/ 2010/0013 dated February 6, 2010) (a) At the time of opening depository accounts, the staff of the Participant should establish the identity of the applicant(s) (including guardian in case of minor account) by verifying the photograph(s) affixed in the account opening form (Annexure J) as well as proof of identity document(s) as mentioned below in point no.(I)(1)(1.3), with the person concerned. Further, in case of joint accounts, in-person verification needs to be carried out for all the holders of the account. The staff of the Participant only should carry out in-person verification. The Participant should not outsource or assign the activity of in-person verification to an outside agency.

(b)

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(c)

Upon the applicant(s) submitting the account opening form, proof of identity & address documents and PAN details, staff of the Participant should follow the procedure as given below: (i) (ii) Verify the identity of the applicant(s) as clarified in point no.(I) (1) (1.1) (a) above. After due verification, affix a stamp on the face of the account opening form or on the document(s) collected as proof of identity to the effect that the identity of the applicant(s) is verified in-person. The stamp should carry the following details: Name of the Participant and Participant ID, Name / Details of Branch/Service Centre, Details of the Participant staff who has carried out in-person verification (Name, Employee code if any, Signature), Date and place where in-person verification was carried out. (iii) If in-person verification is done through web camera, then mention IPV through webcam.

(d)

The in-person verification done for opening trading account by a stock broker will hold good for opening depository account by a Participant, if the stock broker and Participant is the same entity or if one of them is the holding or subsidiary company of the other. In case in-person verification done for opening trading account by stock broker is used for opening depository account, Participant must ensure that the details of in-person verification as is required to be maintained by stock broker under stock exchange regulations are available with appropriate cross-referencing (i.e. mention trading account number on depository account opening form or on proof of identity at the place for in-person verification). If the Participant wishes to keep the above records mentioned in point (I) (1) 1.1 (c) (ii) (i.e. verification details) in an electronic form, prior approval from NSDL should be obtained as per the NSDL Business Rule 16.4.1. Further, the Participant should ensure that the records are made available to NSDL officials, SEBI or any other Statutory Authority, whenever required. Participants can stamp or print the in-person verification details on the account opening form (Annexure J). Such details may be stamped or printed on any page, as the Participant may deem fit without making illegible the other details mentioned in the account opening form. However, attachment of separate sheet to the account opening form or affixing stickers on the account opening form carrying in-person verification details will not be permitted. (NSDL/POLICY/ 2007/0022 dated April 18, 2007). Participants may use web-camera for carrying out in-person verification for opening of depository accounts at the branch/franchisee offices of the Participant subject to compliance with other SEBI guidelines/circulars relating to opening of depository accounts including verification of documents.

(e)

(f)

(g)

(1.2) The applicant should fill up the Account Opening Form as per the format given in Annexure J of the Business Rules of NSDL and submit the same to the Participant alongwith the agreement (as per Annexure B of NSDL Bye Laws) duly executed on a stamp paper of appropriate value. Further, the Participant shall be responsible in deciding the value of the stamp paper. The schedule of fees to be charged by the Participant to the Client should form a part of the agreement. (1.3) The applicant should submit any one of the following as a valid proof of identity / proof of address alongwith a photocopy (NSDL/PI/2004/1622 dated September 7, 2004):

[9]

(a)

Proof I. II. III. IV. V.

of Identity (POI): Passport Voter ID Card Driving license PAN card with photograph Identity card/document with applicants Photo, issued by a) Central/State Government and its Departments, b) Statutory/Regulatory Authorities, c) Public Sector Undertakings, d) Scheduled Commercial Banks, e) Public Financial Institutions, f) Colleges affiliated to Universities (this can be treated as valid only till the time the applicant is a student), g) Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council etc., to their Members and h) Credit cards/Debit cards issued by Banks. of Address: Ration card Passport Voter ID Card Driving license Bank passbook / Bank Statement (NSDL/POLICY/2007/0074 dated December 1, 2007 and NSDL/POLICY/2008/0037 dated May 27, 2008) Verified copies of a) Electricity bills (not more than two months old), b) Residence Telephone bills (not more than two months old) and c) Leave and License agreement / Agreement for sale Self-declaration by High Court & Supreme Court judges, giving the new address in respect of their own accounts. Identity card/document with address, issued by Central/State Government and its Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Colleges affiliated to Universities (this can be treated as valid only till the time the applicant is a student) and Professional Bodies such as ICAI, ICWAI, Bar Council etc., to their Members.

(b)

Proof I. II. III. IV. V. VI.

VII. VIII. a) b) c) d) e) f) g)

(1.4) In case of joint holdings, POI and Proof of address documents must be collected in respect of all the account holders. (1.5) An authorised official of the Participant should verify the photocopies of documents submitted with their corresponding originals and put his/her signature on them with remarks verified with original before proceeding to open the account. (1.6) The aforesaid documents are the minimum requirement for opening of a beneficiary account. Participants are advised to exercise due diligence while establishing identity of the person to ensure the safety and integrity of the depository system. (1.7) Participants can apply stricter criteria and accordingly, decide to accept selected

[ 10 ]

documents out of the list of documents prescribed above (point no. (I) (1) (1.3)), as POI and Proof of Address (NSDL/PI/2004/2117 dated November 25, 2004). (1.8) 100% verification needs to be carried out in respect of account opening by the Concurrent Auditor of the Participant. The Concurrent Auditor should conduct the audit in respect of all accounts opened during the day, by the next working day. In case the audit could not be completed within the next working day due to large volume, the auditor should ensure that the audit is completed within a weeks time. Participants would be required to appoint a firm of qualified Chartered Accountant(s) or Company Secretary(ies) or a Cost and Management Accountant, holding a certificate of practice for conducting the concurrent audit. Participants in case they so desire, may entrust the Concurrent Audit to their Internal Auditors. (NSDL/POLICY/2006/0021 dated June 24, 2006, NSDL/POLICY/ 2007/0017 dated March 22, 2007 and NSDL/POLICY/2009/0020 dated March 16, 2009). (2) Procedure for capturing of demographic details of the account holder(s) (2.1) Capturing of PAN details (NSDL/POLICY/2006/0007 dated March 3, 2006 and NSDL/ POLICY/2006/0031 dated August 9, 2006): (i) (ii) Participants should obtain a photocopy of the PAN card of the person(s) seeking to open the account and verify the same with the original PAN card. Further, the name of depository account holder(s) should be compared with the name appearing on the website of the Income Tax Department (ITD) i.e. https:/ /incometaxindiaefiling.gov.in/knowpan/knowpan.do. Alternatively, subscribe to the internet based service of NSDL (NSDL/POLICY/2007/0048 dated August 14, 2007) so that the name can be sought against the given PAN. In case the name(s) do not match or the PAN is not present in the Income Tax database, Participants should seek necessary clarification from the account holder(s) and activate such accounts in the DPM System only after the discrepancy is resolved. In case of joint accounts, the PAN of each of the joint holder should be captured in the DPM System after making verification as explained above. As all Participants are aware, DPM System is enabled to capture PAN of all joint holder(s) of a depository account. After verifying the details of PAN as mentioned above, the staff of the Participant should affix a stamp as PAN verified, on the photocopy of the PAN card(s). Thereafter, PAN flag(s) should be enabled in the DPM System (NSDL/POLICY/ 2006/0012 dated March 25, 2006). PAN card has been lost / misplaced or PAN card was never received but has the PAN allotment letter from the ITD; Change in the name of the Client due to marriage or voluntary action etc., (in case of individuals) or due to merger, amalgamation etc. (in case of a corporate entity). In this regard, Participants are advised that the ITD issues a new PAN card with the same PAN with changes in PAN data, for the above reported problems. For detailed procedure, Participants may refer http://www.incometaxindia.gov.in or http://www.tin-nsdl.com (NSDL/POLICY/2006/0024 dated July 7, 2006). In cases where there is minor mis-match in the name of Client as is mentioned in the account opening form and the name displayed on the ITD website, the Participants can collect the PAN card proof as submitted by the account holder. However, this would be subject to the Participants verifying the veracity of the claim of such Clients by collecting sufficient documentary evidence in support of the identity of the investors as provided in the SEBI Circular No. MRD/DoP/Dep/ Cir-29/2004 dated August 24, 2004 (Refer point no. (I)(1)(1.3) above for list of

(iii)

(iv)

(v) (vi)

(2.1.1) With respect to PAN, Clients may have reported the following problems: : (a) (b)

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documents which can be accepted as a valid proof of identity). The Participant should call for any additional documents and / or clarification to ascertain and satisfy itself about the identity of the entity. (2.1.2) Participants are restricted from modifying the PAN of a holder in a Client account in DPM System, once the PAN flag has been enabled. However, Participant may approach NSDL for modifying the PAN or PAN flag and NSDL will provide a facility for Participants to register a request for modification of PAN for such holders in Client account (NSDL/ POLICY/2007/0052 dated September 13, 2007). (2.1.3) Participants may note that PAN may not be insisted in the case of Central Government, State Government and the officials appointed by the courts e.g. Official liquidator, Court receiver etc. (under the category of Government) for transacting in the securities market on behalf of the Central and State Government. Further, SEBI has clarified that the exemption from mandatory PAN requirement applies to transactions undertaken on behalf of the Central and State Government, but not to the transactions of the employees of Central and State Government in their personal capacity. (SEBI Circular No. MRD/ DoP/Cir-20/2008 dated June 30, 2008 and NSDL Circular Nos. NSDL/POLICY/2008/0048 dated June 30, 2008 & NSDL/POLICY/2008/0049 dated July 8, 2008). (2.2) Capturing of local and correspondence address (NSDL/PI/2005/1102 dated June 22, 2005 & NSDL/POLICY/2008/0040 dated June 4, 2008) (a) Participants can capture two addresses in the DPM System for a Client (first holder/sole holder) i.e. local and correspondence addresses. The Client Master Report and Export will carry both these addresses. For both, local and correspondence addresses of a Client, Participants should ensure that they collect and verify the KYC documents as mentioned in point nos. (I) (1) (1.3) (Individual) and (II) (1) (1.1) (Body-Corporate) and only then the same should be captured in the DPM System. The local address would be the default address that would be forwarded to the Registrar & Transfer Agent (RTA) as well as used for printing Transaction Statement (SOT) from DPM System. However, the Client has the option to request the Participant to use the other address i.e. correspondence address for the aforesaid purposes. In such a situation, the Participant should disable the default indicator under the option Beneficiary Address Local (referred to as Address Preference Flag in batch file import format). Participants may capture the landmark details in the DPM System, which are not mentioned in the proof of address submitted by the Client but are mentioned by Client in the account opening form. The landmark details could include details like name of the building / mall / junction / school / garden / hotel / bank / railway station / company name / bus depot etc with the preceding words such as near by, adjacent to, behind, next to, opposite to, off etc.

(b)

(c)

(d)

(2.3) Capturing of Bank details (NSDL/PI/2000/2295 dated December 20, 2000): Complete bank address including 9-digit MICR code is necessary for the Issuers to undertake distribution of corporate benefits directly to the bank accounts of beneficial owners. Participants are hereby advised to obtain a specimen copy of cheque and capture 9-digit MICR codes for all the accounts opened with them. Further, Participants are advised to capture bank address details strictly in the manner described below: Row 1 :Building / Tower / Apartment / Palace / Chamber / Mansion Row 2 :Street / Road / Marg / Lane / Avenue / Rasta Row 3 :Area name Row 4 :City name Pin code : Bank address PIN code

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(3)

Mode of capturing the details in the DPM System (a) The Participant should enter the details of the Client as mentioned in the Account Opening Form, in the DPM System after verifying with the POI and Proof of Address. It may be mentioned that Participants can avail the facility of Bulk Verify and Release with respect to opening of Client accounts in the DPM System (NSDL/PI/2007/0019 dated April 4, 2007). The Participant should capture the Clients signature(s) as given in the Account Opening Form in the DPM System. For ease of data entry, the Standing Instruction indicator in the DPM System would be in an enabled status with respect to all types of Client accounts except for accounts with sub-type DR at the time of opening depository accounts. For those Clients who have not opted for Standing Instructions, the Participant should disable the Standing Instruction indicator in the DPM System. For ease of data entry, the SMS flag of the account holder will automatically get enabled in the DPM System after the Participant captures the mobile number (Participants are advised to strictly capture the ten digit mobile number with the first digit as 6 / 7 / 8 / 9) of the respective account holders at the time of opening of depository accounts. If the Client submits the mobile number but does not wish to opt for the SMS Alert facility, the Participant should capture the mobile number in the DPM System and disable the SMS flag either from the front end of the DPM System or through back office file import (NSDL/POLICY/2008/0059 dated September 1, 2008 & Circular No.: NSDL/ POLICY/2010/0010 dated January 28, 2010). The Participant should save the details and enter the Client account number (Client ID) generated by DPM System in the Account Opening Form. The Participant should print the Client Master Report and give it to the Client alongwith a copy of the Agreement. Such information should be provided only after the account is in Active status in the DPM System. (NSDL/PI/98/583 dated November 18, 1998). Open the beneficiary account in the name of the Karta of the HUF. The HUF account should not have joint holdings (NSDL/PI/2002/1346 dated August 12, 2002). POI and Proof of Address of Karta should be obtained as mentioned in point no. (I) (1) (1.3). PAN details of the HUF should be captured in the DPM System after due verification (NSDL/POLICY/2006/0031 dated August 9, 2006). Since Clients are required to open HUF (depository) accounts in the name of Karta, they may face difficulty in encashing cheques / demand drafts in respect of dividend / interest warrant, since the bank account may have been opened in the name of HUF. For this purpose, RBI has clarified that a mandate may be taken by banks from the accountholder that the cheques drawn in favour of Karta can also be collected in the account of HUF and vice-versa. Participants are advised to take note of the above and provide a copy of Client Master Report so as to enable the Clients to suitably take up the matter with their banks. A copy of the letter received from RBI, clarifying the stand to be taken with respect to bank account that is opened in the name of HUF may be provided at the request of the Clients bank (NSDL/PI/2005/0159 dated January 27, 2005 and NSDL/POLICY/2007/0064 dated October 19, 2007).

(b) (c)

(d)

(e) (f)

(4)

Procedure for opening HUF account (a) (b) (c) (d)

(5)

Procedure for opening of a minor account SEBI has intimated to NSDL clarifying the position on operation of the depository accounts held in the name of minors as follows: Under [The] Hindu Minority and Guardianship Act, 1956, permission of court is required in the case of transfer by a natural guardian of immovable property of a minor. However, shares

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are not immovable property. Section 2(7) of Sale of Goods Act, 1930 includes shares within the definition of goods. Neither the Indian Contract Act nor the Sale of Goods Act provide for transfer by sale or otherwise by guardian/natural guardian of goods/movable property in the name of minor to the effect that permission of court is required in the matter of such transfer. In the case of accounts of minor in banks also, the guardian is entitled to open, operate and even close the account also. The depository account can, therefore, be operated by a natural guardian without any order from the court though the same is neither expressly permitted nor prohibited. (NSDL/PI/2000/323 dated March 17, 2000) Participants should follow the below given procedure for opening depository account of a minor: (NSDL/POLICY/2007/0004 dated January 11, 2007, NSDL/POLICY/2009/0015 dated February 27, 2009 and NSDL/POLICY/2010/0051 dated May 13, 2010) (i) (ii) (iii) Account opened in the name of minor should not have joint holdings. Obtain POI, Proof of Address and the photograph of the Guardian as per the procedure laid down in point no. (I) (1) (1.3) above. Photocopy of school leaving certificate / Marksheet issued by Higher Secondary Board of respective states, ICSE, CBSE / passport of the minor / birth certificate of the minor to ascertain the date of birth of the minor. At the time of accepting either of these documents, Participant should verify the same with the original. However, in case the client submits an original birth certificate, Participant can accept the same as proof of date of birth. PAN details of the minor should be captured in the DPM System after due verification. (NSDL/POLICY/2006/0031 dated August 9, 2006)

(iv)

(5.1) Procedure to be followed by Participants on minor attaining majority (NSDL/POLICY/2008/ 0034 dated May 21, 2008). On minor attaining majority (i.e. 21 years of age in case of minor whose Guardian is courtappointed or 18 years where minors account is represented by a natural guardian), Participants should follow the procedure given hereunder:

S. No. (i)

Procedure Ascertain the cases where Minors have attained Majority.

Reference Access the module Reports / Master List / Minor turned Adult available in the DPM System Point no. (I) (1) of this Circular and Annexure J of Business Rules

Remark Report displays accounts that are in status Active, Suspended for Debit and Suspended for Debit & Credit Income Tax Department (ITD) issues a new PAN card with same PAN with relevant changes on PAN card, on Minor attaining majority. For detailed procedure, Participants may refer http:/ /www.incometaxindia.gov.in or http://www.tin-nsdl.com. This is in case where the Client does not respond within one month from the date of communication as mentioned in point no. (ii) above.

(ii)

Communicate to the Client (Minor attained Majority) immediately advising him/her to submit a fresh account opening form alongwith necessary KYC documents & PAN card alongwith photograph of the Client and also comply with in-person verification. Suspend the account for debit and disable the standing instruction for credit pertaining to the account of Minor.

(iii)

DPM System.

[ 14 ]

S. No. (iv)

Procedure Verify the account opening form alongwith necessary KYC documents and PAN as mentioned under point no.(ii) herein above. Execute a fresh ParticipantClient agreement with the Client.

Reference Point nos. (I) (1) and (2) (2.1) of this Circular and Circular no. NSDL/OLICY/2008/ 0030 dated April 30, 2008.

Remark

(v)

Annexure B of the Bye Laws of NSDL.

Retain the KYC documents of Guardian alongwith Participant Client agreement executed earlier at the time of account opening by the Guardian on behalf of the Client as a part of account opening documents. Ensure that the demographic details captured in the DPM System match with the details in the new account opening form, KYC documents and PAN card submitted by the Client. If there is mismatch in the demographic details captured in the DPM System or if Client submits a request for modification of such details like change of Bank details, address details, etc. follow the relevant procedure.

(vi)

Capture the new demographic details in the DPM System after due verification of same.

Point no. (I) (11) of this Circular

(vii)

Capture the signature of the Client (Minor turned Major) in the system in place of the signature of the Guardian (captured earlier).

DPM System

(viii)

Select None or Nominee as the case may be in the field Nominee/Guardian in the DPM System to disable the entire Guardian details in the said account. If Nominee is selected enter the nomination details.

Point nos. (I) (10) of this Circular and Annexure JA of Business Rules

Select the option after the aforesaid procedure as mentioned in aforesaid points is followed and the identity of the Client is verified. As the Client has become Major, he/ she can now make a nomination in his/her account in favour of any person by filing with the Participant a request for making a nomination in prescribed form.

[ 15 ]

S. No. (ix)

Procedure Any request or instruction(s) from the guardian, which is/ are to be processed or is having execution date falling on or after the date the Minor has turned Major, shall be processed/executed only after receipt of confirmation from the Client (Minor turned Major).

Reference

Remark As Clients who have attained Majority are legally entitled to execute a contract, Participants are advised NOT to accept any requests or instructions signed by the Guardian on behalf of the Client on or after the date the Client has turned Major.

(x)

Client (Minor turned major) account is suspended for debit for non-compliance with PAN requirement Follow the procedure mentioned in point nos. (i) to (viii) above and capture the PAN details in the DPM System and enable the PAN flag. Point no. (I) (2) (2.1) of this Circular

(xi)

Accounts already suspended in cases where Clients have not responded Follow the procedure as mentioned under point no. (ii) to (viii) above. Point no. (I) (5), (5.1) and (5.2) of this Circular This is in cases where the accounts pertaining to Minor Clients are suspended for debit and the standing instruction for credit is disabled on account of failure of the Clients to respond within the period of one month from the date of communication to Client from Participants.

(6) Accounts opened in the names of Partners for holding securities that belong to a Partnership firm (NSDL/POLICY/2007/0009 dated February 12, 2007) (i) (ii) The account should be opened only in the names of Partners and the securities that belong to the Partnership Firm can be held in this account. Obtain POI and Proof of Address of the Partners as per the documents mentioned in point no. (I) (1) (1.3). Further, obtain a copy of the Partnership Deed to verify the names of Partners. Obtain an undertaking in the prescribed format from the Partners to the effect that the Partners would comply with the provisions of the Companies Act, 1956 and other applicable statutes in respect of securities of the Partnership firm held in the account opened in the names of the Partners (NSDL/POLICY/2006/0008 dated March 4, 2006). PAN details of the Partnership firm should be captured against the names of all the Partners after due verification (NSDL/POLICY/2006/0031 dated August 9, 2006). Capture the bank details of the Partnership firm.

(iii)

(iv) (v)

[ 16 ]

(7)

Non-Resident Indian / Foreign National (NRI/FN) (7.1) Procedure to be followed by Participants with respect to KYC documents and PAN of NRI (Repatriable/Non-Repatriable) and FN at the time of opening an account in the respective category: (i) (ii) (iii) Obtain POI and Proof of Address of the applicant as per the procedure laid down in point no. (I) (1) (1.3) above. Obtain a declaration from the Client that he/she has complied and will continue to comply with FEMA regulations. Participants are advised to obtain photocopies of Proof of Address in respect of foreign address where the NRI/FN is residing and verify the same with originals. In case the NRI/FN Clients have Indian address, Participants are advised to obtain photocopies of Proof of local address and verify the same with originals. Further, in case if the NRI/FN has submitted only Proof of Address of the country (foreign address) where the NRI/FN is residing, in such a situation, Participants may capture the foreign address in both local and foreign address fields given in the DPM System. If Participants find it infeasible to carry out in-person verification of the NRI/ FN Client by their staff and/or verify the original KYC documents (POI and Proof of Address i.e. foreign address, where the NRI/ FN is residing) alongwith PAN card, in such a situation, it is clarified that: (a) (b) the account opening form and photocopies of the KYC documents and PAN card should be duly signed by the account holder; and photocopies of the KYC documents and PAN card is attested by any of the entities viz; Notary Public, Court, Magistrate, Judge, Local Banker, Indian Embassy / Consulate General of the country where NRI/FN is residing [outside India]; and the attestation is to the effect that it has been verified with the originals. Participants should open the depository accounts or accept the PAN card only after it is satisfied with the authenticity of the documents (POI, Proof of Address and PAN card). (v) In case where in-person verification for NRI/FN Client has been carried out by the staff of the Participant or if he/she personally visits the office of the Participant to submit the KYC documents and PAN card, in such a situation, the NRI/FN would be exempted from obtaining attestation, on KYC documents and PAN card. (NSDL/POLICY/2008/0030 dated April 30, 2008, NSDL/POLICY/2007/0022 dated April 18, 2007, NSDL/POLICY/2006/0067 dated December 28, 2006 and NSDL/ POLICY/2006/0049 dated October 19, 2006). (7.2) NRI (Repatriable/Non- Repatriable) account (NSDL/PI/98/007 dated January 2, 1998): (i) While opening an account for an NRI Client, the Participant should obtain copy of the RBI approval letter, if any, for acquiring securities, alongwith the account opening form and other necessary documents. The account should be opened in the name of the NRI in the DPM System under repatriable category when securities are held on repatriable basis and under non-repatriable category when securities are held on non-repatriatable basis. Participants are advised to capture the following details in the DPM System against the RBI reference number and date : (a) If the NRI has at any time purchased securities from the secondary market, i.e., under Portfolio Investment Scheme, then the RBI reference number and date mentioned in the RBI approval letter should be entered.

(iv)

(c)

(ii)

(iii)

[ 17 ]

(b)

If the NRI has never purchased securities from the secondary market, but the securities have been allotted in the primary market, i.e., under Direct Investment Scheme, then the Participant should mention the following : RBI Reference No. : Under General Permission RBI Approval Date : Present date (Subsequently, whenever the NRI gives dematerialisation or receipt instructions in respect of purchase of securities from the secondary market, the RBI reference number and date should be entered therein)

(c)

If the NRI does not hold any securities, then the Participant should mention the following : RBI Reference No. : No Holdings RBI Approval Date : Present date (Subsequently, whenever the NRI gives dematerialisation or receipt instructions in respect of purchase of securities from the secondary market, the RBI reference number and date should be entered therein)

(iv)

While processing dematerialisation, receipt, delivery or pledge instructions from NRI Client, the Participant must obtain a copy of the relevant RBI approval letter (e.g., RBI approval letter for sale in case of delivery instructions). The Participant need not obtain copy of the RBI approval letter for every instruction, if the same approval applies to each such instruction.

(7.3) RBI Clarification with respect to NRI/FN : (NSDL/PI/2000/1891 dated October 6, 2000) RBI vide its letter dated July 18, 2000 to one of the Participant of NSDL has issued the following clarifications with regard to permission to open Bank Account and Depository Account to sell shares acquired under ESOP by FN: (a) (b) RBI approval is not required for opening depository account. RBI has not put any condition that for opening of depository account, the non-resident shareholder must have a bank account. The depository account may be opened as per the norms of NSDL and the concerned bank. RBI has already granted General Permission for sale of shares on stock exchanges by non-residents and for sale of shares by negotiated deals, application in TS-1 form may be submitted to concerned Regional Office of RBI for obtaining permission. FN can sell the shares held under ESOP on stock exchange without RBI permission

(c)

(d)

Participants are required to ensure that all transactions in the account are in compliance with FEMA regulations. Accordingly, Participants are advised to obtain from the NRI/FN, necessary documents evidensing general/specific approvals as may be required under FEMA regulations. (8) Opening of account of an Illiterate person (NSDL/PI/2002/0709 dated May 3, 2002): NSDL has prescribed the procedure for affixing thumb impression (in Annexure J of Business Rules) while filling an account opening form by an illiterate person. In this context, Participants are advised to follow the below mentioned procedure: (a) Illiterate person(s), at the time of opening an account with a Participant must affix the 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. All accounts opened by illiterate person(s) (hereinafter referred as Clients) must be either introduced by an existing account holder or must be attested by applicants bank. The Client(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 Participant.

(b)

(c)

[ 18 ]

The Participant should identify the Client(s) by verifying the photograph submitted by the Client(s) and read out/explain the contents of the account opening form, ParticipantClient agreement and delivery instruction form to the Client(s). The official of the Participant should then put his signature and remarks Details explained to the Client(s), on the account opening form, copy of the agreement and delivery instruction form. (d) 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 in point (c) 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 holders bank. The Client should also produce a medical certificate about his/ her disability. A remark should be put in the DPM System (under the authorised signatory details under Signatories screen) at the time of opening the account that the account holder is illiterate or disabled. Further, the instruction forms issued to such Client(s) should be pre-stamped as Thumb Impression. At the time of opening of account, the aforesaid rules should be explained to the Client(s) in the presence of a witness, who will have to sign the agreement and the account opening form, as a witness.

(e)

(f)

Participants should note that the aforesaid guidelines are in addition to the existing guidelines with regard to opening of an account and executing instructions. (9) Opening of an account of a Blind person (NSDL/POLICY/2007/0049 dated August 21, 2007): (a) Obtain POI, Proof of Address and the photograph of the blind person(s) (hereinafter referred as Client) as per the procedure laid down in point no. (I) (1) (1.3). Carry-out in-person verification of the Client as per the procedure laid down in point no. (I) (1) (1.1). Obtain PAN card of the Client and follow the procedure laid down in point no. (I) (2) (2.1). The Participant should read out and explain to the Client, the contents of the account opening form and Participant-Client agreement whenever so requested by the Clients. In case the Client is an illiterate, Participant should follow the procedure laid down in point no. (I) (8). The Participant should capture the Clients signature(s) as given in the Account Opening Form in the DPM System. Further, a remark should be put in the DPM System (under the authorised signatory details in signatories screen) that the Client is Visually Challenged. Further, if the Client is illiterate, then Participant should put in the remark as Visually Challenged and Thumb Impression. For issuance, re-issuance and processing of Delivery Instruction Slips (DIS) of such Clients, Participants are advised to follow the procedure laid down in NSDL Circular No. NSDL/ PI/2004/1401 dated August 5, 2004. Participants would also be required to comply with NSDL Circular No. NSDL/POLICY/2007/0011 dated February 15, 2007 regarding SEBI circular on DIS. It is also added that the DIS issued to such Clients should be prestamped as Visually Challenged or Visually Challenged and Thumb Impression as the case may be. Further, these Client(s) should visit the office of the Participant to deliver the DIS, only if they are illiterate. Participants are requested to note that the above mentioned procedures will be applicable for new accounts opened since August 21, 2007 (issuance of the revised circular) as well as for processing of DIS for the existing Clients. (10) Procedure to be followed with respect to Nomination (NSDL/POLICY/2009/0002 dated January 3, 2009, NSDL/POLICY/2009/0004 dated January 9, 2009 and NSDL/POLICY/2009/ 0081 dated September 5, 2009): (a) At the time of opening his/their account, the Client will be required to tick the

(b)

(c)

(d)

[ 19 ]

appropriate option as given below: (i) I/We wish to make a nomination and do hereby nominate the following person in whom all rights and / or amount payable in respect of securities held in the Depository by me / us in the said beneficiary owner account shall vest in the event of my / our death. I/We do not wish to make a nomination.

(ii) (b)

For Client(s) who make a nomination of his/their account in favour of any person, may, fill-up with the relevant Participant the form laid out in Annexure JA of the Business Rules. In the case of joint accounts, all the account holders shall be required to affix their signatures to the said form. Such nomination shall be conclusive evidence of the Client(s) disposition in respect of all the securities in the account for which nomination has been made. The nomination can be made only by individuals holding beneficiary accounts on their own behalf singly or jointly. Non-individuals including society, trust, body corporate, partnership firm, karta of HUF, holder of power of attorney cannot nominate. If the account is held jointly, all joint holders will sign the nomination form. A minor cannot nominate. However, a minor can be a nominee. In that event, the name and address of the Guardian of the minor nominee shall be provided by the beneficiary owner. The details with respect to date of birth of the minor nominee and the flag to indicate such nominee should be captured in the DPM System (NSDL/PI/ 2005/1102 dated June 22, 2005). The Nominee shall not be a trust, society, body corporate, partnership firm, karta of HUF or a power of attorney holder. A non-resident Indian can be a Nominee, subject to the exchange controls in force, from time to time. Nomination in respect of the beneficiary account stands rescinded upon closure of the beneficiary account. Similarly, the nomination in respect of the securities shall stand terminated upon transfer of the securities. Transfer of securities in favour of a Nominee shall be valid discharge by the depository against the legal heir. The cancellation of nomination can be made by individuals only holding beneficiary accounts on their own behalf singly or jointly by the same persons who made the original nomination. Non-individuals including society, trust, body corporate, partnership firm, karta of HUF, holder of power of attorney cannot cancel the nomination. If the beneficiary account is held jointly, all joint holders will sign the cancellation form. On cancellation of the nomination, the nomination shall stand rescinded and the depository shall not be under any obligation to transfer the securities in favour of the Nominee. Participants must send a communication to their existing Clients who have not yet opted for nomination, to submit a declaration specifically stating the following: I/We the undersigned wish to make a nomination in respect of my Beneficial Owner (BO) account and the nominee details are as follows: I/We the undersigned do not wish to make a nomination in respect of my BO account.

(c)

(d)

(e)

(f)

(g) (h)

(i)

(j)

Further, Participants are also requested to refer rule 12.6.3 of Business Rules of NSDL with respect to details on nomination. (11) Procedure for change in demographic details (11.1)Change of address (NSDL/PI/2004/1622 dated September 7, 2004 & NSDL/POLICY/ 2008/0040 dated June 4, 2008): (a) While processing requests for change of address received from Clients, Participants should obtain the following documents:

[ 20 ]

(i) (ii)

a written application for change of address from the Client (In case of joint holdings, all holders must sign the application); POI [copy of any one of the documents mentioned in (I) (1) (1.3) (a) above of the Client (sole holder or either of the holders) visiting the office of the Participant]; latest transaction statement of the account received from the Participant. In case a Client (sole holder or either of the holders) personally visits the Participants office to submit an application (signed by all holders in case of joint holdings) for change of address alongwith necessary documents (POI / proof of address) mentioned in point no. (I) (1) (1.3), the Participant need not obtain the transaction statement from such Client (NSDL/POLICY/ 2007/0030 dated June 18, 2007); Proof of new address (copy of any one of the documents mentioned in (I) (1) (1.3) (b) above) alongwith the original documents of the new address for verification.

(iii)

(iv)

(b) The Client should personally visit the office of the Participant where the Client maintains and operates his/her account and submit the application for change of address. However, in case the Client expresses inability to personally visit the office of the Participant, the application for change of address alongwith other documents can be submitted through an authorised representative, whose identity the Participant must verify by collecting any of the proof of identity documents as stated in (I) (1)(1.3) above. (c) The Client or its authorised representative should sign the application once again in the presence of the officials of the Participant. (d) The Participant should verify the signature of the Client on the application and the identity documents with the documents maintained with the Participant. Further, the document pertaining to new address should be verified with the original. After due verification, an authorised official of the Participant should put his/her signature on the application with remarks verified with original and thereafter record the change of address in the DPM System. (e) However, in case Participant could not verify the documents because the records of the documents submitted by the Client are kept at a different place, then the Participant must verify the same within a period of seven working days and only then effect the change. (f) After effecting the change of address in the DPM System, the Participant should send a communication to the Client, confirming the change of address, to the old and the new addresses.

(g) In case of change (addition/deletion/modification) in the landmark details for the address which is already captured in the DPM System, Participants may limit the changes to the landmark details, after obtaining a request from the Clients on a plain paper, which is signed by all the holder(s) (in case of joint holdings). Participants are advised to note that the address of the Client captured in the DPM System, as mentioned in the proof of address, should not change and only limit the change in the landmark details. (11.2)Change of Signature (NSDL/PI/2004/0045 dated January 7, 2004): Participants are advised to follow the below mentioned procedure for effecting change of signature of Clients: (i) The Client should make a request in writing specifying reasons for change in signature.

(ii) New signature should be duly attested by Clients banker.

[ 21 ]

(iii) Client should visit the Participants office personally and produce valid POI. (NSDL/ POLICY/2007/0030 dated June 18, 2007) (iv) In the presence of officials of Participant, Client should affix his/her new signature. (v) An authorised official of the Participant shall, under his signature, verify the identity proof with the proof and photograph that were furnished at the time of opening of account and thereafter, if found satisfactory, make necessary changes in its records. (11.3) Change in status of Standing Instruction If the Client requests for change in standing instruction, Participant should carry out the changes in the DPM System based on proper authorisation received from the Client (signed by all the holders in case of joint holdings). In case the execution date for change in standing instruction is provided by the Client that date must be entered in the DPM system. If execution date for change in standing instruction is not provided by the Client, then the current date of execution of such instruction must be entered (NSDL/POLICY/2009/0090 dated October 1, 2009). (11.4) Change in bank details such as account type, account number, name, address and MICR (i) Participant should obtain written request signed by the Client. Participant should ensure that the request submitted by the Client is completely filled, including the bank account particulars of the Client and properly signed (signed by all the holders in case of joint holdings) (NSDL/PI/97/119 dated July 22, 1997).

(ii) Obtain a specimen copy of cheque and capture the changes in the DPM System. (iii) Update the MICR code while updating the bank account details of the depository account holder(s) (NSDL/POLICY/2007/0023 dated April 24, 2007). (11.5) Change in SMS flag and / or mobile numbers: (i) Participant must obtain a written request from the Client for change in mobile number and/or SMS flag.

(ii) For joint holdings, the written request must be signed by the holder whose mobile number and / or SMS flag is being changed. (iii) Participants are advised to strictly capture the ten digit mobile number with the first digit as 6 / 7 / 8 / 9 and/or update the SMS flag, as requested by the client. (iv) For ease of data entry, the SMS flag gets enabled automatically upon capture / modification of mobile numbers in DPM System. Thus, Participants must take due care at the time of modifying mobile numbers in the DPM System, particularly for Clients who have not opted for SMS alert facility. If the Client submits the mobile number but does not wish to opt for the SMS Alert facility, the Participant should capture the mobile numbers in the DPM System and disable the SMS flag from front end of DPM System or through back office. (11.6) Addition / Deletion / Modification of Power of Attorney holder(s) In case the depository account is operated by Power of Attorney and there is an addition / deletion / modification of power of attorney holder(s) of such an account, Participants should carry out the changes in the DPM System after obtaining written request which is duly signed by the Client (signed by all the holders in case of joint holdings) and new Power of Attorney in case of addition / modification. In case of deletion, Participants should ensure to dislodge the signature of the Power of Attorney holder(s) from the DPM System. (11.7) Make a nomination / Cancel the Nomination In case the Clients request to make a nomination / cancel the nomination in their depository accounts, Participants should carry out the changes in the DPM System

[ 22 ]

after obtaining written request alongwith Annexure JA, which is duly signed by the Client (signed by all the holders in case of joint holdings). After effecting the changes in the DPM System for the abovementioned demographic details (11.3 to 11.7), the Participant should send a communication (letter / email / Client Master Report generated from the DPM System or its back office or any other mode which the Participant may deem fit) to such Client informing about the changes effected in the account of the Client. (II) Guidelines in respect of account opening in case of Body-Corporate (NSDL/PI/2002/1319 dated August 8, 2002) (1) Procedure for opening account of a Body-Corporate: (1.1) Participants shall obtain the following documents at the time of account opening: (a) Memorandum & Articles of Association, board resolution for opening and operating depository account and the list of authorised signatories alongwith their specimen signatures and photographs, etc. Introduction by an existing account holder or by the applicants bank. Proof of Address of the corporate evidenced by the document registered electronically with Registrar of Companies (ROC) or Bank Statement or Leave and License agreement/Agreement for sale or telephone bill (not more than two months old) or electricity bill (not more than two months old) in the name of body-corporate.

(b) (c)

(1.2) An authorised official of the Participant should verify the proof of address with the original documents and put his/her signature on them with remarks verified with original before proceeding to open the account. In case of documents filed electronically with ROC, Participants can accept such documents as a valid proof of address provided they ensure the following: (a) (b) Obtain copies of challans of payments made to ROC Verify the details viz. name of Client, company identification number and address on the website of Ministry of Corporate Affairs viz. http://www.mca.gov.in and keep a copy of screen shot.

(1.3) PAN, address and bank details of the body-corporates should be captured after due verification as mentioned in point no. (I) (2.1), (2.2), (2.3) and (3) above. Participants shall capture the name & specimen signatures of the authorized signatory(ies) and mode of operation in the signatory name panel of the DPM System. (2) Additional requirement with respect to Foreign Corporate Bodies: (a) Participants are advised to obtain photocopies of Proof of Address in respect of foreign address in case of FII, Foreign Corporate Bodies, Foreign Banks, Overseas Corporate Bodies etc. (referred as foreign entities) and verify the same with originals. In case these foreign entities also have an Indian address, Participants are advised to obtain the photocopies of Proof of Address of local address and verify the same with originals. Further, in case if these entities have submitted only Proof of Address as foreign address, in such a situation, Participants may capture the foreign address in both local and foreign address fields given in the DPM System. If Participants find it infeasible to verify the original KYC documents (foreign address of these foreign entities) and PAN card, in such a situation it is clarified that (i) (ii) (iii) the KYC documents and PAN should be duly signed by the authorised signatories; and attested by the Indian Embassy / Consulate General of the country where the registered office of the foreign entity is situated and the attestation is to the effect that it has been verified with the originals.

(b)

[ 23 ]

Participants should open the depository account or accept the PAN card only after it is satisfied with the authenticity of the documents (Proof of Address and PAN card) (c) As regards proof of address of FIIs/sub-accounts, a copy of the Power of Attorney given by the FIIs/FII sub-accounts to the Custodians (which are duly notarized and/or apostiled or consularised) that gives the registered address of the FIIs/sub-accounts can be accepted as proof of address. U.N. entities/multilateral agencies which are exempt from paying taxes/filing tax returns in India are exempted from the mandatory requirement of PAN. The exemption, however, would be subject to the Participants collecting documentary evidence in support of claim of such entities/agencies. After the Participants are satisfied that such entities are exempt from paying taxes/filing tax returns in India, Participants are advised to capture the description EXEMPTCATG under the PAN field and enable the PAN flag in DPM System. Participants need not enter into Participant-Client agreement provided: (i) FIIs are registered with SEBI and have entered into an agreement with the Participant either directly or through their power of attorney holders in accordance with the provisions of sub-regulation (1) of regulation 16 of the SEBI (Foreign Institutional Investors) Regulations, 1995; and Such agreement gives the Participant an authority to act on behalf of the FIIs for availing the services of the Depository; and Such agreement has been filed with SEBI; International Multilateral Agency, who has entered into an agreement with the Participant under regulation 17 of the SEBI (Custodians of Securities) Regulations 1996, and such agreement states that the Custodian will also act as a Participant and all provision pertaining to Participant shall be applicable; then such Participant need not enter into an agreement as per Annexure B of the Bye Laws.

(d)

(e)

(ii) (iii) (iv)

(f)

Participants shall ensure that in case of foreign entities, all transactions in the account are in compliance with FEMA Regulations. Accordingly, Participants are advised to obtain from such foreign entities necessary documents evidencing general/specific approvals as may be required under FEMA Regulations. Obtain a declaration from the foreign entity that it has complied and will continue to comply with FEMA Regulations.

(g) (3)

Other Types of Body Corporate Accounts (NSDL/PI/2009/0065 dated July 25, 2009): (3.1) Opening of an Escrow Account: Participants should accept the following documents for opening of an escrow account: (a) (b) (c) KYC documents of Corporate and Escrow Agent. Copy of escrow agreement duly signed by all the parties. The account should be opened in the name as mentioned in the Scheme, which is approved by a competent authority and is in accordance with SEBI regulations. Further, the operation of such account should be governed by the terms and conditions of escrow agreement. Copy of PAN card of both parties involved in such an arrangement. However, PAN details of the Corporate should be captured in the account after the same has been verified in accordance with point above (I) 2 (2.1). The account should be used only for holding securities, which are required to be transferred under the specific scheme and in accordance with the SEBI regulations. As the account is opened for specific purpose, the same shall be closed immediately after the shares held in the account are transferred to the respective demat accounts or are extinguished as required under the said scheme.

(d)

(e) (f)

[ 24 ]

(3.2) Procedure for opening depository account for unclaimed shares of listed companies (a) The depository account may be opened in the name as <Name of Issuer> Unclaimed Shares Demat Suspense Account under the type Body Corporate and sub-type Others by the Issuer. The Issuer shall submit a declaration on its letterhead, signed by the authorized signatories, stating that: We hereby undertake that we will ensure compliance with the provisions of the applicable SEBI guidelines for dealing with unclaimed shares. We further undertake that the said depository account will only be used for specified purposes. Procedure mentioned above in point no. (II) (1) about opening of depository account in case of body corporate should be followed.

(b)

(c) (4)

Procedure for opening depository account for Limited Liability Partnership (LLP). (4.1) Obtain the following documents at the time of account opening: (a) (b) (c) (d) Limited Liability partnership agreement and certificate of registration. Resolution/Authority Letter for opening and operating account alongwith list of authorised signatories, specimen signatures and photographs. Introduction by existing account holder or by applicants bank. Any of the following documents as valid proof of address of LLP: (i) (ii) (iii) (iv) (v) (vi) (e) Documents registered with ROC; or Acknowledged copy of Income Tax return; or Bank statement; or Leave and License agreement / agreement for sale; or telephone bills (not more than two months old); or electricity bills (not more than two months old).

PAN, address and bank details of LLP.

(4.2) An authorised official of the Participant should verify the proof of address with the original documents and put his/her signature on it with remarks verified with original before proceeding to open the account. (4.3) PAN, address and bank details of LLP should be captured after due verification as per the procedure mentioned in point no. (I) (2.1), (2.2), (2.3) and (3) of Master Circular no. NSDL/POLICY/2009/0029 dated April 16, 2009. (4.4) Participants shall capture the name & specimen signature(s) of the authorized signatory(ies) and mode of operation in the signatory name panel of the DPM System. (4.5) Participant may open the depository account in the name of LLP Client under the Type Body Corporate and sub-type Limited Liability Partnership. (5) Procedure for change in demographic details of body-corporate account. (5.1) Change of Address: (NSDL/POLICY/2009/0032 dated May 4, 2009) (a) (b) A written application for change of address of the corporate entity, signed by the authorised signatories should be submitted to the Participant. Atleast one of the authorised signatories should visit the office of the Participant in person to submit its application for change of address alongwith necessary documents and sign the application once again in the presence of the officials of the Participant.

[ 25 ]

(c)

Participant should collect Proof of new address (copies of documents mentioned under (II) (1) (1.1) alongwith the original document of new address, for verification by the Participant). An authorised official of the Participant shall verify the application and the abovementioned documents with the original and put his/her signature on the application with remarks verified with original and thereafter record the change of address in the DPM System. The Participant should write a letter to the Client (Body-Corporate) at the old address as well as the new address to confirm the change of address.

(d)

(e)

(5.2) Change of authorised signatory: In case of change in authorised signatory, the Client should provide a fresh board resolution mentioning authorised signatories who shall operate the depository account alongwith the specimen signature and photograph of the new authorised signatory. Participants need not obtain the details of the existing authorised signatories if they remain unchanged. Thereafter, Participants are advised to capture the signature of the new authorised signatories in the DPM System. Participants should ensure that the signatures of the outgoing authorised signatories should be dislodged from the DPM System. (5.3) Change in status of Standing Instruction: If the Client requests for change in standing instruction, Participant should carry out the changes in the DPM System based on proper authorisation signed by the authorised signatories of such an account. (5.4) Change in bank details such as account type, account number, name, address and MICR: (i) Participant should obtain written request signed by the authorised signatories. Participant should ensure that the request submitted by the Client is completely filled, including the bank account particulars of the Body-Corporate and properly signed by authorised signatories (NSDL/PI/97/119 dated July 22, 1997). Obtain a specimen copy of cheque and capture the changes in the DPM System. Update the MICR code while updating the bank account details of the Client (NSDL/POLICY/2007/0023 dated April 24, 2007).

(ii) (iii)

(5.5) Addition / Deletion / Modification of Power of Attorney holder(s) In case the depository account is operated by Power of Attorney and there is an addition / deletion / modification of Power of Attorney holder(s) of such an account, Participants should carry out the changes in the DPM System after obtaining written request which is duly signed by the authorised signatories and new Power of Attorney in case of addition / modification. In case of deletion, Participants should ensure to dislodge the signature of the Power of Attorney holder(s) from the DPM System. (6) Change in name of Body-Corporate accounts (NSDL/POLICY/2008/0085 dated December 16, 2008): (i) The DPM System allows Participants to make name change in Corporate accounts for Client types viz., Body-Corporate, Bank, Financial Institution (FI), FII, Mutual Fund (MF), Trust and various sub-types as given in the enclosed Annexure I. Documents required to be collected by Participants at the time of change of name of Corporates are given below: (a) In case the entity is registered under the Companies Act, 1956, the following documents should be obtained from the Client: Letter requesting for change of name signed by the authorized signatories. Certified true copy of fresh certificate of incorporation consequent upon change of name issued by the Registrar of Companies.

(ii)

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 (b)

Certified true copy of Board Resolution for change of name.

In case of other corporate entities, the following documents should be obtained from the Client Letter requesting for change of name signed by the authorized signatories. Certified true copy of Board Resolution for change of name. Certificate of registration issued by SEBI / relevant Statutory Authorities, as applicable.

(iii) (iv)

The change of name for a Corporate account can be carried out in the DPM System through Client Modification Module - Primary and Address Details Modification. While carrying out the modifications, the name of any existing account holder of an account can neither be deleted nor any new name can be added. Participants can only make changes to the name(s) of existing account holder(s) of the account. When the instruction is captured and verify/released, the DPM System will flash: (a) an alert message on the screen as to whether the Participant wishes to make changes to the PAN, email ID, mobile number etc. of the account holder. Participants may ignore such message if there are no changes to be carried out with respect to the aforesaid details. a warning message on the screen to re-capture the signatures of the authorized signatories. Participants may ignore such message if Participants have already re-captured the signatures of the authorized signatories or there is no change to the authorized signatories.

(v)

(b)

(vi) Note : 1. 2. 3. 4.

The Client Name Audit Report in the DPM System will display the old as well as new name of the Corporate

In case of amalgamation / scheme of arrangement, Participants are requested to close the existing account and open new account by following the prevailing process, as at present. Name change to the Corporate account can be carried out only through the front end application of the DPM System. The pledge details in the DPM System of the Participant of the pledgee will continue to reflect the old name of the Corporate, if the Corporate is the pledgor. Subsequent to name change, the Transaction Statement (SOT) report will reflect the new name of the Corporate for the SOT generated for the past dates as well. The Statement of Holding (SOH) report will also reflect the new name of the Corporate. Hence, it is for the Corporate to decide whether it wants to open a new account or continue with the existing account with the new name. After effecting the changes in the DPM System for the abovementioned demographic details (point nos. 5.2 to 5.5 and 6), the Participant should send a communication (letter / email / Client Master Report generated from the DPM System or its back office or any other mode which the Participant may deem fit) to such Client informing about the changes effected in the account of the Client.

(III) Depository accounts opened in the capacity of Individual/Body Corporate as applicable (1) Procedure for opening depository account in case of Trusts such as Provident Fund trusts, Gratuity trusts, Superannuation trusts etc. (NSDL/POLICY/2008/0018 dated March 24, 2008) The procedure and documents required for the opening of depository accounts in case of registered trusts/ public trusts, un-registered / private trusts and trusts established by organisations for providing terminal benefits to its employees is as follows: (A) Registered Trust: In case the depository account is to be opened by a registered trust where a registration certificate is issued by a Statutory Authority under the provisions of the Bombay Public

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Trust Act, 1950 or The Indian Societies Registration Act, 1860, Participants are advised to obtain the following documents: (i) (ii) (iii) Requisite KYC documents, PAN Card and Bank details of the registered trust as per the requirement mentioned at Point Nos. II (1) above for body corporate. Notary certified true copy of the trust deed, Certified true copy of registration certificate issued by the authority under provisions of the Bombay Public Trusts Act, 1950 or The Indian Societies Registration Act, 1860, Certified copy of the resolution passed by the Board of Trustees giving the names of trustees authorised by the Board of Trustees to open and operate the depository account.

(iv)

After obtaining the documents, Participants are advised to follow the below mentioned procedure: (i) (ii) (iii) (B) Open the depository account under the category and in the name of Trust, Capture the PAN and Bank details of the registered trust in the DPM System after due verification, Capture the signature of the trustee(s) in the DPM System

Unregistered Trust: The Department of Company Affairs had vide its circular dated June 12, 1957 clarified that the shares in a company which are the property of trust can be held in the names of trustees being Individuals, Corporations, Companies or Societies registered under the Societies Registration Act, 1860 without the addition of the statement that they are trustees. It is also further clarified in the said circular that the shares can be held in the name of a trust if the trust is a separate legal entity such as registered society. Hence, unless the trust is a separate legal entity, the depository accounts have to be opened in the names of trustees irrespective of whether they are Individuals, Corporations or Companies. As per the circular issued by the Department of Company Affairs, the relationship of trust between a trustee and the beneficiary is not required to be taken note of in the account by the Participants while opening the depository account. Trusts established for holding of securities for the benefit of family members, holding of securities for the benefits of employees etc would fall in this category. In these cases, Participants are advised to treat the applicant as a private trust and obtain the following documents: (i) (ii) Notary certified true copy of the trust deed, If the trustee(s) are individuals, then open the depository account in the individual name under the category Individual by obtaining documents viz. Account opening form, POI, Proof of Address, etc. of the Client / Applicant, including carrying out in-person verification, as per the procedure laid down in Clause No. (I) (1) above for non body-corporate accounts, In case the trustee(s) of the unregistered trust are corporations, companies or entities registered under the Bombay Public Trust Act, 1950 or The Indian Societies Registration Act, 1860, then open the accounts in their respective names under the Type Body-Corporate and Sub-type Others by obtaining documents mentioned at Point No. (II) (1) above for body corporate. Further, Participants should obtain certified copies of the resolution passed by such entities giving the names of the authorised official(s) i.e. trustee(s) who shall open and operate the depository account, Only those securities that belong to the trust can be held in such a depository account. Securities belonging to the trustee(s) in their individual capacities will have to be held in separate depository account(s) of such person(s),

(iii)

(iv)

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(v) (vi)

Capture the PAN and Bank details of the unregistered trust in the DPM System, after due verification, Capture the signature of the individuals in case the trustee(s) are individuals. In case the trustee(s) of the unregistered trust are corporations, companies or entities registered under the Bombay Public Trust Act, 1950 or The Indian Societies Registration Act, 1860, capture the signature of the authorised signatories in the DPM System.

(C)

Opening of accounts for Terminal Benefit Funds operated as Trusts: In case of terminal benefit funds such as Provident Fund / Gratuity Fund / Superannuation Fund that are operated as Trusts and where a Recognition Certificate is issued by the Income Tax Authorities and / or the Regional Provident Fund Commissioner, as the case may be, Participants are advised to obtain the following documents: (i) (ii) (iii) (iv) Requisite KYC documents, PAN and Bank details of the trust as mentioned at Point No. II (1) above for body corporate, Notary certified true copy of the trust deed, Certified true copy of Recognition Certificate issued by the Income Tax Authorities and / or the Regional Provident Fund Commissioner, as the case may be, Certified copy of the resolution passed by the Board of Trustees giving the names of trustee(s) authorised by the Board of Trustees to open and operate the depository account, Only those securities that belong to the trust can be held in such an account. Securities belonging to the trustee(s) in their individual capacities will have to held in a separate depository account(s) of such person(s).

(v)

After obtaining the documents, Participants are advised to follow the below mentioned procedure: (i) (ii) (iii) (2) Open the depository account under the category and in the name of Trust, Capture the PAN details and Bank details of the registered trust in the DPM System after due verification, Capture the signature of the trustee(s) in the DPM System.

Opening of promoter account (NSDL/POLICY/2007/0047 dated August 13, 2007) Separate sub-types are available in the DPM system to enable promoters to separately hold securities issued as Promoter of the company. While opening such accounts, Participants are advised to obtain an undertaking from the Client that said beneficiary account(s) are opened for the sole purpose of holding and transacting for the securities held as promoter and no other securities will be held/transacted in the said account.

(3)

Opening of DR account (NSDL/PI/2002/0846 dated May 29, 2002, NSDL/PI/2002/1336 dated August 9, 2002 and NSDL/PI/2009/0059 dated July 18, 2009): A sub-type DR is present for the Client types viz.; Resident, Non Resident Indian, Foreign Institutional Investor, Corporate Bodies, Foreign National and Mutual Fund. This subtype is for the purpose of enabling investors to separately hold equity shares issued upon cancellation of Depository Receipts (GDR/ADR) held by them. Further, the existing account holders under Client type Foreign National have been categorised under the sub-type FN. In this context, Participants are advised as follows (a) In order to receive the securities issued upon cancellation of the Depository Receipts (DRs) held by the investors, they will have to open a separate account with sub-type DR under the relevant Client type/category and ensure that only such securities are credited in this account. The standing instruction indicator in the DPM System should not be enabled for accounts with sub-type DR. The Clients will have to give specific receipt instructions to the

(b)

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Participants for receiving securities issued upon cancellation of DRs. (c) In this regard, it is also clarified that since the Client has already been identified by the Participant (the Client should be an existing account holder), a separate agreement may not be required. However, Participants must ensure that the Client gives a letter mentioning its intention to open a separate account for holding DR-cancelled securities and that it will be bound by the agreement it had earlier signed with the Participant (NSDL/PI/2002/0899 dated June 7, 2002).

(4)

Opening of a Commodity Account (NSDL/PI/2003/1882 dated November 27, 2003, NSDL/ PI/2005/1441 dated August 9, 2005 and NSDL/POLICY/2009/0007 dated January 20, 2009) (i) Account opening procedure will be similar to depository account. All precautions and procedures for account opening, change in address, etc. as applicable to securities account shall be followed. For the purpose, Participant should be empanelled with Commodity Exchanges (who have established connectivity with NSDL) for providing depository services relating to warehouse receipts. Accounts opened under this agreement shall hold only electronic warehouse receipts of respective Commodity Exchanges and cannot be mixed up with other securities. Further, the Participant needs to open separate accounts and enter into separate agreements with the Clients for holding warehouse receipts of NCDEX and MCX. In case the Client intends to hold warehouse receipts of National Spot Exchange Limited (NSEL), the account opened for holding warehouse receipts of MCX can be used, provided the Participant is empanelled with both MCX and NSEL. If the Participant is exclusively empanelled with NSEL, Clients need to open a depository account and execute the prescribed agreement with the Participant for holding electronic warehouse receipt of NSEL. Participants may make their own business/contractual agreement with the Commodity Exchanges / warehouse owners, as they deem fit, including terms and conditions related to collection of rent, etc. If Participants are required to collect any charges/tax/rent on behalf of Commodity Exchanges / Warehouse, Participants may have to ensure that such function has adequate legal basis. NSDL will issue circular relating to activation of Commodities Identifier [ICIN] (equivalent to ISIN) as and when such ICINs are activated in the system. The transaction statement will contain ICIN-wise balances. Commodity descriptor will contain unit of measurement, for e.g.:- (ICIN No.) Castor Seed Grade A, Ahmedabad ( in MTs). MT = Metric Tonnes. Initial credit of electronic warehouse receipts into depository account will be effected by way of corporate action. Procedure for transfer, pledge and freeze will be the same as is applicable to securities. Participants are advised to note that for making a request for delivery of commodities/ metals represented by warehouse receipts Physical Delivery Request Form (PDRF) in the prescribed format should be filled-up by the Clients and after processing the requests such instructions should be executed in the DPM System by the Participants using Remat/ Repurchase Screen under the type Remat. The procedure for rematerialisation of warehouse receipts will be same as is applicable for securities. Participant shall issue acknowledgment for receipt of the remat request by entering remat request (transaction) number on the acknowledgment portion and attest the signature of the Client on the copy of PDRF. Client will submit this acknowledgment and attested copy of PDRF to the warehouse at the time of taking delivery.

(ii)

(iii)

(iv)

(v) (vi) (vii)

(5)

Procedure regarding operation of account through Power of Attorney (NSDL/PI/2000/982 dated June 23, 2000): (5.1) Sample Clause A sample clause is given hereunder which if it forms a part of the Power of Attorney could suffice: To sell or otherwise deal with or dispose of and to purchase, subscribe or otherwise

[ 30 ]

acquire in any manner from the market or under public or rights issues or otherwise and accept the transfers of any stocks, funds, shares, debentures, Government and other promissory notes, securities, bonds, debentures, annuities or other mercantile negotiable instruments which shall or may at any time belong to me or which hereafter be transferred to me, whether solely or jointly and whether in my own right or having any other interest of whatsoever nature and however arising and in any capacity whatsoever including those belonging to others with my name and for such purposes to sign, execute or endorse all instruments of transfer and other documents for any purpose what so ever by the virtue of these present. (5.2) General points regarding Power of Attorney (i) A Power of Attorney executed prior to the promulgation of The Depositories Act is valid and enforceable. (ii) It is the responsibility of the Participant to verify whether the Power of Attorney is adequate and sufficiently authorising the holder of the Power of Attorney i.e., the donee to operate the account of the beneficial owner. (iii) Power of Attorney should be notarized in case of photocopy. (iv) Depository accounts can be operated both by the account holder(s) as well as by the Power of Attorney holder i.e. donee. For this purpose, Participants should ensure that the signatures of the account holder(s) and the Power of Attorney holder are captured in the DPM System (NSDL/POLICY/2007/0054 dated September 22, 2007). (v) With respect to accounts that are operated through Power of Attorney, Participant should ensure to enable the Power of Attorney flag of such accounts. (NSDL/PI/ 2005/1102 dated June 22, 2005) (5.3) Participants are advised to review the Power of Attorney document and if the Power of Attorney contains any clause similar to what has been stated below, the Power of Attorney should be modified suitably (i) Power of Attorney Holder i.e. Donee has the sole authority to operate the account and the account holder(s) is/are restrained from operating the account; (ii) DIS books are denied to the account holders who have executed a Power of Attorney; (iii) Participants are authorised to merge the securities kept under various accounts of the Clients; and (iv) Participants will have a lien on the securities of the Clients. The above clauses are against the interests of investors and Participants are advised to desist from including such clauses in the Power of Attorney. Participants are advised to provide DIS books to the Clients who have executed a Power of Attorney and allow the Clients to operate their accounts as well. Further, Participants are advised to maintain separate accounts of the clients, in conformity with Regulation 42 of SEBI (Depositories and Participants) Regulations, 1996. Lien on the securities can be created only as per Regulation 58 of SEBI Regulations and as per the procedure laid down in the Bye Laws and Business Rules of NSDL (NSDL/PI/ 2005/2329 dated November 25, 2005). (IV) Procedure for opening and shifting of Clearing Member (CM) Account: 1) Opening of CM Account (a) The CM should fill up the Account Opening Form as per the format given in Annexure K of the Business Rules of NSDL and submit the same to the Participant alongwith the agreement (as per Annexure B in the Bye Laws) duly executed on a stamp paper of appropriate value. Further, the Participant shall be responsible in deciding the value of the stamp paper. The schedule of fees to be charged by the Participant to the CM should form a part of the agreement.

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(b)

Following documents are required for opening a CM account: (i) (ii) (iii) (iv) (v) A copy of the letter from the Clearing Corporation/Stock Exchange intimating allotment of the CC-CM-ID to the CM signed by its authorised official. A copy of the latest SEBI registration certificate (not applicable for CMs of Commodity Exchanges). Board Resolution for authorised signatories. Memorandum of Association and the Articles of Association (in case of Corporates). Specimen copy of the cheque for capturing the 9-digit MICR code.

(c) (d) (e)

Participant should verify the completeness of the account opening form and verify the copies submitted with the original documents. If the documents are in order, the Participant should accept them and give an acknowledgement duly signed and stamped to the CM. The Participant should forward the following documents to NSDL for allotment of CM BP ID (i) (ii) Copy of Account opening form, Copy of the letter from the Clearing Corporation/Stock Exchange intimating allotment of the CC-CM-ID signed by its authorised official and copy of the latest SEBI registration certificate (not applicable for CMs of Commodity Exchanges). These documents should be verified with the original document and stamped Verified with Original alongwith the stamp of the Participant, signature of Compliance Officer, name and designation

(f) (g) (h) (i)

NSDL will allot the CM-BP-ID and intimate to the Participant electronically. The Participant should capture the signature(s) of the authorised signatories as given in the Account Opening Form in the DPM System. The Participant should enter the Client account number generated from the DPM System in the Account Opening Form. The Participant should print the Client Master Report and give it to the CM alongwith a copy of the Agreement.

(1.1) Shifting/Closure of CM Account (NSDL/PI/005 dated February 5, 1997) The CM may close an existing clearing account and open a new clearing account with another Participant. The CM will have to submit an application for closure of account to its Participant and an application for opening a CM account along with other documents for shifting of the CM account as explained below to the new Participant. The existing CM account will be closed by the old Participant after balances are moved out by the CM. The CM will be assigned a new CM-BP-ID by NSDL and a new CM account will be opened by the new Participant. Further, the CM may also submit the closure application upon closure of business/suspension, Participant may close the account. The procedure for closure and shifting of CM account is as follows: (a) (b) (c) (d) The CM will submit the application for closing the clearing account to the Participant (old) in duplicate. The Participant (old) will verify that the application for closing the clearing account is duly filled and if in order issue an acknowledgement to the CM on the duplicate copy. If the application is not in order the Participant will return the application to the CM for rectification. The CM will submit the following documents to the Participant (new): (i) (ii) Application for opening a CM account (as mentioned in point no. (IV) (1)) Letter from Clearing Corporation/Stock Exchange regarding allotment of CC-CMID signed by its authorised official.

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(iii) (iv) (v)

Application for shifting of clearing account. (as per the below given format) Acknowledgement copy (signed & stamped by the authorised official) of the application for closure of the account from the previous Participant. Copy of the latest SEBI registration certificate (not applicable for CMs of Commodity Exchanges).

Participant should verify the completeness of the account opening form and verify the copies submitted with the original documents. (a) (b) (c) If the application is not in order the Participant will return the application to the CM for rectification. If the application is in order, the Participant (new) will execute the agreement and give a copy of it to the CM. The Participant (new) will forward the copy of the account opening form along with the above mentioned documents to NSDL. All the documents should be verified with its original and a stamp Verified with Original should be put on the same alongwith the name, designation and signature of compliance officer. NSDL will allot the Clearing Member a new CM-BP-ID. The Participant (new) will open the clearing account after the new CM-BP-ID is downloaded to its DPM System and intimate NSDL about opening of the account and the date from which pay out is intended to be received in new CM account, however, not later than seven days from opening of CM account by the Participant (new). The new account will be marked to receive receipts-in due on pay-out after NSDL receives intimation from Participant (new). NSDL will intimate the Participant (old) to commence the procedure for closure of the account. On receipt of intimation from NSDL, the Participant (old) will disable the standing instruction (if any). After the completion of one BOD/EOD cycle, the Participant will verify the balances in the clearing account. If the balances happen to be zero and there are no outstanding instructions for the clearing account, the Participant will change the status of the account to To be closed and intimate NSDL accordingly. On receipt of intimation from the Participant (old), NSDL will revoke the old CM-BP ID of the CM. In case balances in its clearing account are not zero, the Participant (old) will inform the CM to move its balances out of the CM Pool account in a reasonable time. The Participant (old) will again verify the balances in the account. If the balances happen to be zero, the Participant will follow the procedure mentioned in point no. (g) above. If the balance in the old clearing account has not been reduced to zero within one week of opening of the new account, the Participant (old) shall inform NSDL forthwith that the balance has not been reduced to zero. APPLICATION FOR SHIFTING OF CLEARING ACCOUNT To be forwarded through Depository Participant (new) Date: Mr. Prashant Vagal Vice President National Securities Depository Limited Trade World 4th Floor Kamala Mills Compound Senapati Bapat Marg Lower Parel Mumbai - 400 013

(d)

(e) (f) (g)

(h) (i) (j)

(k)

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Dear Sir, Sub: Shifting of Clearing Member Account This is to inform you that we wish to shift our Clearing Member Account as per the details mentioned below: Name of Clearing Member (CM) Name of Clearing Corporation (CC) CC - CM -ID (Allotted by CC) CM- BP-ID (existing) (Allotted by NSDL) Name of Depository Participant ( Old) Name of Depository Participant (New) We request you to please allot a new CM-BP-ID to facilitate shifting of the Clearing Member Account. Yours faithfully, (Clearing Member) (1.2) Procedure for name change of CM account The following documents should be forwarded to NSDL for effecting change of name in the CM account. (a) (b) (c) (d) Copy of the latest SEBI registration certificate in the new name (not applicable for CMs of Commodity Exchanges). Letter from the Clearing Corporation/Stock Exchange signed by its authorised official mentioning the CC-CM-ID and effecting the change of name in its system. Copy of document/ certificate received from ROC notifying the name change. Copy of High Court Order in case of name changes due to mergers/amalgamations.

These documents should be verified with the original document and a stamp Verified with Original should be affixed on the documents alongwith name, designation and signature of Compliance Officer. (2) Opening of Margin Account (NSDL/POLICY/2007/0029 dated June 15, 2007) A new sub-type viz. Margin Account has been added to the Client types viz.; Resident and Body Corporate under Client Maintenance Module in DPM System. The new sub-type Margin Account is added to enable CMs to open beneficiary accounts to hold securities for Client margin purposes. While opening such accounts, Participants are advised to obtain an undertaking from the CM/Brokers that the said beneficiary account(s) are opened for the sole purpose of holding and transacting for Client margin purposes and no other securities will be held/transacted in the said account. (V) FAQs related to Account opening (1) What is the procedure for accepting telephone bills as Proof of address? (NSDL/POLICY/2006/0026 dated July 17, 2006) Telephone bills in respect of landline telephones provided by any service provider can be accepted as proof of address. It is hereby clarified that telephone bills (not more than two months old) pertaining to only Landline telephones (other than Fixed Wireless Phone) irrespective of the service provider can be accepted by Participants as proof of address.

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Participant may ascertain the fact that such telephone number exists in the name of the entity, by making a call or by any other means. (2) In case of Corporate Client whether proof of address filed electronically can be accepted as proof of address? As per the recent amendments in Income Tax Act, 1961 and Companies Act, 1956, Companies are required to file various documents, returns etc electronically. In this regard, it is hereby clarified that acknowledged copy of Income Tax Return, if filed electronically, will not be accepted as a valid proof of address in case of corporate Clients. Further, in case of documents filed electronically with ROC, Participants can accept such documents as a valid proof of address provided they ensure the following: a. b. obtains copies of challans of payments made to ROC. verify the details viz. name of Client, company identification number and address on the website of Ministry of Corporate Affairs viz. http://www.mca.gov.in and keep a copy of screen shot.

(3)

What is procedure for opening a beneficiary account in the name of a proprietorship firm? Participants are advised to note that a depository account cannot be opened in the name of the proprietorship firm. The account has to be opened in the name of the proprietor by obtaining the documents mentioned in point no. (I) (1) (1.3) above and capturing the PAN details of the proprietor.

(4)

Can a commodity depository accounts be opened in the name of Partnership firm and Proprietorship firm? Commodity depository accounts can be opened in the name of Partnership firm and Proprietorship firm under type/sub-type Body Corporate/Others, as the structure and regulations governing transactions in commodities do not prohibit a partnership/proprietorship firm to hold commodities in the name of partnership/ proprietorship firm. For the purpose, Participant should be empanelled with Commodity Exchanges for providing depository services relating to warehouse receipts.

(5)

What is the procedure to be followed if there are more than three holders? (NSDL/PI/99/ 231 dated April 8, 1999) In the account opening module of the DPM System, there is a provision for only three joint names as presently, allotments in the primary market and purchases in the secondary market are permitted only with a maximum of three joint names. However, there are very old cases of shareholdings where the number of joint holders are four or even more. The issue of dematerialisation of such holdings was discussed in the SEBI meeting held on February 12, 1999 and it was decided that Depositories shall formulate a system to incorporate more than three joint names for Client accounts and Participants shall be advised accordingly. It was also decided that no credits, other than on account of dematerialisation of securities would be allowed to such accounts. In view of this, Participants are advised to follow the procedure given below for the same : A separate account must be opened in the name of the joint holders with four or more names. The standing instructions to receive credits, receipt instructions, new issue applications and any other instruction which has the effect of crediting this account should not be accepted. Appropriate annexure should be attached to the account opening form in order to include various details viz; name, address, signatures, etc. of more than three holders. An undertaking should be obtained from the Client on the lines that the Client shall not use this account for the purpose of allotments in the primary market or purchases from the secondary market and hence no instructions other than for dematerialisation, bonus, rights & preferential offer will be given by the Client to any person which has the effect of crediting this account While opening the account, the Participant shall capture the names of the four or more joint holders by numbering them in the DPM and entering the first holders name in the first holders field and accommodating the rest of the names in the fields for second and the third holder,

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eg. : - In case of joint holdings in four joint names of Mr. A, Mr. B, Mr. C & Mr. D, the account can be opened in the DPM as follows; First Holders Name : 1. Mr. A; Second Holders Name 2. Mr B; Third Holders Name 3. Mr. C 4. Mr. D. The Participant shall process the dematerialisation request as per the usual procedure while ensuring that the pattern of holding as per the certificate tallies with the pattern of holding as per the account. After the balances in such joint account become nil, the aforesaid joint account should be closed. Participants are further advised that in case of holdings of a Trust held in the joint names of four or more trustees, the procedure given above for opening the account can be adopted without any restrictions on receiving credits into that account. (6) Whether bank statement can be accepted as Proof of Address? (NSDL/POLICY/2007/0074 dated December 01, 2007, NSDL/POLICY/2008/0037 dated May 27, 2008 and NSDL/POLICY/2009/0076 dated August 28, 2009) Yes. The bank statement should not be more than two quarters old as on the date of receipt of the account opening form. Further, the bank statements may be monthly or for any other period, subject to the foregoing. Examples: Sr. No. 1. 2. (i) Date of receipt of Account Opening Form September 15, 2009 October 15, 2009 Original bank statement: Conditions: (a) (b) The original bank statement is printed on the stationery of the bank, carries logo & name of the bank, displays the name and address of the Client. Obtain a cancelled cheque leaf in original OR a photocopy of cheque and the authorized official of Participant should verify the same with the original cheque and put his/her signature on it with the remarks verified with original. Match the bank details including the account number mentioned on the cheque with that mentioned in the bank statement. Bank statement should not be older than March 31, 2009 June 30, 2009

(c) (ii)

Copy of bank statement: Conditions: (a) (b) All the conditions mentioned at point no. (i) (a) to (c) are followed. The authorised official of the Participant should verify the photocopy of the bank statement submitted with the corresponding original and put his/her signature on it with the remarks verified with original.

(iii)

Original Bank statement on plain paper (Computer generated): Conditions: (a) (b) The bank statement clearly mentions the name and address of the Client. The bank statement is duly attested (signed and stamped) by the authorised official of the bank mentioning the name and designation of such authorised official. Obtain a cancelled cheque leaf in original OR a photocopy of cheque and the authorized official of Participant should verify the same with the original cheque and put his/her signature on it with the remarks verified with original.

(c)

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(iv)

Bank statement issued in electronic form: Conditions: a) b) Print out of the bank statement clearly mentions the name and address of the Client. Obtain a cancelled cheque leaf in original OR a photocopy of cheque with the name of the Client pre-printed on it. However, in case of a photocopy of cheque it can be accepted provided the authorized official of Participant verifies the same with the original cheque and puts his/her signature on it with the remarks verified with original.

Disclaimer : While every care has been exercised by NSDL in compiling the master circular out of the various circulars/guidelines issued by NSDL from time to time, NSDL does not warrant completeness or accuracy of information and disclaims all liabilities, losses and damages arising out of the use of this information. For any specific/latest information, Participants are requested to refer to the relevant circular(s) issued by NSDL from time to time. Annexure I Types and Sub-types for Corporate accounts where change of name can be effected in DPM System Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Type FI FI FI FI FI FI FII FII FII Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Sub-Type Govt. sponsored FI SFC Others Govt. sponsored FI Promoter SFC-Promoter Others-Promoter Mauritius Based Others DR Domestic OCB-Repatriable Govt.Companies Central Government State Government Co-operative Body NBFC Non-NBFC Broker Group Company Foreign Bodies Others OCB-NonRepatriable OCB-DR Foreign Bodies DR Margin Account Domestic-Promoter Govt.Companies - Promoter

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28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50

Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Mutual Fund Mutual Fund Bank Bank Bank Bank Bank Bank Bank Bank Trust

Central Government - Promoter State Government - Promoter NBFC-Promoter Non-NBFC-Promoter Group Company - Promoter Foreign Body-Promoter Others-Promoter Co-operative Body - Promoter Foreign Venture Capital Domestic DR Limited Liability Partnership Limited Liability Partnership - DR DR MF Foreign Bank Co-operative Bank Nationalised Bank Others Others-Promoter Nationalised Bank - Promoter Foreign Bank - Promoter Co-operative Bank - Promoter

Account Opening - Bank Account details Circular No: NSDL/POLICY/ 2010/0025 Date: March 19, 2010 Sub: SEBI clarification on bank account details to be captured in depository accounts of PMS clients. Attention of Participants is invited to Circular No. NSDL/POLICY/2009/0047 dated June 13, 2009 informing about SEBI's clarifications regarding issues raised by Portfolio Managers especially in respect of bank account details to be captured in the depository accounts of PMS clients. SEBI has now vide its letter no. MRD/DoP/NSDL/ST/198672/2010 dated March 17, 2010 informed that bank account details of Portfolio Managers cannot be captured in the depository system in place of bank details of PMS clients. Participants are advised to take note of the above for opening and operating depository accounts. Circular No: NSDL/POLICY/ 2010/0014 Date: February 9, 2010 Sub: Utility to identify Client accounts with no MICR code or MICR code captured with invalid format in the DPM System All Participants are hereby informed that based on the representation received from Participants, utility is being provided to identify Client accounts with no MICR code or MICR code captured with invalid format in the MICR field. Examples; Client accounts with no MICR code, MICR Code not equal to 9 digits, MICR code consists of alphanumeric characters / only alphabets / special characters or spaces in between MICR code.

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Participants can download this utility from NSDL SQLASSIST Intranet site (https://sqlassist) under the head (https://sqlassist/utility to identify incorrect MICR details). The process to install the utility in the DPM System is given below: 1. 2. 3. Copy the folder i.e. "Utility to identify incorrect MICR details" (after downloading it from SQLASSIST) into C:\ drive of your GISMO. Double click on the file named as "Double_Click.Bat". TAB delimited text file would be generated containing Client ID, contents captured in the MICR field, Client name, Client status, bank name, bank account number, Client address, mobile number of the first holder.

The aforesaid output will facilitate Participants to re-verify with account opening documents / take up with their Clients and obtain correct information about MICR details for re-capturing of the same in the DPM System. For information / clarifications, Participants are requested to contact NSDL Help Desk at (022) 2499 4601 to 4610 or email at helpdesk@nsdl.co.in Circular No: NSDL/POLICY/ 2008/0070 Date: October 16, 2008 Sub: Updation of Bank account number of Punjab National Bank from the present 16 digits to 15 digits and Updation of Bank name from UTI Bank Limited to Axis Bank Limited All Participants are hereby informed that Punjab National Bank (PNB) has intimated to NSDL to modify / truncate the bank account number of PNB from the present 16 digits to 15 digits for demat accounts with bank details of PNB. In this regard, Participants are advised to note that NSDL would facilitate updation by truncating/deleting the fifth digit having '0' in 16 digit bank account number under the field name 'Bank A/c No.' with bank name 'Punjab National Bank' / 'PNB' under the field name 'Bank name', captured in the DPM System under the head 'Financial Details' in the Client Maintenance Module. In addition, Bank Name also will be updated to 'Punjab National Bank'. Similarly, in light of change of name of UTI Bank Limited to Axis Bank Limited, NSDL would update bank name to "Axis Bank Limited" for those beneficiary accounts that carry bank name as "UTI Bank Limited" / "UTI Bank", in the field name 'Bank name', captured in the DPM system under the head 'Financial Details' in the Client Maintenance Module. After the updation has been carried out, Participants are advised to communicate to all such Clients about the changes carried-out in their bank details alongwith the transaction statement for the month of October 2008 or earlier, as the Participants may deem fit. Further, a batch utility would be provided to Participants to generate a report containing list of Client accounts where the updation could not be effected. Participants may take appropriate action based on this utility. For new demat accounts opened or change in bank details requested by Clients,

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Participants are advised to capture the correct 15 digit bank account numbers of PNB or bank name as 'Axis Bank Limited' as the case may be. For any information/clarifications, Participants are requested to contact NSDL officials on telephone numbers (022) 2499 4482 / 4488 / 4494 / 4214 / 4479 / 4363 / 4212 / 4348 (email : participant-interface@nsdl.co.in). Circular No: NSDL/POLICY/ 2008/0041 Date: June 04, 2008 Sub: Updation of HDFC Bank account numbers - Prefixing the existing 13 digit account numbers with '0' in beneficiary accounts under bank account number field. As all Depository Participants (DPs) are aware, HDFC Bank Limited (HBL) has changed the length of the bank account numbers from 13 digits to 14 digits by prefixing the existing 13 digit account numbers with '0'. In this regard, DPs are advised to note that in respect of: 1) Existing HBL account numbers captured in the DPM system : NSDL would facilitate updation of the bank account numbers by prefixing the existing 13 digit account numbers with '0' for those beneficiary accounts that carry 13 digit HBL account number with name 'HDFC Bank', captured in the DPM System under the field names 'Bank A/c No.' and 'Bank name' respectively under the head 'Financial Details' in Client Maintenance Module. After the updation has been carried out, DPs are advised to communicate to all such Clients about the changes carriedout in their bank details alongwith the transaction statement for the month / quarter ended June 2008 or earlier, as the DP may deem fit. Further, a batch utility would be provided to DPs to generate a report containing list of Client accounts where the updation could not be effected. DPs may take appropriate action based on this utility. 2) New demat accounts opened / change in bank details after issuance of this circular: DPs would be required to capture the correct 14 digit bank account numbers of HBL for new demat accounts opened or change in bank details requested by Clients. For any information/clarifications, DPs are requested to contact NSDL officials on telephone numbers (022) 2499 4482 / 4488 / 4494 / 4214 / 4479 / 4363 / 4212 / 4348 (email : participant-interface@nsdl.co.in). Circular No. NSDL/POLICY/ 2008/0022 Date : April 7, 2008 Sub : RBI intimation - Updation of new bank account numbers All Depository Participants (DPs) are hereby informed that Reserve Bank of India (RBI) vide its letter no. DPSS (CO) No. 1432 / 04.03.02/2007-08 dated March 12, 2008 has informed NSDL about allotment of new bank account numbers by banks who have implemented Core Banking Solution (CBS) and the need to update the same in demat accounts by DPs. The relevant extracts from the letter of RBI is reproduced for information and necessary action of the DPs.

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"Retail electronic payment system such as Electronic Clearing Services (ECS) and National Electronic Funds Transfer (NEFT) are being used extensively for payments of IPO refunds by IPO managers, since these electronic payment products facilitate direct, speedy and secured credit of funds to the investors' accounts. However, of late, we have been receiving complaints from the managers to the issues that funds routed through the electronic modes are getting returned by the destination banks. We further observe that such returns are mostly due to providing incorrect or old account numbers of the beneficiary customers. As you may be aware, most of the banks have operationalised their Core Banking Solution (CBS) and new account numbers have been allotted to customers under CBS. Majority of banks are posting their inward electronic transactions in Straight Through Processing (STP) manner. Due to this seamless processing, truncated or old account numbers, if any, are being rejected by the system leading to manual intervention at bank's end. In order to avoid manual intervention, all customers are required to update their account numbers with their respective depositories." In view of the aforesaid, all DPs are requested to advise their Clients to provide the new bank account details in case of change in the existing bank account details. As all DPs are aware, updation of correct bank particulars of the Clients would facilitate receipt of IPO refunds, dividend, redemption payments etc., into correct bank account of the Clients. At the time of updation of new bank account details in the DPM system, DPs are advised to ensure compliance with point no. (I) (2) (2.3) of NSDL Circular No. NSDL/PI/ 2007/0077 dated December 19, 2007. Circular No: NSDL/PI/2002/0698 Date: April 30, 2002 All Participants are hereby informed that SEBI vide its Circular No. DCC/ FITTCIR-3/2001 dated October 15, 2001 has advised that companies should mandatorily use ECS facility for distribution of dividends and other cash benefits to the investors. However, where ECS facility is not available, companies may use warrants for distribution of dividends. Further, SEBI has informed vide its Circular no. D&CC/FITTC/CIR-04/2001 dated November 13, 2001 that it has received complaints about fraudulent encashment of instruments pertaining to distribution of dividends and other cash benefits. In order to avoid such situations, it has advised that companies should mandatorily print the bank account details furnished by the Depositories on the payment instruments. In view of the aforesaid, Participants are once again advised that they should capture the details or record changes in the bank details including MICR number in the DPM system as per the procedure communicated by NSDL in this regard vide its Circular NSDL/PI/2000/2295 dated December 20, 2000.

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Account opening - Bank account details - MICR Circular No. NSDL/POLICY/ 2007/0023 Date : April 24, 2007 Sub : SEBI Circular - Updation of bank accounts and corresponding change in MICR code by Depository Participants Attention of Depository Participants (DPs) is invited to NSDL Circular No. NSDL/ POLICY/2006/0006 dated February 23, 2006 wherein 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 again 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 for the information and necessary action of the DPs. "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, all DPs are hereby advised to : (i) Communicate to all Clients residing at 15 centers (for the list centers refer RBI website http://www.rbi.org.in 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 by following the procedure mentioned in Circular No. NSDL/PI/2000/2295 dated December 20, 2000.

(ii)

Circular No. NSDL/POLICY/ 2006/0006 Date : February 23, 2006

Sub : Updation of MICR code, pursuant to SEBI circular on Electronic Clearing System (ECS) for refund in public issues All Participants are hereby informed that SEBI vide its circular no. SEBI/MRD/ DEP/Cir-3/06 dated February 21, 2006 (copy enclosed) has mentioned that applicants residing in 15 centers where clearing houses are managed by Reserve Bank of India (RBI) will get refunds through Electronic Clearing System only for public issues. In view of the above, Participants are advised as under : (i) Inform all the clients residing in 15 centers (For the list of centers refer RBI website http://www.rbi.org.in under Electronic Clearing Service) to provide the details of MICR code, if not already updated in the DPM system. For all new accounts that are opened or changes in bank details of existing accounts, who are residing in 15 centers, Participants should ensure that the details of MICR code are updated as per the procedure mentioned in circular no. NSDL/PI/2000/2295 dated December 20, 2000.

(ii)

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ANNEXURE GENERAL MANAGER Market Regulation Department SEBI/MRD/DEP/Cir-3/06 February 21, 2006 The Chairman & Managing Director National Securities Depository Ltd. Trade World, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai 400 013. Dear Sirs, Sub. : Use of Electronic Clearing System (ECS) for refund in public issues - Instructions for updation of MICR code for refunds through ECS 1. SEBI vide circular No. SEBI/CFD/DIL/DIP/18/2006/1 dated January 20, 2006 has amended SEBI (DIP) Guidelines, 2000 providing for use of various modes for making refunds in public issues. A copy of the said circular is available on the SEBI website, namely, www.sebi.gov.in. It was mentioned in the aforesaid circular that applicants in 15 centers where clearing houses are managed by Reserve Bank of India will get refunds through ECS only and the bank details of such applicants will be taken directly from the database of the depositories in respect of issues made completely in dematerialised form. It is, therefore, necessary that the MICR code maintained at the database of the depositories is updated on a real time basis as and when changes take place to ensure credit of refunds to the bank accounts of the applicants. For this purpose, DPs have to update the MICR Code and other bank details of the applicants in the database of the depositories. This is to ensure that the refunds through ECS are made in a smooth manner and that there are no failed/wrong credits. In view of the above, you are advised to issue suitable instructions immediately to your Depository Participants to comply with the aforesaid requirement. The Depositories are advised to:a) b) 5. make amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision immediately, as may be applicable/ necessary; communicate to SEBI the status of the implementation of the provisions of this circular in the Monthly Development Report. The Managing Director and CEO Central Depository Services (India) Ltd. Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai 400 023.

2.

3. 4.

This circular is being issued in exercise of the powers conferred by Section 11 (1) of Securities and Exchange Board of India Act, 1992 to protect the interest of investors in securities and to promote the development of, and to regulate, the securities market. Yours faithfully,

V S SUNDARESAN

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Account opening Forms and New Features Circular No: NSDL/POLICY/ 2010/0020 Date: March 4, 2010 Sub: Launch of ACE - Alerts to Clients through Email As Participants are aware, SMS Alerts are being sent to Clients upon change of address in respect of their demat accounts. As a measure to further strengthen the risk containment mechanism, ACE Alerts to Clients through Email, a facility is being launched whereby emails will be sent by NSDL to the email address (captured in the DPM System) of the account holder(s) in case of change of address. The salient features of ACE are as follows: The parameters for sending email alerts will be similar to SMS Alert facility (Refer Circular No. NSDL/POLICY/2009/0077 dated August 29, 2009). Email alerts will be sent to the email address of the account holder(s) available in the DPM System. Account holder(s) will receive email alerts from the Email ID : nsdl_alerts@nsdl.com A sample text of the email is enclosed at Annexure A. Annexure A Subject line : Your demat account with ____________(DP name) - address updation Dear _____________ (name of the holder), As you are aware, your demat account (Client ID XXXX9999) is with _____________ (name of DP) (DP Id IN_______), a Depository Participant of National Securities Depository Limited (NSDL). As per your request, the address in your demat account (Client ID XXXX9999) is updated by your Depository Participant. The updated address is mentioned below: Address Line 1 Address Line 2 Address Line 3 Address Line 4 For more information, please contact your Depository Participant Regards, National Securities Depository Limited (www.nsdl.co.in) This is an auto generated email, Please do not reply. Circular No: NSDL/POLICY/ 2009/0004 Date: January 9, 2009 Sub: Nomination details and usage of existing Account Opening Forms (AOF) Attention of all Participants is invited to NSDL Circular no. NSDL/POLICY/ 2009/0002 dated January 3, 2009 regarding the new format of Account Opening Form (AOF) in the context of declaration of nomination details by Clients. Participants may use the existing stock of AOFs provided a stamp with the words "I/We do not wish to make a nomination" is affixed at the relevant place to enable the Client to tick the appropriate option. Alternatively, Participants may obtain a separate letter from Client(s) duly signed by the Client(s) (all the holders in case of joint account) stating that they do not wish to make a nomination, if the Client(s) so desires. As regards the declaration to be obtained from the existing accountholders who have not opted for nominations, Participants are advised to inform their Clients that the declaration must be submitted by April 30, 2009.

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Circular No. NSDL/POLICY/ 2008/0019 Date: March 26, 2008

Sub: Extension of deadline for usage of existing Account Opening Form (AOF) & Delivery Instruction Slip (DIS) Attention of Depository Participants (DPs) is invited to NSDL Circular Nos. NSDL/POLICY/2007/0069 / 0070 and 0071 dated November 12, 2007 regarding Modification of AOF & DIS under the advise of Financial Intelligence UnitIndia (FIU-IND). As all DPs are aware, NSDL vide its Circular No. NSDL/POLICY/ 2007/0071 dated November 12, 2007 had informed the DPs to use the existing AOF and DIS till March 31, 2008 or till such time the existing AOFs and DIS are exhausted, whichever is earlier. As an interim measure, DPs were advised to accept the existing AOF and DIS for opening new accounts and executing transactions respectively, alongwith the 'Additional Details', in a prescribed format, on a plain paper, duly signed by the applicant(s)/Clients. In this regard, DPs have represented to NSDL with a request to extend the aforesaid deadline of March 31, 2008, citing a few practical difficulties as mentioned below: 1) 2) Existing stock of AOF / DIS are yet to be exhausted and hence printing of revised AOF / DIS will be a financial burden on the DPs. The process of dispatching of the revised DIS in lieu of the existing DIS (which are lying with the Clients) would put the DPs and the Clients into hardship. The process would also increase the overheads (cost, man hours etc) of the DPs.

In light of the above representations, all DPs are hereby informed that the deadline for usage of the existing AOFs / DIS is extended till September 30, 2008 or till such time the existing AOF / DIS are exhausted, whichever is earlier. During this interim period, DPs are advised to follow the procedure mentioned in the aforesaid Circular No. NSDL/POLICY/2007/0071 dated November 12, 2007 regarding obtaining of 'Additional Details' alongwith the AOF / DIS. In case the stock of the existing AOF / DIS are exhausted before, September 30, 2008, DPs would be required to print and distribute the revised AOF and DIS in the format mentioned in NSDL Circular No. NSDL/POLICY/2007/0069 dated November 12, 2007. For further information, DPs are requested to contact Mr. Amit Shinde on Tel No. (022) 2499 4486 (email: shindea@nsdl.co.in) / Mr. Vinith Nair on Tel. No. (022) 2499 4414 (email: vinithn@nsdl.co.in). Circular No. NSDL/PI/2005/2328 Date : November 25, 2005 Sub : Updation of email id and mobile no. in the DPM system. As all Participants are aware, DPM version 3.9 enabled the Participants to capture certain additional information of account holders viz., mobile numbers, e-mail addresses etc. Participants have been seeking clarification from NSDL whether the mobile numbers and e-mail addresses collected / received from the account holders prior to the release of DPM version 3.9 can be captured. It is hereby clarified that Participants can capture the aforesaid details provided Participants have verified the same. Circular No. NSDL/PI/2005/1726 Date: September 15, 2005 Attention of Participants is invited to point no. (E) (c) of Circular no. NSDL/ PI/2005/1102 dated June 22, 2005, which enabled Participants to key-in from front end application or upload from back office interface, a few special characters. In this regard, all Participants are advised not to use (key-in or upload) the special character Colon (":") in any of the module of the DPM system.

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Account opening - HUF accounts with joint holdings Circular No: NSDL/PI/2002/1346 Date : August 12, 2002 As per Business Rules of NSDL, penalty points are imposed on Participants if HUF accounts are opened with joint holdings. In this regard, while some Participants have taken steps to rectify such accounts, it is observed that many HUF accounts with joint holding are still in 'Active' status. In this context, Participants are advised to inform all such Clients to open new accounts in the name of Karta of the HUF, transfer the securities to such new accounts and close the old accounts on or before October 31, 2002. Participants are also advised to note that if such accounts are not closed by October 31, 2002, then the standing instructions to receive credits should be removed. Further, Participants should not accept any fresh dematerialisation requests, receipt instructions, new issue applications and any other instruction which may result in credit to such accounts and inform all such Clients suitably. Further, if transfers are effected on or before October 31, 2002 and waiver request alongwith necessary supporting documents are submitted to NSDL within one month from the date of the bill, the same may be considered for exemption from settlement fee. Clarification regarding capturing address in the client master - IPO financing Circular No: NSDL/PI/2004/1794 Date : October 1, 2004 Participants have represented to NSDL whether they can capture in the DPM, address details of a person different from that of the accountholder. This request was received mainly in respect of accounts opened for the purpose of IPO financing where the accounts are opened with financier's address instead of the first holder's. The matter was referred to SEBI and SEBI has expressed its inability to accede to the request. In view of the aforesaid, all Participants are advised to strictly comply with the guidelines prescribed by SEBI and communicated by NSDL vide Circular No. NSDL/PI/2004/1622 dated September 7, 2004 by capturing the address details and other particulars of the account holder. Exemption from obtaining latest transaction statement Circular No. NSDL/POLICY/ 2007/0030 Date: June 18, 2007 Sub : Requirement of submission of Transaction Statement for various depository related activities As all Depository Participants (DPs) are aware, DPs are required to obtain latest transaction statement from the Client at the time of: (a) Change of address in the depository account of the Client (non-body corporates) (refer Circular No. NSDL/PI/2004/1622 dated September 7, 2004), (b) Change of address in the depository account of the Corporate (refer Circular No. NSDL/PI/2002/1319 dated August 8, 2002), (c) Change of signature (refer Circular No. NSDL/PI/2004/0045 dated January 7, 2004), (d) Registration, reset of password etc. in case of SPEED-e and IDeAS, (e) Requisition for loose-leaf delivery instruction slip (DIS) (refer Circular No. NSDL/PI/2004/1401, dated August 5, 2004). In this regard, DPs have requested for exemption from the requirement of obtaining the latest transaction statement from the Client, in case the Client personally visits the DPs office. 1) Revised guidelines - exemption from obtaining the latest transaction statement (a) Change of address in case of non-body corporate accounts: In case a Client (sole holder or either of the holders) personally visits the DPs office to submit an application (signed by all holders

[ 46 ]

(b)

(c)

(d)

(e)

in case of joint holdings) for change of address alongwith necessary documents (proof of identity / proof of address) mentioned in Circular No. NSDL/PI/2004/1622 dated September 7, 2004, the DP need not obtain the transaction statement from that Client. Change of address with respect to Corporate Accounts: As one of the authorised signatories is required to personally visit DPs office as stated in Circular No. NSDL/PI/2002/1319 dated August 8, 2002, the DP need not obtain transaction statement from the authorised signator(ies). Change of signature : Since the Client in case of change in his/her signature is required to personally visit the DPs office, as stated in Circular No.NSDL/ PI/2004/0045 dated January 7, 2004, the DP need not obtain the transaction statement from that Client. SPEED-e and IDeAS : In case of SPEED-e and IDeAS, if a Client [sole holder or either of the holders who is authorised on behalf of the other holder(s) to operate SPEED-e or IDeAS] personally visits the DPs office to submit an application (signed by all holders in case of joint holdings) for the following cases, the DP need not obtain the transaction statement from the Client. SPEED-e : (i) Registration of password based User (ii) Addition to pre-notified accounts and (iii) Resetting of password. IDeAS : (i) Registration of password based User and (ii) Resetting of password. Requisition for Loose leaf DIS : In case of requisition for loose leaf DIS, if the Client personally visits DPs office and signs (all the holders in case of joint holdings) the DIS in the presence of the authorised official of DP, the DP need not obtain transaction statement from such Client(s). In this regard, DPs will also have to ensure compliance with Circular No. NSDL/POLICY/2007/0011 dated February 15, 2007 regarding SEBI guidelines regarding safeguards to be followed to address the concerns of the investors in case of transfer of securities in dematerialized mode. The procedure for processing and recording the details of the Client(s) as mentioned in the Circular No. NSDL/ PI/2004/1401 dated August 5, 2004 will remain unchanged.

2)

Procedure for processing above mentioned requests from the Client(s): The authorised official (including the staff of the approved franchisee) of the DP will verify the identity of the Client(s) to its satisfaction and note the following details on the documents/ back of the DIS: (i) (ii) (iii) (iv) Details of the Authorised official (name, designation, employee code if any and signature) who verified the documents, Name of the DP and DP Id, Date and place; Remark to the effect that the Client had personally visited the DPs office.

In case the authorised representative of the Client visits DPs office to submit the application, the requirement of obtaining transaction statement from the Client will have to be followed as per the procedures laid down in the aforesaid circulars.

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DPs are advised to note that other processes mentioned in the aforesaid circulars remain unchanged and DPs will have to ensure compliance with the same. SEBI Order Circular No. NSDL/POLICY/ 2010/0103 Date: September 7, 2010 Sub: SEBI order in the matter of illegal trading - dealings by Shri Bhadresh Sanghvi, Sub-Broker, SEBI REGN. No. INS235801011 (Trade Name: Arihant Investment) affiliated to Anand Rathi Share & Stock Brokers Limited, Member of National Stock Exchange of India Ltd. This is further to our Circular ref. no. NSDL/POLICY/2009/0124 dated December 24, 2009 in the context of SEBI ad interim ex-parte order no. WTM/MSS/MIRSD2/30/09 dated December 21, 2009 against Shri Bhadresh Sanghvi. NSDL has vide aforesaid circular dated December 24, 2009, advised all Participants not to act upon debit instructions given by the above mentioned entity on the authority of Power of Attorney obtained by him from any other beneficial owner in compliance with the directions issued at Para no. 5(b) of the aforesaid SEBI order dated December 21, 2009. SEBI has vide its order no. WTM/MSS/MIRSD-2/ 64 /10 dated August 30, 2010 confirmed the directions contained in Para 5 of the ad interim ex-parte Order dated December 21, 2009 subject to the outcome of the inspection being carried out by SEBI. The detailed SEBI order is available on SEBI website (http://www.sebi.gov.in). In this context, we once again advise Participants to ensure compliance with the directions issued at Para no. 5(b) of the aforesaid SEBI order dated December 21, 2009 and the directions issued vide SEBI order dated August 30, 2010. Sub: SEBI order in the matter of illegal trading - dealings by Shri Bhadresh Sanghvi, Sub-Broker affiliated to Anand Rathi Share & Stock Brokers Limited SEBI has passed an ad interim ex-parte order no. WTM/MSS/MIRSD-2/30/09 dated December 21, 2009 against Shri Bhadresh Sanghvi. The details of this entity as mentioned in the SEBI order are given below: Sr. No. 1 Name Shri Bhadresh Sanghvi (Trade Name: Arihant Investment) PAN AXDPS8704K Office Address 4, Ankruti Apartments, Swastik Society, Navrangpura, Ahmedabad 380009, Gujarat

Circular No. NSDL/POLICY/ 2009/0124 Date: December 24, 2009

The detailed SEBI order is available on SEBI website (http://www.sebi.gov.in). In this context, we invite Participants attention to Para no. 5 (b) of the aforesaid SEBI order and advise Participants not to act upon debit instructions given by the above mentioned entity on the authority of Power of Attorney obtained by him from any other beneficial owner. Circular No. NSDL/POLICY/ 2009/0102 Date: October 29, 2009 Sub: SEBI Order under sections 11(4) and 11B of the Securities and Exchange Board of India Act, 1992, in respect of Sunchan Securities Ltd., Mr. Sunil Mansinghani, Ms. Kanchan Mansinghani, Mr. Ajay Janardan Kotwal and Mr. Riyaz Ismail Shaikh. Attention of Participants is invited to Circular No. NSDL/POLICY/2009/0011 dated February 10, 2009 in respect of SEBI ad interim ex-parte Order WTM/ MSS/MIRSD/DPS-I/160/09 dated January 30, 2009 against a company viz., Sunchan Securities Limited, its Directors and Compliance Officer. Participants are requested to note that SEBI vide its Order WTM/KMA/MIRSD/

[ 48 ]

156/10/2009 dated October 26, 2009 has confirmed the directions passed vide SEBI ad interim ex-parte Order dated January 30, 2009 against Stock Broker, Sunchan Securities Ltd., its Directors viz., Mr. Sunil Mansinghani, Ms. Kanchan Mansinghani and its Compliance Officer Mr. Riyaz Ismail Shaik and revoked the directions issued against Mr. Ajay Janardan Kotwal. In light of SEBI Order dated October 26, 2009, Participants may act upon debit instructions given by Mr. Ajay Janardan Kotwal (PAN AANPK8226F) as a Power of Attorney holder. However, SEBIs advice to not to act upon debit instructions given by the below mentioned entities on the authority of Power of Attorney obtained by them from any beneficial owner as per the directions issued in Point no. 6.1 (e) of SEBI Order dated January 30, 2009 continues: Sr. No. 1 2 3 4 Name Sunchan Securities Limited Mr. Sunil Mansinghani Mrs. Kanchan Mansinghani Mr. Riyaz Ismail Shaikh Description of the entity Company Director Director Compliance Officer PAN AAFCS8953A AARPM7113P AAQPM1032Q AAVPS2375K

The detailed SEBI Orders are available on SEBI website (http:// www.sebi.gov.in). Circular No. NSDL/POLICY/ 2009/0010 Date: February 3, 2009 Sub : SEBI's instructions relating to consolidated UN List of individuals and entities subject to sanction measures under UNSC Resolutions 1267 and 1822 on Taliban / Al-Qaida Securities and Exchange Board of India (SEBI) vide its letter no. ISD/SR/AK/ AML/151335/2009 dated January 20, 2009 (copy enclosed) has informed the Stock Exchanges and the Depositories to bring the contents of the consolidated UN List to the notice of their Members and Participants respectively for information, necessary action and compliance. The full and updated version of the consolidated United Nations' List is accessible at the United Nations' Securitiy Council's Al-Qaida and Taliban Sanctions Committee's website at the following URL: http://www.un.org/sc/committees/1267/consolist.shtml Participants are advised to take note of the above and ensure compliance with SEBI's instructions. Circular No. NSDL/POLICY/ 2009/0009 Date: February 3, 2009 Sub: SEBI's instructions relating to UN Security Council Resolutions - EU Common Position and Regulations Securities and Exchange Board of India (SEBI) vide its letter no. ISD/SR/AK/ AML/151748/2009 dated January 22, 2009 (copy enclosed) has informed the Stock Exchanges and the Depositories to bring the contents of the UN Security Council Resolutions / EU Common Position and Regulations to the notice of their Members and Participants respectively for information, necessary action and compliance. The UN resolutions and EU measures are available on the following websites: 1. 2. 3. http://www.un.org/Docs/sc/unsc_resolutions06.htm [UNSCR 1737 of 2006] http://www.un.org/Docs/sc/unsc_resolutions07.htm [UNSCR 1747 of 2007] http://www.un.org/Docs/sc/unsc_resolutions08.htm [UNSCR 1803 of 2008]

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4.

http://eur-lex.europa.eu/LexUriServ/ LexUriServ.do?uri=OJ:L:2008:213:0058:0070:EN:PDF [EU Council Common position 2008/652/CFSP of August 07, 2008] http://eur-lex.europa.eu/LexUriServ/ LexUriServ.do?uri=OJ:L:2008:300:0001:0028:EN:PDF [Regulation 2008/1110/EC of November 10, 2008] http://www.fatf-gafi.org/dataoecd/47/41/41529339.pdf [FATF Guidance Note on implementation of financial measures contained in UNSCR 1803]

5.

6.

Participants are advised to take note of the above and ensure compliance with SEBI's instructions. Circular No. NSDL/POLICY/ 2007/0015 Date: March 13, 2007 b. PAN Circular No. NSDL/POLICY/ 2010/0093 Date: August 11, 2010 Sub: SEBIs Circular on PAN non compliant account to be frozen for Suspended for Debit and Credit Further to our Circular No. NSDL/POLICY/2010/0085 dated July 30, 2010 regarding SEBIs directive on mandatory requirement of PAN, utility is being provided to facilitate Participants to execute freeze instructions, i.e Suspended for Debit and Credit, in respect of accounts that are non-compliant with PAN requirement. Participants are requested to note as follows : (i) Guidelines to facilitate execution of the freeze instruction are enclosed at Annexure A. (ii) Procedure for unfreezing such accounts upon PAN compliance is enclosed at Annexure B. For any information/clarifications, Participants are requested to contact NSDL Help Desk at (022) 2499 4601 to 4610 or email at helpdesk@nsdl.co.in Annexure A Guidelines to facilitate execution of the freeze instruction Participants are requested to strictly follow the activities given in the below sequence: 1) Utility named Bulk_Account_Freeze. is made available on the intranet site of NSDL i.e., https://sqlassist. 2) Download the folder named Bulk_Account_Freeze. and place it in the C. drive of your DPM server i.e., GISMO. 3) Inside the folder named Bulk_Account_Freeze executables viz.,Clients_to_be_Freezed.bat and Final_Freeze.exe can be viewed. 4) First double-click on Clients_to_be_Freezed.bat. 5) A report named Client_List.txt would be generated containing list of Client accounts viz. DP ID and Client ID available in the DPM System that are frozen due to non compliance with PAN requirements: (i) This file can be saved in desired folder. Name, date and time should be provided to the file as each time the Clients_to_be_Freezed.bat is clicked, a fresh report would be generated with the same name, i.e. Client_List.txt giving the latest list of Client accounts that are frozen due to non compliance with PAN requirements. CONFIDENTIAL Sub : Confidential-SEBI Order-Three persons debarred from opening demat accounts upto January 30, 2012 This circular is sent to the Compliance Officer in hard copy form.

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In the interim, Clients may submit PAN card to comply with PAN requirements. In this regard, the procedure mentioned at Annexure B must be followed. 6) Final_Freeze.exe will facilitate to freeze the Client accounts for Suspended for Debit and Credit. as per the latest output generated in the report Client_List. It is therefore mandatory to first click on Clients_to_be_Freezed.bat before proceeding to initiate freeze instructions through the executable Final_Freeze.Exe. Further, Participants can decide on any of the dates i.e., either August 13, 2010 or August 14, 2010 for freezing such Client accounts for Suspended for Debit and Credit. 7) Follow the steps given in the installation manual for creating shortcut for Final_Freeze.exe on the desktop of DPM server, i.e. GISMO application. 8) Upon clicking on the shortcut Final_Freeze.exe a response file (.out) will be generated. This response file will be required to be imported through VR Import option available under Backoffice->Imports in GISMO application. 9) An additional freeze instruction i.e., Suspended for Debit and Credit. would be created with an execution date of August 16, 2010 for such accounts. 10) The details of the freeze initiated by Participants would be as follows : (i) Freeze level : Suspended for Debit and Credit. (ii) Freeze reason : Request By Statutory Authority. (iii) Freeze description : PAN Pending SEBI Cir. (iv) User remark field : FREEZE IMPORT. (v) Execution date of the freeze : August 16, 2010. 11) Such PAN non compliant accounts will have at least two levels of freeze i.e., (i) the existing freeze i.e., Suspended for Debit and (ii) Suspended for Debit and Credit. After freeze instructions are executed using the Final_Freeze.exe and if Clients comply with PAN requirements, on or before August 14, 2010, future dated freeze instructions (i) must be cancelled. (ii) from August 16, 2010 onwards, unfreeze instructions in the manner mentioned at Annexure B must be initiated. Additional Guidelines 1) Stop the Receive Service of the DPM Server at the time of executing freeze instructions. 2) After executing Final_Freeze.exe, the response file generated will carry the batch ID in sequence to the last batch ID uploaded with respect to Instructions / Client Creation / Client Modifications etc, in the DPM System. Example; If the last batch ID uploaded in the DPM system is 1001, the batch ID generated after executing the Final_Freeze.exe would be 1002. In view of this, it must be ensured that the batches that are already generated from their back office system are uploaded in the DPM System before initiating the Final_Freeze.exe for execution of freeze instructions. Further, the batch ID utilized by the Final_Freeze.exe in their back office must be updated otherwise any subsequent batch file(s) with same batch ID generated out of the back office will be rejected by the DPM System transaction import utility on account of Duplicate Batch ID. 3) It must be ensured that Beginning of the Day (BOD) of August 16, 2010 is

(ii)

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4)

5) 6)

received early and further monitor the status of the freeze instructions. Any failure in processing pay-in related instructions remains the responsibility of the Participants. If Client accounts are already frozen for Suspended for Debit and Credit through DPM System (for any other reason) or SPEED-e facility, the executable will still facilitate for initiating freeze instructions for such accounts. The executable and utility will not function from August 16, 2010. Hence, the abovementioned instructions must be followed by August 14, 2010. Participants will be violating the guidelines mentioned by SEBI in its Circular No. CIR/MRD/DP/22/2010 dated July 29, 2010 in case they do not initiate freeze instructions for Suspended for Debit & Credit by August 14, 2010 for those Client accounts that are not compliant with PAN requirements. Annexure B

Procedure for unfreezing Client accounts upon PAN compliance (i) Verify the PAN details as per the procedure laid down in NSDL Circular No. NSDL/POLICY/2006/0007 dated March 3, 2006. (ii) Update the PAN field and enable the PAN flag provided in the DPM System. Ensure that the status of the updation is Closed, Settled. (iii) Initiate unfreeze instruction for Suspended for Debit and Credit (applicable for unfreeze instructions executed from August 16, 2010) and ensure that the status of the unfreeze instruction is Closed, Settled. (iv) Initiate unfreeze instruction for Suspended for Debit (executed on January 1, 2007 or on any other date) and ensure that the status of the unfreeze instruction is Closed, Settled. (v) Ensure that the status of both the above unfreeze instructions are Closed, Settled prior to executing any other instruction in the DPM System. Circular No. NSDL/POLICY/ 2010/0085 Date: July 30, 2010 Sub: SEBIs directive for Mandatory requirement of PAN. All Participants are hereby informed that SEBI has issued Circular No. CIR/ MRD/DP/22/2010 dated July 29, 2010 (copy enclosed) regarding mandatory requirement of Permanent Account Number (PAN). The aforesaid SEBI circular specifies that in order to ensure better compliance with the Know Your Client (KYC) norms, it has been decided that with effect from August 16, 2010 depository accounts which are PAN non-compliant shall also be suspended for credit other than the credits arising out of automatic corporate actions. It is clarified that other credits including credits from IPO/FPO/Rights issue, off-market transactions or any secondary market transactions shall not be allowed into such accounts. Participants are advised to ensure compliance with the requirement and communicate the same to all the concerned Beneficial Owners. Circular No. NSDL/POLICY/ 2009/0108 Date: November 16, 2009 Sub: Modification in reason- Request for modifying incorrect PAN details in SQLASSIST Attention of Participants is invited to Circular No. NSDL/POLICY/2009/0003 dated January 9, 2009 regarding facility to incorporate reasons for modifying incorrect PAN details in SQLASSIST Intranet site (https:\\sqlassist). Based on

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the feedback received from Participants, description with respect to reason code no. 2 has been modified as follows: Reason code 2 Description PAN of Individual entered in HUF/ Partnership Firm/ Unregistered Trust/ Association of Persons depository account & vice versa. Participants are requested to mention the appropriate reason while making requests in SQLASSSIST. For further information/clarification, Participants are requested to contact Mr. Sandip Patel on Tel No. (022) 2499 4413 (email: sandipp@nsdl.co.in) / Ms. Kirti Samant on Tel. No. (022) 2499 4424 (email: kirtis@nsdl.co.in). Circular No. NSDL/POLICY/ 2009/0046 Date: June 12, 2009 Sub: Requests for modifying incorrect PAN details - revision of penalty fee Attention of Participants is invited to NSDL Circular No. NSDL/POLICY/2007/ 0045 dated August 2, 2007 regarding penalty for PAN modification. In view of amendments to the penalty structures pursuant to adoption of uniform penalty structure by both depositories, with effect from May 1, 2009, the penalty for modifying incorrect PAN details in the DPM System where PAN flag is enabled is revised from Rs.500 to Rs.50. This penalty will be levied on Participants for modification of PAN for each holder unless the reasons for modification are beyond the control of the Participant. Participants may refer NSDL Circular Nos. NSDL/POLICY/2007/0052 and NSDL/ POLICY/2009/0003 dated September 13, 2007 and January 9, 2009 respectively regarding procedure to be followed for making requests in SQLASSIST Intranet site (https://sqlassist) for modifying incorrect PAN details where the PAN flag is enabled with reason thereof. For further information, Participants are requested to contact Mr. Sandip Patel on Tel No. (022) 2499 4413 (email: sandipp@nsdl.co.in) / Mr. Vinith Nair on Tel. No. (022) 2499 4414 (email: vinithn@nsdl.co.in). Circular No. NSDL/POLICY/ 2009/0003 Date: January 9, 2009 Sub: Requests for modifying incorrect PAN details - Incorporation of reasons / reason code in SQLASSIST As all Participants are aware, the procedure to be followed by Participants for making requests in SQLASSIST Intranet site (https:\\sqlassist) for modifying incorrect PAN details where the PAN flag is enabled was informed vide Circular No. NSDL/POLICY/2007/0052 dated September 13, 2007. A facility to incorporate reasons for modification has now been provided. This facility is for both, front end data entry as well as batch mode (the file format of the batch file is available on SQLASSIST). The various reasons and corresponding codes are given below:

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Reason code 1 2 3 4 5 6 7

Description Allotment of new PAN by Income Tax Department (ITD) PAN of Individual entered in HUF demat account & vice versa Typographical mistake PAN of first holder wrongly entered in second holder, third holder or vice versa PAN of Karta wrongly entered in HUF demat account Proactive measures to cleanup incorrect PAN details PAN of Guardian wrongly entered in Minor account

Participants are advised to mention the appropriate reason while making requests. Other procedural aspects with respect to making of requests for PAN modification as mentioned in Circular No. NSDL/POLICY/2007/0052 dated September 13, 2007 remain unchanged. For further information, Participants are requested to contact Mr. Sandip Patel on Tel No. (022) 2499 4413 (email: sandipp@nsdl.co.in) / Mr. Vinith Nair on Tel. No. (022) 2499 4414 (email: vinithn@nsdl.co.in). Circular No. NSDL/POLICY/ 2008/0082 Date: November 18, 2008 Sub: Revised deadline for closure of PAN non-compliant beneficiary accounts with no security balances. Attention of Participants is invited to NSDL Circular No. NSDL/POLICY/2008/ 0066 dated September 29, 2008 regarding closure of beneficiary accounts that are frozen due to non compliance with PAN requirements and having no security balances by November 15, 2008. In light of the representation received from Participants, the deadline for closure of such aforesaid accounts has been extended till November 29, 2008. Participants are strictly advised to commence the closure of such accounts immediately and ensure to complete the activity by November 29, 2008. For further information, Participants are requested to contact Mr.Rahul Gupta [Tel No. (022) 24994372 / email: rahulg@nsdl.co.in] / Mr. Sandip Patel [Tel No. (022) 24994413 / email: sandipp@nsdl.co.in] / Mr. Vinith Nair [Tel. No. (022) 24994414 (email: vinithn@nsdl.co.in). Circular No. NSDL/POLICY/ 2008/0066 Date: September 29, 2008 Sub: Deadline for closure of PAN non-compliant BO accounts with no security balances. Attention of Participants is invited to our Circular No. NSDL/POLICY/2006/ 0007 dated March 3, 2006 regarding SEBI directive on PAN as a mandatory requirement for demat account opening. Further, Participants were advised vide our Circular No. NSDL/POLICY/2006/0043 dated September 27, 2006 to 'Suspend for Debit' all such accounts where the PAN requirement is not completed by December 31, 2006. In this context, Participants are hereby advised to give 30 days notice for compliance of the PAN requirement to the clients whose accounts are frozen due to PAN non-compliance and having no security balances stating that in case of non-compliance of the same at the end of the notice period, these accounts will be closed. Participants may communicate this to the clients

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alongwith the Transaction Statements for the quarter ending on September 30, 2008. All such PAN non-compliant accounts which do not have any security balances (except accounts with pending demat requests or frozen due to court / enforcement / regulatory authority orders) should be closed latest by November 15, 2008. For further information, Participants are requested to contact Mr.Rahul Gupta on Tel No. (022) 24994372 (email: Rahulg@nsdl.co.in) / Mr. Vinith Nair on Tel. No. (022) 24994414 (email: vinithn@nsdl.co.in). Circular No. NSDL/POLICY/ 2008/0049 Date: July 8, 2008 Sub: SEBI clarification on PAN as a mandatory requirement for demat account opening Further to NSDL Circular no. NSDL/POLICY/2008/0048 dated June 30, 2008 regarding SEBI clarification on PAN, SEBI has now vide its Press Release PR No. 131/2008 dated July 4, 2008 issued a clarification which is enclosed for information and necessary action. Annexure PRESS RELEASE PR No.131/2008 Mandatory requirement of Permanent Account Number (PAN) SEBI vide circular dated June 30, 2008 has clarified that Permanent Account Number (PAN) may not be insisted in the case of Central Government, State Government, and the officials appointed by the Courts e.g. Official Liquidator, Court Receiver etc. (under the category of Government) for transacting in the securities market. It is observed that certain media reports have wrongly reported the aforesaid provision of the said SEBI circular. It is hereby clarified that the exemption from mandatory PAN requirement applies to transactions undertaken on behalf of the Central and State Government, but not to the transactions of the employees of Central and State Government in their personal capacity. Mumbai July 04, 2008 Circular No. NSDL/POLICY/ 2008/0048 Date: June 30, 2008 Sub: SEBI clarification on PAN as a mandatory requirement for demat account opening Attention of Participants is invited to Circular no. NSDL/POLICY/2006/0007 dated March 3, 2006, and SEBI Circular no. MRD/DoP/Cir-05/2007 dated April 27, 2007 regarding SEBI directive on PAN. In this regard, SEBI has vide its Circular no. MRD/DoP/Cir-20/2008 dated June 30, 2008 issued certain clarifications on PAN which are enclosed for information and necessary action. Annexure Chief General Manager Market Regulation Department-Division of Policy E-mail: mdrao@sebi.gov.in MRD/DoP/Cir-20/2008 June 30, 2008 1. 2. 3. 4. The Executive Directors/Managing Directors of All Stock Exchanges MD & CEO, NSDL MD & CEO, CDSL All SEBI Registered Intermediaries

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Dear Sirs, Sub: Mandatory requirement of Permanent Account Number (PAN) 1. 2. Please refer to SEBI circular No.MRD/DoP/Cir-05/2007 dated April 27, 2007 making PAN mandatory for all transactions in the securities market. Subsequent to the issuance of the aforesaid circular, SEBI has received representations from certain categories of investors requesting for exemption from mandatory requirement of PAN for transacting in the securities market. Upon consideration of the said representations, and in view of Rule 114 C (1) (c) of Income Tax Rules, it is clarified that PAN may not be insisted in the case of Central Government, State Government, and the officials appointed by the courts e.g. Official liquidator, Court receiver etc. (under the category of Government) for transacting in the securities market. However, the aforementioned clarification would be subject to the intermediaries verifying the veracity of the claim of the specified organizations, by collecting sufficient documentary evidence in support of their claim for such an exemption. The Stock Exchanges and the Depositories are advised to : 5.1. make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision immediately. 5.2. bring the provisions of this circular to the notice of the member brokers/clearing members of the Exchange and depository participants of the Depositories and also to disseminate the same on the website. 5.3. communicate to SEBI, the status of the implementation of the provisions of this circular in the Monthly Development Report. 6. 7. SEBI Circular No.MRD/DoP/Cir-05/2007 dated April 27, 2007 stands amended to the extent as clarified under Para 3 of this Circular. This circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, and Section 19 of the Depositories Act, 1996, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

3.

4.

5.

Yours faithfully, S V MURALI DHAR RAO Circular No. NSDL/POLICY/ 2007/0052 Date: September 13, 2007 In continuation to NSDL circular NSDL/POLICY/2007/0045 dated August 2, 2007 wherein Depository Participants' (DPs) were informed that DPs will be restricted from modifying the PAN of a holder in a client account in DPMAS once the PAN flag has been enabled. Further, it was informed that a DP may approach NSDL for modifying the incorrect PAN captured in the DPMAS where PAN flag has been enabled. DPs are hereby informed that from September 15 2007, DPs will be restricted from modifying the PAN of a holder in a client account in DPMAS once the PAN flag has been enabled. If a modification request is sent for such account holders with modification in PAN or PAN flag (i.e. "Y" to "N"), the modification request would be rejected by NSDL with rejection reason as "PAN Modification Not Allowed" and "PAN Flag Modification Not Allowed" respectively. However, NSDL would provide a facility for DPs to register a request for modification of PAN for such holders in client account.

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In this regard, DP would be required to send a request containing the list of account holders to NSDL for enabling PAN modification for such holders in client account. (It may be noted that PAN flag once enabled would not be allowed for disabling after September 15, 2007). NSDL would flag the account holders for such client accounts in Depository Module (DM) such that the PAN modification request sent by DP for these account holders would be accepted by NSDL. Once the PAN modification request is accepted by NSDL, any further modification of PAN of the holder for the account would be disabled in DPMAS. A new request will have to be initiated by DP for any subsequent PAN modifications in this client account. DPs will be enabled to carry out PAN modification for such request using DPMAS for seven calendar days from the day PAN modification request is registered with NSDL. DP may note that this request would be marked as "expired" if the actual PAN modification request is not received within seven calendar days and a new request needs to be initiated. DP can register this PAN modification request to NSDL through SQLASSIST Intranet site (https:\\sqlassist), set up for accessing DP billing information. DP will be provided with an online screen as well as batch upload facility to register request for PAN modification for client account having PAN Flag set to 'Y'. The file format for the batch file along with the sample file is available on SQLASSIST Intranet site. Further, DP would be required to follow maker-checker concept for setting up this PAN modification request on SQLASSIST Intranet site. The existing login id created for accessing billing information i.e., DPID will be used for maker user. In addition to this, new user id i.e. DPID_C will be created for a checker user (with DP id as default password) to set up this request. Checker users will be forced to change the password on first login. The procedure to be followed by the DP, for modifying the incorrect PAN of a holder in a client account captured in the DPMAS where PAN flag has been enabled is as follows: 1. SQLASSIST site will now feature SSL Certificate. In this connection DPs will be initially required to import the root certificate in the browser as attached with the circular. DP will log on to SQLASSIST Intranet site (https:\\sqlassist) that is currently used to access billing information. After login three options will be displayed, a) b) c) 3. 4. 'DP BILLING' for downloading billing information. 'PAN UPDATE' for uploading/registering PAN modification request. 'PAN REPORT' to verify the status of the uploaded/registered PAN modification request.

2.

DP can register request for PAN modification using online screen for 5 client ids or alternatively can upload a batch of client ids. DP would be required to follow maker-checker concept for both online and batch upload, whereby DP's maker user with user id (DPId) would

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register the request and the checker user, using another user id ((DPId_C), would authorize the same. 5. The request would be marked as "Captured" after maker user registers the request. Checker user would be provided a view for all the pending authorization requests. The Checker user would be provided two options viz., to either authorize or reject the request registered by maker user. The status of request would be marked as "Uploaded to NSDL" after it is authorized by checker user and "Rejected by Checker" if user rejects it. File upload option would be available to maker user only. Checker user has to individually authorize these requests uploaded through batch file. A separate view, viz., "PAN Report", is provided to both maker and checker users for checking the status of request registered/ uploaded on SQLASSIST Intranet site. NSDL would process all the requests received at the end of every business day (EOD) to enable DP for PAN modification in such client accounts through DPMAS on the next business day. SQLASSIST system will not offer any Client-id validations. NSDL would update the response of the request as "Accepted" / "Rejected by NSDL" on SQLASSIST Intranet site on the next business day. DP can check this response through "PAN Report" screen provided on SQLASSIST Intranet site. DP can submit the PAN modification request through DPM system for the requests, which are in "Accepted by NSDL" on SQLASSIST Intranet site. Such request must be made within seven days of setting up the request. The successful acceptance of the request executed on the DM would be then uploaded on SQLASSIST Intranet site at the end of the day where the status of the corresponding account holder for a client account would be marked as "Closed/Settled". In case a request is in status "Rejected by NSDL", rejection reasons would be provided for corresponding requests on SQLASSIST Intranet site. DP can check the reason for the same in "PAN Report" view screen and submit the correct requests again.

6.

7.

8.

9.

10. 11.

12.

13.

Important Points to note: 1. PAN flag cannot be disabled once it is enabled in DPMAS. The aforesaid provision would be given to modify PAN only. PAN modification request sent with PAN flag disabled would be rejected by NSDL. In case PAN or PAN flag modification request is rejected by NSDL, then associated modification request in other client details (if any), would also stand rejected by NSDL. In such case DP would be required to setup a new modification request for modifying other client details separately.

2.

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3.

DP can not submit PAN modification requests for same Client Id and holder indicator if a request for same client id and holder indicator is already pending in "Accepted" status on SQLASSIST Intranet site. DP checker user will be enabled for authorization of PAN modification request for 30 days from the day PAN modification request set up by maker user (i.e. Request is in "Captured" status). DP may note that this request would be marked as "expired" if the PAN modification request is not authorized by checker user within 30 days and a new request needs to be initiated.

4.

Further, as informed in NSDL circular NSDL/POLICY/2007/0045 dated August 2, 2007, a penalty of Rs. 500 will be levied on DPs for modification of PAN for each holder unless the reasons for modification are beyond the control of the DP. In this regard, DPs are advised to communicate to NSDL the reasons for modification, if any, for a particular month, before 10th of the next month. Circular No. NSDL/POLICY/ 2007/0048 Date : August 14, 2007 Sub : Facility for verifying PAN details of demat account holder(s) Attention of Depository Participants (DPs) is invited to NSDL Circular No. NSDL/ POLICY/2006/0007 dated March 3, 2006 wherein DPs were advised to obtain PAN card of the demat account holder(s) and compare the name appearing on the PAN card with the name appearing on the website of the Income Tax Department (ITD) i.e. http://incometaxindiaefiling.gov.in/challan/ enterpanforchallan.jsp All DPs are hereby informed that ITD has now authorized NSDL to provide an internet based service to the eligible entities (which include DPs) for verification of PAN details. The PAN details made available through this facility are as per the ITD database. In view of this, in addition to the abovementioned ITD website, DPs can also verify the PAN details of the demat account holder(s) by subscribing to the internet based service of NSDL. The internet based service of NSDL for verifying PAN details offers three modes of verification: (1) (2) (3) (1) Screen based verification File based verification Software (API) based Verification Screen based Verification: The Users, after login to the Tax Information Network (TIN) website (http://www.tin-nsdl.com / login / Pan Verification) of NSDL, can keyin upto a maximum of five PANs in the screen. The PANs may be entered in the boxes provided in the screen and then submitted. The response giving details of PAN will be displayed in the response screen. (2) File based Verification: The Users, after login to TIN website (http://www.tin-nsdl.com / login / Pan Verification) of NSDL, can upload a file containing maximum of 200 PANs (file structure as specified by NSDL). Within 24 hours, a response file containing details of the PANs will be made available to the User. In case, file format is incorrect, the rejection will be made available within 24 hours. The Users can download the response at anytime as per their

[ 59 ]

convenience upto 15 days, by login at the given website link. (3) Software [Application Programming Interface (API)] based PAN verification: The facility is an interface that allows the User to make an online verification of PAN by accessing the verification-site through a software application. User would be provided with the URL for this purpose. Response to the User: (i) In case of valid PAN, name of the PAN holder, last date of PAN update as per ITD database and the status as "existing and valid" will be displayed. If the PAN is a fake PAN as per ITD database, the status will be shown as "Fake PAN". In case the PAN is not found in database, the response will be "not in ITD database". In such cases, if the User is able to provide a proof of this PAN (copy of PAN card or PAN allotment letter) to NSDL, it will be forwarded to ITD for investigation.

(ii)

For further information on charges and procedure for registration, DPs can visit the TIN website of NSDL at http://www.tin-nsdl.com and click on 'Online PAN verification launched' or contact Mr.Ashish Verma (email id ashishv@nsdl.co.in) / Ms.Aditi Joshi (email id aditij@nsdl.co.in) on Tel. No. (022) 2499 4216 / 4226. DPs are also advised to ensure compliance with the various guidelines/circulars issued by SEBI and NSDL from time to time with respect to PAN. Circular No. NSDL/POLICY/ 2007/0045 Date: August 2, 2007 Sub : Restriction in modification of PAN of a holder once PAN flag is enabled in DPMAS and penalty thereof for modification Attention of all Depository Participants (DPs) is invited to NSDL Circular Nos. NSDL/POLICY/2006/0007 dated March 3, 2006 and NSDL/POLICY/2006/0012 dated March 25, 2006 wherein DPs were informed about the SEBI directive on making PAN compulsory and activation of PAN Flag on DPM Application Software (DPMAS). All DPs are hereby informed that with effect from September 1, 2007, DPs will be restricted from modifying the PAN of a holder in a Client account in DPMAS, once the PAN flag has been enabled. However, from that date, a DP may approach NSDL for modifying the incorrect PAN captured in the DPMAS where PAN flag has been enabled. A penalty of Rs. 500 will be levied on DPs for modification of PAN for each holder unless the reasons for modification are beyond the control of the DP. This penalty will be included in the monthly bills. DPs are advised to submit the request for modification as per the following format: Sr. No. DP ID 1 2 It may be added that with effect from September 1, 2007, PAN flag for a holder once enabled (ticked) will not be allowed to be disabled. Client ID Account Holder Indicator (e.g., For First Holder-1 /Second Holder - 2/Third Holder - 3)

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Circular No. NSDL/POLICY/ 2007/0026 Date: May 10, 2007

Sub : SEBI Circular on Permanent Account Number (PAN) - PAN to be sole identification number for all transactions in the securities market Attention of Depository Participants is invited to SEBI Circular No. MDR/DoP/ Cir-05/2007 dated April 27, 2007 regarding Permanent Account Number to be sole identification number for all transactions in the securities market. A copy of the SEBI circular is enclosed for information and necessary action. Your attention is drawn particularly to Para 3 of the circular for implementation. Please ensure that your internal auditors comment on the implementation of this circular in their internal audit report starting from quarter ending June 2007, to be submitted by September 30, 2007. Annexure

GENERAL MANAGER Market Regulation Department-Division of Policy E-mail: mdrao@sebi.gov.in Tel: 022-2644 9370 MRD/DoP/Cir- 05/2007 April 27, 2007 1. 2. 3. 4. The Executive Directors/Managing Directors/ Administrators of All Stock Exchanges Chairman & MD, NSDL MD & CEO, CDSL All SEBI registered intermediaries

Dear Sir / Madam, Sub: Permanent Account Number (PAN) to be the sole identification number for all transactions in the securities market 1. The Hon'ble Finance Minister, in his announcement in the Union Budget for the year 2007-08, has proposed, inter-alia, to make PAN the sole identification number for all participants in the securities market with an alpha-numeric prefix or suffix to distinguish a particular kind of account. In the light of the aforesaid announcement and in order to strengthen the Know Your Client (KYC) norms and identify every participant in the securities market with their respective PAN thereby ensuring sound audit trail of all the transactions, it has been decided that PAN would be the sole identification number for all participants transacting in the securities market, irrespective of the amount of transaction. The intermediaries are advised in this regard as under:3.1 to put in the necessary systems in place so that all the individual databases of their clients and clients' transactions are linked to the PAN details of the client with which detailed analysis can be made. to build the necessary infrastructure for enabling accessibility and query based on PAN thereby enabling retrieval of all the details of the clients that is available including the transactions done by them.

2.

3.

3.2

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3.3 3.4

to collect copies of PAN cards issued to their existing as well as new clients by the Income Tax Department and maintain the same in their record after verifying with the original. to cross-check the aforesaid details collected from their clients with the details on the website of the Income Tax Department i.e. http://incometaxindiaefiling.gov.in/challan/ enterpanforchallan.jsp.

4.

The Stock Exchanges and Depositories are advised to :4.1 4.2 4.3 put in place the necessary infrastructure so as to facilitate query based on PAN for retrieving details of all the clients/clients' transactions done in their respective systems. make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision immediately. bring the provisions of this circular to the notice of the member brokers/clearing members of the Exchange and depository participants of the Depositories and also to disseminate the same on the website. communicate to SEBI, the status of the implementation of the provisions of this circular in the Monthly Development Report.

4.4 5. 6.

The above shall come into force with effect from July 02, 2007. This circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, and Section 19 of the Depositories Act, 1996 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

Yours faithfully,

S V Murali Dhar Rao Circular No. NSDL/POLICY/ 2007/0008 Date: February 2, 2007 Sub : Clarification-Operation of depository accounts in frozen status due to non- compliance with SEBI directive on PAN requirement Depository Participants (DPs) have been seeking clarifications with respect to activities that can be performed in the DPM application Software (DPMAS) in regard to depository accounts (Beneficial Owner) which are frozen (Suspended for Debit) due to non- compliance with SEBI directive on PAN requirement. In this regard, NSDL has prepared a list of activities that a DP can perform in the DPMAS with respect to such accounts, which is given below: Sr. No Activities to be performed in the DPMAS with respect of depository accounts which are frozen due to non compliance with SEBI directive on PAN Dematerialisation Demat initiation Demat Confirmation / Rejection by Registrar & Transfer Agent (R&T Agent) Demat cancellation Y Y N Y indicates : can be performed N indicates : cannot be performed

(1) (i) (ii) (iii)

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Sr. No

Activities to be performed in the DPMAS with respect of depository accounts which are frozen due to non compliance with SEBI directive on PAN Rematerialisation / Repurchase Remat initiation Remat Confirmation / Rejection by R & T Agent (for instruction initiated before freezing the account) Remat cancellation Client Modifications Change of address, bank details, standing instruction etc. Account Transfer and InterDepository Transfer (IDT) (delivery instruction as well receiving credits) Debit to Beneficial owner (BO) account Credit to BO account arising out of market /off market / IDT Account Transfer and InterDepository Transfer (IDT) (Receipt Instruction, if standing instruction is not enabled) Initiate Receipt instruction Initiate cancellation of Receipt instruction Pledge

Y indicates : can be performed N indicates : cannot be performed

(2) (i) (ii)

Y N

(iii) (3) (i) (4)

(i) (ii) (5)

N Y

(i) (ii) (6)

Y Y Pledgors Pledgees account is account is frozen active / frozen N Y

(i) (ii) (iii)

Initiation Confirmation Cancellation (for instruction initiated prior to account being frozen and pledgee having not confirmed the same) Rejection Closure (Normal / Unilateral) Invocation

Y Y -

Y Y Y

(iv) (v) (vi)

Further, DPs are requested to take note of the below activities that can be executed by the Issuers / R & T Agent with respect to depository accounts that are frozen due to non-compliance with PAN requirements.

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Sr. No

Activities executed by the R & T Agent pertaining to Corporate Action (CA) and Auto Corporate Action (ACA) with few examples CA Credits Eg. preferential issue, ESOP, rights issue, IPO credits, scheme of amalgamation, etc.

Y indicates : can be performed N indicates : cannot be performed Y

CA Debits Eg. buyback, debit for conversion of partly paid shares to fully paid-up shares, redemption arising out of call/put, debit for incorporation of lock-in, debit for conversion of warrants into equity shares, forfeiture of shares, etc.

3. 4.

Bonus ACA ACA Eg. sub-division, capital reduction, scheme of amalgamation, consolidation, etc.

Y Y

5.

Redemption ACA Eg. redemption of debentures, commercial paper, certificate of deposits, bonds, etc.

N*

*When the status of the account is changed from "Suspended for debit" to "Active", the redemption will be initiated during BOD of the next business day on change of status thereof. Circular No. NSDL/POLICY/ 2006/0068 Date: December 29, 2006 Sub : Clarification-SEBI directive on PAN-Regarding freezing and unfreezing of Client accounts Attention of Depository Participants (DPs) is invited to NSDL Circular No. NSDL/ POLICY/2006/0062 dated December 20, 2006 wherein system, operational and general guidelines with respect to freezing of Client accounts were informed to DPs. In this regard, clarification sought by DPs (given in italics below) and NSDLs response is given hereunder : Issues to be addressed before December 31, 2006 : 1) What will happen to the Client accounts that are already in frozen (Suspended for Debit) status on account of instruction received from Client in physical or through SPEED-e, on the direction of Statutory Authority etc ? If the Client accounts are already frozen through DPM Application Software (DPMAS) or SPEED-e as per the case cited, the two utilities viz. Bulk Account Freeze and File Converter will still allow the DP to initiate the freeze instructions for such accounts, however, such instructions will fail in the BOD of January 1, 2007. In this regard, DPs are requested to refer point no. (II) (5) of Circular

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No. NSDL/POLICY/2006/0062 dated December 20, 2006 which is reproduced for the ready reference of DPs: Client accounts that are already frozen (Suspended for Debit) through DPMAS or SPEED-e) as on December 31, 2006, DPs should ensure that such frozen accounts are in compliance with Circular No. NSDL/ POLICY/2006/0007 dated March 3, 2006. If such Client accounts gets unfreezed and do not comply with PAN requirements, DPs are advised to freeze the accounts until the Client submits the PAN card and the DP duly verifies the same as mentioned in various NSDL circulars on PAN. 2) Will the bulk cancellation utility facilitate the DP to cancel the future dated freeze instructions executed through the two utilities? It is hereby clarified that the bulk cancellation utility provided by NSDL Helpdesk will facilitate to cancel only those freeze instructions initiated through the two freeze utilities till the End Of the Day of December 29 and 30, 2006. From January 1, 2007 onwards, DPs will have to initiate unfreeze instruction for accounts that are in frozen status, provided such accounts comply with PAN requirements. 3) Whether PAN requirement is applicable to Clearing Member accounts? It is hereby clarified that DPs should initiate freeze instructions only in respect of Beneficial Owner accounts that do not comply with SEBI directive on PAN requirements. Issues to be addressed after December 31, 2006: 1) Procedure to be followed in respect of closure of Client accounts that are frozen due to non-compliance of PAN requirements: On receipt of Closure requests from Clients, it is hereby clarified that in case of Client accounts with : (i) Zero balances : DPs can unfreeze and close the Client accounts. (ii) Securities Position : DPs can only unfreeze the Client accounts provided the Client(s) has provided the photocopy of the PAN card and DP has verified the PAN details as per the procedure laid down in Circular No. NSDL/POLICY/2006/0007 dated March 3, 2006. 2) Will DPMAS allow to make changes to demographic details such as change of address, change in bank details etc. after the account is frozen (from January 1, 2007)? It is hereby clarified that DPMAS will allow the DP to make changes to demographic details for Client accounts that are in frozen status. 3) Procedure to be followed by DP when the Client(s) complies with PAN requirement? It is further clarified that upon the Client submitting the PAN card, DPs should follow the procedure in the below given sequence: (i) Verify the PAN details as per the laid down procedure in Circular No. NSDL/POLICY/2006/0007 dated March 3, 2006,

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(ii) (iii)

Update the PAN field and enable the PAN flag provided in the DPMAS. Ensure that the status of the updation is Closed,Settled. Remove the suspension by initiating unfreeze instruction and ensure that the status of the unfreeze instruction is Closed,Settled prior to executing any other instruction in the DPMAS.

Circular No. NSDL/POLICY/ 2006/0043 Date: September 27, 2006

Sub : SEBI circular on Permanent Account Number (PAN) - Extention of deadline Attention of Participants is invited to Circular No. NSDL/POLICY/2006/0007 dated March 3, 2006, regarding SEBI directive on Permanent Account Number (PAN). In this regard, SEBI has vide its Circular No. MRD/DoP/Dep/SE/Cir-13/06 dated September 26, 2006 decided to extend the deadline for capturing PAN details to December 31, 2006. Further, SEBI has decided to withdraw the grace period of 30 days as stated in para 4.1 of SEBI Circular No. MRD/DoP/Dep/Cir-09/06 dated July 20, 2006. A copy of the SEBI Circular is enclosed for information and necessary action. Annexure

GENERAL MANAGER MARKET REGULATION DEPARTMENT MRD/DoP/Dep/SE/Cir-13/06 September 26, 2006 1. 2. 3. 4. All Stock Exchanges NSDL CDSL All Custodians

Dear Sirs, Sub: Mandatory requirement of Permanent Account Number (PAN) - Issues and clarifications 1. This is further to SEBI Circular No. MRD/DoP/SE/Cir-8/2006 dated July 13, 2006 making, interalia, PAN mandatory for trading in the cash market with effect from October 1, 2006 and SEBI Circular No. MRD/DoP/Dep/Cir-09/06 dated July 20, 2006 offering clarifications pertaining to Mandatory requirement of PAN for operating Beneficiary Owner Account (BO) in the depository system. Subsequent to the issue of above-referred SEBI Circulars, market participants have made further representations and suggestions and sought clarifications on the various issues from SEBI. The further representations made and clarifications sought covered mainly the following aspects: 3.1 Exemption from the requirement of verification with the original PAN Card in respect of the institutional clients. Some of the brokers have expressed difficulty in verifying the PAN of institutional clients with the original PAN card as they are dealing through the custodians and not directly with their clients.

2. 3.

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3.2 3.3

Some of the Investors have represented to SEBI seeking exemption for the joint account holders from the mandatory requirement of PAN. Requests have also been received from various market participants for extending the present deadline of September 30, 2006 due to the following reasons: Some of the BOs have PAN but not the PAN Card. Many others have PAN Allotment Letter and have applied for duplicate PAN Card as earlier PAN card was reportedly not issued by the Income Tax Department. Many investors have applied for PAN but have not received the same. In respect of many investors, PAN has been captured, but verification is in process.

3.4

Further, brokers have requested that clarifications issued by SEBI vide SEBI Circular No.MRD/ DoP/Dep/Cir-09/06 dated July 20, 2006 may be made applicable to trading in the cash market also.

4.

Upon careful consideration of the representations and discussions with the market participants, the clarifications are as under : 4.1. In view of the difficulties expressed by the stock brokers in verifying the PAN of the institutional clients with the original PAN card, the custodians are advised to verify the PAN details of the institutional clients with the original PAN card and provide copy of such verified PAN details to the brokers duly certified. This would be applicable in respect of institutional clients, namely, FIIs, MFs, VCFs, FVCIs, Scheduled Commercial Banks, Multilateral and Bilateral Development Financial Institutions, State Industrial Development Corporations, Insurance Companies registered with IRDA and Public Financial Institution as defined under section 4A of the Companies Act, 1956. 4.2. In the light of the practical difficulties expressed by various market participants as detailed above in adhering to the present deadline of September 30, 2006, the present deadline has been extended to December 31, 2006, as a one time measure. 4.3. The clarification contained in para 4.1 of the SEBI Circular No. MRD/DoP/Dep/Cir-09/06 dated July 20, 2006 providing a grace period of 30 days to the entities registered with SEBI u/s 12 of the SEBI Act, 1992 stands withdrawn. 4.4. The clarifications as contained in Paras 4.2 to 4.9 of the SEBI Circular No. MRD/DoP/Dep/ Cir-09/06 dated July 20, 2006 are also applicable to trading in the cash market. A copy of the said circular is enclosed as Annexure I.

5.

The Depositories are advised to:5.1. Bring the provisions of this circular to the notice of the DPs of the Depositories and also to disseminate the same on the website; 5.2. Include the aforesaid clarifications, as applicable, in the advertisement campaigns released by them from time to time for better understanding of the investors; 5.3. Make amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision immediately, as may be applicable/necessary; 5.4. Communicate to SEBI the status of the implementation of the provisions of this circular in the Monthly Development Report.

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6.

The Stock Exchanges are advised to : 6.1. Make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision immediately. 6.2. Bring the provisions of this circular to the notice of the member brokers/clearing members of the Exchange and also to disseminate the same on the website. 6.3. Communicate to SEBI, the status of the implementation of the provisions of this circular in Section II, item no. 13 of the Monthly Development Report.

7.

This circular is being issued in exercise of the powers conferred by Section 11 (1) of Securities and Exchange Board of India Act, 1992 to protect the interest of investors in securities and to promote the development of, and to regulate, the securities market. Yours faithfully,

V.S. SUNDARESAN Annexure I GENERAL MANAGER MARKET REGULATION DEPARTMENT MRD/DoP/Dep/Cir-09/06 July 20, 2006 The Chairman & Managing Director National Securities Depository Ltd. Trade World, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai - 400 013 Dear Sirs, Sub: Mandatory requirement of Permanent Account Number (PAN) - Issues and clarifications 1. This has reference to NSDL Circular No. NSDL/POLICY/2006/0007 dated March 03, 2006 and CDSL Communiqu No. CDSL/OPS/ DP/657 as well as CDSL/OPS/DP/666 dated February 07, 2006 and March 08, 2006, respectively, on the captioned subject. During the course of implementation of the aforesaid requirement, certain operational issues have arisen and accordingly, the market participants have made representations and suggestions and sought clarifications on the various operational issues from SEBI. The representations made and clarifications sought covered the following aspects: Exemption to certain categories of entities registered with SEBI and verification of documents for proof of address. Exemption to Non-Resident Indians (NRIs)/Persons of Indian Origin (PIOs). The Managing Director & CEO Central Depository Services (India) Ltd. Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai 400 023

2.

3.

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 4.

Exemption to persons having PAN but not the PAN card. Exemption to UN entities and multilateral agencies which are exempted from paying taxes/ filing tax returns in India. Exemption to investors residing in the State of Sikkim. Verification of PAN card details in respect of accounts opened for HUF, AoP, Partnership Firm, Minor, etc. Verification of PAN card details wherever slight mismatch appears as well as where there is a difference in maiden name and current name of the investors.

Upon careful consideration of the representations and discussions with the market participants, the clarifications are as under : 4.1. All entities registered with SEBI under Section 12 of the SEBI Act, 1992 and having some difficulty in producing PAN card for verification at the time of opening the Beneficiary Owner (BO) account may be permitted to open a BO account without producing the PAN card. However, such entities would be required to submit the PAN card to the Depository Participants (DPs) within a period of 30 days from the date of opening of the BO account for verification, failing which the DPs shall freeze such accounts as "Suspended for Debit" till such time the PAN card is produced for verification. 4.2. As regards proof of address of FIIs/sub-accounts, a copy of the Power of Attorney (POA) given by the FIIs/FII sub-accounts to the Custodians (which are duly notarized and/or apostiled or consularised) that gives the registered address of the FIIs/sub-accounts can be accepted as proof of address. 4.3. The NRIs/PIOs would be required to comply with the mandatory requirement of producing PAN Card at the time of opening a BO account. However, such NRIs/PIOs who are not able to obtain PAN for one reason or the other but are holding securities in physical form and desire to sell the same, may be permitted to open a "limited purpose BO account" without PAN. The operation of such BO accounts shall be subject to the following conditions : These accounts will be "suspended for credit", which means, only credits arising out of corporate benefits and demat of physical certificates will be permitted. These accounts cannot be used for getting credit from IPOs, off-market transactions or any secondary market transactions, etc. These accounts can remain operational only for a limited period of 6 months from the date of opening of the account. Meanwhile, the account holders may be permitted to convert the account into a normal BO account subject to complying with the PAN requirements. If the Account holder fails to produce the PAN card within the stipulated period of 6 months, the DPs shall freeze such BO accounts. The account holders shall be permitted to sell the securities lying in these accounts only through a registered broker on the stock exchange.

4.4. U.N. entities/multilateral agencies which are exempt from paying taxes/filing tax returns in India are exempted from the mandatory requirement of PAN. The exemption, however, would be subject to the DPs collecting documentary evidence in support of such claim of the investors. 4.5. Any investor who has PAN but not having the PAN card may be permitted to open BO Accounts subject to producing the PAN allotment letter. However, such investors would be required to produce the PAN Card on or before September 30, 2006 failing which the DPs shall freeze such accounts as "Suspended for Debit" till PAN card is produced for verification.

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4.6. In case of HUF, Association of Persons (AoP), Partnership Firm, Unregistered Trust, etc. -though the BO account would be in the name of natural persons, PAN of the respective HUF, AoP, Partnership Firm, Unregistered Trust, etc shall be obtained. 4.7. As regards Registered Trust, Corporate Bodies and minors, PAN of the respective entities shall be obtained when accounts are opened in their respective names. 4.8. In case where there is difference in the maiden name and current name of the investor (predominantly in the case of married women), DPs can collect the PAN card proof as submitted by the account holder. However, this would be subject to the DPs verifying the veracity of the claim of such investors by collecting sufficient documentary evidence in support of the identity of the investors as provided in the SEBI Circular No. MRD/DoP/Dep/ Cir-29/2004 dated August 24, 2004. 4.9. In the light of the observations of the Hon'ble High Court of Sikkim in its Order dated March 31, 2006 as forwarded by the Sikkim Chamber of Commerce vide their letter No.See/52/0607 dated May 11, 2006, the investors residing in the State of Sikkim are exempted from the mandatory requirement of PAN. However, this would be subject to the DPs verifying the veracity of the claim of the investors that they are residents of Sikkim, by collecting sufficient documentary evidence in support of their address as provided in the SEBI Circular No.MRD/ DoP/Dep/Cir-29/2004 dated August 24, 2004. 5. The Depositories are advised to:5.1. Bring the provisions of this circular to the notice of the DPs of the Depositories and also to disseminate the same on the website; 5.2. Include the aforesaid clarifications in the advertisement campaigns released by them from time to time for better understanding of the investors; 5.3. Put up all such communications which may be useful for investors at large on their websites; 5.4. Ensure that proof of address (POA) is collected for all the account holders as is being done in the case of Proof of Identity (POI). 5.5. Make amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision immediately, as may be applicable/necessary; 5.6. Communicate to SEBI the status of the implementation of the provisions of this circular in the Monthly Development Report for the month of August, 2006. 6. This circular is being issued in exercise of the powers conferred by Section 11 (1) of Securities and Exchange Board of India Act, 1992 to protect the interest of investors in securities and to promote the development of, and to regulate, the securities market. Sub : Clarification - Processing of Account opening documents and verification of PAN details Attention of Participants is invited to Circular no. NSDL/POLICY/2006/0007 dated March 3, 2006 regarding SEBI directive on PAN. In this regard, clarification sought by Participants (given in italics below) and NSDLs response is given hereunder : (i) Whether a non-NCFM (NSEs certification in financial markets - NSDLDepository Operations Module) qualified staff of the Participant can verify the PAN details as well as the account opening documents of the Clients ?

Circular No. NSDL/POLICY/ 2006/0040 Date : September 18, 2006

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It is clarified that an employee (staff) of the Participant irrespective of NCFM qualification can verify the account opening documents as well as follow the various procedures mentioned in the above circular with respect to verification of PAN details of the Clients. However, Participants shall continue to comply with the NCFM requirement as per Circular No. NSDL/PI/2003/1047 dated June 25, 2003. (ii) Whether a Participant needs to obtain a separate written request from the existing Clients for updation of PAN details in the DPM Application Software (DPMAS) ? It is clarified that no such separate written request (letter) is required to be obtained from the existing Clients for updation of PAN details in the DPMAS. Participants should have the necessary documents and follow the procedure as mentioned in our Circular No. NSDL/POLICY/ 2006/0007 dated March 3, 2006. (iii) If the photocopy of PAN of the Client(s) obtained as proof of identity (POI), verified with the original and already captured in the DPMAS at the time of opening the account prior to NSDL Circular No. NSDL/ POLICY/2006/0007 dated March 3, 2006, whether Participants are once again required to obtain the PAN details from the Client(s)? If Participants have already obtained the PAN details as POI from their Client(s), verified the same with the originals and captured in the DPMAS, it is clarified that Participants need not obtain the PAN details from the Client(s) once again provided the PAN details so captured have been duly verified with the website of Income Tax Department and that the staff of the Participant has affixed a stamp as PAN verified, on the photocopy of the PAN card(s), as mentioned in our Circular No. NSDL/ POLICY/2006/0007 dated March 3, 2006. Circular No. NSDL/POLICY/ 2006/0031 Date: August 9, 2006 Sub : Operating guidelines on SEBI circular providing clarifications on PAN Attention of Participants is invited to circular no. NSDL/POLICY/2006/0007 dated March 3, 2006 regarding SEBI directive on PAN and Circular No. NSDL/ POLICY/2006/0030 dated July 24, 2006 intimating the Participants about SEBI clarifications on PAN vide SEBI Circular no. MRD/DoP/Dep/Cir-09/06 dated July 20, 2006. Further to the clarification issued by SEBI (given in italics below), Participants are advised to take note of the following additional operating guidelines / clarifications with respect to capturing of PAN details: (I) 4.1 All entities registered with SEBI under Section 12 of the SEBI Act, 1992 and having some difficulty in producing PAN card for verification at the time of opening the Beneficiary Owner (BO) account may be permitted to open a BO account without producing the PAN card. However, such entities would be required to submit the PAN card to the Depository Participants (DPs) within a period of 30 days from the date of opening of the BO account for verification, failing which the DPs shall freeze such accounts as Suspended for Debit till such time the PAN card is produced for verification.

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NSDLs operating guidelines: (a) If a SEBI registered entity expresses its inability to produce the PAN card at the time of opening the BO account, Participants are required to obtain a photocopy of SEBI Registration Certificate and verify the same with the original, open the account, capture the description INTERMEDRY under the PAN field and enable the PAN flag. If the entity does not submit the PAN card within 30 days from the date of opening the account, Participants are advised to disable the PAN flag and suspend the account for debit. If the entity submits the PAN card, Participants should : (i) (ii) Verify the PAN details as per the laid down procedure and enable the PAN Flag in the DPM Application Software (DPMAS); and Remove the suspension.

(b)

(c)

(II) 4.2 As regards proof of address of FIIs/sub-accounts, a copy of the Power of Attorney (POA) given by the FIIs/FII sub-accounts to the Custodians (which are duly notarized and/or apostiled or consularised) that gives the registered address of the FIIs/sub-accounts can be accepted as proof of address. No further guidelines in this regard. (III) 4.3 The NRIs/PIOs would be required to comply with the mandatory requirement of producing PAN Card at the time of opening a BO account. However, such NRIs/PIOs who are not able to obtain PAN for one reason or the other but are holding securities in physical form and desire to sell the same, may be permitted to open a limited purpose BO account without PAN. The operation of such BO accounts shall be subject to the following conditions : These accounts will be suspended for credit, which means, only credits arising out of corporate benefits and demat of physical certificates will be permitted. These accounts cannot be used for getting credit from IPOs, off-market transactions or any secondary market transactions, etc. These accounts can remain operational only for a limited period of 6 months from the date of opening of the account. Meanwhile, the account holders may be permitted to convert the account into a normal BO account subject to complying with the PAN requirements. If the Account holder fails to produce the PAN card within the stipulated period of 6 months, the DPs shall freeze such BO accounts. The account holders shall be permitted to sell the securities lying in these accounts only through a registered broker on the stock exchange. NSDLs operating guidelines: (a) If NRIs/PIOs express their inability to produce the PAN card at the time of opening of a BO account, Participants may open the account, capture the description NRICATEGRY under PAN field and enable the PAN flag. Also, standing instructions should not be enabled for such accounts.

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(b)

If the entity does not submit the PAN card within the stipulated time of six months from the date of activation of accounts, Participants are advised to disable the PAN Flag and suspend the account for debit. If the entity submits the PAN card, Participants should : (i) (ii) (iii) Verify the PAN details as per the laid down procedure and enable the PAN Flag in the DPMAS; Enable the standing instructions, as per the request of the entity; and Remove the suspension.

(c)

(IV) 4.4 U.N. entities/multilateral agencies which are exempt from paying taxes/filing tax returns in India are exempted from the mandatory requirement of PAN. The exemption, however, would be subject to the DPs collecting documentary evidence in support of such claim of the investors. NSDLs operating guidelines: After the Participants are satisfied that such entities are exempt from paying taxes/filing tax returns in India, Participants are advised to capture the description EXEMPTCATG under the PAN field and enable the PAN flag in DPMAS. (V) 4.5 Any investor who has PAN but not having the PAN card may be permitted to open BO Accounts subject to producing the PAN allotment letter. However, such investors would be required to produce the PAN Card on or before September 30, 2006 failing which the DPs shall freeze such accounts as Suspended for Debit till PAN card is produced for verification. NSDLs operating guidelines: (a) Participants may open the BO account based on the PAN allotment letter issued by the Income Tax Department (ITD) and after due verification with the ITD website as per the procedure mentioned in NSDL circular no. NSDL/POLICY/2006/0007 dated March 3, 2006, capture the description ALOTMNTLTR under PAN field and enable the PAN flag. Further, Participants should call for any additional documents and / or clarification to ascertain and satisfy itself about the identity of the entity, as clarified in the SEBI circular. If the entity does not submit the PAN card before September 30, 2006, Participants should disable the PAN flag and suspend the account for debit. If the entity submits the PAN card, Participants should : (i) (ii) Verify the PAN details as per the laid down procedure and enable the PAN Flag in the DPMAS; and Remove the suspension.

(b)

(c)

(VI) 4.6 In case of HUF, Association of Persons (AoP), Partnership Firm, Unregistered Trust, etc. - though the BO account would be in the name of natural persons, PAN of the respective HUF, AoP, Partnership Firm, Unregistered Trust, etc shall be obtained.

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No further guidelines in this regard. (VII) 4.7 As regards Registered Trust, Corporate Bodies and minors, PAN of the respective entities shall be obtained when accounts are opened in their respective names. No further guidelines in this regard. (VIII) 4.8 In case where there is difference in the maiden name and current name of the investor (predominantly in the case of married women), DPs can collect the PAN card proof as submitted by the account holder. However, this would be subject to the DPs verifying the veracity of the claim of such investors by collecting sufficient documentary evidence in support of the identity of the investors as provided in the SEBI Circular No. MRD/DoP/Dep/ Cir-29/2004 dated August 24, 2004. NSDLs operating guidelines: (a) This guidance given by SEBI may also be used whenever there is a minor difference in the name mentioned in the PAN Card and the name in which the account is opened / sought to be opened. Photograph of person appearing on the PAN card can be compared with the account holder and/or the photograph submitted by the account holder alongwith the application form. Fathers name if available on the application form can be compared with the fathers name appearing on the PAN card of the account holder. Participants should call for any additional documents and / or clarification to ascertain and satisfy itself about the identity of the entity, as clarified in the SEBI circular.

(b)

(c)

An illustrative list of minor difference in the names is enclosed. (IX) 4.9 In the light of the observations of the Honble High Court of Sikkim in its Order dated March 31, 2006 as forwarded by the Sikkim Chamber of Commerce vide their letter No.See/52/06-07 dated May 11, 2006, the investors residing in the State of Sikkim are exempted from the mandatory requirement of PAN. However, this would be subject to the DPs verifying the veracity of the claim of the investors that they are residents of Sikkim, by collecting sufficient documentary evidence in support of their address as provided in the SEBI Circular No.MRD/DoP/Dep/Cir-29/2004 dated August 24, 2004. NSDLs operating guidelines: (a) Participants should ascertain that the entity resides in the state of Sikkim and if satisfied, capture the description SIKKIMCATG under the PAN field and enable the PAN flag. If an entity makes a request for capturing the correspondence address as default address or submits a request for change of address and the address in both these situations is not of Sikkim, in such a case, the entity must comply with the PAN requirements and till such time should disable the PAN flag and suspend the account for debit .

(b)

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(c)

If the entity submits the PAN card, Participants should : (i) (ii) Verify the PAN details as per the laid down procedure and enable the PAN Flag in the DPMAS; and Remove the suspension. Annexure

An illustrative list of minor differences as mentioned in Point no. 4.8 of SEBI Circular. Participants should follow NSDL operating guidelines mentioned after 4.8 of Circular No. NSDL/POLICY/2006/0031 dated August 9, 2006. Sushil Kumar Shah Sushil K Shah Sushil Shah Sushil Kumar Sushil Sushilbhai K Shah/Sushilbhai Kumar Shah / Sushilbhai / Sushilbhai Shah Pinki Parmar Desai (Maiden Name) Pinki Rasiklal Shah (Married Name) Tulsi Shah (name change pursuant to marriage) Sunshine India Private Limited Sunshine India Pvt Ltd / Sunshine India P Ltd Sunshine (I) P Ltd Sunshine Private Limited Tulip Mauritius Limited Growing Software Companies India Fund Tulip Mauritius Limited G S C I FUND Tulip Mauritius Growing Software Companies India Fund T M L G S C I Fund Tulip Mauritius Limited Grow Soft (Truncated) 1) 2) 3) 4) Short form for Technology Fund / Equity Fund mentioned as Tech Fd / Eq Fd. Spelling mistakes in the name viz., Shushil Kumar Shah for Sushil Kumar Shah, Fledging Nominee for Fledgeling Nominees. PAN card does not mention the scheme name but mentions the name of the Mutual Fund. PAN card mentions only the FII name and not the name of sub-account.

Account opened for a specific purpose i.e., "ABC Escrow a/c" while the name on PAN card is "ABC Ltd". Circular No. NSDL/POLICY/ 2006/0030 Date: July 24, 2006 Sub : SEBI circular providing clarification on Permanent Account Number (PAN) Attention of Participants is invited to circular no. NSDL/POLICY/2006/0007 dated March 3, 2006, regarding SEBI directive on PAN. In this regard, SEBI has vide its circular no. MRD/DoP/Dep/Cir-09/06 dated July 20, 2006 issued certain clarifications on PAN which are enclosed for guidance to the Participants.

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Annexure GENERAL MANAGER MARKET REGULATION DEPARTMENT MRD/DoP/Dep/Cir-09/06 July 20, 2006 The Chairman & Managing Director National Securities Depository Ltd. Trade World, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai 400 013 Dear Sirs, Sub: Mandatory requirement of Permanent Account Number (PAN) Issues and clarifications 1. This has reference to NSDL Circular No. NSDL/POLICY/2006/0007 dated March 03, 2006 and CDSL Communiqu No. CDSL/OPS/ DP/657 as well as CDSL/OPS/DP/666 dated February 07, 2006 and March 08, 2006, respectively, on the captioned subject. During the course of implementation of the aforesaid requirement, certain operational issues have arisen and accordingly, the market participants have made representations and suggestions and sought clarifications on the various operational issues from SEBI. The representations made and clarifications sought covered the following aspects: 4. Exemption to certain categories of entities registered with SEBI and verification of documents for proof of address. Exemption to Non-Resident Indians (NRIs)/Persons of Indian Origin (PIOs). Exemption to persons having PAN but not the PAN card. Exemption to UN entities and multilateral agencies which are exempted from paying taxes/ filing tax returns in India. Exemption to investors residing in the State of Sikkim. Verification of PAN card details in respect of accounts opened for HUF, AoP, Partnership Firm, Minor, etc. Verification of PAN card details wherever slight mismatch appears as well as where there is a difference in maiden name and current name of the investors. The Managing Director & CEO Central Depository Services (India) Ltd. Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai 400 023

2.

3.

Upon careful consideration of the representations and discussions with the market participants, the clarifications are as under : 4.1. All entities registered with SEBI under Section 12 of the SEBI Act, 1992 and having some difficulty in producing PAN card for verification at the time of opening the Beneficiary Owner (BO) account may be permitted to open a BO account without producing the PAN card. However, such entities would be required to submit the PAN card to the Depository Participants (DPs) within a period of 30 days from the date of opening of the BO account for verification, failing which the DPs shall freeze such accounts as Suspended for Debit till such time the PAN card is produced for verification.

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4.2. As regards proof of address of FIIs/sub-accounts, a copy of the Power of Attorney (POA) given by the FIIs/FII sub-accounts to the Custodians (which are duly notarized and/or apostiled or consularised) that gives the registered address of the FIIs/sub-accounts can be accepted as proof of address. 4.3. The NRIs/PIOs would be required to comply with the mandatory requirement of producing PAN Card at the time of opening a BO account. However, such NRIs/PIOs who are not able to obtain PAN for one reason or the other but are holding securities in physical form and desire to sell the same, may be permitted to open a limited purpose BO account without PAN. The operation of such BO accounts shall be subject to the following conditions : These accounts will be suspended for credit, which means, only credits arising out of corporate benefits and demat of physical certificates will be permitted. These accounts cannot be used for getting credit from IPOs, off-market transactions or any secondary market transactions, etc. These accounts can remain operational only for a limited period of 6 months from the date of opening of the account. Meanwhile, the account holders may be permitted to convert the account into a normal BO account subject to complying with the PAN requirements. If the Account holder fails to produce the PAN card within the stipulated period of 6 months, the DPs shall freeze such BO accounts. The account holders shall be permitted to sell the securities lying in these accounts only through a registered broker on the stock exchange.

4.4. U.N. entities/multilateral agencies which are exempt from paying taxes/filing tax returns in India are exempted from the mandatory requirement of PAN. The exemption, however, would be subject to the DPs collecting documentary evidence in support of such claim of the investors. 4.5. Any investor who has PAN but not having the PAN card may be permitted to open BO Accounts subject to producing the PAN allotment letter. However, such investors would be required to produce the PAN Card on or before September 30, 2006 failing which the DPs shall freeze such accounts as Suspended for Debit till PAN card is produced for verification. 4.6. In case of HUF, Association of Persons (AoP), Partnership Firm, Unregistered Trust, etc. though the BO account would be in the name of natural persons, PAN of the respective HUF, AoP, Partnership Firm, Unregistered Trust, etc shall be obtained. 4.7. As regards Registered Trust, Corporate Bodies and minors, PAN of the respective entities shall be obtained when accounts are opened in their respective names. 4.8. In case where there is difference in the maiden name and current name of the investor (predominantly in the case of married women), DPs can collect the PAN card proof as submitted by the account holder. However, this would be subject to the DPs verifying the veracity of the claim of such investors by collecting sufficient documentary evidence in support of the identity of the investors as provided in the SEBI Circular No. MRD/DoP/Dep/ Cir-29/2004 dated August 24, 2004. 4.9. In the light of the observations of the Honble High Court of Sikkim in its Order dated March 31, 2006 as forwarded by the Sikkim Chamber of Commerce vide their letter No.See/52/0607 dated May 11, 2006, the investors residing in the State of Sikkim are exempted from the mandatory requirement of PAN. However, this would be subject to the DPs verifying the veracity of the claim of the investors that they are residents of Sikkim, by collecting sufficient documentary evidence in support of their address as provided in the SEBI Circular No.MRD/ DoP/Dep/Cir-29/2004 dated August 24, 2004.

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5.

The Depositories are advised to:5.1. Bring the provisions of this circular to the notice of the DPs of the Depositories and also to disseminate the same on the website; 5.2. Include the aforesaid clarifications in the advertisement campaigns released by them from time to time for better understanding of the investors; 5.3. Put up all such communications which may be useful for investors at large on their websites; 5.4. Ensure that proof of address (POA) is collected for all the account holders as is being done in the case of Proof of Identity (POI). 5.5. Make amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision immediately, as may be applicable/necessary; 5.6. Communicate to SEBI the status of the implementation of the provisions of this circular in the Monthly Development Report for the month of August, 2006.

6.

This circular is being issued in exercise of the powers conferred by Section 11 (1) of Securities and Exchange Board of India Act, 1992 to protect the interest of investors in securities and to promote the development of, and to regulate, the securities market.

Yours faithfully

V. S. SUNDARESAN Circular No. NSDL/POLICY/ 2006/0028 Date : July 18, 2006 Sub: Clarification - Capturing PAN in case of HUF and minor accounts Attention of Participants is invited to circular no. NSDL/POLICY/2006/0007 dated March 3, 2006, regarding SEBI directive on PAN. Participants have been seeking clarification from NSDL regarding capturing of PAN details with respect to HUF and Minor accounts. In this regard, Participants are advised that for HUF accounts, PAN details of the HUF and for Minor accounts, PAN details of the Minor should be captured. Participants should obtain a photocopy of the PAN card of the HUF / Minor, as the case may be, verify the same with the original PAN card and follow the procedure mentioned in the above mentioned Circular. Circular No. NSDL/POLICY/ 2006/0015 Date: May 22, 2006 Sub : Discrepancy in the PAN details captured by the Participants NSDL vide its circular nos. NSDL/POLICY/2006/0007 dated March 3, 2006 and NSDL/POLICY/2006/0012 dated March 25, 2006, informed the Participants regarding SEBI directive on PAN as a mandatory requirement for demat accounts and the procedure for activating PAN flag on DPM Application Software (DPMAS). NSDL analysed the PAN details that were captured by the Participants during the month of April 2006. The following are the major discrepancies that have been observed:

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1. 2. 3.

Invalid data i.e. aaaaaaaaaa or 123451233a entered in the field provided for PAN in the DPMAS and PAN flag activated for such accounts. Correct PAN details were captured in the DPMAS, but PAN flag was not activated for such accounts. PAN details captured in DPMAS do not match/exist in the Income Tax Database i.e. website of Income Tax Department but PAN flag activated.

NSDL provided the list of such cases to the Participants with an advice to correct the same. Participants have responded to NSDL stating that such discrepancies have occurred due to inadvertent capturing of PAN details, typographical errors, PAN details captured from the application form that was different from the PAN Card submitted by the Client which was verified with the website. In view of the foregoing, all Participants are hereby advised to be careful while capturing PAN details and ensure that the guidelines provided in the aforesaid circulars in terms of capturing correct PAN details after due verification and enabling the PAN flag are duly complied with. In case it is observed that discrepancies exist in the PAN details captured on or after May 1, 2006, NSDL would levy a penalty of Rs.100 per account. Circular No. NSDL/POLICY/ 2006/0012 Date: March 25, 2006 Sub : Activation of PAN flag on DPM system Attention of Participants is invited to our circular no. NSDL/POLICY/2006/ 0007 dated March 3, 2006 wherein Participants were informed about the SEBI directive on making Permanent Account Number (PAN) compulsory for all categories of demat account-holders. Participants are further advised as follows: 1 DPM Application Software (DPMAS) has been modified by making PAN as a mandatory field. This change is proposed to be released to Participants from March 29-31, 2006. The schedule will be sent to the Participants by NSDL Help Desk. Participants may note that after this release, the accounts that are opened in DPMAS will require the PAN to be mandatorily captured. Participants are advised to strictly follow the guidelines issued by NSDL vide aforesaid circular and ensure that the PAN details are captured in the DPMAS only after they are duly verified with the Income Tax Department website. PAN flag for each of the holder has been introduced in the DPMAS. Participants are advised to ensure that after capturing the PAN details, the PAN flag(s) is/are also enabled. Participants are advised that in respect of the existing accounts, after due verification as mentioned above, the PAN flag in DPMAS should be enabled. Participants can avail the facility of bulk verify & release provided their back-office system is equipped with maker/checker facility. The changes in the file formats in respect of the back-office batch interface with the DPMAS is enclosed.

2.

3.

4.

5.

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c. Power of Attorney Account operation - Power of attorney Circular No. NSDL/POLICY/ 2010/0100 Date: September 1, 2010 Sub: SEBI Circular for execution of power of attorney (POA) by client in favour of Stock Broker / Stock Broker and Depository Participant Clarifications Attention of Participants is invited to NSDL Circular no. NSDL/POLICY/2010/ 0045 dated April 30, 2010 regarding SEBI Circular no.CIR/MRD/DMS/13/2010 dated April 23, 2010 for execution of POA by the client in favour of Stock Broker / Stock Broker and Depository Participant. SEBI has now issued some clarifications vide Circular no. CIR/MRD/DMS/28/ 2010 dated August 31, 2010 for execution of POA by the client in favour of Stock Broker / Stock Broker and Depository Participant - Clarifications. Copy of the same is enclosed at Annexure for information and necessary compliance. Securities and Exchange Board of India CIRCULAR CIR/MRD/DMS/28/2010 To The Managing Directors of Stock Exchanges and Depositories Dear Sir (s), Sub: Execution of Power of Attorney (PoA) by the Client in favour of the Stock Broker/ Stock Broker and Depository Participant - Clarifications 1. SEBI vide circular no. CIR/MRD/DMS/13/2010 dated April 23, 2010 issued guidelines regarding execution of Power of Attorney (PoA) by the client in favor of Stock Broker / Stock Broker and Depository Participant. SEBI has received representation from Market Participants seeking guidance and clarifications on process to be followed for implementation of the provisions of the circular. Based on the examination of the issues highlighted in the representations and so as to facilitate the implementation of the provisions of the aforesaid Circular, attached clarifications are issued for immediate implementation. All other clauses/ provisions of the aforesaid PoA circular, except those mentioned in the annexure, shall remain unchanged. August 31, 2010

2. 3.

4.

Yours faithfully,

MANOJ KUMAR General Manager +91-22-26449260 manojk@sebi.gov.in

Encl: Clarification to Guidelines for execution of Power of Attorney by Clients favouring Stock Brokers / Stock Broker and Depository Participants ( 2 Pages)

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Clarification to Guidelines for execution of Power of Attorney by Clients favouring Stock Brokers / Stock Broker and Depository Participants Sl No 1 Clauses/ Provisions of the PoA Circular Clarifications

Standardizing the norms for PoA must not be Only internet based trading exempted. construed as making the PoA a condition precedent or mandatory for availing broking or depository participant services. PoA is merely an option available to the client for instructing his broker or depository participant to facilitate the delivery of shares and pay-in/pay-out of funds etc. No stock broker or depository participant shall deny services to the client if the client refuses to execute a PoA in their favour.

The Stock Brokers shall take necessary steps to implement this circular latest by May 31, 2010 for the new clients and ensure to take necessary steps latest by September 01, 2010 to revoke those authorizations given by the existing clients to the stock brokers/ stock broker and depository participants through PoA that are inconsistent with the present guidelines.

Stock Broker/ DP may revoke those authorizations that are inconsistent with the present guidelines by communicating the inconsistent clauses to the existing clients. In the event, the deleted clauses are not accepted by the client, Stock Broker/ DP may be required to either obtain fresh PoA or close the account. In case of any addition to the existing PoA, Stock Broker / DP shall be required to obtain a new PoA from clients.

PoA executed in favour of a Stock Broker by Margin / Delivery obligations shall also include the client should be limited to the following: settlement obligations, if any. (i) Transfer of securities held in the beneficial owner account(s) of the client(s) towards stock exchange related margin / delivery obligations arising out of trades executed by the Client(s) on the stock exchange through the same Stock Broker.

PoA executed in favour of a Stock Broker by Redemptions are also included in PoA pursuant the client should be limited to the following: to clients instructions. (iii) To apply for various products like Mutual Funds, Public Issues (shares as well as debentures), rights, offer of shares, tendering shares in open offers etc. pursuant to the instructions of the Client(s). However, a proper audit trail should be maintained by the Stock Broker to prove that the necessary application/act was made /done pursuant to receipt of instruction from Client.

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Sl No 5

Clauses/ Provisions of the PoA Circular PoA executed in favour of a Stock Broker and Depository Participant by the client should provide the list of clients & brokers Bank accounts & demat accounts where funds and securities can be moved. Such bank & demat accounts should be accounts of related party only.

Clarifications The list of clients & brokers Bank accounts & demat accounts may be updated / amended by proper communication without executing a new PoA every time. Copies of such communications may be preserved as annexure to the PoA.

PoA executed in favour of a Stock Broker and PoA executed in favour of a Stock Broker / Stock Depository Participant by the client should be Broker and Depository Participant by the client should be revocable at any time. However, such revocable at any time, without notice. revocation shall not be applicable for any outstanding settlement obligation arising out of the trades carried out prior to receiving request for revocation of PoA. Further, the PoA revocation requests should be dated and time stamped by the brokers for ensuring proper audit trail. The POA shall not facilitate the stock broker to The PoA shall not facilitate off-market trades between parties other than the related parties do the following: 12. Transfer of securities for off market as mentioned in the PoA. trades Sub: Capturing POA details in POA module As all Participants are aware, Power of Attorney (POA) flag was introduced in the DPM System Version Release 3.9 (refer Circular No. NSDL/PI/2005/0682 dated April 12, 2005) to facilitate Participants to indicate whether an account is operated through a POA. Subsequently, POA module was introduced in the DPM System Version Release 7.0 (refer Circular No. NSDL/POLICY/2007/0054 dated September 22, 2007) to facilitate Participants to capture the details of POA holders alongwith their signatures including feature of mapping of Client accounts to their respective POA holders making the need for POA flag redundant. In view of this, the feature of POA flag will not be made available in the new DPM system. Participants who have not yet captured the POA details in the DPM System and not mapped the Client accounts that are operated through POA are requested to complete this activity by Saturday, August 28, 2010. Participants must ensure that the activity is carried out after the time critical instructions are processed, after the completion of pay-in and in consultation with NSDL Helpdesk. For any information/clarifications, Participants are requested to contact NSDL Help Desk at (022) 2499 4601 to 4610 or email at helpdesk@nsdl.co.in

Circular No. NSDL/POLICY/ 2010/0092 Date: August 9, 2010

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Circular No. NSDL/POLICY/ 2007/0054 Date: September 22, 2007

Sub: Release of POA Module and its features All Depository Participants (DPs) are hereby informed that Power of Attorney (POA) module in the DPM Application Software (DPMAS) is scheduled for release in the first week of October 2007. The procedure to capture POA holder/ Authorized Signatory signature and the changes in the back-office module and the file formats in respect of the back-office batch interface with the DPMAS are enclosed in Annexure-I. In this regard, DPs are advised to be ready with their back-office compatible with POA Module. Compact Discs (CDs) containing the release of POA Module in the DPMAS and instructions regarding upgradation will be sent to DPs by courier separately. It has been brought to the notice of NSDL that a number of DPs are offering ebroking services to its clients. This may necessitate execution of POA in favor of DP/broker to operate the client account. NSDL vide its Circular No. NSDL/ PI/2003/0572 dated April 7, 2003 had advised the DPs to capture the signatures of the account holder(s) as well as POA holder, if a POA holder is operating an account, in the DPMAS. At present, all signatures in client account are captured as a single image in the DPMAS. As per aforesaid circular, DPs are required to do the following: 1. In case POA holder is a individual entity, DP is required to scan the signature of all the account holder(s) and POA holder in client account where that Individual entity is a POA holder. In case POA holder is a corporate entity, DP is required to scan the signatures of all authorized signatories and the account holder(s) in client account where that corporate entity is a POA holder.

2.

Further, in case of change in authorised signatory or change in individual entity in whose favour POA is given, DP is required to rescan the signatures of all authorized signatories or individual entity and the account holder(s) in all the accounts where that corporate/individual entity is a POA holder. DPs have expressed practical difficulty in complying with the aforesaid circular, as it is a time consuming activity. To facilitate DPs to capture POAs signature separately NSDL has decided to introduce the POA module to supplement the client maintenance module in the DPMAS for Active/frozen client accounts in DPMAS system. Features of POA module: a) Clients Signature would continue to remain as a single image i.e., the signature of all account holders would be scanned as a single image. However, POA holders (Authorized signatories in case of POA holder being a corporate or individual entity in whose favour POA is given) signature will be scanned separately and will not be a part of clients signature. Each POA holder and Authorized Signatory would be registered separately along with his or her signature for which a unique id i.e., POA Id and Authorized signatory Id respectively would be generated by DPMAS system.

b)

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c)

The authorized signatories will be grouped to form a POA group (for POA holder being a corporate) for which also a unique identification number; POA Id, would be generated by DPMAS system. Identification number given to POA or POA group would be referred to as POA Id i.e., if POA is an individual, POA Holder Id would be POA Id. If POA is a corporate entity POA group id would be POA Id Every account holder who operates through a POA can be mapped to this POA holder or POA group if POA is given to an individual holder or corporate respectively. There can be more than one POA ID associated to each account holder. While registering POA Group, system will also provide for capturing minimum number of authorized signatories required to sign the instruction slip. However, this is an information field to aid manual verification. System will not have any in-built validation for this field. If an Individual signatory is no more authorized to be an authorized signatory as a POA holder, then the mapping between POA-id of a POA holder and the account in case of an individual, and POA-id and authorized signatory id in case of a corporate entity need to be removed. In case, a new signatory is to be inducted, then signature of the new signatory only will be required to be scanned. Then in case of a POA holder of an individual account, a new POA id of the new POA holder will be mapped to the account and in case of a corporate entity, new authorized signatory id needs to be mapped to POA-id. POA details can be mapped to individual and corporate beneficiary accounts only. This facility will not be available for Clearing Members and intermediary accounts. Screens are provided in DPMAS for registration/modification of Individual POA holder, Authorized Signatory, Corporate POA/POA Group and mapping of POA Id to account holder.

d)

e)

f) g)

h)

i)

j)

Further, DPs are required to follow the guidelines issued vide circulars ref. no. NSDL/PI/2000/982 dated June 23, 2000, NSDL/PI/2000/1953 dated October 19, 2000 and NSDL/PI/2005/2329 dated November 25, 2005 in this regard. It may be informed that for the purpose of explaining features of POA module, NSDL will conduct training at Mumbai, New Delhi, Kolkata and Chennai in the month of October 2007. The details of the training will be communicated to the DPs separately. A DPM user manual will also be provided to the DPs along with the CD of the software release. In case of any queries regarding file formats you may write to helpdesk@nsdl.co.in. d. Others Circular No. NSDL/POLICY/ 2010/0086 Date: July 30, 2010 Sub: Reporting of OTC Transactions in Certificates of Deposit (CDs) and Commercial Papers (CPs). All Participants are hereby informed that SEBI has issued Circular No. CIR/ IMD/DF/6/2010 dated July 30, 2010 (copy enclosed) regarding reporting of OTC transactions in CDs and CPs. The aforesaid SEBI circular specifies that it has been decided that all SEBI Regulated entities shall report their OTC

[ 84 ]

transactions in CDs and CPs on the FIMMDA reporting platform within 15 minutes of the trade for online dissemination of market information with effect from August 16, 2010. FIMMDA will issue detailed operational guidelines in this regard. Participants are requested to take note of the same and ensure compliance. Circular No. NSDL/POLICY/ 2009/0114 Date: December 3, 2009 Sub: Facility to download the list of depository accounts for KYC confirmation on SQLASSIST As all Participants are aware, a list of depository accounts for the purpose of reporting confirmation of KYC norms is being sent to Participants on a fortnightly basis. It was further informed vide our circular no. NSDL/POLICY/ 2009/0034 dated May 7, 2009 that the KYC confirmation report in respect of such depository accounts is to be uploaded on SQLASSIST intranet site of NSDL (i.e. http://sqlassist) under the option 'KYC'. In this context, a facility is now being made available on SQLASSIST under the option "Download KYC" to download the list of depository accounts for which KYC confirmation is to be reported to NSDL. The files will be made available on the SQLASSIST within five days after the end of every fortnight (e.g., for the fortnight 1st to 15th day of the month, the files will be made available by 20th day of the month and for the fortnight 16th to the end of the month, the files will be made available by 5th of the subsequent month). The due date for report submission will be mentioned in the file itself. The first such file will be made available on SQLASSIST by December 5, 2009. Participants can also download the list of depository accounts for which KYC confirmation was sought from Participants for the previous five fortnights. A detailed note explaining the "Download KYC" feature is given at Annexure I. Further, 'search' facility under the option "Search-General Report" is also being made available on SQLASSIST to confirm whether the KYC confirmation report has been successfully uploaded by the Participant. The details pertaining to the "Search" screen are also mentioned in Annexure I. For any further information / clarification, Participants are requested to contact Ms. Kirti Samant on Tel No. (022) 2499 4424 (email: kirtis@nsdl.co.in). Annexure I 1. 2. Login to the intranet site (http://sqlassist) and click on the link named BILL-PAN, KYC INFO, PMLA Alerts & Waiver request. Enter the existing Maker User ID & Password and click on the option (I) KYC Upload /Download under the field KYC. The User will be connected to the KYC Data Maintenance Software of NSDL. Following options will be displayed to the User: (i) Upload KYC for uploading the KYC confirmation report in specified format (informed vide the circular no. NSDL/ POLICY/2009/0034 dated May 7, 2009) Download KYC for downloading list of depository accounts for which KYC report is to be uploaded. (a) The screen will display NSDL letter ref. no., NSDL letter date, Due date for report submission and a download link.

(ii)

[ 85 ]

(b)

User will be able to download the list of depository accounts for six fortnights (i.e., current + last five fortnights).

(II)

Search for verifying the records already uploaded by the Participant (i) (ii) (iii) DP ID : This field is non-editable and will contain the DP ID of the Participant by which the User is logged in. Client ID : This field will help the User to verify whether KYC status for a particular Client ID is submitted to NSDL. Start Date End Date : Participants can search by selecting start and end date to check the records uploaded by them on SQLASSIST.

(III)

Log Out This option will take the User out of the KYC Data Maintenance Software.

(*Participants are advised to upload the same file which is downloaded to them from SQLASSIST by filling the columns viz. DP Reply Letter Ref no., KYC Status and Account Status. The remaining columns in the file should not be altered.) Circular No. NSDL/POLICY/ 2009/0034 Date: May 7, 2009 Sub: Facility to upload KYC confirmation reports on SQLASSIST intranet site All Participants are hereby informed that the pilot project for dematerialisation As all Participants are aware, KYC confirmation report(s) as and when called for by NSDL are being sent by Participants through courier, fax, email, etc. Participants can now upload the KYC report(s) through SQLASSIST intranet site (https://sqlassist) in a specified format. The format for uploading KYC report will be in an excel sheet as given at Annexure I and displayed on SQLASSIST intranet site. A detailed note explaining the procedure for filling up the KYC report is given at Annexure II. For uploading KYC confirmation report(s) on SQLASSIST intranet site, Participants have to log-in with their existing Maker User ID (i.e. DP ID of the Participant used for accessing billing information on SQLASSIST intranet site) and password. The file must be uploaded after verifying it properly. The procedure for uploading the KYC report(s) on SQLASSIST is given at Annexure III. For further information / clarification, Participants are requested to contact Ms. Kirti Samant at Tel No. (022) 2499 4424 / email ID: kirtis@nsdl.co.in / Mr. Charles Mathew at Tel No. (022) 2499 4482 / email ID: charlesm@nsdl.co.in. Annexure I DP Name DP ID Client ID NSDL NSDL Due Criteria DP Letter Letter date for Reply Reference Date Report Letter No. Submission Ref no. DP KYC Account Remarks reply Status Status Date (Y/N/O) (F/C)

[ 86 ]

Annexure II DP Name DP ID Client ID NSDL NSDL Due Criteria DP Letter Letter date for Reply Reference Date Report Letter No. Submission Ref no. DP KYC Account Remarks reply Status Status Date (Y/N/O) (F/C)

Format of Annexure I is provided above. Instructions for filling up the details in Annexure I are given below: 1) The file sent by NSDL (via email) will contain details in respect of columns from the field DP Name to Criteria. No changes should be made in these fields. 2) No changes should be made to the header records. 3) The DP Reply Date will be system generated date i.e. the date of upload of KYC confirmation report. No entry should be made in this field. 4) Participants are advised to update the fields viz. DP Reply Letter Ref. No., KYC Status (Y/N/O), Account Status (F/C) and Remarks (if any) only. 5) Expanded form of abbreviations used in the header row is given below: Abbreviations Y N O F C 6) Description KYC COMPLIED KYC NON-COMPLIED OTHERS FROZEN CLOSED

The file name of the Annexure I (i.e. to be uploaded) should not contain spaces. Annexure III

1. 2. 3.

4.

5.

6. 7.

8.

Login to the intranet site (https://sqlassist) and click on the link named Bill-PAN & KYC Info. Enter the existing Maker User ID & Password and click on the option Upload KYC Report. Click on Browse button for selecting the KYC report i.e. the excel file copied in the DPM server / Client Machine. Due care should be taken in selecting the excel file [and not to inadvertently select the earlier copied file]. Click on Upload File button for uploading the selected file. Only a single excel file can be uploaded at a time. In case of multiple files, each file should be uploaded separately. Further, in case of multiple DPM set-ups, DP ID should be unique in each file. Upon clicking the Upload File button, contents of the excel file and the number of record(s) that are accepted or rejected can be viewed. For the uploaded record(s), SQLASSIST system will carry out format level validations of only DP ID & Client ID. Before proceeding further, rejected record(s) must be downloaded from a link named Rejected Records. Click Cancel button to cancel the upload or click Confirm button to proceed. Upon clicking the Confirm button, an acknowledgement message will display on the screen that the file has been uploaded successfully. Only accepted records will get uploaded successfully. In respect of rejected records, after making necessary changes, a fresh file should be uploaded by following the process mentioned above.

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Circular No. NSDL/POLICY/ 2008/0081 Date: November 10, 2008

Sub: Discontinuation of the pilot project for dematerialisation of National Savings Certificate (NSC) and Kisan Vikas Patra (KVP) in dematerialised form. All Participants are hereby informed that the pilot project for dematerialisation of NSC and KVP in dematerialised form has been discontinued by Department of Posts (DoP). Therefore, no fresh NSC/KVP will be issued in demat form by DoP. Those investors who hold the NSC/KVP in a dematerialised form in their accounts, may continue to hold the same till its maturity or pre-mature encashment, as may be applicable. Participants are requested to take note of the above and inform their clients suitably. For further information/clarification, Participants are requested to contact Ms. Saoli Bagchi/ Ms. Aanushree Patil on tel. no. 022 - 2499 4250/4371. (email: nsckvp@nsdl.co.in).

[ 88 ]

NOTES

[ 89 ]

NOTES

[ 90 ]

2. Dematerialisation
a. General Section 6 (1) Any person who has entered into an agreement under section 5 shall surrender the certificate of security, for which he seeks to avail the services of a depository, to the issuer in such manner as may be specified by the regulations. The issuer, on receipt of certificate of security under sub- section (1), shall cancel the certificate of security and substitute in its records the name of the depository as a registered owner in respect of that security and inform the depository accordingly. A depository shall, on receipt of information under sub-section (2), enter the name of the person referred to sub-section (1) in its records, as the beneficial owner.

(2)

(3)

Regulation 54 (1)

Any beneficial owner, who has entered into an agreement with a participant, shall inform the participant of the details of the certificate of security which is to be dematerialised, and shall surrender such certificate to the participant: Provided that where a beneficial owner has appointed a custodian of securities, then he may surrender the certificates of security to the participant through his custodian of securities.

Regulation 54 (2)

The participant shall, on receipt of information under sub-regulation(1), Forward such details of the certificate of security to the depository and shall confirm to the depository that an agreement has been entered into between the participant and the beneficial owner.

Regulation 54 (3)

The participant shall maintain records indicating the names of beneficial owners of the securities surrendered, the number of securities and other details of the certificate of security received. A Client may convert his physical holdings of securities into dematerialised form by making an application to the Participant in a Dematerialisation Request Form (hereinafter referred to as DRF) in the form prescribed under the Business Rules along with the relevant security certificates. The Participant shall forward the DRF so received, along with the security certificates, to the Issuer or its Registrar & Transfer Agent after electronically registering such request with the Depository. Such DRF shall be forwarded by the Participant not later than seven days of accepting the same from its Client. The Client shall have the right to get the securities which have been admitted on the Depository dematerialised in the form and manner laid down under the Bye Laws and Business Rules. The Depository Participant further undertakes that it shall not create or permit to subsist any mortgage , charge or other encumbrance over all or any of such securities submitted for dematerialisation except on the instructions of the Client. Every Client shall submit to the Participant the securities for dematerialisation along with the Dematerialisation Request Form (DRF). The specimen of the DRF is given in Annexure D.

Bye Law 9.2.2

Bye Law 9.2.3

Clause 2 of DPClient Agreement

Rule 11.1.1

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Conversion of mutual fund units represented by Statement of Account (SoA) into dematerialised form Circular No: NSDL/POLICY/ 2010/0024 Date: March 9, 2010 Sub: Conversion of mutual fund units represented by Statement of Account (SoA) into dematerialised form As all Participants are aware, the facility of holding units in dematerialised form was informed vide Circular No. NSDL/POLICY/2009/0116 dated December 5, 2009. In this context, SEBI has approved the proposal for conversion of mutual fund units represented by Statement of Account (SoA) into dematerialised form. Accordingly, the procedure for conversion of mutual fund units represented by SoA into dematerialised form was informed to all Issuers/R&T Agents vide Circular No. NSDL/CIR/II/06/2010 dated March 9, 2010. A copy of this circular is enclosed for information of Participants. Participants are requested to guide their clients suitably. Circular Circular No.: NSDL/CIR/II/06/2010 Date: March 9, 2010 All Issuers/R&T Agents are hereby informed that SEBI has approved the proposal for conversion of Mutual Fund (MF) units represented by Statement of Account (SoA) into dematerialised form. In this context, the procedure for conversion of MF units represented by SoA into dematerialised form is given in the enclosed Annexure. Issuers/R&T Agents handling MF units are requested to be guided by the aforesaid procedure and may advise their clients who approach them with queries relating to procedure for conversion of MF units represented by SoA into dematerialised form. All R&T Agents are requested to take note of the above and inform their clients (Issuers / AMCs) accordingly. Annexure Conversion of existing Mutual Fund units represented by Statement of Account into dematerialised form - through Asset Management Company (AMC)/Registrar and Transfer Agent (RTA) 1) Submission of conversion request by the investor a) An investor desiring to convert its existing Mutual Fund (MF) units represented by Statement of Account (SoA) into dematerialised form shall submit to the AMC/RTA, a request for conversion [proforma of Conversion Request Form (CRF) enclosed at (ExhibitI)], alongwith a copy of Client Master Report (CMR) or Transaction Statement (only the page of Transaction Statement reflecting the name and pattern of holding) issued by its Depository Participant (DP) to such service centres of AMC/RTA as may be decided by the concerned AMC/RTA. The investor may efface (strike-off) the transaction/holding details so as to make them illegible. AMC/RTA (Service Centre) shall ensure that the units which the investor intends to convert belong to the list of units available for dematerialisation and the correct ISIN is mentioned on the CRF.

2)

Upon receipt of conversion request from the investor a)

[ 92 ]

b)

AMC/RTA (Service Centre) shall verify details viz., DP ID, Client ID, Name(s) of the investor(s) and holding pattern (mentioned on CRF) with the CMR/Transaction Statement of the beneficial owner account submitted by the investor. The conversion request shall be accepted by the AMC/RTA (Service Centre) only in case the aforesaid details match. If the CRF is in order, the AMC/RTA (Service Centre) will issue an acknowledgement duly signed and stamped to the investor(s). AMC/RTA shall ensure that the details in CRF viz., Name(s) of the investor(s), holding pattern of account holder(s) and signature of the investor(s) match with the details available in its records. In case of any mismatch, AMC/RTA shall reject the request for conversion of units and inform the investor suitably, providing reason(s) for such rejection. AMC/RTA shall validate the unit holder name(s) and PAN(s) (if available) from its records with the data obtained from the depository. In case of any mismatch, AMC/RTA shall reject the request for conversion of units and inform the investor suitably, providing reason for such rejection. AMC/RTA shall record the conversion of units, represented by statement of account, as requested by the investor(s) in its records. AMC/RTA shall credit the units by corporate action process in the depository to the beneficial owner account of the unit holder(s). The credit of the converted units will be reflected in the Transaction Statement provided by the Depository Participant to its client. In case of rejection of corporate action file uploaded by AMC/RTA to the depository system, the reason(s) of rejection of the corporate action shall be provided by the depository. AMC/RTA shall take necessary steps to rectify the same. EXHIBIT - I [PROFORMA]

c) 3)

Before crediting the units through the depository a)

b)

4)

After successful validation and verification of data/request a)

b) c)

d)

CONVERSION REQUEST FORM FOR EXISTING MUTUAL FUND UNITS (REPRESENTED BY STATEMENT OF ACCOUNT) INTO DEMATERIALISED FORM - THROUGH AMC/RTA Date (dd-mm-yy ) To AMC/RTA (Name) (Address) Sir/Madam I / We hereby confirm that I hold the mutual fund units as per the statement

[ 93 ]

of account (enclosed) issued by you. I/We request you to convert the existing units held by me/us as specified in details of units below into dematerialised form for crediting these units to my/our beneficial owner account having following details: DP ID Client ID Sole/First Holder Name Second Holder Name Third Holder Name Details of Units to be converted: Folio No. Scheme Name ISIN Number of Units Remarks (if any) I N

Authorised Signatories Holder(s) Sole/First Holder Second Holder Third Holder Instructions: 1. Please strike off as N.A. whatever is not applicable 2. Submit a copy of Client Master Report/Transaction Statement provided by the Depository Participant ========================================================== Acknowledgement We hereby acknowledge the receipt of request for conversion of Mutual Fund units represented by Statement of Account into dematerialised form by Mr/Ms/M/s _____________________ having DP ID _____________ Client ID ______________ details of which are given below. Folio No. Scheme Name Number of Units Names Signatures

Date:

AMC/RTA Stamp & Signature

[ 94 ]

Circular No: NSDL/POLICY/ 2010/0022 Date: March 4, 2010

Sub: Commencement of spot trading in the compulsory demat segment and features of National Spot Exchange Limited As Participants are aware, National Spot Exchange Limited (NSEL) (CC ID IN001125) was made operational in the NSDL system in the capacity of a Clearing House for settlement of trades pertaining to Warehouse Receipts for commodities (Refer Circular Nos. NSDL/POLICY/2008/0080 and NSDL/POLICY/ 2009/0007 dated November 6, 2008 and January 20, 2009 respectively). In this regard, NSEL has intimated to NSDL about the features and commencement of spot trading in compulsory dematerialized segment on NSEL, the details of which are enclosed for the information of Participants at Annexure A. For operational procedures, Participants may be guided by Circular No. NSDL/ POLICY/2009/0007 dated January 20, 2009. Annexure Commencement of Spot Trading in Compulsory Demat Segment in National Spot Exchange ltd (NSEL) National Spot Exchange Limited (NSEL) having its registered office at 102-A Land Mark, Suren Road, Chakala, Andheri (East), Mumbai 400093, is a demutualised pan-India electronic multi commodity spot exchange promoted by Financial Technologies (India) Limited (FTIL) and National Agriculture cooperative Marketing Federation of India (NAFED). The Exchange has commenced its operation on October 15, 2008 and has handled physical deliveries worth Rs. 2403 crores in the calendar year 2009. During one year of successful operation, we have been able to create efficient spot delivery platform, helping the farmers and traders to sell commodities directly to the processors/ Exporters, which has resulted into reducing cost of intermediation, improving farmers price realization and also improving marketing efficiency. At present, the commodity derivatives exchanges are providing very efficient instruments for trading, hedging and jobbing in commodities, but investment instruments are currently not available in commodities. In the year 2010, our main focus is to develop an investment based market in commodities for retail investors. For the first time in India, NSEL is in the process of introducing demat delivery based investment instruments in commodities, which will be made available in smaller denominations, such as 1 gram of Gold, 100 Gram of Silver or 1 Kg of Copper, etc in dematerialized units. Investors can participate in such instruments and take delivery on T + 2 basis in demat form. Whenever they want to sell the same, they can do so on our platform on any trading day or they can convert the demat units in to physical form in specific denominations at specified locations. The salient features of these instruments are: The trading units will be made available in smaller denominations, such as 1 gram of Gold, 100 Gram of Silver or 1 Kg of Copper, etc. There are different ICINs will be available for different base metals. A person can buy minimum 1 gram of Gold and 100 gram of Silver in the Exchange trading Platform. Presently National Spot Exchange intends to allow trading in demat Gold and Silver with denomination of 1 gram and 100

[ 95 ]

gram respectively. The purity grade of Gold shall be 995 and Silver is 999. The Existing members can trade in this contract through the NSEL trading platform (NEST). The trading shall be carried out from Monday to Friday. However the members and their clients must have to open the Pool and beneficiary accounts through the NSEL empanelled DPs in NSDL. All outstanding delivery positions at the end of the trading session of a particular day shall be settled only through dematerialized units. Settlement of deliveries shall be made through the CM pool accounts as it is settled in the securities market on T+2 days basis from Monday to Friday. Thereafter the clearing members will transfer the ICIN units to their respective clients. In order to simplify the process of collection of storage charges, the charges shall be levied by NSEL to the ICIN holders on monthly basis. Such charges will be computed based on the holding In the respective accounts and on the last Saturday of every month. The person holding demat commodities on that day will be required to pay holding charges for the entire month, Irrespective of the no. of days for which he holds the ICINs. The charges per unit per month will be communicated by NSEL to the empanelled DPs separately. The ICIN holders are required to pay the storage charges to the respective DPs within 21 days from the last Saturday of every month and the DPs shall deposit the same to NSEL on monthly basis. The conversion of demat units into physical commodities shall be permitted in specified lot size and at specified locations, where NSEL has entered into vaulting arrangement. Therefore, an investor can opt for rematerialization, only if he has such number of units to his credit, as required for rematerilization. For launching such instruments, NSEL has already signed agreement with National Securities Depository Limited (NSDL) and all set to commence trading of commodities in compulsory demat segments on or around March 08th 2010. For any clarification on trading, Settlements and DP empanelment the following officials of NSEL can be contacted. Mr. Santosh Mansingh / Mr. H.B. Mohanty NATIONAL SPOT EXCHANGE LIMITED. 102-A Land Mark, Suren Road, CHAKALA Andheri (East) Mumbai-400093 Telephone : 91-22-67619900 fax: 91-22-67619931 Cell no :+919930267641/+919930267639 Circular No: NSDL/POLICY/ 2009/0116 Date: December 5, 2009 Sub: Facility for holding mutual fund units in dematerialised form All Participants are hereby informed that as per the scheme envisaged by SEBI vide Circular No. SEBI/IMD/CIR No.11/183204/2009 dated November 13, 2009 (copy enclosed) for transacting in mutual funds through stock exchange platform, NSDL has enabled holding these mutual fund units in dematerialised form.

[ 96 ]

In order to encourage investors to avail this facility, it has been decided not to charge any fee to Participants till March 31, 2010 in respect of mutual fund units [security type code 20 Mutual Fund Units (TRASE)] routed through the stock exchange platform. The list of the mutual funds which have joined NSDL so for is given below: Sr. No. 1 2 3 4 5 6 7 8 9 Features: 1. 2. The existing depository accounts can be used for holding these mutual funds units in dematerialised form. Subscription: On subscription for mutual fund units by investor through stock exchange, Asset Management Company (AMC)/ Registrar & Transfer Agent (RTA) will credit the depository account of the Client directly through credit corporate action. 3. Redemption: (a) For redemption purpose, in addition to the investor placing an order through stock exchange the client will have to give an instruction through a delivery instruction slip (DIS) to its Participant to transfer the units to a designated Pool account of the Clearing Corporation (CC) of the stock exchange. The designated Pool accounts are given below:
CC Name CM BP ID Market Type Number Settlement Execution Pay-in Date deadline

Name of Fund Birla Sun Life Mutual Fund Fidelity Mutual Fund HDFC Mutual Fund ICICI Prudential Mutual Fund Reliance Mutual Fund Religare Mutual Fund SBI Mutual Fund TATA Mutual Fund UTI Mutual Fund

Sr.

Stock Name

No. Exchange

National Stock

National Securities Corporation Ltd.

IN565576

12 (Mutual Fund)

4.30 PM on Trade day (Order Day) As applicable

Exchange Clearing

Bombay Stock Limited

Indian Clearing Ltd.

IN619960

02 (Mutual Fund)

Exchange Corporation

[ 97 ]

(b)

Participants are required to execute the DIS in the DPM system promptly. The CCs either have a standing instruction to receive credits or will execute a corresponding receipt instruction to receive units in its account. For those instructions which are matched in the depository system, the units will be debited from the account of the client and credited to the account of CC. The redemption proceeds will be sent by AMC/ RTA through appropriate payment mode such as direct credit, NEFT or cheque as decided by AMC from time to time, as per the bank account details of the Client available in the depository system.

(c)

4.

Transaction Statements: Participants must continue sending the Transaction Statement to their Clients as per the existing frequency which will include mutual fund units also.

DEPUTY GENERAL MANAGER INVESTMENT MANAGEMENT DEPARTMENT SEBI /IMD / CIR No.11/183204/ 2009 November 13, 2009 All Mutual Funds/ Asset Management Companies (AMCs)/ Association of Mutual Funds in India (AMFI) Recognised Stock Exchanges/ Depositories /Registrar to an Issue and Share Transfer Agents Sir / Madam, Sub: Facilitating transactions in Mutual Fund schemes through the Stock Exchange infrastructure 1. The need for enhancing the reach of mutual fund schemes to more towns and cities has been aired through various forums/ channels. To address this issue, various models have been debated and discussed. The infrastructure that already exists for the secondary market transactions through the Stock exchanges with its reach to over 1500 towns and cities, through over 200,000 Stock Exchange terminals can be used for facilitating transactions in mutual fund schemes. The Stock Exchange mechanism would also extend the present convenience available to secondary market investors to mutual fund investors. Units of mutual fund schemes may be permitted to be transacted through registered stock brokers of recognized stock exchanges and such stock brokers will be eligible to be considered as official points of acceptance as per SEBI Circular No. SEBI/IMD/CIR No.11/78450/06 dated October 11, 2006. The respective stock exchange would provide detailed operating guidelines to facilitate the same. In this regard, you are advised that : 5.1. Empanelment and monitoring of Code of Conduct for brokers acting as mutual fund intermediaries5.1.1. The stock brokers intending to extend the transaction in mutual funds through stock exchange mechanism shall be required to comply with the requirements specified in SEBI circular MFD/CIR/10/310/01 dated September 25, 2001 regarding passing the AMFI certification examination. All such stock brokers would then be considered as

2.

3.

4. 5.

[ 98 ]

empanelled distributors with mutual fund/AMC. 5.1.2. These stock brokers shall also comply with the requirements in SEBI circulars dated MFD/CIR/06/210/2002 dated June 26, 2002, MFD/CIR/20/23230/02 dated November 28, 2002 and SEBI / IMD / CIR No. 8 /174648 / 2009 dated August 27, 2009, applicable to intermediaries engaged in selling and marketing of mutual fund units. It is clarified that, stock exchanges shall monitor the compliance of the code of conduct specified in the SEBI circular MFD/CIR/20/23230/02 dated November 28, 2002 regarding empanelment of intermediaries by mutual funds.

5.1.3.

5.2. Time stamping Time stamping as evidenced by confirmation slip given by stock exchange mechanism to be considered sufficient compliance with clause 5, 6 and 8 of SEBI Circular SEBI/IMD/CIR No.11/ 78450/06 dated October 11, 2006. 5.3. Statement of Account Where investor desires to hold units in dematerialised form, demat statement given by depository participant would be deemed to be adequate compliance with requirements prescribed under regulation 36 of SEBI (Mutual Fund) Regulations, 1996, and SEBI Circulars MFD/CIR/9/120/2000 dated November 24, 2000 and IMD/CIR/12/80083/2006 dated November 20, 2006 regarding despatch of statements of account. 5.4. Investor grievance mechanism Stock exchanges shall provide for investor grievance handling mechanism to the extent they relate to disputes between brokers and their client. 5.5. Dematerialization of existing units held by investors In case investors desire to convert their existing physical units (represented by statement of account) into dematerialized form, mutual funds / AMCs shall take such steps in coordination with Registrar and Transfer Agents, Depositories and Depository participants (DPs) to facilitate the same. 5.6. Know your client (KYC). Where investor desires to hold units in dematerialised form, the KYC performed by DP in terms of SEBI Circular MRD/DoP/Dep/Cir-29/2004 dated August 24, 2004 and this would be considered compliance with applicable requirements specified in this regard in terms of SEBI Circular ISD/ AML/CIR-1/2008 dated December 19, 2008 by mutual funds /AMCs. 6. Stock exchanges and mutual funds/AMCs, based on the experience gained may further improve the mechanism in the interest of investors. Necessary clarifications, if any, would be issued at appropriate time by SEBI in this regard. This circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with the provisions of Regulation 77 of SEBI (Mutual Funds) Regulations, 1996, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

7.

Yours faithfully RUCHI CHOJER

[ 99 ]

Facility for Cancellation of Pending Demat requests Circular No: NSDL/POLICY/ 2009/0086 Date: September 19, 2009 Sub: Facility for cancellation of pending demat requests As all Participants are aware, certain Issuer companies are not confirming the requests for dematerialisation for a long time. Due to this, in cases where the clients have pending demat requests, Participants are not in a position to process the requests received from their clients for closure of accounts. In view of the aforesaid, a facility for cancellation of pending demat request is introduced. The procedure in this regard is given below: 1. Client must submit a letter in the format given at Annexure A requesting to cancel the pending demat request in respect of those demat requests which are pending for more than 60 days. Participant must submit a letter requesting NSDL to facilitate cancellation of pending demat requests in the format given at Annexure B. ANNEXURE A Date To, Participant Name and address Dear Sir/Madam, Sub.: Cancellation of Pending Demat Request (s) I/We had submitted securities for dematerialization as per details given below: DP Id Client Id : __________________________________________ : __________________________________________

2.

Sole/First Holder Name : __________________________________________ Second Holder Name Third Holder Name Demat Request No. (DRN) Demat Generation Date : __________________________________________ : __________________________________________ ISIN Security Name Quantity

The aforementioned demat request(s) is/are pending for disposal for a long time. Thus, I/we request you to cancel the aforesaid demat requests. Further, I/We wish to inform that the share (security) certificates pertaining to these demat requests are available with me/us and in case they are not available with me/us, the matter will be taken up by me/us directly with the concerned Issuer/ its R&T Agent. Yours faithfully, 1) ________________, 2) _________________, 3) ___________________ Signature(s) of the account holder(s)

[ 100 ]

ANNEXURE B (to be submitted on letter-head of the Participant) To, The Participant Interface Department National Securities Depository Limited Trade World, Kamala Mills Compound Senapati Bapat Marg Lower Parel Mumbai - 400013.

Sub: Cancellation of Pending Demat Request(s) Dear Sir, This is to inform you that we have received requests from our clients to cancel pending demat requests in the format specified at Annexure A to Circular No. NSDL/POLICY/2009/0086 dated September 19, 2009, details of which are given below: Sr. No. DP ID Demat Request Number

We confirm that; i) the request(s) for cancellation of pending demat(s) is/are received from the concerned account holder(s) by verifying their signatures with our records. the above demat request(s) is/are pending for more than 60 days from the date of generation of demat request(s) in the DPM system.

ii)

We request you to facilitate cancellation of the aforesaid pending demat requests. Further, a soft copy containing the aforesaid details are also sent separately in an excel sheet at Participant-Interface@nsdl.co.in.

Date:

For <Name of the Participant>

Place:

(Signature of Authorised Signatory) Name & Designation

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Demat request - POA holders Circular No: NSDL/PI/98/001 Date: January 1,1998 All Participants are hereby advised that while forwarding dematerialisation / rematerialisation request forms to the Issuer/ R&T Agents, in the cases where requests are received from the Power of Attorney (POA) holders of clients, the following should be ensured : i. ii. If the POA is not registered with the Issuer/R&T Agents, a copy of the POA should be enclosed along with the DRFs/RRFs. If the POA is registered with the Issuer/R&T Agents, the POA registration number should be mentioned on the DRFs/RRFs.

Demat request - Handling request in bulk Circular No. NSDL/PI/98/013 Date : January 6,1998 All Participants are hereby requested to ensure the following while sending bulk dematerialisation requests to the Issuer/R&T Agents: i. the certificates should be arranged in the same sequence as mentioned on the DRF. ii. the certificate details may also be provided in a soft copy form (i.e., on a floppy, DAT, etc. ) in addition to a hard copy.

Demat request - Name matching Circular No. NSDL/PI/99/28 Date: January 11,1999 All Participants are hereby informed that it was decided in the meeting held by SEBI on December 17, 1998, that the Issuers/R&T Agents should process the dematerialisation 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, provided the signature(s) of the client(s) on the DRF tallies with the specimen signature(s) available with them. For example, the holder of securities may have opened the depository account in the name of Sushil Ramesh Shah but his name on the certificate may appear as S. R. Shah or Sushil R. Shah, etc. While doing so, the Issuer/R&T Agent should ensure compliance of all the laws, Rules and Regulations prescribed under the Depositories Act, SEBI Regulations, NSDL Bye Laws, Business Rules and Operational Guidelines. This was informed to all Issuers/R&T Agents vide our circular no. NSDL/SG/001/ 99 dated January 8, 1999. In view of the above, Participants may advise their clients (individuals) that such cases as explained above will be considered for dematerialisation. Demat request - Internal control on despatch Circular No. It has been brought to our notice by some Issuers/R&T Agents that occasionally NSDL/PI/99/116 they have been receiving dematerialisation request forms and the physical Date: February 25, 1999 certificates pertaining to the securities not handled by them. In view of this, Participants are advised to ensure that proper internal controls are in place for despatch of the dematerialisation request forms and the physical certificates to the correct addresses. Participants are advised to refer to the circulars issued by NSDL regarding the addresses where the dematerialisation request forms are to be sent. Loss of such certificates in transit and consequent losses to investors will expose Participants to claims by investors.

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Demat Processing - Certificates submitted for demat Circular No. NSDL/PI/2004/0649 Date : April 12,2004 Attention of Participants is invited to Rules 11.1.7 and 11.1.9 of the Business Rules of NSDL pertaining to the manner in which security certificates should be cancelled before onward submission to the Issuer or its Registrar and Transfer Agent for dematerialisation. In addition to the procedures mentioned in the aforesaid Rules, the Participants must ensure that the security certificates submitted for dematerialisation to the Issuer or its Registrar and Transfer Agent bear the DP name, DP Id and Client Id. Demat processing - SEBI directive to R&T Agent Circular No. NSDL/PI/99/390 Date : May 28, 1999 A copy of the circular no. PMD/SU/11560/99 dated May 20, 1999 issued by the Securities and Exchange Board of India to all Registrar & Transfer Agents regarding processing dematerialisation requests is enclosed for your information.

SECURITIES AND EXCHANGE BOARD OF INDIA PRIMARY MARKET DEPARTMENT Mittal Court, 'A' Wing, Ground Floor Nariman Point, MUMBAI - 400 021. RRTI Circular No.1(99-2000) PMD/SU/11560 /99 May 20, 1999 To: All Category I Registrars to an issue and share transfer agents All Category II Share transfer agents. Dear Sir, Sub : Delay in processing dematerialisation requests. It has come to our notice that some of the share transfer agents are taking an unduly long time for dematerialisation of shares and are also rejecting the dematerialisation requests on flimsy grounds without providing necessary reasons and legal documentation. Such practices are detrimental to the interest of the investors and slow down the process of dematerialisation. You are therefore requested to expedite the processing of dematerialisation request, in any case ensuring that the request is processed within 15 days from the date of the such request. You are also advised not to reject the request on flimsy grounds or without specifying reason for rejection or without proper documents supporting your reason for rejection. A violation of this directive would invite suitable action. Demat processing - Time standard for rejected demat requests Circular No. NSDL/PI/99/826 Date: October 21,1999 SEBI has constituted a Standing Committee to resolve issues between Depository Participants, Registrars and the Depositories. The first meeting of the Standing Committee was held on September 10, 1999 and various issues relating to dematerialisation of securities were discussed. It was decided by the Committee that where demat request forms (DRFs) and the certificates do not reach the Registrar within 30 days from the date of electronic request, such requests should be rejected. It was also decided that where there are

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pending court cases in respect of shares for which demat requests have been received, such requests should be rejected within 30 days and the Registrars should ensure that the relevant documents are despatched to the Participants within 5 days of the rejection. It was further decided that where there are signature mismatches, the Registrars should, based on the attestation of the banker, process such demat requests. In case any demat request is rejected due to signature mismatch, the Registrar should ensure that all relevant documents are returned to the concerned Participant, within 5 days. This is for information of the Participants. Demat request - due care Circular No. NSDL/PI/99/901 Date: November 18, 1999 All Participants are advised to ensure due care while processing the requests for dematerialisation received from the clients. Participants must mention the correct ISINs in the dematerialisation request forms (DRFs) and take special care in respect of those cases where multiple ISINs exist viz; non pari-passu shares, partly-paid shares, new sub-divided shares, etc. In such cases, Participants must also ensure to mention the correct ISIN while capturing/ verifying & releasing the dematerialisation requests in the DPM system. It has been observed that dematerialisation requests are initiated under NPP ISIN even after such shares have become pari-passu with the old shares consequent to the book closure. It is therefore advised to exercise extra caution while processing dematerialisation requests under NPP ISIN. Those Participants who have multiple DPM set-ups should ensure that the correct DP-Ids are mentioned in the dematerialisation request forms. Demat request - wrong release Circular No. NSDL/PI/2000/1006 Date : June 26,2000 All Participants are advised that if they have wrongly released any dematerialisation request in the DPM system and if it is not cancelled till the EOD of the release date, then they must immediately inform the respective Issuer / Registrar & Transfer Agent requesting for rejection of the dematerialisation request. Details of the request viz.; DP Id, DRN, ISIN, No. of shares requested and the reason for cancellation must be provided to the Issuer / Registrar & Transfer Agent for the purpose of rejection

Companies delaying demat request confirmation Circular No. NSDL/POLICY/ 2008/0053 Date: August 9, 2008 Sub: List of companies having more than 50 demat requests pending beyond 21 days Attention of Participants is invited to our Circular No. NSDL/PI/2001/1694 dated November 6, 2001 advising Participants to inform their Clients suitably while accepting demat requests of companies with large number of demat requests pending beyond 21 days. Further, Participants were informed vide Circular No. NSDL/PI/2004/0391 dated March 1, 2004 that the list of 200 such companies is made available on its website http://www.nsdl.co.in. In this context, in place of the above list, NSDL has now started displaying the list of all companies having more than 50 demat requests pending beyond 21 days on the NSDL website http://www.nsdl.co.in on a weekly basis.

[ 104 ]

Participants are therefore advised to maintain the aforesaid information at all their branches/franchisees/service centre and should accordingly inform the Clients about such companies while accepting any requests for dematerialisation of securities of such companies. Circular No. NSDL/PI/2004/0993 Date : June 4, 2004 All Participants are hereby informed that NSDL has been receiving information from Registrar and Transfer Agents (RTAs) about certain companies whose dematerialisation requests are pending for confirmation for a long time, as these companies are not contactable / not responding or there are dues pending from the companies and consequently the RTAs have discontinued providing depository services to their client companies. A list of such companies is available on the NSDL website (http://www.nsdl.co.in/downloadables/listcomp2.html). Participants are advised to inform their Clients suitably while accepting demat requests of such companies and maintain the aforesaid information at all their branches/franchisees/service centres. Attention of Participants is invited to our Circular No. NSDL/PI/2001/1694 dated November 6, 2001 advising Participants to inform their Clients suitably, while accepting demat requests of companies with highest number of pending demat requests beyond 21 days. NSDL has regularly been updating the list of 200 such companies on its website http://www.nsdl.co.in. However, in the investor-depository meets conducted by NSDL, Clients have represented to us that such information is not available at a number of branches/franchisees/ service centres of Participants from where they are offering services. Participants are advised to maintain the aforesaid information at all their branches/franchisees/service centres. All Participants are hereby informed that NSDL has, on its website http:// www.nsdl.co.in given the list of 100 companies with highest number of pending demat requests beyond 21 days. This list will be updated at regular intervals. Participants are advised to inform their Clients suitably, while accepting demat requests of such companies.

Circular No. NSDL/PI/2004/0391 Date: March 1,2004

Circular No. NSDL/PI/2001/1694 Date: November 6, 2001

Request for rejection of pending demat & account closure Circular No. NSDL/PI/2003/0309 Date: February 22, 2003 Participants have been representing to NSDL that they are not in a position to process the requests received from their Clients to close their accounts due to request(s) for dematerialisation pending disposal for a long time by the concerned Issuer company and/or its Registrar & Transfer Agent (RTA). In order to help such Clients to close their accounts, Participants can advise their Clients as under: 1. Write a letter (format given below) to the Issuer (with a copy marked to its Participant and respective RTA), requesting for rejection of the pending dematerialisation request(s) and send fresh physical security certificate(s) to the Client directly. Enclose a copy of the dematerialisation request generated from DPM system, duly signed & stamped by the Participant, alongwith the aforesaid letter to the Issuer.

2.

On receipt of copy of the letter from the Client, the Participant may also take up the matter with the concerned Issuer and/or its RTA for rejecting the

[ 105 ]

instruction expeditiously. After the pending dematerialisation request(s) is/ are rejected by the Issuer and/or its RTA, the Participant can close the account of such Client. Format Date To, Company Name and address Dear Sir/Madam, Sub.: Rejection of Demat Request (s) I/We had submitted securities of (companyname) for dematerialisation under ISIN through my Depository (name) (DP Id IN , Client Participant Id ). Details of my/our demat request(s) are as under: Demat Request No. (DRN) Demat Generation Date Demat Request Form No. Certificate No(s). From Distinctive Nos. To No. of Securities

The aforementioned demat request(s) is/are pending for disposal for a long time. As I/We wish to close the said account and hold the security(ies) in physical form, I/we request you to reject the said pending demat request(s) and send fresh security certificates directly to me/us under advise to my/our DP. Yours faithfully, 1) , 2) , 3)

Name(s) & Signature(s) of the account holder(s) CC: 1. 2. DP Name & Address Name & Address of Registrar & Transfer Agent - You are requested to reject the demat request(s) as stated above and send fresh security certificates directly to me/us underadvise to the DP.

b. Transfer-cum-demat Bye Law 9.2.13 Bye Law 9.2.13 has been deleted w.e.f. February 27, 2004. Prior to deletion, Bye Law 9.2.13 read as under : "If a Client is desirous of dematerialising the shares sent for transfer, then it may do so as per the provisions of the Guidelines for dematerialisation of shares sent for transfer issued by the Securities and Exchange Board of India and in the manner laid out in the Business Rules. In such a case, for the purpose of Bye Laws 9.2.2 and 9.2.3 above, in lieu of security certificates the letter issued by the Issuer or its Registrar & Transfer Agent in accordance with the said guidelines shall be submitted by the Client to the Participant for forwarding it to the Issuer or its Registrar & Transfer Agent."

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Transfer-cum-demat - Withdrawal of Scheme Circular No. NSDL/PI/2004/0261 Date: February 11, 2004 All Participants are hereby informed that Securities and Exchange Board of India (SEBI) vide its circular no. SEBI/MRD/Cir-10/2004 dated February 10, 2004 (copy enclosed) has withdrawn transfer-cum-demat scheme. Accordingly, the Bye Laws and Business Rules of NSDL are being modified, which will be notified shortly. In view of the above, NSDL vide its Circular No. NSDL/JS/003/2004 dated February 11, 2004 has advised all the Issuers and their Registrar & Transfer Agents (RTA) that henceforth, they should not issue option letters to shareholders, as prescribed under the SEBI guidelines for dematerialisation of shares sent for transfer. All Participants are hereby advised that option letters already issued by the Issuers or their RTAs should be accepted and the dematerialisation requests be processed as per the existing guidelines. Annexure-SEBI Directive on transfer-cum-demat SECURITIES AND EXCHANGE BOARD OF INDIA DEPUTY GENERAL MANAGER Market Regulation Department E-mail: sundaresanvs@sebi.gov.in Tel : 2216 4465 Fax: 2216 4394 SEBI/MRD/Cir - 10/2004 February 10, 2004 The Managing Director National Securities Depository Ltd. Trade World, 4th Floor, Kamala Mills Compound Senapati Bapat Marg, Lower Parel Mumbai - 400013 The Executive Director Central Depository Services(India) Ltd. Phiroze Jeejeebhoy Towers, 27-28th Floor, Dalal Street Mumbai - 400 023 Dear Sir/s, Sub: Transfer-cum-demat scheme 1. SEBI had introduced compulsory dematerialized trading in select shares for all investors with effect from January, 1999. Thereafter, an increasing number of shares were added to this list at regular intervals. During this phase, the companies/transfer agents were under tremendous pressure on account of the large number of physical shares being received by them for transfer and/or demat. Moreover, transfer and demat were two separate processes and the investors were required to submit the transferred shares to the share transfer agent, through their DPs, for dematerialization. This entire process involved anywhere from 1-3 months and the investors could not sell the shares during this period. Accordingly, the transfer-cum-demat scheme was introduced by the depositories to counter the problems faced by the investors in the transition phase of moving from physical to demat trading

2.

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mode, to decrease the time period involved in transfer and demat. However, as on date, a large number of stocks have already been dematerialized, almost 100% trading takes place in dematerialized form and hence, there is far less pressure on the companies/the share transfer agents. 3. In view of the above, it is felt that the facility of transfer-cum-demat is no longer relevant and can be withdrawn without causing any undue inconvenience and/or delays to the investors. It has accordingly been decided to withdraw the transfer-cum-demat scheme. The depositories are accordingly advised to ; 4.1. make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision immediately. 4.2. bring the provisions of this circular to the notice of the DPs of the Depository and also to disseminate the same on the website. 4.3. communicate to SEBI the status of the implementation. 5. This circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

4.

Yours faithfully,

V S SUNDARESAN c. Transposition-cum-demat Bye Law 9.2.13. If the names of the clients appearing on the security certificates match with the names in which the account has been opened but are in a different order, such securities can be dematerialized by following the procedure laid down in the Business Rules. The Participant shall forward the DRF to the Issuer or its Registrar & Transfer Agent only after ascertaining that the number of certificates annexed with the DRF tallies with the number of certificates mentioned on the DRF. Provided further that in case of transposition/transmission and dematerialisation cases, the Participant shall also forward Annexure OA/OB as the case may be, alongwith the DRF to the Issuer or its Registrar & Transfer Agent. The securities which have been dematerialised shall be credited to the accounts maintained by a Participant only when the pattern of holdings in the account of the Client matches with the pattern of holdings as per the security certificates. Provided however that in case where the names appearing on the certificates match with the names in which the account has been opened but are in a different order, the Client can get the security certificates dematerialised by submitting the security certificates alongwith the Transposition Form as per Annexure OA and the Dematerialisation Request Form (DRF) to the Participant. The explanation of such pattern of holding is given in Annexure F.

Rule 11.1.5

Rule 11.1.13

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d. Transmission-cum-demat Bye Law 9.2.14. If a client is desirous of getting the name(s) of the deceased joint holder(s) removed from the security certificate(s) and get them dematerialised, it may do so by following the procedure laid down in the Business Rules. The Participant shall forward the DRF to the Issuer or its Registrar & Transfer Agent only after ascertaining that the number of certificates annexed with the DRF tallies with the number of certificates mentioned on the DRF. Provided further that in case of transposition/transmission and dematerialisation cases, the Participant shall also forward Annexure OA/OB as the case may be, alongwith the DRF to the Issuer or its Registrar & Transfer Agent. TRANSMISSION (NAME DELETION) AND DEMATERIALISATION OF SECURITIES In case of death of one or more of the joint holders, the surviving joint holder(s) can get the name(s) of the deceased deleted from the security certificate(s) and get them dematerialised by submitting the security certificates alongwith the Transmission Form as per Annexure OB and the Dematerialisation Request Form (DRF) to the Participant.

Rule 11.1.5

Rule 11.1.17

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NOTES

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3. Instructions Processing
a. General Section 7 (1) Regulation 42 (2) Every depository shall, on receipt of intimation from a participant, register the transfer of a security in the name of the transferee. A participant shall register the transfer of securities to or from a beneficial owner's account only on receipt of instructions from the beneficial owner and thereafter confirm the same to the beneficial owner in a manner as specified by the depository in its bye-laws. Every entry in the beneficial owner's account shall be supported by electronic instructions or any other mode of instruction received from the beneficial owner in accordance with the agreement with the beneficial owner. The Participant shall not give a debit or credit to the account of a Client without a due authorisation from Client. The Participant shall not execute any debit or credit in the account of the Client without authorisation from such Client. The Participant shall not commingle his own holdings held in NSDL with those held on behalf of the Clients. The Participant shall effect any transfer of holdings only if the same is supported by a valid instruction and an adequate audit trail of the same is maintained unless otherwise provided in the Bye Laws .The Participant shall be responsible for every action taken on the basis of any order, instruction, direction or mandate given by the account holder. The Depository Participant undertakes that a transfer to and from the accounts of the Client shall be made only on the basis of an order, instruction, direction or mandate duly authorized by the Client and that the Depository Participant shall maintain adequate audit trail of such authorization. The forms laid down under these Business Rules shall be adhered to by the Participants at the time of operating the accounts of its Clients and giving effect to the transactions laid down under Chapter 9 of the Bye Laws and Chapter 11, 12 and 13 of this Business Rules. Provided however that to effect such transactions as may be specified by the Depository based on electronic instructions received from the Client, the Participant shall obtain the prior approval of the Depository. The Depository may grant such an approval to the Participant if; i) ii) the Participant has adequate systems and security features in place to authenticate the Client and the Client to authenticate the Participant; the Participant is able to conclusively prove the origin, destination, date and time of receipt or despatch of such electronic instructions received by it; the Participant retains such electronic instructions in the format in which it was originally received or sent or in a format which can be demonstrated to represent accurately the information which was originally received or sent; the instructions received remain accessible and usable for subsequent reference; and the Participant fulfills such other conditions as may be specified by the Depository. Provided further that the Participant may operate such accounts or effect such transactions by using any other form or manner of authorisation from the Client provided the same has been approved by the Executive Committee.

Regulation 42 (3)

Bye Law 6.3.3 Bye Law 9.6.1 Clause 7 of NSDL DP Agreement

Clause 4 of DPClient Agreement

Rule 4.5.1

iii)

iv) v)

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Rule 4.5.2 Rule 6.1 Rule 12.2.1

The Participant shall promptly inform the Clients in respect of those instructions which have not been executed. The Participants shall execute transactions on behalf of its Clients only on authorisations from their Clients. The Participant shall effect a debit or credit to the accounts of its Clients only on receipt of proper authorization from the Clients in the forms laid out in Annexure L and M. Alternatively, a Client may give standing instructions to its Participant to credit its account. In case the Client does not have sufficient balance in its account, the debit to the account shall be effected to the extent of balance available. The aforementioned forms submitted by the Clients and Clearing Members shall be checked by the Participant to ensure the completeness of the form and validity of the signature of the Client and the Clearing Member before the requests on these forms are executed. Sub: Change in Auction Settlement schedule for NSE/BSE Attention of Participants is invited to SEBI Circular No. CIR/MRD/DP/39/2010 dated December 28, 2010 regarding activity schedule for auction session (informed to Participants vide NSDL Circular No. NSDL/POLICY/2010/0139 dated December 30, 2010). In this regard, Participants are hereby informed that as per the intimation received from National Securities Clearing Corporation Limited (NSCCL) and BOI Shareholding Limited (BOISL), the revised auction settlement schedule for NSE/BSE shall be effective for all auction trades starting from February 3, 2011 onwards. In view of this, Participants are requested to note the following: (i) NSCCL has intimated to NSDL that settlement for auction normal no. 2011020 will not be held. The shortages of normal settlement nos. 2011020 and 2011021 will be assigned to auction normal settlement no. 2011021. BOISL has intimated to NSDL regarding revision in the deadline time for Pay-in of securities on T (Auction session day) +1 day with respect to auction rolling settlement with effect from February 4, 2011. The revised deadline for Pay-in of securities for auction rolling are as follows:

Rule 12.2.2

Circulars issued after Master Circular on DIS and relevant circulars

Circular No : NSDL/POLICY/ 2011/0015 Date: February 3, 2011

(ii)

Circular No : NSDL/POLICY/ 2011/0002 Date: January 1, 2011

Sub: NSDL deadline time extended from 10.40 am to 10.50 am for various settlements of NSE, BSE and CSE All Participants are hereby informed that with effect from Monday, January 3, 2011, the NSDL deadline time for Pay-in of securities for various settlements of NSE, BSE and CSE will be revised to 10.50 am as against the current deadline time of 10.40 am in respect of the following market types Exchange Market Type NSE Normal Auction Normal Trade for Trade Retail Debt Market Bad Delivery Company Objection Institutional BSE Rolling Market Lot CSE Rolling Market Lot Auction Rolling

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Accordingly, the CC calendar in the eDPM / Local DPM System has been revised. With the above change, Participants can capture and verify / release instructions till the aforementioned deadline time. Further, Participants are also requested to be guided by the various guidelines mentioned in NSDL Circular Nos. NSDL/POLICY/2009/0082 and NSDL/POLICY/ 2010/0128 dated September 9, 2009 and December 11, 2010 respectively with respect to execution of Pay-in related instructions. Circular No : NSDL/POLICY/ 2010 /0139 December 30, 2010 Sub: Activity schedule for Auction Session All Participants are hereby informed that SEBI has issued Circular No. CIR/ MRD/DP/39/2010 dated December 28, 2010 (copy enclosed) regarding activity schedule for auction session. CIRCULAR CIR/MRD/DP/ 39 /2010 To, All Stock Exchanges, Dear Sir/Madam, Subject: Activity schedule for Auction Session As per extant practice, in case of default by the selling broker in a settlement, the security delivered short is bought in the auction session and is delivered to the buying broker on T+4 day. In order to reduce the time involved in delivering the shares to the buying broker, in case of default, it has been ecided to conduct the auction on the same day of the settlement, after the pay-in is completed. i.e. he auction for trades done on T day shall be conducted on T+2 day after pay-in is completed and shortfall is crystallized. The activity schedule as under shall be applicable with effect from February 1, 2011: Rolling settlement for T day trade S. No. 1 2 Day T T+2 Description of activity Trade Day Pay-in/Pay-out of securities and funds December 28, 2010

Auction settlement for T day trade 3 4 T+2 T+3 Auction session Pay-in/pay-out and close-out of auction

However, as the bank and stock exchange holidays are not common there are days when multiple settlements are conducted on the working day immediately following the day(s) of the closure. On such days when multiple settlements (say S1 and S2) are conducted on the same day (say Tm) the auction session shall be as under: 1. 2. The auction of first settlement (S1) shall be conducted on the same day (Tm) and settled the next day (Tm+1). The auction for the second settlement (S2) shall be conducted on the next day (Tm+1) along with the shortages/auction of that day. The settlement of the same shall happen on the subsequent day (Tm+2). put in place the adequate systems and issue the necessary guidelines for implementing the above decision.

The Stock Exchanges are advised to: i.

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ii. iii.

make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above bring the provisions of this circular to the notice of the stock brokers and also disseminate the same on their website.

This circular is being issued in exercise of powers conferred under Section 11(1) of Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate, the securities market. Circular No : NSDL/POLICY/ 2010/0128 Date: December 11, 2010 Sub: New Depository System (NDS) - Monitoring of Instructions (Changes to Master Circular on Delivery Instruction Slips) As Participants are aware, the descriptions of static data codes (i.e., status change) of various modules in respect of NDS have been made available on the Intranet site of NSDL i.e. https://sqlassist under the head (https://sqlassist/ Back office file formats - New DPM System). The instructions given in Master Circular No. NSDL/POLICY/2009/0082 dated September 9, 2009 on Delivery Instruction Slips - Version 1.0 have been modified for the purpose of NDS. The new instructions will be applicable upon NDS becoming operational. The changes are highlighted and enclosed at Annexure 1. Changed clauses without highlighting are enclosed at Annexure 2. Annexture - 1 Accordingly, the CC calendar in the eDPM / Local DPM System has been revised. Changes incorporated to Circular No. NSDL/POLICY/2009/0082 dated September 9, 2010 with respect to the following points: Sr. No. 1 Topic Checks and Controls required in case Participant is using back office system / Manual controls Processing of DIS Precautions to be taken at the time of accepting market related instructions Reference Point Nos. 5 (iii) (c)

2 3 (5)

20 (ii) and (vi) 22 (4) & (7)

Checks and Controls required in case Participant is using back office system / Manual controls: (iii) Important note on automation and manual control: (c) In case a DIS is received from a dormant account (i.e. where no transaction has taken place for a period of six months or any other lesser time period as may be decided by the Participant), in addition to the existing process of verification, another employee of the Participant should also verify the instruction. The Participant should obtain an independent confirmation from the Client(s) in this regard before processing the DIS. However, in case of active accounts, such verification is mandatory only if the account has five or more ISINs and all such ISIN balance are transferred at a time. The authorized official of the Participant verifying such transactions with the Client, shall record the details of the process, date, time, etc. of the verification on the instruction slip under his signature. Further, in order to facilitate identification of dormant accounts, an alert has been provided in the DPM System

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when Participant captures / verify releases instruction in the Client accounts where the system has not performed any of the transactions with relation to Account transfer (Debits), Inter Depository transfer (Debits), Remat and Pledge in any of the ISINs for a defined period of time through manual data entry in the DPM System or uploading the instructions through Back-office. Participant can override this warning message and continue capture/ verify-Release operation. In case aforesaid instructions are being executed using DPM import, an error file (.err) will be generated containing warning message. For this, Client accounts that have not executed any of the above transactions for last 180 days will be marked as dormant account. Further, Participants may note that after any debit transaction is executed in a dormant account, it will be marked as non-dormant in the EOD process of that day. This implies that alerts will be generated for all instructions executed on that day for the dormant account till EOD of that day. Participants can also generate Transaction Statement Report for dormant Client accounts, which give the list of transactions that are executed in a dormant account for the day when account is marked as non-dormant at EOD. The report will be generated based on date range such that Date wise and Client account wise Transaction Statement report are generated for all the transactions that are executed in dormant accounts on the day when the account was marked from Dormant to Non-Dormant (Refer Circular No. NSDL/POLICY/2008/0021 dated April 4, 2008). (20) Processing of DIS : (ii) Deadline time for submission of physical / electronic instructions related to pay-in: (NSDL/PI/2003/0406 dated March 7, 2003 and NSDL/POLICY/2009/ 0019 dated March 14, 2009) Participants are advised to take note of the procedure given here below: (a) Participants shall accept instructions from the Clients, in physical form upto 4 p.m. (in case of electronic instructions upto 6.00 p.m.) on T+1 for pay-in of securities, viz.; instructions to transfer securities from Client account to CM Pool account, Inter-Settlement Instructions, CM Pool to CM Pool account transfers and Delivery-Out Instructions, etc. For example, pay-in for trades executed on Monday will be on Wednesday. Clients will have to submit instructions to their Participants upto 4 p.m. (in case of electronic instructions upto 6.00 p.m.) on Tuesday. Settlement instructions received from any Client beyond the aforementioned deadlines would be received by the Participants at Clients risk and acknowledgment thereof should be issued by Participants to the Clients, with suitable remarks. Participants should complete execution of pay-in instructions

(b)

(c)

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(i.e.,Delivery-Out instructions) and ensure that they are in status Instruction ready for Settlement well before the pay-in deadline time on T+2. (d) In case the Client account does not have sufficient balance, the Client to CM Pool account transfer instructions will reflect the status Overdue (provided in the target CM Pool Account, the standing instruction indicator is enabled or receipt instructions initiated is matched), irrespective of the execution date and will remain valid till the pay-in for the requisite settlement number and market type, during the pay-in process; i. if partial balance is available in the Client account, then the same will be debited and transferred to the CM Pool Account. The status of the instruction will get updated as Partially Settled. if no balance is available in the Client account, then the instruction will get rejected. The status of the instruction will get updated as Rejected.

ii.

(e)

Delivery instruction initiated from the Client account (without sufficient balances) will remain in status Counterparty instruction awaited till it matches with the Receipt Instruction initiated from the CM Pool Account (where the standing instruction is not enabled). Upon matching of delivery and receipt instruction : i. in case insufficient balance is available in the Client account, the status of the instruction will change from Counterparty instruction awaited to Overdue and will remain valid till the pay-in for the requisite settlement number and market type as explained in point no. 20 (ii) (d) above. in case sufficient balance is available at the time of matching the instruction in the Client account, the status of the instruction will change from Counterparty instruction awaited to Settled.

ii.

(f)

In respect of CM Pool Accounts where standing instruction indicator are not enabled in the DPM System, Participants are requested to note that delivery instruction from the Client account (with or without security balances) and/or Receipt Instructions from its CM Pool Account that are unmatched will remain valid till the end of the day (EOD) of the execution date.

(vi)

Execution date of instructions falling on a Sunday or any other DM holiday: (NSDL/POLICY/2008/0079 dated November 5, 2008 and NSDL/PI/ 2001/0812 dated June 11, 2001) Participants are advised to note that account transfer (debiting beneficiary or Clearing Member Pool accounts), pool to pool, intersettlement, inter-depository and pledge related instructions that are verified/released in the DPM System with execution date falling on a Sunday or any other DM holiday will be executed on the next business day. In this regard, Participants are advised to note that such instructions should be received by NSDL and status of the

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instructions in the DPM System should be Future Dated before EOD of: (i) (ii) Saturday if the execution date happens to be a Sunday, previous business day if the execution date happens to be a DM holiday.

Participants are requested to note that delivery-out instructions should be received by NSDL before the pay-in deadline time. (22) Precautions to be taken at the time of accepting market related instructions: 4. Participants should ensure that IDT instructions are verified & released well before the deadline so that the status of the instruction become Acknowledgement awaited from other Depository* at NSDL deadline time. However, future dated instructions can be verified & released without any time restriction as per the current practice. In case any IDT instruction is received by NSDL after NSDL deadline time, then the same will fail with the status Rejected with the reason Deadline time has passed. If CDSL rejects NSDLs inter depository debit instructions (IDDs) in case it receives IDD after the deadline time of the current business date, the status of IDT instructions will change from Acknowledgement awaited from other Depository to Rejected by other Depository. Monitoring of instructions: (a) Participants should ensure that the instructions that have the effect of crediting the CM Pool Accounts for a settlement, such as Client to CM Pool Transfer, inter-settlement transfers, CM Pool to CM Pool transfers and Inter Depository transfers are in the status Settled atleast one hour before the NSDL Deadline time. Participants should ensure that the delivery-out instructions are in the status Instruction ready for Settlement at NSDL deadline time. In case the instructions are in any other status including Released for a long time, Participants should report to NSDL Help-Desk immediately. Participants may note that instructions such as account transfers, inter-settlement transfers, CM Pool to CM Pool transfers, Delivery Outs and Inter Depository transfers can be captured and verified/released even if BOD has not been received by the DPM System. Thus, the instructions which are verified/released before the receipt of BOD will be processed by NSDL after the BOD and such instructions will be transmitted provided all the services are running successfully at the Participants end. However, Participants are advised to remain in contact with NSDL Help Desk and also ensure that all instructions have been transmitted to NSDL. Further, the status of such instructions may appear as Released in the DPM System and once the BOD is received, the status will change to Overdue / Accepted / Counterparty instruction awaited / Future Dated / Settled / Rejected, as the case may be. (d) In case of IDT instructions the statii will change from

7.

(b)

(c)

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Acknowledgement awaited from other Depository to Other Depository response awaited (standing instruction is not enabled and receipt instruction is not received in the target account maintained with other Depository) to Settled / Rejected by other Depository. (e) Participants are requested to ensure proper monitoring of the Delivery-Out Instructions especially those which are in the status of Overdue on account of partial or nil balances existing in the CM Pool accounts. In this context, all Participants are advised to note and ensure the following: (i) On Verify/release the Delivery-out Instruction will go into the status Released irrespective of sufficient balances available in the CM Pool Account. In case of insufficient balances, the status of the instruction will change to Overdue and will remain in that status till such time the balance available in the CM Pool Account for the relevant settlement is less than the order quantity of the Delivery-Out Instruction. On receipt of credit for the full order quantity in the CM Pool Account, the Delivery-Out Instruction is triggered and the status changes to Instruction ready for Settlement.

(ii)

(iii) At NSDL Deadline time, if the balance in the CM Pool Account does not become equal to the order quantity, then such Delivery-Out Instruction which is in the status Overdue will be executed partially to the extent of balance available in the CM Pool Account. The status of such Delivery-out Instruction will change to Partially Accepted and then to Partially Settled. The partially executed quantity is displayed on the Delivery-Out Instruction screen separately against the field Delivered Quantity. (iv) Participants must monitor the status of such partially executed Delivery-Out Instructions at the NSDL Deadline time in the Delivery-Out Instruction screen by selecting the flag for the field See only Partial Delivery Out Instructions and querying on the same. (v) Instructions in the status Overdue will remain in that status waiting for sufficient balance till the NSDL deadline time. On receipt of credit for the full order quantity in the CM Pool Account in the late pay-in window, the Delivery-Out Instruction is triggered and the status will change to Instruction ready for Settlement.

(vi) At the NSDL deadline time, if there is no balance in the CM Pool Account, then the Delivery-Out Instruction which is in the status Overdue will fail with the status Rejected with the reason Cancelled, Overdue status during settlement. (vii) Participants should ensure that the Delivery-Out Instructions are in the status Overdue or Instruction ready for Settlement atleast 30 minutes before the NSDL Deadline time.

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(f)

In respect of instructions remaining in status Released, Participants are advised that the Message Control Panel under GISMO allows the Participants to monitor the status of incoming messages as under: Sr. No. Tab 1 2 3 Message Receiver Master Message Processor ISINWise Message Processor Function Receiving messages Processing master messages Processing transaction messages

If the above mentioned messages are received and processed properly, the same are highlighted through green color otherwise red color will be displayed. This indicates that the services are stopped or any other kind of error has occured. (g) Participants are also advised to note the following: (i) Participants should ensure that the following services are always running: a. NSDL HTTP Message Receiver Service b. NSDL ISINWise Message Processor Service c. NSDL Master Message Processor Service d. NSDL Export (File Generator) Service e. NSDL Automatic File Upload Service These services can be monitored through the Communication tab available in GISMO. In case above mentioned services are stopped and/or any error is displayed, the same should be reported to NSDL Helpdesk. (ii) In case the instructions or batch upload file remains in status Released or Transferred respectively for a long time, Participant should inform NSDL Help Desk immediately.

(iii) Participants must ensure that Ping to NSDL and Ping to router are functioning successfully and in case Ping to NSDL and Ping to router fails, Participant must report the same to NSDL Help Desk immediately. * Status description changed from Accepted by NSDL to Acknowledgement awaited from other Depository. However, the status code 33 remains unchanged. Annexure 2 Changes incorporated to Circular No. NSDL/POLICY/2009/0082 dated September 9, 2010 with respect to the following points: Sr. No. 1 Topic Checks and Controls required in case Participant is using back office system / Manual controls Processing of DIS Precautions to be taken at the time of accepting market related instructions Reference Point Nos. 5 (iii) (c)

2 3

20 (ii) and (vi) 22 (4) & (7)

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(5)

Checks and Controls required in case Participant is using back office system / Manual controls: (iii) Important note on automation and manual control: (c) In case a DIS is received from a dormant account (i.e. where no transaction has taken place for a period of six months or any other lesser time period as may be decided by the Participant), in addition to the existing process of verification, another employee of the Participant should also verify the instruction. The Participant should obtain an independent confirmation from the Client(s) in this regard before processing the DIS. However, in case of active accounts, such verification is mandatory only if the account has five or more ISINs and all such ISIN balance are transferred at a time. The authorized official of the Participant verifying such transactions with the Client, shall record the details of the process, date, time, etc. of the verification on the instruction slip under his signature. Further, in order to facilitate identification of dormant accounts, an alert has been provided in the DPM System when Participant captures / verify releases instruction in the Client accounts where the system has not performed any of the transactions with relation to Account transfer (Debits), Inter Depository transfer (Debits), Remat and Pledge in any of the ISINs for a defined period of time through manual data entry in the DPM System or uploading the instructions through Back-office. Participant can override this warning message and continue capture/ verify-Release operation. In case aforesaid instructions are being executed using DPM import, an error file (.err) will be generated containing warning message. For this, Client accounts that have not executed any of the above transactions for last 180 days will be marked as dormant account. Further, Participants may note that after any debit transaction is executed in a dormant account, it will be marked as non-dormant in the EOD process of that day. This implies that alerts will be generated for all instructions executed on that day for the dormant account till EOD of that day. Participants can also generate Transaction Statement Report for dormant Client accounts, which give the list of transactions that are executed in a dormant account for the day when account is marked as non-dormant at EOD. The report will be generated based on date range such that Date wise and Client account wise Transaction Statement report are generated for all the transactions that are executed in dormant accounts on the day when the account was marked from Dormant to Non-Dormant (Refer Circular No. NSDL/ POLICY/2008/0021 dated April 4, 2008).

(20) Processing of DIS : (ii) Deadline time for submission of physical / electronic instructions related to pay-in: (NSDL/PI/2003/0406 dated March 7, 2003 and NSDL/POLICY/2009/

[ 120 ]

0019 dated March 14, 2009) Participants are advised to take note of the procedure given here below: (a) Participants shall accept instructions from the Clients, in physical form upto 4 p.m. (in case of electronic instructions upto 6.00 p.m.) on T+1 for pay-in of securities, viz.; instructions to transfer securities from Client account to CM Pool account, Inter-Settlement Instructions, CM Pool to CM Pool account transfers and Delivery-Out Instructions, etc. For example, pay-in for trades executed on Monday will be on Wednesday. Clients will have to submit instructions to their Participants upto 4 p.m. (in case of electronic instructions upto 6.00 p.m.) on Tuesday. Settlement instructions received from any Client beyond the aforementioned deadlines would be received by the Participants at Clients risk and acknowledgment thereof should be issued by Participants to the Clients, with suitable remarks. Participants should complete execution of pay-in instructions (i.e.,Delivery-Out instructions) and ensure that they are in status Instruction ready for Settlement well before the pay-in deadline time on T+2. In case the Client account does not have sufficient balance, the Client to CM Pool account transfer instructions will reflect the status Overdue (provided in the target CM Pool Account, the standing instruction indicator is enabled or receipt instructions initiated is matched), irrespective of the execution date and will remain valid till the pay-in for the requisite settlement number and market type, during the pay-in process; i. if partial balance is available in the Client account, then the same will be debited and transferred to the CM Pool Account. The status of the instruction will get updated as Partially Settled. if no balance is available in the Client account, then the instruction will get rejected. The status of the instruction will get updated as Rejected.

(b)

(c)

(d)

ii.

(e)

Delivery instruction initiated from the Client account (without sufficient balances) will remain in status Counterparty instruction awaited till it matches with the Receipt Instruction initiated from the CM Pool Account (where the standing instruction is not enabled). Upon matching of delivery and receipt instruction : i. in case insufficient balance is available in the Client account, the status of the instruction will change from Counterparty instruction awaited to Overdue and will remain valid till the pay-in for the requisite settlement number and market type as explained in point no. 20 (ii) (d) above. in case sufficient balance is available at the time of matching the instruction in the Client account, the

ii.

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status of the instruction will change from Counterparty instruction awaited to Settled. (f) In respect of CM Pool Accounts where standing instruction indicator are not enabled in the DPM System, Participants are requested to note that delivery instruction from the Client account (with or without security balances) and/or Receipt Instructions from its CM Pool Account that are unmatched will remain valid till the end of the day (EOD) of the execution date.

(vi)

Execution date of instructions falling on a Sunday or any other DM holiday: (NSDL/POLICY/2008/0079 dated November 5, 2008 and NSDL/PI/ 2001/0812 dated June 11, 2001) Participants are advised to note that account transfer (debiting beneficiary or Clearing Member Pool accounts), pool to pool, intersettlement, inter-depository and pledge related instructions that are verified/released in the DPM System with execution date falling on a Sunday or any other DM holiday will be executed on the next business day. In this regard, Participants are advised to note that such instructions should be received by NSDL and status of the instructions in the DPM System should be Future Dated before EOD of: (i) (ii) Saturday if the execution date happens to be a Sunday, previous business day if the execution date happens to be a DM holiday.

Participants are requested to note that delivery-out instructions should be received by NSDL before the pay-in deadline time. (22) Precautions to be taken at the time of accepting market related instructions: 4. Participants should ensure that IDT instructions are verified & released well before the deadline so that the status of the instruction become Acknowledgement awaited from other Depository* at NSDL deadline time. However, future dated instructions can be verified & released without any time restriction as per the current practice. In case any IDT instruction is received by NSDL after NSDL deadline time, then the same will fail with the status Rejected with the reason Deadline time has passed. If CDSL rejects NSDLs inter depository debit instructions (IDDs) in case it receives IDD after the deadline time of the current business date, the status of IDT instructions will change from Acknowledgement awaited from other Depository to Rejected by other Depository. Monitoring of instructions: (a) Participants should ensure that the instructions that have the effect of crediting the CM Pool Accounts for a settlement, such as Client to CM Pool Transfer, inter-settlement transfers, CM Pool to CM Pool transfers and Inter Depository transfers are in the status Settled atleast one hour before the NSDL Deadline time.

7.

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(b)

Participants should ensure that the delivery-out instructions are in the status Instruction ready for Settlement at NSDL deadline time. In case the instructions are in any other status including Released for a long time, Participants should report to NSDL Help-Desk immediately. Participants may note that instructions such as account transfers, inter-settlement transfers, CM Pool to CM Pool transfers, Delivery Outs and Inter Depository transfers can be captured and verified/released even if BOD has not been received by the DPM System. Thus, the instructions which are verified/released before the receipt of BOD will be processed by NSDL after the BOD and such instructions will be transmitted provided all the services are running successfully at the Participants end. However, Participants are advised to remain in contact with NSDL Help Desk and also ensure that all instructions have been transmitted to NSDL. Further, the status of such instructions may appear as Released in the DPM System and once the BOD is received, the status will change to Overdue / Accepted / Counterparty instruction awaited / Future Dated / Settled / Rejected, as the case may be.

(c)

(d)

In case of IDT instructions the statii will change from Acknowledgement awaited from other Depository to Other Depository response awaited (standing instruction is not enabled and receipt instruction is not received in the target account maintained with other Depository) to Settled / Rejected by other Depository. Participants are requested to ensure proper monitoring of the Delivery-Out Instructions especially those which are in the status of Overdue on account of partial or nil balances existing in the CM Pool accounts. In this context, all Participants are advised to note and ensure the following: (i) On Verify/release the Delivery-out Instruction will go into the status Released irrespective of sufficient balances available in the CM Pool Account. In case of insufficient balances, the status of the instruction will change to Overdue and will remain in that status till such time the balance available in the CM Pool Account for the relevant settlement is less than the order quantity of the Delivery-Out Instruction. On receipt of credit for the full order quantity in the CM Pool Account, the Delivery-Out Instruction is triggered and the status changes to Instruction ready for Settlement.

(e)

(ii)

(iii) At NSDL Deadline time, if the balance in the CM Pool Account does not become equal to the order quantity, then such Delivery-Out Instruction which is in the status Overdue will be executed partially to the extent of balance available in the CM Pool Account. The status of such Delivery-out Instruction will change to Partially

[ 123 ]

Accepted and then to Partially Settled. The partially executed quantity is displayed on the Delivery-Out Instruction screen separately against the field Delivered Quantity. (iv) Participants must monitor the status of such partially executed Delivery-Out Instructions at the NSDL Deadline time in the Delivery-Out Instruction screen by selecting the flag for the field See only Partial Delivery Out Instructions and querying on the same. (v) Instructions in the status Overdue will remain in that status waiting for sufficient balance till the NSDL deadline time. On receipt of credit for the full order quantity in the CM Pool Account in the late pay-in window, the Delivery-Out Instruction is triggered and the status will change to Instruction ready for Settlement.

(vi) At the NSDL deadline time, if there is no balance in the CM Pool Account, then the Delivery-Out Instruction which is in the status Overdue will fail with the status Rejected with the reason Cancelled, Overdue status during settlement. (vii) Participants should ensure that the Delivery-Out Instructions are in the status Overdue or Instruction ready for Settlement atleast 30 minutes before the NSDL Deadline time. (f) In respect of instructions remaining in status Released, Participants are advised that the Message Control Panel under GISMO allows the Participants to monitor the status of incoming messages as under: Sr. No. Tab 1 2 3 Message Receiver Master Message Processor Function Receiving messages Processing master messages

ISINWise Message Processor Processing transaction messages

If the above mentioned messages are received and processed properly, the same are highlighted through green color otherwise red color will be displayed. This indicates that the services are stopped or any other kind of error has occured. (g) Participants are also advised to note the following: (i) Participants should ensure that the following services are always running: a. NSDL HTTP Message Receiver Service b. NSDL ISINWise Message Processor Service c. NSDL Master Message Processor Service d. NSDL Export (File Generator) Service e. NSDL Automatic File Upload Service These services can be monitored through the

[ 124 ]

Communication tab available in GISMO. In case above mentioned services are stopped and/or any error is displayed, the same should be reported to NSDL Helpdesk. (ii) In case the instructions or batch upload file remains in status Released or Transferred respectively for a long time, Participant should inform NSDL Help Desk immediately.

(iii) Participants must ensure that Ping to NSDL and Ping to router are functioning successfully and in case Ping to NSDL and Ping to router fails, Participant must report the same to NSDL Help Desk immediately. * Status description changed from Accepted by NSDL to Acknowledgement awaited from other Depository. However, the status code 33 remains unchanged. Circular No : NSDL/POLICY/ 2010/0118 Date: October 30, 2010 Sub: Extension of deadline time for submission of IDT instructions. Further to our Circular No. NSDL/PI/2003/1953 dated December 8, 2003, all Participants are hereby informed that henceforth the deadline timings for online inter-depository transfer (IDT) instructions from Mondays to Fridays with effect from November 2, 2010 will be as under : Sr. No. 1 Particulars Deadline time for Participants to verify/release (Manual/Bulk) IDT delivery/receipt instructions with current execution date. NSDL deadline time for receiving IDT delivery/ receipt instructions from Participants. Deadline Time (New) 7.00 pm

7.20 pm

Participants are advised to ensure that all IDT instructions are executed well before the aforesaid deadline time and ensure that all instructions are in the status Accepted by NSDL by 7.20 pm. In case of any difficulty, the problem should be reported to NSDL Help Desk and Token Number for the complaint be obtained. Further, deadline time for Clients / Clearing Members to submit Inter Depository Delivery instructions on SPEED-e facility would be 6.00 pm. Participants should ensure to download at least one batch of instructions from SPEED-e after 6.00 pm and upload the same into the DPM System well before the prescribed deadline time i.e.,7.00 pm. IDT instructions received after 7.20 pm would be rejected and the status of such instructions would be displayed as Closed, Rejected by NSDL with the reason NSDL deadline time has passed. Circular No : NSDL/POLICY/ 2009/0082 Date: September 9, 2009 Sub: Master Circular on Delivery Instruction Slips (DIS) - Version 1.0 NSDL has been issuing various circulars from time to time stipulating the procedures to be followed by Participants for issuance, re-issuance and execution of DIS. The guidelines issued by SEBI and NSDL from time to time have now been consolidated into a single master circular for ready reference (Annexure A). Participants are requested to note that requirements, which have become redundant, have been deleted from the master circular. Further, reference number and date of issuance of the relevant circulars are mentioned in the master circular for ready reference. While every care has been taken to

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include all relevant requirements, Participants should refer to NSDL Bye Laws, Business Rules and Circulars issued from time to time. For any information/clarifications, Participants are requested to contact NSDL officials on telephone numbers (022) 2499 4488 / 4214 / 4494 (email: participant-interface@nsdl.co.in). Annexure A Master Circular on Delivery Instruction Slips (DIS) - Version 1.0 INDEX Sr. No. Topic 1 Types of DIS 2 Issuance and Re-issuance of DIS 3 Modes of providing DIS booklets to Clients 4 Issuance of Loose leaf DIS 5 Checks and Controls in case Participant is using back office system / Manual controls 6 Execution of transactions based on receipt of electronic instruction 7 Submission of instructions using SPEED-e facility of NSDL 8 Deadline for submission of market instructions on SPEED-e 9 Instructions received from Clients who have attained majority 10 Instructions received from illiterate persons 11 Instructions received from Blind persons 12 Instructions received through fax 13 Facility for submitting consolidated DIS accompanied by computer print-outs by Power of Attorney (POA) holder (other than Participant) on behalf of its Clients 14 Facility for acceptance of Consolidated Client Delivery Instructions computer printouts allowed where POA is given by Clients in favour of Participant 15 Acceptance of Client's Delivery Instructions accompanied with computer printouts 16 Acceptance of instructions accompanied by computer printouts for Clearing Members 17 Computer printouts allowed for other types of instructions 18 Instructions received for Buy Back / Open Offer 19 Incorporation of details in DIS as advised by Financial Intelligence Unit (FIU) 20 Processing of DIS (i) Acknowledgement of instruction at the time of accepting physical / electronic DIS (ii) Deadline time for submission of physical / electronic instructions (iii) Deadline time for accepting non pay-in related instructions (iv) Processing of IDT Instructions (v) Deadline for Bulk Verify & Release for IDT Instructions (vi) Execution date of instructions falling on a Sunday or any other DM holiday (vii) Restriction on processing of DIS at franchisee 21 Internal and Concurrent Audit - Control and Verification of Delivery Instruction Slips 22 Precautions to be taken at the time of accepting market related instructions (1) Types of DIS: The various types of DIS forms are given below: (a) Annexure L (new and old formats) - Delivery Instruction Slips submitted by Clients (beneficial owners) where the source and target details are in NSDL. (b) Annexure LA (new and old formats) - Combined delivery instruction Slips for Account Transfer (within NSDL) & Inter-Depository Transfer Instructions. (c) Annexure M - Receipt Instructions by Clients / Clearing Members. (d) Annexure N - Inter-Depository Transfer Delivery Instructions.

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(e) (f) (g) (h) (i) (j)

Annexure Annexure Annexure Annexure Annexure Annexure

NA - Inter-Depository Transfer Receipt Instructions. S - Delivery Out Instructions submitted by Clearing Members for pay-in. SS - Inter-settlement Instructions. ST - CM Pool to CM Pool Delivery Instructions by Clearing Members. SU - CM Pool to CM Pool Receipt Instructions by Clearing Members. T - Delivery Instructions by Clearing Members on Pay-out.

Participants can use either the old format or the new format of Annexure L / Annexure LA depending upon their convenience of operations. (2) Issuance and Re-issuance of DIS booklets: (NSDL/PI/2002/0709 dated May 3, 2002, NSDL/PI/2004/1401 dated August 5, 2004, NSDL/POLICY/ 2007/0011 dated February 15, 2007, NSDL/POLICY/2007/0030 dated June 18, 2007, NSDL/POLICY/ 2007/0049 dated August 21, 2007 and NSDL/POLICY/2008/0011 dated February 29, 2008) (i) All DIS must bear pre-stamped Client ID and pre-printed unique identification number (serial number). Participants may consider printing the name(s) of account holder(s) as well, on the DIS. Further, if the DIS booklet is issued to an illiterate person, the same should be prestamped as Thumb Impression, in case of blind person, DIS booklet should be pre-stamped as Visually Challenged and in case of blind illiterate person, DIS booklet should be prestamped as Visually Challenged and Thumb Impression. DIS issued to joint account holders and accounts operated by Power of Attorney holder (POA) may be distinguished either by different coloured stationery or by any other method as the Participant deems fit.

(ii)

(iii) All DIS booklets must contain a Requisition form that should bear pre-stamped Client ID and a provision to attest the signature of the person to whom the account holder wishes to authorise to collect the booklet on his/her behalf. Participants may consider printing the name(s) of account holder(s) as well on the Requisition form. (iv) Re-issuance of DIS booklet should strictly be on receipt of Requisition form duly signed by all account holder(s). In case a Client reports that the Requisition form has been lost/misplaced/ stolen, the Client should make a written request on a plain paper signed by all the account holders(s) and submit the latest Transaction Statement, for issuance of DIS booklet. (v) A DIS Issuance Register should be maintained, which should have details such as Clients name, Client ID, unique identification number (serial number) of DIS (start and end), date of issue and mode of issue. In case the DIS booklet is delivered by hand, name of the person to whom it is handed-over (address as well as contact telephone number(s) in case of authorised person) alongwith his/her signature should be obtained on the DIS Issuance Register.

(vi) The inside back cover of the DIS booklet should be printed with information on Grievances Redressal Mechanism as intimated vide NSDL Circular No. NSDL/PI/2004/1286 dated July 19, 2004. (3) Mode of providing DIS booklets to Clients: Participants are advised as follows: Sr.No a Particulars Action

When a Client's request for DIS Send DIS booklet through registered post/courier, booklet is received through post/ to the address of the Client captured in the DPM courier. System after duly verifying the signature(s) of the Client(s). When a Client (sole holder or Hand-over DIS booklet to the Client, only after either of the holders) comes in satisfying about the identity of the Client. person and submits the Requisition form for re-issuance of DIS.

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Sr.No c

Particulars

Action

When a Client authorises a Hand-over the DIS booklet to the authorised representative to collect DIS. person, only after establishing the identity of the authorised person (refer Circular no. NSDL/ POLICY/2009/0029 dated April 16, 2009 for list of identity documents, which can be obtained by Participant). However, in case the Participant is not in a position to establish the identity of the authorised person, DIS booklet should be sent through registered post/courier, to the address of the Client. In case a Client reports (in writing) that the Requisition form (slip) has been lost / misplaced / stolen. Send DIS booklet through registered post/courier, to the address of the Client registered with the Participant. However, in case the Client or its authorised person comes in person to collect the DIS, it may be handed-over only after the identity of the person is established as mentioned above. Participant should obtain an independent confirmation (by way of letter/e-mail/telephone) from the Client(s) in this regard, before issuing the DIS.

In case a request for issuance of DIS booklet is received through post/courier immediately (i.e. within 30 days) after change in the address in the depository account of the Client.

(4)

Issuance of Loose leaf DIS: (NSDL/PI/2004/1401 dated August 5, 2004, NSDL/POLICY/2007/0011 dated February 15, 2007 and NSDL/POLICY/2008/0011 dated February 29, 2008) In case a Client (all the holders in case of joint holding) wishes to submit an instruction but does not have the DIS, the Participants are advised as follows: (a) (b) (c) The Client visits the Participants office in person; Participant satisfies itself about the identity of the Client and issues loose leaf DIS; and The Client signs the DIS in the presence of authorized official of the Participant.

Participants must ensure that the DIS issued to the Client also bears pre-printed unique identification number (serial number), which should be from a different series, and a record thereof is maintained by the Participant in a Loose-leaf DIS Register. The Loose-leaf DIS Register should contain Clients name, Client ID, serial number of loose-leaf DIS, date of issue and his/her signature. Further, the Participant shall not issue more than 10 loose DIS to one account holder in a financial year (April to March). In addition to the existing process of verification, another staff of Participant should also verify the signature(s) separately. (5) Checks and Controls required in case Participant is using back office system / Manual controls: (i) Automated checks in the back office system of the Participant: (a) (b) Participants must record the serial numbers and run an automatic check while executing transactions based on DIS. Ensure that the system has in-built controls for matching of serial numbers with the respective Client IDs and that the system blocks the DIS permanently that have been used. In case any Client reports (in writing) that DIS(s) has/have been lost/misplaced/stolen or the account is closed, unused serial number(s) should be permanently blocked.

(c)

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(d)

In case any DIS is presented for execution that has already been used or is part of the series of DIS which have been reported as lost/misplaced/stolen then the system should give automatic alert, in which case, Participant should contact the Client(s) immediately. Participants must ensure that a DIS Control Register is maintained for recording details of serial numbers and Client IDs with which the serial numbers are associated. Participants should verify the same at the time of receipt of DIS and make a remark that it has been used. In case a Client reports (in writing) that DIS is lost/misplaced/stolen or the account is closed, the same should be cancelled in the DIS Control Register. In case any DIS is presented for execution that has already been used or is part of the series of DIS, which have been reported as lost/misplaced/stolen then there should be a mechanism to raise an alert, in which case, Participant should contact the Client(s) immediately. Employees of Participant processing DIS should put their signature on the DIS indicating that they have verified the signature(s) of the account holder(s) and that the unique identification number (serial number) belongs to that Client. In case of manual controls, employees of Participants, before signing on the DIS, should also ensure that the DIS bearing unique number belongs to that Client. There shall also be an indication of the value of the transactions contained in a single DIS on the system of Participant and in case the value of securities on the DIS amounts to Rs. Five lakh or more, it should be subject to two step verification, especially for off market transactions. In case a DIS is received from a dormant account (i.e. where no transaction has taken place for a period of six months or any other lesser time period as may be decided by the Participant), in addition to the existing process of verification, another employee of the Participant should also verify the instruction. The Participant should obtain an independent confirmation from the Client(s) in this regard before processing the DIS. However, in case of active accounts, such verification is mandatory only if the account has five or more ISINs and all such ISIN balance are transferred at a time. The authorized official of the Participant verifying such transactions with the Client, shall record the details of the process, date, time, etc. of the verification on the instruction slip under his signature. Further, in order to facilitate identification of dormant accounts, an alert has been provided in the DPM System when Participant captures / verify releases instruction in the Client accounts where the system has not performed any of the transactions with relation to Account transfer (Debits), Inter Depository transfer (Debits), Remat and Pledge in any of the ISINs for a defined period of time through manual data entry in the DPM System or uploading the instructions through Back-office. Participant can override this warning message and continue capture/ verify-Release operation. In case aforesaid instructions are being executed using DPM import, an error file (.prn) will be generated containing warning message. For this, Client accounts that have not executed any of the above transactions for last 180 days will be marked as dormant account. Further, Participants may note that after any debit transaction is executed in a dormant account, it will be marked as nondormant in the EOD process of that day. This implies that alerts will be generated for all instructions executed on that day for the dormant account till EOD of that day. Participants can also generate Transaction Statement Report for dormant Client accounts, which give the list of transactions that are executed in a dormant account for the day when account is marked as non-dormant at EOD. The report will be generated based on

(ii) Manual controls: (a)

(b) (c)

(iii) Important note on automation and manual control: (a)

(b)

(c)

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date range such that Date wise and Client account wise Transaction Statement report are generated for all the transactions that are executed in dormant accounts on the day when the account was marked from Dormant to Non-Dormant (Refer Circular No. NSDL/POLICY/2008/0021 dated April 4, 2008). (d) (e) (6) Participant shall cross check with the Client(s) under exceptional circumstances before acting upon the DIS. In case DIS received is pre-signed with blank columns, Participant should not accept such DIS.

Execution of transactions based on receipt of electronic instruction: (NSDL/POLICY/2008/0002 dated January 11, 2008) Participants can execute transactions based on receipt of electronic instructions from Client after ensuring compliance with Rule 4.5.1 of the Business Rules of NSDL and upon receipt of prior approval from NSDL. As per Rule 4.5.1 of Business Rules of NSDL, Participants are required to ensure compliance with the following conditions for accepting instructions in electronic form: (i) The Participant has adequate systems and security features in place to authenticate the Client and the Client to authenticate the Participant; (ii) The Participant is able to conclusively prove the origin, destination, date and time of receipt or dispatch of such electronic instructions received by it; Explanation: (a) As per the provisions of the Information Technology Act 2000 (IT Act), legal recognition for transactions carried out electronically envisages use of digital signature for authentication of electronic records. Thus, the instructions submitted electronically need to be authorised using Digital Signature Certificate issued by a Certifying Authority (CA) licensed by Controller of CA. This would ensure that the Client itself has submitted the instruction which cannot be repudiated later. Accordingly, as mentioned in point nos. (i) and (ii) hereinabove, Participants will be required to establish systems/process in place to confirm that the instructions received in electronic form are indeed digitally signed by the Client and are not modified subsequent to digitally signing of instructions. Further, the systems/process that Participant establishes must enable the Client to ensure that the digitally signed instructions are indeed received by the authorised person of the Participant. Participants will be responsible to establish the procedure that will ensure the validity of digital signature certificate of the Users and will also ensure that the person digitally signing the instructions is indeed authorised to do so. Participant will be required to establish the procedure which will be followed by the Client for authenticating the Participant.

(b)

(c)

(iii) The Participant retains such electronic instructions in the format in which it was originally received or sent or in a format which can be demonstrated to represent accurately the information which was originally received or sent; Explanation: (a) Electronic instructions received by the Participants must be authenticated using signature verification utility (SVU). This is required to ensure that the instructions are indeed received from the Client. SVU should be issued by a CA licensed by Controller of CA to validate the digitally signed files received from the Client. The SVU will strip the digital signature after successful authentication. The new file thus generated after authentication must be stored as a different file before uploading/executing in the DPM System so as to keep the original file with the digital signature intact. Participants will be required to ensure that the authenticated file should not be altered and should represent accurately the information which was originally received from or sent by the

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Client, before uploading/executing the file in the DPM System. In this regard, Participants will be liable for any claims that may be raised by the Client on account of any loss arising from execution of instructions which are altered subsequent to stripping the digital signature. (b) Participants are advised to ensure that the instructions submitted electronically using digital signature must be retained alongwith the digital signature for the period as specified in various regulations. Participants are advised to retain the details of authorised persons who are digitally signing the instructions for the period as specified in various regulations.

(c)

(iv) The instructions received remain accessible and usable for subsequent reference. Explanation: (a) Participants will be liable to produce these electronic records in a readable form to NSDL, SEBI or to any other Statutory Authority, whenever required. As Participants are aware, NSDL inspects the records of the Participants at regular intervals. Therefore, the file formats of digitally signed instructions should adhere to either of the file formats prescribed for DPM System or SPEED-e. The signed file should be such that instruction details can be clearly identified, thus it can be in a flat file as per backoffice import file formats or SPEED-e import file formats or a format which is readable directly, without a need to interpret the information in the file. Participants will be required to provide the SVU that would enable NSDL inspection team to verify the transactions that are received electronically. Also, Participants will have to ensure that any new upgrades done by its CA is incorporated in the SVU and provided to NSDL at the time of inspection.

(b)

(c)

General compliance 1. Participants must ensure compliance with the prevailing guidelines mentioned above regarding the requirements of time & date stamping and deadline for submission of electronic instructions received from Client. Participants are advised to ensure compliance with respect to the requirements mentioned below regarding details to be obtained from Clients in respect of Consideration and Reasons/Purpose for off-market transactions. Participants should be able to provide the details of the instructions to the NSDL inspection team based on the relevant details provided to the Participants by NSDL. Participants are advised to follow the procedure mentioned in NSDL Circular No. NSDL/POLICY/ 2007/0054 dated September 22, 2007 regarding capturing of Power of Attorney holder/Authorized Signatory signature and the changes in the back-office module and the file formats in respect of the back-office batch interface with the DPM System. Participants are advised to select Signature Type as Digital only for those accounts for which NSDL has permitted Participants to use digital signature for submitting delivery instructions. The internal auditors as appointed by Participants will be required to verify that necessary audit trails and checks have been implemented in conformity with NSDL prescribed guidelines / circulars and the deviations, if any, may be reported in the internal audit report under point no. 6 Audit of delivery instructions (Refer NSDL Circular no. NSDL/POLICY/2008/0077 dated November 3, 2008). In case no deviations have been reported, it will be treated that the aforesaid requirements have been duly complied with by the Participant. Participants will be responsible for ensuring compliance with the provisions of Depositories Act, SEBI (Depositories and Participants) Regulations, 1996, The Prevention of Money Laundering Act, 2002, Bye Laws and Business Rules of NSDL, as well as any other circulars / guidelines issued by NSDL from time to time, in this regard. Participants can execute transactions based on the electronic instructions after ensuring compliance with each of the aforesaid conditions in this regard and upon receipt of prior approval from NSDL.

2.

3. 4.

5.

6.

7.

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(7)

Submission of instructions using SPEED-e facility of NSDL: (NSDL/PI/2001/1307 dated August 27, 2001, NSDL/POLICY/2008/0013 dated March 3, 2008 and NSDL/POLICY/SPEED-e/2009/0005 dated June 20, 2009) SPEED-e enables demat account holders of the Participants to issue their delivery instructions, in expanded time frames and from anywhere directly through internet on SPEED-e website viz.; http:\\speed-e.nsdl.com, thus eliminating the need to submit delivery instructions in paper form. Participants will have to periodically (at least three times a day) download these instructions from SPEED-e website, import them into the DPM System and upload the status of the instructions back to the site. Participants can access SPEED-e through smart card / e-token based authentication. The files downloaded by the Participant will bear digital signature of the site and files uploaded by the Participant will bear the digital signature of itself. SPEED-e has been designed to meet the requirements of both, the password user as well as smart card / e-token based user. This facility features smart card / e-token based access authentication and digital signature based transaction authorisation for the high-end users such as CMs, sub-brokers and traders, high networth individuals, etc. and password based authentication for the low-end users. For more details, Participants may refer to NSDL Circular No.NSDL/PI/2001/1307 dated August 27, 2001 and NSDL/POLICY/2008/ 0013 dated March 3, 2008. Instructions on SPEED-e with current date as the execution date can be executed on SPEED-e by the Client upto 7:00 p.m. IST on weekdays and 3.00 p.m. IST on Saturdays. However, instructions with future date as the execution date can be executed at any time, even after the aforementioned deadline times.

(8)

Deadline for submission of market instructions on SPEED-e: (NSDL/POLICY/SPEED-e/2008/0004 dated April 23, 2008, NSDL/POLICY/2009/0050 dated June 26, 2009 and NSDL/POLICY/SPEED-e/2009/0006 dated July 6, 2009)

Participants must take note of the following deadline time for submission of pay-in instructions on SPEED-e, on the pay-in day based on the market type for below given stock exchanges: Name of the S t o c k Exchange Market Types Revised deadline time for submission of instructions (pertaining to pay-in) by Clients on SPEED-e on payin day 8.00 am 10.00 am NSDL deadline time for execution of instructions in the DPM System on pay-in day

NSE

SLB First Leg, SLB Return Leg and SLB Auction Buy-in Normal, Auction Normal, Trade for Trade, Company Objection, Retail Debt Market, Bad Delivery, Institutional and MFSS T+3

9.00 am 10.40 am

BSE

SLB, SLB-R and Buy in Auction. Rolling Market Lot Auction Rolling Company Objection

8.00 am 10.00 am 11.00 am

9.00 am 10.40 am 12.00 noon 1.00 pm 4.00 pm

CSE

Rolling Market Lot Auction Rolling

and

9.30 am

10.30 am

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Participants must take note of the following: 1 In case there are multiple pay-ins of same market type for a stock exchange happening on the same day, in such a case, the deadline time of submission of instructions on SPEED-e on the payin day would be as follows: Name of the S t o c k Exchange Market Types Deadline time for submission of instructions on SPEED-e (earlier 10.00 a.m.) NSDL deadline time for execution of instructions in the DPM System (earlier 10.40 a.m.) 9.40 a.m.

NSE

Normal, Trade for Trade, Retail Debt Market, Bad Delivery and MFSS T+3 SLB First Leg, SLB Return Leg and SLB Auction Buy-In

9.00 a.m.

7.00 a.m. 9.00 a.m. 7.00 a.m.

8.00 a.m. 9.40 a.m. 8.00 a.m.

BSE

Rolling Market Lot SLB First Leg, SLB Return Leg and SLB Auction Buy-In

2.

The deadline time for submission of instructions on SPEED-e for other stock exchanges remains unchanged i.e. submission deadline time on SPEED-e on the pay-in day would be 8.00 am.

Participants must ensure that all the instructions submitted by the Clients within the aforesaid deadline time are duly executed in the DPM System and in case Participants encounter any difficulty in downloading the instructions from SPEED-e, the same should be reported to Help Desk immediately. (9) Instructions received from Clients who have attained majority: (NSDL/POLICY/2009/0029 dated April 16, 2009) In case of Minor attaining majority, Participants should ensure that any request or instruction received from the guardian, which is to be processed or is having a execution date falling on or after the date, the Minor has turned Major, shall be processed/executed only after receipt of confirmation from the Client (Minor turned Major). Participants should note that the aforesaid guidelines are in addition to the existing guidelines with regard to executing instructions. (10) Instructions received from illiterate person: (NSDL/PI/2002/0709 dated May 3, 2002) Participants must follow the below given procedure for execution of DIS received from illiterate persons: a) The Client(s) must come in person to submit DIS and affix his/her thumb impression in the presence of the official of the Participant. The Participant should identify the Client(s) by verifying the photograph submitted by the Client(s) and read out/explain the contents of the delivery instruction form to the Client(s). The official of the Participant should then put his signature and remarks Details explained to the Client(s), on the DIS. 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 in point (a) above, the thumb impression of the Client(s) on the DIS 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 holders bank. The Client should also produce a medical certificate about his/her disability.

b)

Participants should note that the aforesaid guidelines are in addition to the existing guidelines with regard to executing instructions.

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(11)

Instructions received from Blind person: (NSDL/POLICY/2007/0049 dated August 21, 2007)

In case of DIS received from Blind persons, Participants should follow the existing guidelines with regard to executing instructions. In case such Client is illiterate, he/she should personally visit the office of the Participant for submitting the DIS. (12) Instructions received through fax: (NSDL/PI/2002/0740 dated May 9, 2002 & NSDL/POLICY/2008/0045 dated June 16, 2008) Participants are advised to take note of the following precautions while executing such instructions: 1. 2. Participant should obtain a fax indemnity duly signed by all the Client(s)/authorised signatories of the account. Participant must advise its Clients to mark This is a fax instruction on the face of the DIS with a view to identify the same from the original DIS received subsequently. Only such fax instructions should be executed by the Participant. The Client, while issuing a fax instruction, must use the DIS issued to it by the Participant. The Participant should verify the signature(s) of Client(s) / authorised signatory(ies), pre-printed serial number and pre-stamped Client ID, as per the existing procedure for processing DIS. The staff of the Participant who processes the fax instruction shall put his/her signature on the fax instruction indicating that the signature has been verified and that the DIS belongs to that Client. Participant should affix the time stamp on the fax instruction form as well as on the original DIS, when received and keep both of them together for records. Participant should ensure that it receives the original DIS subsequently, latest within three days (excluding Sundays and Bank holidays) from the date of receipt of the fax instruction. In case the Participant does not receive the original DIS within the stipulated time, it should inform such Clients that the facility of executing instructions received on fax is withdrawn, till the original DIS is received. Participant must establish suitable procedure to prevent multiple execution of the same instruction. Participant should also take such steps to preserve the fax instruction form in legible form. Participant, before providing this facility to the Clients, must obtain a suitable insurance cover in this regard. Participants should note that the aforesaid guidelines are in addition to the existing guidelines regarding execution of delivery instructions.

3.

4.

5. 6.

7. 8. 9. 10.

(13) Facility for submitting consolidated delivery instruction slips accompanied by computer printouts by POA holder (other than Participant) on behalf of its Clients: (NSDL/POLICY/2008/0004 dated January 24, 2008) Participants may accept delivery instructions (Annexure L, Annexure LA and Annexure N) accompanied by computer print-outs from the POA holder, subject to the following conditions: 1. A suitable mechanism should be implemented in the back-office system of the Participant to identify such Clients. In the absence of back-office system, Participant should maintain a separate DIS register (in physical or electronic mode as the Participant may deem fit) containing the details of such Clients and POA holder. The DIS must bear separate series of pre-printed serial numbers and should be distinguished by different colour or by any other method. Participants may consider printing / stamping the name of the POA holder on the DIS and requisition form. The computer print-outs must contain all the details as specified in Annexure L, LA and N of Business Rules and accompanied by a single DIS (Annexure L, LA and N) as applicable. Further, the source Client ID should be mentioned against each instruction in the computer print-out. Words Details as per (total) number of pages attached should be written on DIS.

2.

3.

4.

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5. 6.

The pre-printed serial number of the DIS should be mentioned on every page of the computer printout. Every page of the computer printout including DIS should be signed by the POA holder.

(14) Facility for acceptance of Consolidated Client Delivery Instructions computer printouts allowed where POA is given by Clients in favour of Participant: (NSDL/PI/2000/1953 dated October 19, 2000) In cases when several Clients have signed POA in favour of the Participant for issue of delivery instructions, a consolidated delivery instruction will be valid and separate Client-wise instructions would not be necessary. Participants must ensure the following: 1. A duly signed computer printout containing all the details as specified in the delivery instruction form (Delivery Instructions by Clients viz., Annexure-L of Business Rules) should be on record alongwith the Annexure-L. The source Client ID should be mentioned against each instruction in the computer printout. Words Details as per _______ (total) number of pages attached should be written on the delivery instruction form viz., Annexure-L. The pre-printed serial number of the delivery instruction form should be mentioned on every page of the computer printout. Every page of the computer printout and the delivery instruction form should be signed by the POA holder. The delivery instruction forms used for the aforesaid purpose should bear separate series of preprinted serial numbers. (NSDL/PI/2000/500 dated April 18, 2000) Participants can accept the Delivery Instructions by Clients (Annexure-L, LA and N) accompanied by computer printouts of the instruction details, subject to the following conditions: 1. 2. 3. 4. The computer printout (enclosure) should contain all the details as specified in the delivery instruction form. Words Details as per _______ (total) number of pages attached should be written on the delivery instruction form. The pre-printed serial number of the delivery instruction form should be mentioned on every page of the enclosure. Every page of the enclosure and the delivery instruction form should be signed by all the account holder(s)/authorised signatory(ies). (NSDL/PI/99/572 dated July 21, 1999) Participants can accept the following delivery instruction forms viz; Delivery Instructions by Clearing Members for Pay-In (Annexure-S), Delivery Instructions by Clearing Members on Pay-Out (AnnexureT) and Inter-Settlement Instructions (Anexure-SS) accompanied by computer printouts of the instruction details, subject to the following conditions: 1. 2. 3. 4. The computer printout (enclosure) should contain all the details as specified in the delivery instruction form. Words Details as per _______ (total) number of pages attached should be written on the delivery instruction form. The pre-printed serial number of the delivery instruction form should be mentioned on every page of the enclosure. Every page of the enclosure and the delivery instruction form should be signed and stamped by the authorised signatory(ies).

2. 3. 4. 5.

(15) Acceptance of Clients Delivery Instructions accompanied with computer printouts:

(16) Acceptance of instructions accompanied by computer printouts from Clearing Members:

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(17) Computer printouts allowed for other types of instructions: (NSDL/PI/2003/0852 dated May 26, 2003) Participants are hereby informed that the procedure mentioned in point no. 15 and 16 above must be followed while accepting the following types of instructions from their Clients: (i) (ii) (iii) Pledge/Hypothecation Inter-Depository Transfers CM Pool to CM Pool transfers by Clearing Members

It may be mentioned that annexure attached to the instruction form may contain multiple target Client IDs with corresponding details. (18) Instructions received for Buy Back / Open Offer: (NSDL/PI/2002/1108 dated July 9, 2002) Participants are requested to advise their Clients to submit such instructions at least one working day before the date of closure of such offers or prior to such deadline time as may be decided by the Participant for submission of delivery instructions by Clients. Further, Participant should advise their Clients to mark Buy back/Open offer on the face of the instruction slips so as to identify such instructions and execute them on a priority basis. (19) Incorporation of details in DIS as advised by Financial Intelligence Unit (FIU): (NSDL/POLICY/2007/0069 dated November 12, 2007, NSDL/POLICY/2007/0071 dated November 12, 2007, NSDL/POLICY/2007/0072 dated November 23, 2007, NSDL/POLICY/2008/0062 dated September 12, 2008 and NSDL/POLICY/SPEED-e/2008/0006 dated November 10, 2008) (i) Participants may note that Annexure L, Annexure N, Annexure NA and Annexure LA to Business Rules of NSDL have been amended to incorporate the details. viz. Consideration and Reasons/Purpose as advised by Financial Intelligence Unit India Participants will be required to ensure that additional details as per the guidelines issued by Financial Intelligence Unit-India (FIU-IND) under The Prevention of Money Laundering Act, 2002 (PMLA), has been incorporated in the DIS. Participants should ensure that at the time of accepting existing DIS (in old format), for executing the off market transactions, they obtain the additional details as prescribed above on a plain paper duly signed by the applicant(s). Further, Participants may use the existing DIS till such time the stock of the existing DIS is exhausted.

(ii)

NSDL has also incorporated the fields viz., Consideration and Reasons/Purpose for smart card / etoken Users as SPEED-e enables only the smart card / e-token Users to submit off-market instructions. (20) Processing of DIS : (i) Acknowledgement of instruction at the time of accepting physical / electronic DIS. (a) Physical DIS: (NSDL/PI/98/519 dated October 13, 1998) In view of the time-criticality of execution of Clients instructions, especially those relating to market trades, all Participants are advised that the delivery / receipt instruction forms submitted by the Clients should be time-stamped. The time and date of receipt of the form should be put on both the portions of the form i.e., Participants copy & Clients copy which should be duly signed & stamped by the Participant. (b) Electronic submission of instruction: The Participants should be able to conclusively prove the origin, destination, date and time of receipt of dispatch electronic instructions received by it. (ii) Deadline time for submission of physical / electronic instructions related to pay-in: (NSDL/PI/2003/0406 dated March 7, 2003 and NSDL/POLICY/2009/0019 dated March 14, 2009) Participants are advised to take note of the procedure given here below:

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(a)

Participants shall accept instructions from the Clients, in physical form upto 4 p.m. (in case of electronic instructions upto 6.00 p.m.) on T+1 for pay-in of securities, viz.; instructions to transfer securities from Client account to CM Pool account, InterSettlement Instructions, CM Pool to CM Pool account transfers and Delivery-Out Instructions, etc. For example, pay-in for trades executed on Monday will be on Wednesday. Clients will have to submit instructions to their Participants upto 4 p.m. (in case of electronic instructions upto 6.00 p.m.) on Tuesday. Settlement instructions received from any Client beyond the aforementioned deadlines would be received by the Participants at Clients risk and acknowledgment thereof should be issued by Participants to the Clients, with suitable remarks. Participants should complete execution of pay-in instructions and ensure that they are in status Accepted by NSDL well before the pay-in deadline time on T+2. In case the account does not have sufficient balance, the Client to CM Pool account transfer instructions will reflect the status Overdue at DM, irrespective of the execution date and will remain valid till the pay-in for the requisite settlement number and market type, during the pay-in process; i. if partial balance is available in the Client account, then the same will be debited and transferred to the CM Pool Account. The status of the instruction will get updated as Closed, Partially Settled. if no balance is available in the Client account, then the instruction will get rejected. The status of the instruction will get updated as Closed Failed during Settlement.

(b)

(c) (d)

ii. (e)

In respect of CM Pool Accounts where standing instruction indicator are not enabled in the DPM System, Participants are requested to note that delivery instruction from the Client account (with or without security balances) and/or Receipt Instructions from its CM Pool Account that are unmatched will remain valid till the end of the day (EOD) of the execution date.

(iii) Deadline time for accepting non pay-in related instructions: (NSDL/PI/2004/1911 dated October 21, 2004) SEBI has clarified that Participants can decide their own time frame for submission of such instructions by their Clients (i.e. one or two days before the execution date). However, Participants should execute the instruction not later than one day from the date of submission of instruction by the Client. Further, if the date of submission and the execution date are same, Participants may execute such instructions on the same day on a best effort basis. For example: Date of submission October 19, 2004 October 19, 2004 October 19, 2004 Execution Date October 20, 2004 October 22, 2004 October 19, 2004 Date on which the Participant should execute the instruction On or before October 20, 2004 On or before October 20, 2004 On October 19, 2004 on a "best effort basis"

Participants should communicate this information to their Clients through regular communications / newsletters as well as put up this information on the notice board for information of all their Clients. (iv) Processing of IDT Instructions: (NSDL/PI/2002/2138 dated December 12, 2002 and NSDL/PI/2002/2180 dated December 19, 2002)

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Participants are advised to note the following deadline timings for execution of IDT instructions: Sr. No. Particulars 1 2 Deadline time for Participants to verify & release IDT delivery/receipt instructions NSDL deadline time for receiving IDT delivery/ receipt instructions from Participants On Week days 6.00 p.m. 6.30 p.m. On Saturdays 2.30 p.m. 3.00p.m.

(v)

Deadline for Bulk Verify & Release of IDT Instructions: (NSDL/POLICY/2007/0042 dated July 23, 2007) Participants are advised to note that the deadline timings for executing bulk verify/release of IDT instructions are 5.00 p.m. on weekdays and 1.30 p.m. on Saturdays. An additional window of one hour for executing such IDT instructions through bulk verify/release option is provided i.e. upto 6.00 p.m. on weekdays and 2.30 p.m. on Saturdays, subject to payment of an additional charge of Re. 1 per IDT instruction. Participants may therefore note that an additional charge of Re.1 per IDT instruction released through bulk verify/release after 5.00 p.m. (i.e. between 5.00 p.m. & 6.00 p.m.) on weekdays and after 1.30 p.m. (i.e. between 1.30 p.m. & 2.30 p.m.) on Saturdays will be levied to the Participants. Participants are advised to exercise prudence while executing IDT instructions through bulk verify/release facility. This precaution is necessary as these instructions require acceptance by the other depository within the mutually agreed time frame and any bunching of instructions will unduly strain the system. Therefore, Participants are advised to execute IDT instructions through bulk verify/release facility at periodic intervals so that the load on the network is distributed throughout the day.

(vi) Execution date of instructions falling on a Sunday or any other DM holiday: (NSDL/POLICY/2008/0079 dated November 5, 2008 and NSDL/PI/2001/0812 dated June 11, 2001) Participants are advised to note that account transfer (debiting beneficiary or Clearing Member Pool accounts), pool to pool, inter-settlement, inter-depository and pledge related instructions that are verified/released in the DPM System with execution date falling on a Sunday or any other DM holiday will be executed on the next business day. In this regard, Participants are advised to note that such instructions should be received by NSDL and status of the instructions in the DPM System should be Future dated Order received by NSDL before EOD of: (i) (ii) Saturday if the execution date happens to be a Sunday, previous business day if the execution date happens to be a DM holiday.

Participants are requested to note that delivery-out instructions should be received by NSDL before the pay-in deadline time. (vii) Restriction on processing of DIS at franchisee: (NSDL/PI/2005/2088 dated October 28, 2005) Participants should ensure that the functions of verification of DIS serial numbers, signature(s) of authorised signatories and release of instructions should be carried out by the Participant itself and not left to the franchisee. (21) Internal and Concurrent Audit - Control and Verification of Delivery Instruction Slips: (NSDL/POLICY/2008/0077 dated November 3, 2008) The scope of concurrent audit with respect to control and verification of DIS should cover the areas given below:

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(I)

Issuance of DIS The procedure followed by the Participants with respect to: (a) (b) (c) Issuance of DIS booklets including loose slips. Existence of controls on DIS issued to Clients including pre-stamping of Client ID and unique pre-printed serial numbers. Record maintenance for issuance of DIS booklets (including loose slips) in the back office.

(II)

Verification of DIS The procedure followed by the Participants with respect to: (a) (b) (c) (d) (e) Date and time stamping (including late stamping) on instruction slips. Blocking of used/reported lost/stolen instruction slips in back office system / manual record. Blocking of slips in the back office system / manual record which are executed in DPM directly. Two step verification for a transaction for more than Rs. 5 lakh, especially in case of off-market transactions. Instructions received from dormant accounts.

The Concurrent Auditor should carry out 100% verification with respect to control over issuance and acceptance of DIS booklets including loose slips; however with respect to verification (execution and processing) of DIS, auditor should verify atleast 25% of the DIS processed. The sample percentage checked in this regard should be mentioned in the Concurrent Audit Report. The Concurrent Auditor should conduct the audit in respect of DIS/IDDIS issued and controls on DIS/IDDIS as mentioned above, during the day, by the next working day. In case the audit could not be completed within the next working day due to large volume, the auditor should ensure that the audit is completed within a weeks time. Any deviation and/or non-compliance observed in the aforesaid areas should be mentioned in the audit report of the Concurrent Auditor. The Management of the Participant should comment on the observations made by the Concurrent Auditor. Participants may note that if the Auditor for Internal and Concurrent Audit is the same, consolidated report may be submitted. Participants will be responsible for ensuring compliance with the provisions of Depositories Act, SEBI (Depositories and Participants) Regulations, 1996, The Prevention of Money Laundering Act, 2002, Bye Laws and Business Rules of NSDL, as well as any other circulars / guidelines issued by NSDL from time to time, in this regard. (22) Precautions to be taken at the time of accepting market related instructions: 1. The instructions relating to settlements should be segregated for each stock exchange, market type and settlement number. These instructions include delivery-out instructions, Client to CM Pool Transfer, inter-settlement transfers, CM Pool to CM Pool transfers and Inter Depository transfers with the target settlement pertaining to which pay-in is due. Priority should be given to the instructions relating to the settlements for which Pay-in date is current date or next date. The execution of the instructions in DPM System for each stock exchange, market type and settlement number should be prioritised in a logical manner. Instructions that have the effect of crediting the CM Pool Accounts for a settlement, such as Client to CM Pool Transfer, inter-settlement transfers, CM Pool to CM Pool transfers and Inter Depository transfers should be given priority. Instructions such as CM Pool transfer to client, client to client and pledge closure that have the effect of crediting those Clients account from where the securities have to be moved to

2.

3.

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CM Pool Accounts for the target settlement should be executed well in advance. 4. Participants should ensure that IDT instructions are verified & released well before the deadline so that the status of the instruction become Accepted by NSDL at NSDL deadline time. However, future dated instructions can be verified & released without any time restriction as per the current practice. In case any IDT instruction is received by NSDL after NSDL deadline time, then the same will fail with the status Closed, Rejected by NSDL with the reason NSDL deadline time has passed. If CDSL rejects NSDLs inter depository debit instructions (IDDs) in case it receives IDD after the deadline time of the current business date, the status of IDT instructions will change from Accepted by NSDL to Closed, Rejected by Other Depository. In case the Participant has verified/released many future dated instructions or many accounts are opened after EOD or there are multiple pay-ins on the next day the Participants are requested to ensure that the BOD of next business day should be received early (say at 7.30 a.m.) on such days in order to process all pending instructions. Non-settlement related instructions like account opening, dematerialisation, rematerialisation, etc. should not be captured/verified & released or exports should not be taken during settlement timings. Monitoring of instructions: (a) Participants should ensure that the instructions that have the effect of crediting the CM Pool Accounts for a settlement, such as Client to CM Pool Transfer, inter-settlement transfers, CM Pool to CM Pool transfers and Inter Depository transfers are in the status Closed, Settled atleast one hour before the NSDL Deadline time. Participants should ensure that the delivery-out instructions are in the status Accepted by NSDL at NSDL deadline time. In case the instructions are in any other status including In Transit to NSDL for a long time, Participants should report to NSDL Help-Desk immediately. In case the client account does not have sufficient balance, the Client to CM Pool account transfer instructions will reflect the status Overdue at DM, irrespective of the execution date and will remain valid till the pay-in for the requisite settlement number and market type, during the pay-in process; (i) if partial balance is available in the Client account, then the same will be debited and transferred to the CM Pool Account. The status of the instruction will get updated as Closed, Partially Settled.

5.

6.

7.

(b)

(c)

(ii) if no balance is available in the Client account, then the instruction will get rejected. The status of the instruction will get updated as Closed Failed During Settlement. (d) Participants may note that instructions such as account transfers, inter-settlement transfers, CM Pool to CM Pool transfers, Delivery Outs and Inter Depository transfers can be captured and verified/released even if BOD has not been received by the DPM System. Thus, the instructions which are verified/released before the receipt of BOD will be transmitted to NSDL immediately if Participants DPM system is connected to NSDL and such instructions will be processed provided all the services are running successfully at the Participants end. However, Participants are advised to remain in contact with NSDL Help Desk and also ensure that all instructions have been transmitted to NSDL. Further, the status of such instructions may appear as In Transit to NSDL in the DPM System and once the BOD is received, the status will change to Overdue at DM / Accepted by NSDL / Closed, Settled / Closed, Rejected by NSDL, as the case may be. (e) (f) In case of IDT instructions the statii will change from Accepted by NSDL to Sent to Other Depository to Closed, Settled / Closed, Rejected by Other Depository. Participants are requested to ensure proper monitoring of the Delivery-Out Instructions especially those which are in the status of Overdue at DM on account of partial or nil

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balances existing in the CM Pool accounts. In this context, all Participants are advised to note and ensure the following: (i) On Verify/release the Delivery-out Instruction will go into the status In Transit to NSDL irrespective of sufficient balances available in the CM Pool Account. In case of insufficient balances, the status of the instruction will change to Overdue at DM and will remain in that status till such time the balance available in the CM Pool Account for the relevant settlement is less than the order quantity of the Delivery-Out Instruction.

(ii) On receipt of credit for the full order quantity in the CM Pool Account, the DeliveryOut Instruction is triggered and the status changes to Accepted by NSDL. (iii) At NSDL Deadline time, if the balance in the CM Pool Account does not become equal to the order quantity, then such Delivery-Out Instruction which is in the status Overdue at DM will be executed partially to the extent of balance available in the CM Pool Account. The status of such Delivery-out Instruction will change to Accepted by NSDL .The partially executed quantity is displayed on the DeliveryOut Instruction screen separately against the field Delivered Quantity. (iv) Participants must monitor the status of such partially executed Delivery-Out Instructions at the NSDL Deadline time in the Delivery-Out Instruction screen by selecting the flag for the field See only Partial Delivery-out Instructions and querying on the same. (v) At NSDL Deadline time if there is no balance in the CM Pool Account, then the Delivery-Out Instruction which is in the status Overdue at DM will fail with the status Closed, Failed during settlement with the reason Insufficient positions. (vi) Such instructions in the status Overdue at DM will remain in that status waiting for sufficient balance till the NSDL deadline time. On receipt of credit for the full order quantity in the CM Pool Account in the late pay-in window, the Delivery-Out Instruction is triggered and the status changes to Accepted by NSDL. (vii) At the NSDL deadline time, if there is still no balance in the CM Pool Account, then the Delivery-Out Instruction which is in the status Overdue at DM will fail with the status Closed, Failed during settlement with the reason Insufficient positions. (viii) Participants should ensure that the Delivery-Out Instructions are in the status Overdue at DM or Accepted by NSDL atleast 30 minutes before the NSDL Deadline time. (g) Further, with respect to instructions remaining in status In transit to NSDL, Participants are advised that the Message Control Panel under GISMO allows the Participants to view the status of incoming and out-going messages. The outgoing messages can be viewed in the Transmit queue. Participants should monitor the status of the messages, especially the messages which are in status To be Transmitted or In Transmission , at regular intervals. In order to find the latest status, Participant should query repeatedly since message control panel does not refresh automatically. The messages in the transmit queue undergoes the following status changes which are highlighted with the following colours: Status To be Transmitted In Transmission Transmitted Reason Message is waiting in queue to be transmitted to NSDL. Message has been picked by comms service for delivering to NSDL but waiting for acknowledgment from NSDL. The message has received acknowledgment from NSDL. Colour Red Yellow White

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Status Others

Reason When there is a message format mismatch between the DPM and NSDL systems. In such case an error number will be indicated in the status field. In case of network failure when the messages have been sent to NSDL via Magnetic media instead of online link

Colour Blue

Transmitted by DAT (h)

Grey

Participants are also advised to note the following: (i) The status of the messages will change from To be Transmitted to In Transmission and finally to Transmitted, provided NSDL Interface Transmit, NSDL Interface Receive and Comms services are running without any application errors. (ii) In case the messages remain in status To be Transmitted or In Transmission for a long time or in status Others, Participant should inform NSDL Help Desk immediately. (iii) Participants must ensure through GISMO panel that Communications to NSDL, NSDL Interface Transmit, NSDL Interface Receive, Ping to NSDL and Ping to router are functioning successfully. However, if Communications to NSDL, NSDL Interface Transmit and NSDL Interface Receive stops or Ping to NSDL and Ping to router fails, Participant must report the same to NSDL Help Desk immediately. Participants can also monitor instructions which are not closed / settled by selecting the status All except closed settled and querying on the same. This facility is provided for following type of instructions: 1) 2) 3) 4) 5) 6) Account Transfer Multiple Account Transfer CM Pool to CM Pool Transfer Delivery Out Instruction Inter Settlement Transfer Instruction Inter Depository Transfer

(i)

(j)

Participants can also use the screen available on the NSDL GISMO called Transmit message count which automatically refreshes every 30 seconds giving the count of message in the transmit queue at various stages. Any problem in transmitting instructions to NSDL can be easily detected by checking the count on this screen.

Participants may refer the following circulars for monitoring of Messages: Sr. no. (i) (ii) Circular No. NSDL/PI/99/199 NSDL/PI/2000/292 Date of Circular March 26, 1999 March 10, 2000 Particulars Precautions to be taken at the time of accepting market related instructions Precautions to be taken after acceptance of Delivery Out instructions from Clearing Member Monitoring of Messages in DPM and GISMO

(iii) (iv) (v)

NSDL/PI/2002/1004 NSDL/PI/2002/2138 NSDL/PI/2005/1898

June 22, 2002

December 12, Monitoring of December 12, 2002in DPM and 2002 GISMO October 5, 2005 Measures available in DPM system for Business Continuity April 4, 2008 Reports for instructions in status "Other than Closed/Settled"

(vi)

NSDL/POLICY/2008/ 0021

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Instructions - Guidelines
Circular No : NSDL/PI/979/199 Date: March 26, 1999 Attention of all Participants is invited to the following decisions taken in the SEBI meeting of the Working Group on Dematerialisation held on March 23, 1999 in order to streamline and smoothen the handling of settlement process: a. Participants shall instruct their non-institutional Clients (including Clearing Members) to send in their settlement instructions to reach the Participants' offices atleast 24 hours i.e. one working day prior to the pay-in date. The institutional Clients could send in their instructions to the Participants on the pay-in day not later than 10.30 a.m. Settlement instructions received from any Client beyond the aforementioned deadlines would be received by the Participants at Clients' risk and acknowledgment thereof should be issued by Participants to the Clients, with suitable remarks. The pay-in deadline for delivery of securities in respect of weekly settlements of NSE & BSE will be 3.00 p.m. on the pay-in day and an additional window will be provided for late pay-in till 6.00 p.m. on the same day with payment of late fees.

b. c.

d.

With regard to (d) above, it has been decided that a late fee @ 0.25% of the value of securities delivered from the CM Accounts to the Clearing Corporation, subject to a maximum of Rs. 50,000/- per DP per settlement, shall be charged to the Participant. The late fee will be charged with effect from the weekly settlements of NSE and BSE falling due on or after April 12, 1999. The question of extending the similar procedure for weekly settlements of other exchanges as well as for rolling settlements is under consideration and Participants will be duly informed when the procedure is extended to other settlements. All Participants are hereby advised to adhere to the above instructions and inform their Clients accordingly. Participants are also advised to observe the following operating guidelines for execution of settlement related instructions: 1. The instructions relating to settlements should be segregated for each stock exchange, market type and settlement number. This should include delivery-out instructions, Client to CM Pool Transfer instructions and inter-settlement instructions with the target settlement pertaining to which pay-in is due. The execution of the transactions in DPM for each stock exchange, market type and settlement number should be prioritised in a logical manner. Transactions that have the effect of crediting the CM Pool Accounts for a settlement, such as Client to CM Pool Transfer instructions and inter-settlement instructions should be given priority over deliveryout instructions for that settlement. Transactions that have the effect of crediting those Clients account from where the securities have to be moved to CM Pool Accounts for the target settlement should be executed well in advance. Acceptance and execution of such instructions at the last moment should not be entertained. Participants should ensure that the transactions that have the effect of crediting the CM Pool Accounts for a settlement, such as Client to CM Pool Transfer instructions and inter-settlement instructions are in the

2.

3.

4.

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status "Closed, Settled" atleast one hour before the NSDL Deadline time. In case the instructions are in any other status, Participants should report to NSDL Help-Desk immediately after following guidelines given below at nos. 6, 7 & 8. 5. Participants should ensure that the delivery-out instructions are in the status "Accepted by NSDL" at NSDL Deadline time. In case the instructions are in any other status, Participants should report to NSDL Help-Desk immediately after following guidelines given below at nos. 6, 7 & 8. (Also refer Circular No. NSDL/PI/98/353 dated August 6, 1998) When the transactions are in the status "In Transit to NSDL" for a long time, the fact should be reported to NSDL Help-Desk immediately. The Participant should continuously monitor that all the three services (communications, transmit & receive) are running. In case it is found that any of the services are stopped, the Participant should verify whether any errors are displayed on the server by pressing ALT+TAB and report the same to NSDL Help-Desk immediately. A token number should be obtained for all calls logged-in at the HelpDesk. In case the Participant has verified/released many future dated instructions or many accounts are opened after EOD or there are major pay-ins on the next day, the BOD of next business day should be received early (say at 7.30 a.m.) on such days in order to process all pending transactions. Non-settlement related instructions like account opening, dematerialisation, rematerialisation, etc. should not be captured/ verified & released or exports should not be taken during settlement timings. While importing-exporting transactions/data in the DPM, the following should be ensured: i. Imports-Exports should be done preferably after completion of EOD process. In case of emergencies, imports may be done during business hours. Receive and transmit services should be manually stopped before import-export. It should be started again manually through GISMO after completion of the import-export. It should be ensured through GISMO that no user is logged-in from any of the Client machines i.e., the DPM system should be on unimode basis at the time of taking any import-export.

6. 7.

8. 9.

10.

11.

ii.

iii.

Facilities have been given to Participants to monitor successful execution of instructions and DPs must train their staff to monitor such execution. Instructions - Guidelines for Participants having CM accounts Circular No : NSDL/PI/2000/292 Date : March 10, 2000 In view of the release of DPM software version 2.6 which will be operational from March 13, 2000, all Participants having Clearing Member Accounts are requested to note and ensure the following for the purpose of monitoring Delivery Out Instructions : 1. On Verify/release the Delivery-out Instruction will go into the status "In Transit to NSDL" irrespective of sufficient balances available in the CM

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Pool Account. In case of insufficient balances, the status of the instruction will change to "Overdue at DM" and will remain in that status till such time the balance available in the CM Pool Account for the relevant settlement is less than the order quantity of the Delivery-Out Instruction. 2. On receipt of credit for the full order quantity in the CM Pool Account, the Delivery-Out Instruction is triggered and the status changes to "Accepted by NSDL". At NSDL Deadline time, if the balance in the CM Pool Account does not become equal to the order quantity, then such Delivery-Out Instruction which is in the status "Overdue at DM" will be executed partially to the extent of balance available in the CM Pool Account. The status of such Delivery-out Instruction will change to "Partially Accepted by NSDL". The partially executed quantity is displayed on the Delivery-Out Instruction screen separately against the field "Delivered Quantity". Participants must monitor the status of such partially executed DeliveryOut Instructions at the NSDL Deadline time in the Delivery-Out Instruction screen by selecting the flag [ ] for the field "See only Partial Deliveryout Instructions" or by selecting the status "Partially Accepted by NSDL" and querying on the same. At NSDL Deadline time if there is no balance in the CM Pool Account, then the Delivery-Out Instruction which is in the status "Overdue at DM" will fail with the status "Closed, Failed during settlement" with the reason "Insufficient positions". In case of those settlements where the facility of late pay-in window is provided, the Delivery-Out Instruction will be executed to the extent of balance available in the CM Pool Account at the first NSDL deadline time and the status of the same will be updated to "Partially Accepted by NSDL" or "Accepted by NSDL". If no balance is available in the CM Pool account at the first NSDL deadline time, the Delivery-Out Instruction will continue to remain in status "Overdue at DM". Participants must monitor such Delivery-Out Instructions which are still in status "Overdue at DM" at the NSDL Deadline time by selecting the status "Overdue at DM" and querying on the same. Such instructions in the status "Overdue at DM" or "Partially Accepted by NSDL" will remain in that status till the final NSDL deadline time waiting for sufficient balance . On receipt of credit for the full order quantity in the CM Pool Account in the late pay-in window, the DeliveryOut Instruction is triggered and the status changes to "Accepted by NSDL". At the final NSDL deadline time, if there is still no balance in the CM Pool Account, then the Delivery-Out Instruction which is in the status "Overdue at DM" will fail with the status "Closed, Failed during settlement" with the reason "Insufficient positions". Participants should ensure that the transactions that have the effect of crediting the CM Pool Accounts for a settlement, such as Client to CM Pool Transfer instructions, inter-settlement instructions and interdepository instructions are in the status "Closed, Settled" atleast one hour before the NSDL Deadline time. Participants should ensure that the Delivery-Out Instructions are in the

3.

4.

5.

6.

7.

8.

9.

10.

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status "Overdue at DM" or "Accepted by NSDL" atleast 30 minutes before the NSDL Deadline time. 11. Participants must ensure through GISMO panel that Communications to NSDL, NSDL Interface Transmit, NSDL Interface Receive as well as Ping to NSDL is functioning successfully when there are Delivery-Out Instructions in the status "In Transit to NSDL". If any of the above processes are stopped due to an error, Participants must report the same to the NSDL Help-Desk immediately. Whenever an error message is displayed on the DPM server do not click on the "OK" button of the error message. Participants must report the same to the NSDL HelpDesk immediately on direct telephone numbers 022-4976341, 4937026, 4945177 or on board nos. 4972964-70 at Extn. Nos. 4630-39. Also please note that the DPM system should not be switched off and back-ups should not be taken until all Delivery-out Instructions for the day's settlements become "Accepted by NSDL". A token number must be obtained by the Participants for all calls reported on NSDL Help-Desk.

12.

In addition to the above, it is reiterated that the operating guidelines for execution of settlement related instructions given in Circular No. NSDL/PI/ 99/199 dated March 26, 1999 (copy enclosed) must be strictly adhered to and ensure successful execution of instructions. Circular No : NSDL/PI/99/745 Date: September 17, 1999 It is observed that some of the Participants do not adhere to the operating discipline relating to execution of settlement related instructions. Participants having Clearing Member Accounts have to ensure proper monitoring of the Delivery-Out Instructions especially those which are in the status of "Overdue" on account of partial or nil balances existing in the CM Pool accounts. In this context, all Participants are advised to note and ensure the following : 1. Delivery-out Instruction remains in "Overdue" status till such time the balance available in the CM Pool Account for the relevant settlement is less than the order quantity of the Delivery-Out Instruction. On receipt of credit for the full order quantity in the CM Pool Account, the Delivery-Out Instruction is triggered and the status changes to "In transit to NSDL" and then to "Accepted by NSDL". If the balance in the CM Pool Account does not become equal to the order quantity by the NSDL Deadline time, then the Delivery-Out Instruction will be executed partially to the extent of balance available in the CM Pool Account. The status of the partially executed Deliveryout Instruction will change to "In transit to NSDL" only at the NSDL Deadline time and then to "Accepted by NSDL". The partially executed quantity is displayed on the Delivery-Out Instruction screen separately against the field "Delivered Quantity". Participants must monitor the status of such partially executed DeliveryOut Instructions at the NSDL Deadline time in the Delivery-Out Instruction screen by selecting the flag [4] for the field "See only Partial Deliveryout Instructions" and querying on the same. If there is no balance in the CM Pool Account at NSDL Deadline time, then the Delivery-Out Instruction which are in "Overdue" status will fail with the status "Closed, Failed during settlement" with the reason "Insufficient positions".

2.

3.

4.

5.

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6.

Participants must ensure through GISMO panel that Communications to NSDL, NSDL Interface Transmit, NSDL Interface Receive as well as Ping to NSDL is functioning successfully especially at NSDL Deadline time when there are Delivery-Out Instructions in the "Overdue" status. If any of the above processes are stopped due to an error, Participants must report the same to the NSDL Help-Desk immediately. Whenever an error message is displayed on the DPM server do not click on the "OK" button of the error message. Also please note that the DPM system should not be switched off and back-ups should not be taken until all Delivery-out Instructions for the day's settlements become "Accepted by NSDL". If the "Overdue" Delivery-out Instructions do not become"Accepted by NSDL" within 15 minutes of NSDL Deadline time, Participants must report the same to the NSDL Help-Desk immediately on direct telephone numbers 022-4976341*, 4937026, 4945177 or on board nos. 4972964-70 at Extn. Nos. 4012, 4037, 4038 or 4516*. A token number must be obtained by the Participants for all calls reported on NSDL Help-Desk.

7.

8.

In addition to the above, it is reiterated that the operating guidelines for execution of settlement related instructions given in Circular No. NSDL/PI/ 99/199 dated March 26, 1999 (copy enclosed) must be strictly adhered to and ensure successful execution of instructions. Instructions - Acceptance deadline for Rolling Settlements Circular No : NSDL/PI/2002/0583 Date : April 8, 2002 Participants are hereby advised that Securities and Exchange Board of India (SEBI) has issued a circular no. D&CC/FITTC/CIR-07/2002 dated April 8, 2002 stating that it has been decided that the Participant shall execute client's instructions received 24 hours before pay-in time of the respective Stock Exchanges. This means, the clients must submit the delivery instruction slips to the Participants atleast 24 hours before the pay-in time (NSDL deadline) as shown in DPM system. Any instructions received after such time may also be executed at the risk of the client. In this context, Participants are advised to ensure compliance with the requirements of time and date stamping of the delivery instruction forms submitted by their clients (ref.: Circular no. NSDL/ PI/98/519 dated October 13, 1998). Participants are also advised to revise their deadlines prescribed to the clients for submission of delivery instructions in view the above instructions. As all Participants are aware, compulsory rolling settlements for the 10 scrips specified by SEBI are scheduled to commence with effect from January 10, 2000. In this context, your attention is invited to our Circular No. NSDL/PI/ 99/839 dated October 29, 1999 (copy enclosed) advising all Participants about the schedule for submission and execution of delivery instructions. Participants are once again advised to inform their clients (including clearing members) to submit the delivery instructions atleast two days prior to the pay-in day. Further, all delivery instructions including Delivery-out must be executed in the DPM System by the Participants atleast one day prior to the pay-in day. Circular No : NSDL/PI/99/839 Date: October 29, 1999 The Sub Group of the SEBI Committee on Rolling Settlement has drawn out a schedule for the activities to be conducted/undertaken by stock exchanges, depositories, depository participants, trading members and clients. The extract of the same is enclosed for your information and necessary action. In this

Circular No : NSDL/PI/2000/018 Date : January 7, 2000

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context, Participants are advised to inform their clients (including clearing members) that the delivery instructions for the rolling settlements must be submitted atleast two days (one day in case of auction) prior to the pay-in day. Participants are further advised that all the delivery instructions including Delivery-Out must be executed in the DPM system atleast one day prior to the pay-in day. Instructions - Procedure for Online Inter Depository Transfer of Securities Circular No : NSDL/POLICY/ 2009/0052 Date: June 30, 2009 Sub : Inter-depository transfer instructions All Participants are hereby informed that CDSL has intimated to NSDL that in case of interdepository transfer instructions where securities are to be credited to the Clearing Member Accounts maintained with CDSL, with effect from July 4, 2009, it is mandatory to capture target settlement ID details of CDSL as mentioned by Clients / Clearing Members in the inter depository instruction slips, otherwise, the same will not be considered for settlement at CDSL. Participants are requested to take note of the above. Precaution while processing DIS and Despatch of transaction statement Circular No : NSDL/PI/2005/2088 Date : October 28, 2005 It has been brought to NSDL's notice that a franchisee of a Participant has misused securities lying in the clients' accounts by debiting the accounts without proper authorisation from the account holders and not issuing proper Transaction Statements at stipulated intervals. In this background, in order to strengthen the checks and balances in the system, Participants are advised to follow the instructions given below: 1. The functions of verification of Delivery Instruction Slip (DIS) serial numbers, signature(s) of authorised signatories and release of instructions should be carried out by the Participant itself and not left to the franchisee. Those Participants who are servicing their clients through the back office systems should have a mechanism in place whereby the balances as per back office system are reconciled on the daily basis with the DPM-DP system. The internal auditor of the Participant should state in its quarterly audit report whether such a mechanism exists and whether the auditor has found it to be satisfactory. The first such report should be filed with NSDL in the audit report for the quarter ending December 31, 2005. It is reiterated that the internal auditor should carry out a random check whether the Transaction Statements generated from the back office system are same as from the DPM-DP system and mention the results of such a check in every quarterly report.

2.

3.

Participants are once again advised to ensure that Transaction Statements required to be given to the clients as per Business Rule 14.3.1 of NSDL, are dispatched directly to the addresses of clients as per records (e.g. account opening form) of the Participant and are not distributed through franchisees. (Circular No. NSDL/PI/99/823 dated October 20, 1999.)

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Instructions - Serial number validation for Inter-depository instructions & NCFM certificates Circular No : NSDL/PI/2003/0356 Date: March 3, 2003 Attention of Participants is invited to Rule 18.1.1 (xiii) (Rule 18.1.1(13) w.e.f. April 1, 2003 notified vide our Circular No. NSDL/PI/2003/0321 dated February 25, 2003) of the Business Rules of NSDL regarding levy of penalty on account of no/inadequate control over issuance and/or acceptance of instruction slips. Participants are advised to note that slip number validation is also applicable for Inter-depository instructions and for any violation, penalty will be levied accordingly. Further, if the number of qualified persons does not equal the total number of service centres, penalty is levied as per Rule 18.1.1 (x) (Rule 18.1.1 (17) w.e.f. April 1, 2003 notified vide our Circular No. NSDL/PI/2003/0321 dated February 25, 2003). In this context, Participants are advised to maintain a list of NCFM qualified personnel and copies of certificates at the main office so as to enable NSDL officials visiting Participant's office, to verify the details. b. Controls on DI forms Rule 4.5.3 The Participant shall not accept any instruction for debit or pledge of securities from a Client unless the Participant has fully satisfied itself that the instruction has been given by the Client itself. In respect of instructions received in paper form, the Participant shall ensure that the Client submits the instructions only on an instruction form issued by the Participant to the Client by verifying the instruction forms with its records pertaining to serial numbers of instruction forms issued to the Clients.

Instructions - DI form - Serial number control Circular No : NSDL/PI/99/64 Date: January 25, 1999 It has been reported in certain sections of press that some Participants are not maintaining records of pre-printed serial numbers of the instruction forms (especially relating to debit instructions) issued to their Clients. As a result, there is inadequate internal control over processing of debit instructions. In this context, we would like to advise that NSDL is in the process of amending its Business Rules to require Participants to maintain such records and control. In the meanwhile, all Participants are advised to ensure that proper records relating to serial numbers of instruction forms issued to the Clients are maintained in their back-office in their own interest and in the interest of their Clients. Further, any instruction for debit of a Client account submitted on an instruction form other than the one issued to a Client should not be accepted unless the Participant has fully satisfied itself that the instruction has been given by the Client itself.

Instructions - SEBI's stipulated procedures for issuance and verification Circular No : NSDL/PI/2000/834 Date : June 2, 2000 Further to Circular Nos. NSDL/PI/2000/341 dated March 24, 2000 and NSDL/ PI/2000/499 dated April 18, 2000 regarding records of serial numbers of delivery instruction forms issued to the clients, Participants are advised to follow the under-mentioned procedures stipulated by SEBI for issuance and verification of delivery instruction forms:

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1.

Initial issuance of the delivery instruction forms will be with account opening in accordance with the procedures already set out. For further issuance of delivery instruction forms, the delivery instruction form book issued to the clients by Participants shall contain a requisition form for issue of another delivery instruction form book as in the case of a bank chequebook. Re-issuance of subsequent delivery instruction form books shall be on submission of the requisition slip contained in the delivery instruction form book. As already informed, all delivery instruction forms must bear a preprinted unique identification number. Additionally, the back office system of Participants must record these unique numbers and run an automatic check while executing transactions based on such delivery instruction forms. Employees of Participants processing the delivery instruction forms shall put their signature on the delivery instruction forms indicating that they have verified the signature and the unique delivery instruction form number belonging to the specific client. There shall also be an indication of the value of the transactions contained in a single delivery instruction form on the system of Participants and in case the value of securities on the delivery instruction form amounts to Rs. Five lakh or more, it should be subject to a two step verification, especially for off market transactions.

2.

3.

Instructions - Revised DI forms Circular No. NSDL/POLICY/ 2008/0019 Date: March 26, 2008 Sub: Extension of deadline for usage of existing Account Opening Form (AOF) & Delivery Instruction Slip (DIS) Attention of Depository Participants (DPs) is invited to NSDL Circular Nos. NSDL/POLICY/2007/0069 / 0070 and 0071 dated November 12, 2007 regarding Modification of AOF & DIS under the advise of Financial Intelligence UnitIndia (FIU-IND). As all DPs are aware, NSDL vide its Circular No. NSDL/POLICY/ 2007/0071 dated November 12, 2007 had informed the DPs to use the existing AOF and DIS till March 31, 2008 or till such time the existing AOFs and DIS are exhausted, whichever is earlier. As an interim measure, DPs were advised to accept the existing AOF and DIS for opening new accounts and executing transactions respectively, alongwith the 'Additional Details', in a prescribed format, on a plain paper, duly signed by the applicant(s)/Clients. In this regard, DPs have represented to NSDL with a request to extend the aforesaid deadline of March 31, 2008, citing a few practical difficulties as mentioned below: 1) Existing stock of AOF / DIS are yet to be exhausted and hence printing of revised AOF / DIS will be a financial burden on the DPs. The process of dispatching of the revised DIS in lieu of the existing DIS (which are lying with the Clients) would put the DPs and the Clients

2)

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into hardship. The process would also increase the overheads (cost, man hours etc) of the DPs. In light of the above representations, all DPs are hereby informed that the deadline for usage of the existing AOFs / DIS is extended till September 30, 2008 or till such time the existing AOF / DIS are exhausted, whichever is earlier. During this interim period, DPs are advised to follow the procedure mentioned in the aforesaid Circular No. NSDL/POLICY/2007/0071 dated November 12, 2007 regarding obtaining of 'Additional Details' alongwith the AOF / DIS. In case the stock of the existing AOF / DIS are exhausted before, September 30, 2008, DPs would be required to print and distribute the revised AOF and DIS in the format mentioned in NSDL Circular No. NSDL/POLICY/2007/0069 dated November 12, 2007. For further information, DPs are requested to contact Mr. Amit Shinde on Tel No. (022) 2499 4486 (email: shindea@nsdl.co.in) / Mr. Vinith Nair on Tel. No. (022) 2499 4414 (email: vinithn@nsdl.co.in). Circular No : NSDL/PI/2002/1885 Date : October 30, 2002 Attention of Participants is invited to our Circular No. NSDL/PI/2002/1132 dated July 13, 2002 regarding amendment of Annexure L of the Business Rules of NSDL pertaining to Delivery instructions by Clients. Participants were also advised that Annexure L in the old format will also be valid and Participants should continue to accept the same from the Clients. However, whenever Participants reprint Annexure L, the same should be in the amended format. In this context, many Participants have been requesting NSDL to allow them to use the old format of Annexure L as well. In view of the aforesaid, it is hereby informed that Participants can use either the old format or the new format of Annexure L. Circular No : NSDL/PI/2002/1132 Date: July 13, 2002 NSDL has been receiving requests from Participants regarding modification of Annexure L so as to enable the Clients to give delivery instructions in favour of multiple target Client Ids/CM-BP-Ids. Accordingly, Annexure L of the Business Rules of NSDL, pertaining to Delivery Instructions by Clients has been amended. In this regard, Participants are requested to note that Annexure L in the existing format is also valid and Participants should continue to accept the same from the Clients. However, whenever Participants reprint Annexure L (Delivery Instructions by Clients), the same should be in the amended format. c. Others Transactions in Warehouse Receipts (Commodities) after Final Expiry Date Circular No : NSDL/POLICY/ 2009/0067 Date: July 31, 2009 Sub: Transactions in Warehouse Receipts (Commodities) after Final Expiry Date All Participants are hereby informed that Multi Commodity Exchange of India Ltd (MCX) has intimated that after the final expiry date of a warehouse receipt (i.e. end date of ICIN), warehouse receipts cannot be transferred by clients for market delivery or for transfers to another client. The clients can take

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physical delivery of the commodities from the warehouse (rematerialisation request). Hence with effect from August 1, 2009, no transactions can be effected after the final expiry dates of warehouse receipts (i.e. end date of ICIN) except for the following: 1. Circular No : NSDL/POLICY/ 2009/0058 Date: July 17, 2009 Physical Delivery (Rematerialisation) Requests. Transfers from Clearing Member Pool Account to Beneficial Owner Account. Sub: Transactions in Warehouse Receipt after Final Expiry Date All Participants are hereby informed that National Commodity Derivatives Exchange of India (NCDEX) has intimated that after the final expiry date of a warehouse receipt (i.e. end date of ISIN), warehouse receipts cannot be transferred by clients for market delivery or for transfers to to another client. The clients can take physical delivery of the commodities from the warehouse (rematerialisation request). Hence with effect from August 1, 2009, no transactions can be effected after the final expiry dates of warehouse receipts (i.e. end date of ISIN) except for the following: 1. 2. Physical Delivery (Rematerialisation) Requests. Transfers from Clearing Member Pool Account to Beneficial Owner Account.

Securities Lending & Borrowing Scheme (SLBS) Circular No : NSDL/POLICY/ 2010/0005 Date: January 11, 2010 Sub: Review of Securities Lending and Borrowing (SLB) Framework Attention of Participants is invited to SEBI Circular No. MRD/DoP/SE/Dep/ Cir-14/2007 dated December 20, 2007 and MRD/DoP/SE/Dep/Cir-31/2008 dated October 31, 2008 intimated vide NSDL Circular nos. NSDL/POLICY/2007/ 0078 dated December 24, 2007 and NSDL/POLICY/2008/0078 dated November 5, 2008 respectively, regarding SEBI guidelines on Short Selling and Securities Lending and Borrowing (SLB). SEBI has now vide its Circular No. SEBI/MRD/DoP/SE/Dep/Cir- 01/2010 dated January 6, 2010 informed the revised framework for SLB, copy of which is enclosed for the information of Participants. DEPUTY GENERAL MANAGER Market Regulation Department Division of Policy Email: harinib@sebi.gov.in SEBI/MRD/DoP/SE/Dep/Cir- 01 /2010 January 06, 2010 1. 2. 3. The Executive Directors/Managing Directors of all Stock Exchanges Managing Director and CEO, NSDL Managing Director and CEO, CDSL

Dear Sir/ Madam, Sub: Review of Securities Lending and Borrowing (SLB) Framework The framework for SLB was specified vide circular no. MRD/DoP/SE/Dep/Cir- 14 /2007 dated December 20, 2007 and was operationalised with effect from April 21, 2008. The SLB framework was revised vide circular no. MRD/DoP/SE/Cir-31/2008 dated October 31, 2008. Pursuant to feedback received from market participants and proposals for revision of SLB received from NSE and BSE, the framework is now modified as under:

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1.

The tenure of contracts in SLB may be upto a maximum period of 12 months. The Approved Intermediary (Clearing corporation/ Clearing House) shall have the flexibility to decide the tenure (maximum period of 12 months). The lender / borrower shall be provided with a facility for early recall / repayment of shares. In case the borrower fails to meet the margin obligations, the Approved Intermediary (AI) shall obtain securities and square off the position of such defaulting borrower, failing which there shall be a financial close-out. In case lender recalls the securities anytime before completion of the contract, the AI on a best effort basis shall try to borrow the security for the balance period and pass it onward to the lender. The AI will collect the lending fee from the lender who has sought early recall. In case of early recall by the lender, the original contract between the lender and the AI will exist till the contract with the new lender for the balance period is executed and the securities returned to the original lender. In case of early repayment of securities by the borrower, the margins shall be released immediately on the securities being returned by the borrower to the AI. The AI shall on a best effort basis, try to onward lend the securities and the income arising out of the same shall be passed on to the borrower making the early repayment of securities. In case AI is unable to find a new borrower for the balance period, the original borrower will have to forego lending fee for the balance period. Incase of early recall by lender or early repayment of securities by borrower, the lending fee for the balance period shall be at a market determined rate. The other provisions, as specified in SEBI circular no. MRD/DoP/SE/Dep/Cir-14/2007 dated December 20, 2007 and circular no. MRD/DoP/SE/Cir- 31/2008 dated October 31, 2008 shall continue to be applicable. Exchanges and Depositories are advised to take necessary steps and put in place necessary systems for implementation of the above at the earliest; make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above; issue necessary instructions to the member brokers/clearing members and depository participants and also to disseminate the same on the website. This circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992 and Section 19 of the Depositories Act, 1996, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

2. 3.

4.

5.

6.

7. 8. 9.

10. a. b. c. 11.

Yours faithfully,

HARINI BALAJI Circular No : NSDL/POLICY/ 2008/0078 Date: November 5, 2008 Sub: Revised Securities Lending and Borrowing (SLB) Framework. Attention of Participants is invited to NSDL Circular No. NSDL/POLICY/2007/ 0078 dated December 24, 2007 enclosing therewith SEBI circular no. MRD/ DoP/SE/Dep/Cir-14/2007 dated December 20, 2007 regarding SEBI guidelines on Short Selling and Securities Lending and Borrowing. SEBI has now vide its circular no. MRD/DoP/SE/Cir- 31/2008 dated October 31, 2008 informed the revised framework for SLB. Copy of the said circular dated October 31, 2008 is enclosed for the information of Participants.

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Annexure CHIEF GENERAL MANAGER Market Regulation Department Division of Policy Tel: 26449370 Fax: 2644 9031 Email: mdrao@sebi.gov.in MRD/DoP/SE/Cir- 31 /2008 October 31, 2008 1. 2. The Managing Director / CEO, National Stock Exchange and Bombay Stock Exchange Managing Director, NSDL and CDSL

Dear Sir, Sub: Review of Securities Lending and Borrowing (SLB) Framework The framework for SLB was specified vide circular no. MRD/DoP/SE/Dep/Cir- 14 /2007 dated December 20, 2007. SLB was operationalised with effect from April 21, 2008. Pursuant to feedback from market participants and proposals for revision of SLB received from NSE and BSE, the framework is being revised as under: 1. Tenure Tenure for SLB may be increased to 30 days from the present 7 days. 2. Corporate Actions during the 30 day SLB contract The SLB tenure of 30 days will result in the need for appropriate adjustments for corporate actions. The corporate actions may be treated as follows: a. Dividend: The dividend amount would be worked out and recovered form the borrower at the time of reverse leg and passed on to the lender. b. Stock split: The positions of the borrower would be proportionately adjusted so that the lender receives the revised quantity of shares. c. Other corporate actions such as bonus/ merger/ amalgamation / open offer etc: The transactions would be foreclosed from the day prior to the ex-date. The lending fee would be recovered on a pro-rata basis from the lender and returned to the borrower. 3. Time window for SLB The time for SLB session may be extended from the present one hour (10 am to 11 am) to the normal trade timings of 9:55 am to 3:30 pm. 4. Risk Management a. With regard to risk management in SLB, it is advised that common risk management practices shall be followed by stock exchanges for SLB. It is reiterated that the exchanges should ensure that the risk management framework strikes a balance between ensuring commercial viability of SLB transactions and ensuring adequate and proper risk management. Exchanges should satisfy themselves regarding the adequacy of the risk management system. b. Margins in SLB may be taken in the form of cash and cash equivalents as prescribed in the circular MRD/DoP/Cir-07/2005 dated February 23, 2005. 5. Exchanges and Depositories are advised to a. take necessary steps and put in place necessary systems for implementation of the above at the earliest; b. make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above; c. issue necessary instructions to the member brokers/clearing members and depository participants and also to disseminate the same on the website. 6. This circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. Yours faithfully, S V MURLI DHAR RAO

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Circular No : NSDL/POLICY/ 2008/0025 Date : April 16, 2008

Sub : Operationalisation and settlement timings for Securities Lending & Borrowing Scheme (SLBS) As all Depository Participants (DPs) are aware, SEBI vide its circular no. MRD/ DoP/SE/Cir-05/2008 dated March 19, 2008 (copy enclosed) informed the stock exchanges and the depositories about the operationalisation of Short Selling and SLBS with effect from April 21, 2008. Further, NSDL vide its Circular No. NSDL/PI/2008/0162 dated January 29, 2008 informed DPs regarding incorporation of Market Type Codes in the CC Calendar at the request of National Securities Clearing Corporation Ltd (NSCCL) and BOI Shareholding Limited (BOISL). The pay-in timings with respect to SLBS settlements as informed by NSCCL and BOISL, effective from April 21, 2008 and NSDL deadline timings thereof are given hereunder CC Id Market Description Type Code 18 19 20 23 24 25 SLB SLB-R BUY IN AUCTION SLB FIRST LEG SLB RETURN LEG SLB AUCTION BUY-IN NSDL deadline time 9.00 am NSE/BSE Pay-in time NSE/BSE Pay-out time

IN001019 IN001019 IN001019 IN001002 IN001002 IN001002

9.30 am 11.30 am

For further information / clarification, DPs are requested to contact Mr. Narayan Venkat Tel : (022) 2499 4479 (email : narayanv@nsdl.co.in) / Mr. Rakesh Mehta Tel (022) 2499 4480 (email : rakeshm@nsdl.co.in).

Annexure Chief General Manager Market Regulation Department-Division of Policy E-mail: mdrao@sebi.gov.in MRD/DoP/SE/Cir- 05 /2008 March 19, 2008 1. 2. 3. The Executive Directors/Managing Directors/ Administrators of all Stock Exchanges Managing Director & CEO, NSDL Managing Director & CEO, CDSL Dear Sir / Madam, Sub:- Operationalisation of Short Selling and Securities Lending and Borrowing 1. SEBI vide circular dated December 20, 2007 had specified the broad framework for short selling by institutional investors and a full-fledged securities lending and borrowing scheme for all market participants. It has been decided to operationalise the above with effect from Monday, April 21, 2008. The Stock Exchanges and the Depositories are advised to :

2. 3.

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3.1 3.2 3.3 4.

make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision. bring the provisions of this circular to the notice of the member brokers/clearing members, depository participants and also disseminate the same on their website. communicate to SEBI, the status of the implementation of the provisions of this circular in the Monthly Development Report.

This circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992 and Section 19 of the Depositories Act, 1996, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. Yours faithfully,

S V Murali Dhar Rao Circular No : NSDL/POLICY/ 2008/0005 Date: January 29, 2008 Sub. :- Securities Lending and Borrowing Scheme (SLBS) Attention of DPs is invited to NSDL Circular No. NSDL/POLICY/2007/0078 dated December 24, 2007 enclosing therewith SEBI circular no. MRD/DoP/SE/Dep/ Cir-14/2007 dated December 20, 2007 regarding SEBI guidelines on Short selling and Securities Lending and Borrowing. In pursuance to the same, please find enclosed circular no. NSCCL/SEC/2008/ 053 dated January 28, 2008 issued by National Securities Clearing Corporation Ltd (NSCCL) and notice no. 20080128-3 dated January 28, 2008 issued by BOI Shareholding Limited (BOISL) for information and necessary action. Annexure Notice no : 20080128-3 Notice date : Monday, January 28, 2008 Subject : BOISL Notice regarding Securities Lending and Borrowing Scheme (SLBS) Segment Name General Contents : BOI SHAREHOLDING LIMITED Sub. : Securities Lending and Borrowing Scheme (SLBS) The members of Bombay Stock Exchange Ltd. (BSE) were informed vide Notice No.20071224-10 dated December 24, 2007 about the introduction of Securities Lending and Borrowing Scheme (SLBS) as specified by SEBI vide its Circular No.MRD/DoP/SE/Dep/Cir-14/2007 dated December 20, 2007. In this connection, members of BSE are hereby informed that, the Clearing House of BSE i.e. BOI Shareholding Ltd. (BOISL), as the Approved Intermediary under the Securities Lending Scheme, 1997 announces the Securities Lending and Borrowing Scheme (SLBS) as per the broad framework specified by SEBI vide its aforesaid Circular No. MRD/DoP/SE/Dep/Cir-14/2007 dated December 20, 2007 and any other circular / guidelines that may be issued in respect of the same from time to time.

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The salient features of the SLBS are as under : Eligibility All trading / clearing members of BSE as well as Banks and Custodians shall be eligible to participate in SLBS, subject to fulfillment of the eligibility criteria specified by BOISL. For this purpose they shall, inter alia, have to register as SLB Member in SLBS with BOISL as per the registration procedure specified by BOISL. SLB Member desirous of lending or borrowing securities under SLBS can do so either on their own account or on behalf of their clients. SLB Member shall be required to enter into an agreement with BOISL and the clients shall be required to enter into back to back agreement with the SLB Member as per the formats specified by BOISL. The formats of the same shall be available shortly on the website of BSE. The SLB Member shall apply to BOISL for allotment of Unique Client ID for each client who desires to participate in SLBS. Eligible Securities To begin with, the dematerialised securities traded in F & O Segment shall be eligible for lending and borrowing under SLBS. BOISL shall from time to time announce the addition / removal of the securities to / from the list of eligible securities. In case of Record Date or Closure of Register of Members of a Company, the securities will not be allowed for lending and borrowing under the SLBS during the period as may be decided by BOISL from time to time. Lending and Borrowing transaction on screen based platform BOISL shall provide a separate screen based order matching platform to execute lending and borrowing transactions. A detailed circular in respect of such platform will be issued in due course. Clearing & Settlement Procedure The settlement obligations for transactions under SLBS will be on gross basis i.e. there shall be no netting of transactions. Following market types are to be used for giving instructions to the Depositories for securities pay-in : SLBS Pay-in For first leg pay-in of Securities (by lender) For return leg pay-in (return of borrowed securities by the borrower) For pay-in of securities in SLB Auction Market Type SLB SLB-R Buy-in Auction

The pay-in and pay-out of funds and securities shall be through the designated clearing bank account and securities settlement account respectively. The Clearing Bank accounts currently used by members of BSE in Cash Segment (Equity Market) shall be the designated bank account for

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settlement of funds obligations under the SLBS. For securities demat account the SLB Member may approach the depository participants in respect of Pool / Principal accounts for settlement of securities obligations under SLBS. The transactions under SLBS shall be settled on a T+1 day basis as per time lines specified by BOISL. The lender shall be required to deliver the securities by the scheduled time on T+1 day. Failure to deliver securities shall result in financial close-out. The close-out computation formula shall be intimated by way of a circular. For a borrow transaction the settlement obligation shall be the lending fees plus the lending price. The lending price shall be previous days closing price in Cash Segment of BSE. To start with, tenure of lending shall be seven trading days. Accordingly, the return of securities by the borrower shall be scheduled on T+8 day (where T is the SLBS transaction day). All SLB members shall be required to return the securities borrowed on completion of period of lending. The securities shall be returned to the lender of the securities by BOISL. In the case of borrower failing to return securities, BOISL shall conduct an auction for obtaining securities. In the event of exceptional circumstances resulting in non-availability of securities in auction, such transactions would be financially closedout at appropriate rates. The close-out computation formula shall be intimated by way of a circular. BOISL shall specify the settlement calendar with respect to SLBS from time to time. A typical settlement cycle for a lending and borrowing transaction shall be as under : Activities T Day Securities Lending & Borrowing session Custodial confirmation Final obligation to participant T+1 day Pay-in of securities/funds 1st leg 10:00 am 11:00 am by 2:00 pm 3:30 pm 9:30 am 11:30 am Timings

Pay- out of securities/funds 1st leg T+8 day Pay-in of securities of return leg Pay-out of securities/funds of return leg Buy-in auction for failure of borrower to return securities Auction obligation to participant T+9 day Pay-in of securities for auction settlement Pay-out of securities/funds for auction settlement

9:30 am 11:30 am 12:30 pm (approx.) 4:30 pm

9:30 am 11:30 am

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Margins and Collaterals All transactions in the SLBS shall be subject to levy of margins. The margins shall be levied at a client level. The details in respect of margin and collateral deposit are mentioned in Annexure-I. Position limits As prescribed by SEBI, the position limits with respect to SLBS shall be applicable at various levels. To begin with, the position limits at the level of Market, SLB Member and Client shall be as follows: a) the market wide position limit for transactions under SLBS shall be 10% of the free float capital of the company in terms of number of shares. No SLB Member shall have open position of more than 10% of the market wide position limit or Rs.50 crore (base value) whichever is lower.

b)

c) d)

For a FII / MF the position limits shall be the same as that of a SLB Member. The client level position limit shall not be more than 1% of the market wide position limit.

Shortages & Close-out In the event of fund shortages by the borrowers the SLBS transactions shall be cancelled as may be decided by BOISL and accordingly, the securities shall be returned to the lenders alongwith lending fees. In the event, lender fails to deliver securities in the settlement the transactions shall be closed-out. The computation methodology and rate of close-out shall be intimated by BOISL from time to time. In the event the borrower fails to return the securities BOISL shall conduct a Buy-in Auction. The buy-in auction shall be carried out in the Cash Segment of BSE. If the securities cannot be bought through the buy-in auction, then the transactions shall be closed-out. The computation methodology and rate of close-out shall be intimated by BOISL from time to time. In all cases of shortages BOISL may initiate various actions including withdrawal of borrowing and lending facility of the participant, withhold the securities / funds pay-out due to the participant or any other action as may be decided by BOISL from time to time. Fines and penalties Fines and penalties shall be imposed on the SLB Members for defaults in delivery / return of securities or defaults in payment of funds or margin obligations or for violation of Unique Client Code requirements or for any other reasons as may be specified by BOISL from time to time. Arbitration All claims, differences or disputes between the SLB Members and their

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clients arising out of transactions in SLBS shall be subjected to arbitration mechanism as intimated by BOISL from time to time The detailed modalities with respect to implementation of SLBS and the effective date of implementation shall be communicated separately. n case of any clarifications members may contact : Name Mr.Peter DSouza BOISL Mr.Daniel Lasrado BOISL Ms.Avani Kulkarni BOISL Ms.Sheela Anjaria BSE, Clearing and Settlement Mr.Sanjay Narvankar BSE, Clearing and Settlement Mr.Surendra Rashinkar BSE, Clearing and Settlement Mr.Hitesh Desai / Mr.Yogesh Bambardekar BSE, Dept.of Surveillance & Supervison Mr.Amit Kadam BSE, Membership Contact Nos. 5042 5032 5065 8149 8113 8306 8286 8010

Monday, January 28, 2008 Annexure - I

A. C. Gautam, Managing Director - BOISL

Collateral Deposits and Margins for transactions under SLBS: The criteria in respect of composition of capital, computation and collection of margins would be as follows: A. Composition of Capital (Liquid Assets): SLB Members may note that the capital deposited as collateral towards Base Minimum Capital and Additional Capital for Securities Lending and Borrowing are to be maintained in form of Cash and Cash equivalent only. Base Minimum Capital (BMC) : o Base Minimum Capital of Rs.10 lakhs to be separately maintained by SLB Members for SLBs. In addition to the Base Minimum Capital the SLB Members may deposit additional capital in form of cash or cash equivalent only (i.e., Fixed Deposit Receipts of Banks and Bank Guarantee).

Additional Capital (Liquid Assets) : o

B.

Margins : Margins shall be computed and collected as per the present system followed in the Cash segment (Equity Market). All participants in the Securities Lending and Borrowing shall be margined. BOISL would compute, collect and release various margins as follows :

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VaR Margin and ELM Margin: VaR margin and ELM margin rates as applicable to the security in the cash segment of BSE at beginning of day rates shall be applicable in the SLBS. The VaR margin and ELM margin shall be collected on an upfront basis by adjusting against the collateral of the SLB Members at the time of transaction. The VaR margin and ELM margin shall be collected on the gross open position of the SLB Member. The gross open position for this purpose would mean the gross of all positions across all the clients of a SLB Members including its proprietary position VaR margin rates for SLBS shall be available on the website of BSE. The VaR Margin and ELM margin so collected shall be released on completion of pay-in of the respective settlement.

Mark to Market Margin: Mark to market margin shall be calculated by marking each transaction in security to the closing price of the security at the end of day in the cash segment of BSE. In case the security has not been traded on a particular day in the equity market, the latest available closing price at the BSE shall be considered as the closing price. The mark to market margin (MTM) shall be collected from the SLB Member at the end of day on T day. Such MTM will be collected from the SLB Members in the evening on the T day, first by adjusting the same from the available cash and cash equivalent component of the liquid assets and the balance MTM in form of cash from the SLB Members through their clearing banks on the same day. The MTM margin shall be collected on the gross open position of the SLB Members. The gross open position for this purpose would mean the gross of all positions across all the clients of the SLB Member including its proprietary position. For this purpose, the position of a client would be netted across its various securities and the positions of all the clients of a SLB Member would be grossed. There would be no netting off of the positions and setoff against MTM profits across two settlements. However, for computation of MTM profits/losses for the day, netting or setoff against MTM profits would be permitted.

Fixed percentage on lend / borrow transactions In addition to the aforesaid margins, the collateral deposits of the SLB Members will also be blocked upfront towards the following: o In case of both the borrower and lender, a fixed percentage of lending price shall be levied as margins.

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Such margins will be collected on an upfront basis by adjusting against the collateral of the SLB Member. To begin, with the fixed percent shall be 25%. Lending fee amount o In case of the borrower, lending fees amount based on the actual transacted value shall be blocked upfront against the collateral.

Custodial transactions o In respect of transactions entered by a SLB Member which is to be settled by a custodian, the margins from the time of transactions till confirmation by the custodian shall be levied on the SLB Member. On confirmation of the said transactions by the custodian, the custodian shall be levied the margins applicable on such transactions. In case of rejection by the custodian, the margins on the transaction rejected shall continue to be levied on the SLB Member.

Release of margins : SLB Members may note that: o o o o All margins shall be applicable at client level. Both lender and borrower shall be levied margins in respect of first leg of transaction in the SLBS. The borrower shall also be levied margins in respect of return leg of transactions in SLBS. Margins as collected above shall be released after completion of pay-in of respective settlements.

Exemption from margins : o Exemption from margins shall be available in case where early pay-in of securities is made by the lender of securities. Annexure NATIONAL SECURITIES CLEARING CORPORATION LTD. Download Ref. No: NSE/CMPT/10146 Ref. No: NSCCL/SEC/2008/ 053 To All Members & Custodians, SECURITIES LENDING & BORROWING SCHEME (SLBS) In pursuance of SEBI Circular No. MRD/DoP/SE/Dep/Cir-14 /2007 dated December 20, 2007 and in continuation of NSCCL Circular No.NSCCL/SEC/ 2007/0646 dated December 24, 2007, NSCCL as an Approved Intermediary (AI) announces the Securities Lending & Borrowing Scheme (SLBS) within the overall framework of "Securities Lending Scheme, 1997". The salient features of the scheme are as under: 1. Participant Eligibility All clearing members of NSCCL including Banks and Custodians, Date: January 28, 2008

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hereinafter referred to as 'Participant', shall be eligible to participate in SLBS. In order to become eligible to participate in SLBS, clearing members shall have to register as Participants in SLBS. For this purpose, the eligible persons shall be required to follow the registration procedure as specified by NSCCL which shall include entering into an agreement with NSCCL as per the format specified. Participants desirous of lending or borrowing securities can do so either on their own account or on behalf of their clients. Prior to undertaking lending or borrowing of securities on account of clients, the Participant shall enter into an agreement with each client as per the format specified by NSCCL. The Participant shall apply to NSCCL for allotment of a Unique client ID for each client who desires to participate in SLBS. 2. Eligible Securities Securities lending and borrowing shall be permitted in dematerialized form only. NSCCL shall announce the list of securities eligible under SLBS from time to time. To start with, securities available for trading in F&O segment of National Stock Exchange of India Ltd. (NSEIL) shall be permitted. In case of Record Date or Closure of Register of Members of a Company in any of the eligible security, the security shall not be available for lending and borrowing during the period as may be intimated by NSCCL from time to time 3. Process of securities lending and borrowing Order Matching Platform: NSCCL shall provide an automated, screen based, order matching platform to the Participant to execute lending and borrowing transactions. The Participant shall be allowed to put Borrowal / lending orders. The orders shall be matched on a price - time priority. Details of the order matching platform being provided for SLBS transactions are enclosed as Annexure 1. The orders placed by the Participant shall be for the lending fee. Clearing: NSCCL shall compute obligations based on the transactions executed on the order matching platform. All obligations shall be on a gross basis i.e there shall be no netting of transactions. Transactions under SLBS segment shall be identified based on different settlement types as intimated by NSCCL for the first leg and reverse leg settlements. Settlement Procedure: The pay-in and pay-out of funds and securities shall be through the designated bank accounts and securities settlement account respectively. The transactions shall be settled on a T+1 day basis as per time lines specified by NSCCL. The lender shall be required to deliver the securities by the scheduled time on T+1 day. Failure to deliver securities shall

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result in financial close-out. The close-out computation formula shall be intimated by way of circular. For a borrow transaction, the obligation shall be the lending fees plus the lending price. The lending price shall be the previous day's closing price in the Capital Market segment of NSEIL. Designated Bank Account The bank account currently used by Participant for settlement of funds in the Capital Market segment shall be the designated bank account for giving effect to funds debits/credits under SLBS. Securities Settlement Account Participants shall be required to maintain accounts with both depositories i.e NSDL & CDSL. The pool account currently used by Participants in NSDL for effecting securities pay-in and pay-out in the Capital Market segment shall be used for settlement under SLBS. In case of CDSL, Participants shall require to open a separate settlement account for effecting securities pay-in and pay-out under SLBS. 4. Period of lending To start with, tenure of lending / borrowing shall be seven trading days. Accordingly the return of securities by borrower shall be scheduled on the T+8 day (where T is the SLBS transaction day). 5. Process of return of securities All Participants shall be required to return the securities borrowed on completion of period of lending. The securities shall be returned to the lender of the securities by NSCCL. In the case of borrower failing to return securities, NSCCL shall conduct an auction for obtaining securities. In the event of exceptional circumstances resulting in non-availability of securities in auction, such transactions would be financially closedout at appropriate rates. The close-out computation formula shall be intimated by way of a circular. 6. Lending and Borrowing Calendar NSCCL shall specify the settlement calendar with respect to SLBS from time to time. A typical settlement cycle for a lending and borrowing transaction shall be as under: Activities T Day SLBS transaction session Custodial confirmation Final obligation to Participant T+1 day Pay-in of securities/funds first leg (Settl Type L) Pay- out of securities/funds first leg T+8 day Pay-in of securities of reverse leg (Settl Type P) 9:30 am 9:30 am 11:30 am 10:00 am - 11:00 am 2:00 pm 3:30 pm Timings

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Pay-out of securities/funds of reverse leg Buy-in auction for failure of borrower to return securities Around 12:00 noon Auction obligation to Participant T+9 day Pay-in of securities for auction settlement (Settl Type Q) Pay-out of securities/funds for auction settlement 7. Margins and Collateral

11:30 am

4:30 pm

9:30 am 11:30 am

All transactions under SLBS shall be subject to levy of margins. The margins shall be levied at a client level and collected on an upfront basis from the Participant. The margins to be levied on SLBS transaction shall be intimated by NSCCL from time to time. The details in respect of margin and collateral deposit are enclosed as Annexure 2. 8. Position Limits NSCCL shall prescribe position limits at various levels for transactions in SLBS in consultation with SEBI and the same shall be intimated from time to time. To begin with the limits shall be as under: (a) the market-wide position limits for SLB transactions shall be 10% of the free-float capital of the company in terms of number of shares (b) No Participant shall have open position of more than 10% of the marketwide position limits or Rs. 50 crore (base value), whichever is lower (c) For a FII/MF, the position limits shall be the same as of the Participant (d) The client level position limits shall be not more than 1% of the market-wide position limits. 9. Shortages and Close out In the event of funds shortage by the borrower, the SLBS transactions shall be cancelled, as may be decided by NSCCL and accordingly, securities shall be returned to the lenders alongwith lending fees. In the event the lender fails to deliver securities, the transaction shall be closed out. The methodology and rate of close out shall be intimated by NSCCL from time to time. In the event the borrower fails to return the securities NSCCL shall conduct a buy-in auction. The buy-in auction shall be carried out in the Capital Market segment of NSEIL. If the security cannot be bought through the buy-in auction, the transaction shall be closed out. The methodology and rate of close out shall be intimated by NSCCL from time to time. In all cases of shortages, NSCCL may initiate various actions including withdrawal of access to the order matching platform , withhold of the securities/funds pay-out due to the Participant or any other action as may be intimated by NSCCL from time to time.

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10.

Fines and Penalties NSCCL shall impose fines and penalties on the Participants for defaults in delivery / return of securities, or payment of fund obligations or payment of margin or violation of unique client code or any other reason as may be specified by NSCCL from time to time.

11.

Arbitration All claims, differences or disputes between the Participants and their clients arising out of transactions in SLBS shall be subjected to arbitration mechanism as intimated by NSCCL from time to time.

The detailed modalities with respect to implementation of SLBS and the effective date of implementation shall be communicated separately.

In case of any clarifications, members are requested to contact Mr. Samir Rajdev, Ms. Meghana Mukadam, Mr. Shailesh Golatkar on telephone numbers 26598268/ 26598215/ 26598383. For National Securities Clearing Corporation Ltd.

Rana Usman Manager

ANNEXURE 1 The order matching platform features & user navigation for SLBS are described below. For further details Participants are requested to refer to the on-line help facility. Parameters for Securities Lending & Borrowing Market time Market Type Book Type Series Series Price band Permitted lot size Tick Size 10.00 AM - 11.00 AM SLBS Segment N RL FL RL No price band 1 Rs 0.01 Normal Market Regular Lot SLBS Segment Auction Market for Reverse Leg in Cash Market Operating range - 40%

Setting up Securities in Market Watch: For setting up securities in the Market Watch screen, the user has to press the function key [F4], enter the required details in Symbol, Series and Market Type fields and press [Enter]. The default option displayed in the market type field is 'N'. Order Entry - Borrow/ Lend orders can be entered in SLBS using the function keys [F1] and [F2] and selecting 'RL' in the Book Type field. With respect to

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orders in the SLBS, Participants may note the following: Quantity - Order quantity should be in multiples of Market Lot. Price - In price field member has to enter fees for securities lending & borrowing. They can enter either market orders or limit price orders. Order price for limit price orders should be in multiples of tick size. PRO/CLI - Both 'Proprietary (Pro)' and 'Client (Cli)' orders are allowed. Time Conditions -User can specify time conditions as 'Day' or 'IOC'. Participant Code - A valid Custodial Participant Code has to be entered in this field. Order Cancellation/Modification - Order cancellation and modification is allowed for orders entered in the SLBS. Both Single and Quick Order Cancellation functions are available. In order to effect Quick Cancellation of orders for a security in SLBS, a member has to press [Shift+F3] to invoke Quick Order Cancellation screen and select 'RL' in the Book Type field. Quick Cancellation can also be done for all securities in the SLBS by selecting the Book Type as 'RL' and other parameters as relevant. MBP - User can query order information for the SLBS in MBP by selecting 'REGULAR LOT' as book type in the selection screen. Orders are stacked according to price in MBP. The high, low, last transacted price, percentage change and average transaction price figures are calculated with respect to transactions in SLBS. Market Inquiry - Security statistics for SLBS can be viewed by selecting 'NORMAL' as market type. Outstanding Orders/Activity log/ Previous Transactions - Outstanding order/ Activity log/ Previous Transaction information in a particular security can be viewed for SLBS by selecting the book type 'REGULAR LOT' in the respective selection screens. Order and Transaction Confirmation Slips - The order confirmation slip for orders entered in SLBS displays 'RL' as Book Type field. Similarly, transaction confirmation slip generated for SLBS transactions show 'N' in the Market Type field. Net Position - The Net Position screen displays consolidated statistics for all markets as well as separately for each market. Most Active Securities - This screen display consolidated statistics i.e. transacted value, transacted quantity, no of transactions for a security across the markets. On-line Backup - In the On-line Backup function a facility is provided to select order/transactions based on Market Type. Alternately, members can take a backup for all markets by selecting 'All' in the Market Type field. Full Message Display - In Full Message Display, messages can be filtered on Symbol and Series. Offline Order Entry - This function is available for SLBS. The structure for the input file is given in the online help. Branch/User Order Value Limit - Branch/User Order Limit is applicable for a particular Branch/User for orders across all Markets. Securities Order Quantity Limit - Securities Order Quantity Limit is applicable for a particular security across all Markets. Order Limits - Order limits set by a user are applicable for a single order across all Markets.

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Reports - Transactions report generated for Participants i.e. Transactions Done, Order Log and Open Orders report, displays records in ascending order of security name. Within a security records are displayed by Market Type. Bhav Copy - Security statistics pertaining to SLBS transactions are shown in the Market Statistics report. ANNEXURE 2 MARGINS AND COLLATERALS 1. Collateral Deposits Participants may deposit collaterals in the form of cash equivalents i.e., cash, bank guarantees and fixed deposit receipts, and any other form of collateral as may be prescribed by the Approved Intermediary (NSCCL) from time to time. The collateral deposited by the participant shall be utilized towards margin requirement of the participant. In case of failure of the participant to meet its obligation, the collaterals provided by the participants may be liquidated by NSCCL to meet the obligation of the participant 1.1 Minimum Collateral Every participant is required to continuously maintain minimum collateral of Rs.10 lacs in the form of cash as prescribed by the NSCCL. This deposit should be provided by the participant at the time of registration in Securities Lending and Borrowing Scheme (SLBS). 2. Margins All transactions under SLBS shall be subject to margins. Following margins shall be applicable for transactions under SLBS. 2.1 First Leg transactions Both lender and borrower shall be levied margins in respect of first leg of transactions under SLBS. 2.1.1 Borrow transaction The following margins shall be levied on the Participants for a borrow transactions: 1. Value at Risk Margins 2. Extreme Loss Margins 3. Mark to Market Margins 4. Fixed percentage of lending price as may be specified by NSCCL 5. Fixed percentage of specified by NSCCL 2.1.2 Lend transaction The following margins shall be levied on the Participants for lend transactions: 1. Value at Risk Margins 2. Extreme Loss Margins 3. Mark to Market Margins 4. Fixed percentage of lending price as may be specified by NSCCL lending fee as may be

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2.2

Reverse Leg transactions Only the borrower shall be levied margins in respect of reverse leg of transactions under SLBS. The following margins shall be levied on the Participants for a borrow transactions: 1. 2. 3. 4. Value at Risk Margins Extreme Loss Margins Mark to Market Margins Fixed percentage of lending price as may be specified by NSCCL VaR margin rate as applicable to the security in the capital market segment shall be applicable in the SLBS. The VaR margin shall be collected on an upfront basis by adjusting against the collateral of the Participant at the time of transaction. The VaR margin shall be collected on the gross open position of the Participant. The gross open position for this purpose would mean the gross of all positions across all the clients of a Participant including its proprietary position VaR margin rate for each security shall be disseminated to the Participants through the Extranet and on the website of the Exchange. The VaR margin so collected shall be released on completion of pay-in of the respective settlement. Extreme Loss margin rate as applicable to the security in the capital market segment shall be applicable in the SLBS The Extreme Loss margin shall be collected on an upfront basis by adjusting against the collateral of the Participant at the time of transaction. The Extreme Loss margin shall be collected on the gross open position of the Participant. The gross open position for this purpose would mean the gross of all positions across all the clients of a Participant including its proprietary position The Extreme Loss margin so collected shall be released on completion of pay-in of the respective settlement. Mark to market loss shall be calculated by marking each transaction in security to the closing price of the security at the end of day in the capital market segment. In case the security has not been transacted on a particular day in the capital market segment, the latest available closing price at the NSE shall be considered as the closing price. The mark to market margin (MTM) shall be collected from the Participant before the start of the SLBS session of the next day.

2.3

Value at Risk Margin (VaR Margin)

2.4

Extreme Loss Margin

2.5

Mark to Market Margin

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The MTM margin shall also be collected/adjusted from/ against the collateral deposited by the Participant The MTM margin shall be collected on the gross open position of the Participant. The gross open position for this purpose would mean the gross of all positions across all the clients of a Participant including its proprietary position. For this purpose, the position of a client would be netted across its various securities and the positions of all the clients of a Participant would be grossed. There would be no netting off of the positions and setoff against MTM profits across two settlements However, for computation of MTM profits/losses for the day, netting or setoff against MTM profits would be permitted. The MTM margin so collected shall be released on completion of pay-in of the settlement. A fixed percentage of lending price shall be levied as margin on the Participants for both borrow and lend transactions as may be intimated by NSCCL from time to time. To start with the fixed percentage shall be '25%' This shall be collected on an upfront basis by adjusting against the collateral of the Participant at the time of transaction. This shall be collected on the gross open position of the Participant. The gross open position for this purpose would mean the gross of all positions across all the clients of a Participant including its proprietary position The margin so collected shall be released on completion of pay-in of the respective settlement. The lending price shall be the previous day closing price of the security in the capital market segment A fixed percentage of lending fee shall be levied as margin on the Participants for borrow transactions as may be intimated by NSCCL from time to time. To start with the fixed percentage shall be '100%' This shall be collected on an upfront basis by adjusting against the collateral of the Participant at the time of transaction. The margin so collected shall be released on completion of pay-in of the respective settlement. The lending fee shall be the actual price of the transaction

2.6

Fixed Percentage of lending price

2.7

Fixed Percentage of lending fee

2.8

Exemption from margins In cases where early pay-in of securities is made prior to the securities pay-in, such positions for which early pay-in (EPI) of securities is made shall be exempt from margins. The EPI would be allocated to clients having net deliverable position, on a random basis.

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2.9

Custodial transactions In respect of transactions entered by a Participant which is to be settled by a custodian, the margins from the time of transactions till confirmation by the custodian shall be levied on the Participant. On confirmation of the said transactions by the custodian, the custodian shall be levied the margins applicable on such transactions. In case of rejection by the custodian, the margins on the transaction rejected shall continue to be levied on the Participant.

2.10 Short fall of margins In case of any shortfall in margin the Participant shall not be permitted to transact in SLBS with immediate effect. The same shall be considered as violation and shall attract penal charges as may be specified by NSCCL from time to time 2.11 Margins from the Client: Participants should have a prudent system of risk management to protect themselves from client default. Margins are likely to be an important element of such a system. The same shall be well documented and be made accessible to the clients and NSCCL. However, the quantum of these margins and the form and mode of collection are left to the discretion of the Participants. Delivery of Instructions through Speed-e Circular No : NSDL/POLICY/ 2010/0060 Date: June 3, 2010 Sub: Amendment to Business Rules All Participants are hereby informed that Annexure LA (old format) and Annexure LA (new format) of Business Rules pertaining to Combined Delivery Instructions by Clients have been amended and renamed as Annexure LA I and Annexure LA II respectively. The amended Annexures LA-I and LAII are enclosed with highlighting the changes and without highlighting the changes. Participants may continue to use their existing stock of Combined-Delivery Instructions by Clients till such time it is exhausted and would be required to print and issue the revised Combined Delivery Instruction slips i.e. Annexure LA I and Annexure LA II thereafter. Circular No : NSDL/POLICY/ 2010/0059 Date: May 28, 2010 Sub: SPICE enhancement Ascertain status of uploaded instructions and Clients registered for SPICE As Participants are aware that Clearing Members can avail the feature of SPICE (Submission of Power of attorney based Instructions for Clients Electronically) for submitting instructions (auto pay-in) through SPEED-e facility (refer Circular No. NSDL/POLICY/2009/0126 dated December 31, 2009). SPICE has been further enhanced with two features viz., (i) Auto Payin Instructions Status Download to ascertain the status of the instructions (auto pay-in) uploaded through SPEED-e facility and (ii) POA Client List Download to ascertain the Clients registered for SPICE. The features are explained in detail which is enclosed at Annexure I. The aforesaid features will be released on SPEED-e facility on Saturday, May 29, 2010. For further information / clarification, Participants are requested to contact Mr. Sandeep Kumar Tel : (022) 2499 4361 (email : sandeepk@nsdl.co.in) / Mr.

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Rahul Gupta Tel : (022) 2499 4372 (email : rahulg@nsdl.co.in) / Mr. Narayan Venkat Tel : (022) 2499 4479 (email : narayanv@nsdl.co.in). Annexure I (i) Auto Pay-in Instructions Status Download: Clearing Members (CMs) can download status of instructions with respect to digitally signed instructions submitted through SPEED-e facility to debit the demat accounts of Clients and credit their pool accounts. This new feature will facilitate CMs to ascertain the status of the instructions and if required make follow-up with their Clients. Example; if the downloaded file has instructions in overdue status i.e., Waiting for balances on account of shortages of securities in the Clients account, CMs can ascertain the status and make follow up with their Clients accordingly. CMs will be required to click on the link named Auto Payin Instructions status Download as exhibited below and enter either the batch number or date range to download the status of uploaded instructions (auto pay-in). The downloaded file would be zipped using WinZip. Participants will be required to unzip the file and save the same in their desired folder. File formats and a sample file are enclosed at Annexure A.

(ii)

POA Client List Download : CMs can download list of its Clients that are currently registered for SPICE. CMs will be required to click on the link named POA Client List Download as exhibited below. The downloaded file would be zipped using WinZip. Participants will be required to unzip the file and save the same in their desired folder. The status of the Clients would be displayed as Accepted in the downloaded file provided Participants (where Clients have their demat accounts) have registered (uploaded acceptance file) the Client for SPICE. File formats and a sample file are enclosed at Annexure B.

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Annexure A File formats for Auto-Payin Instructions status Download: HEADER RECORD Sr. No. Field Description 1 CM BP ID 2 User ID 3 Number of records in file 4 Timestamp of creation of file Ddmmyyyyhhmmss format e.g.:01042010142558 DETAILED RECORD Sr. No. Field Description 1 Batch ID Max 8 Integers 2 TXN Number Max 15 integers 3 SPEED-e Instruction ID Max 15 integers 4 DPM Instruction Id Max 15 integers 5 CM ID 6 DP ID 7 Client ID 8 POA ID Max 8 Integers 9 ISIN Max 12 characters 10 Market type Max 24 characters 11 Settlement Number Max 7 characters 12 Execution Date dd-MMM-yyyy format e.g. 30-Mar-2010 13 Requested Quantity Decimal with Max size 16 e.g.: 123451234512.500 14 Settled Quantity Decimal with Max size 16 e.g.: 123451234512.500 15 Status 2 characters 16 Rejection reason 1 Max 5 Integers 17 Rejection reason 2 Max 5 Integers 18 Rejection reason 3 Max 5 Integers 19 Rejection reason 4 Max 5 Integers Note : Field details would be Charat separated Status Code and Description: CODE Description 00 Rejected at DP 03 Withheld by DP in Backoffice 04 Rejected by DP in its Backoffice 10 Received by SPEED-e 11 Received by DP 13 Received by DP 20 Instruction sent to other depository 21 Instruction sent to other depository 31 Received by DP 32 Received by DP 33 Waiting for Counter-Party Instruction

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34 Received by DP 35 Closed Partially Settled 37 Received by DP 38 Transferred 40 Waiting for Balances 41 Waiting for Balances 51 Transferred to CC 53 Failed 54 Rejected 55 Cancelled by DP 56 Cancelled by Clearing Corporation 57 Cancelled due to ACA 99 Updated by DP Rejection Reason Code: Rejection Description Reason Code 3045 ISIN not in valid status 3121 Stlm date not equal to system stlm run date 3166 Cancelled - Overdue status 3167 Cancelled - Not matched status 3182 SI rejected; invalid client id 3801 Invalid client status 61715 Isin does not exist 9703 Rejected due to ACA 3801 Invalid client status 3334 ADO Exec date is before the instruction execution 3333 ACA Exec date is same as the instruction execution 5013 Invalid Market Details 5046 Your instruction has been received beyond the acceptance deadline 5058 Invalid Other Depository ID. 5059 The ISIN is Partially Freezed. 5060 Invalid Target/Source Market Details combination 5061 The Source and Target CM Ids cannot be the same 5062 Invalid CM Id & Market Details Combination 5015 Qty should not be in decimals 5045 Execution date cannot be Sunday 5003 Invalid Execution Date 5058 Invalid Other Depository ID 5014 Quantity should be greater than zero and less than 999999999999.999 5002 ISIN does not exist 5021 Pay In Date is Less Than Exec Date 7070 DP holiday 7071 CDSL holiday 5090 You cannot submit an instruction of current execution date after 6 pm IST from Monday to Friday and 3 pm IST on Saturday

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N000001 CM_USER 4

28052010115649 IN000001 IN000000 12589666 12345678 INE784A01011 IN000001 IN000000 12589666 12345678 INE784A01011 IN000001 IN000000 12589666 12345678 INE784A01011 IN000001 IN000000 53534534 12345678 INE784A01011 ROLLING MKT LOT ROLLING MKT LOT ROLLING MKT LOT ROLLING MKT LOT 809184 809184 809184 809184 29-May-10 10 29-May-10 10 29-May-10 10 29-May-10 10 0 0 13 0 10 0 0 0 0 0 0 0 0 0 0 0 0

7223747 2.09E+08 99661140 12345678 7223747 2.09E+08 99661150 12345678 7223747 2.09E+08 99661156 12345678 7223747 2.09E+08 99661136 12345678

10 51 0 0

99 3045 0

Annexure B File formats for POA Client List Download: HEADER Sr. No. Field Description 1 CM BP ID 2 User ID 3 Number of records in file 4 Timestamp of creation of file Ddmmyyyyhhmmss format e.g.:01042010142558 RECORD Sr. No. Field Description 1 CM BP ID 2 DP ID DP ID of the Client 3 Client ID 4 Current Status Accepted 5 POA ID Default 8 spaces IN000001 IN000001 IN000001 IN000001 IN000001 IN000001 IN000001 IN000001 IN000001 IN000001 IN000001 IN000001 IN000001 Circular No : NSDL/POLICY/SPEED-e/ 2010/0008 Date: May 26, 2010 CM_USER IN000000 IN000000 IN000000 IN000000 IN000000 IN000000 IN000000 IN000000 IN000000 IN000000 IN000000 IN000000 12 42042043 42042143 42042943 11001915 10000001 76576857 10000015 19870203 46453453 19410002 19410003 19410004 28052010124302 Accepted Accepted Accepted Accepted Accepted Accepted Accepted Accepted Accepted Accepted Accepted Accepted

1 1 1 1 12345678 0 1010 100 0 18400003 18400003 18400003

Sub: Execution date based download of instructions from SPEED-e All Participants are hereby informed that based on the representations received from Participants, SPEED-e facility has been enhanced whereby pending instructions can be downloaded based on an execution date. The regular download i.e., download of all instructions pending for download will continue to be operative. Post version release, Participants will have the flexibility to download instructions by either selecting the execution date or through regular download. The process flow and important instructions are enclosed at Annexure A. This feature will be released on SPEED-e facility on Saturday, May 29, 2010. For further information / clarification, Participants are requested to contact Mr. Sandeep Kumar Tel: (022) 2499 4361 (email: sandeepk@nsdl.co.in) / Mr. Rahul Gupta Tel: (022) 2499 4372 (email: rahulg@nsdl.co.in) / Mr. Narayan Venkat Tel: (022) 2499 4479 (email: narayanv@nsdl.co.in).

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Circular No : NSDL/POLICY/ SPEED-e/2010/0003 Date: March 9, 2010

Sub: Incorporation of designated CM BP IDs of NSCCL and ICCL as Pre-notified accounts in SPEED-e facility Attention of Participants is invited to NSDL Circular No. NSDL/POLICY/2009/ 0116 dated December 5, 2009 regarding facility for holding Mutual Fund (MF) units in dematerialised form. To facilitate Clients (Password based Users) to submit instructions pertaining to MF units (for redemption purpose) through SPEED-e facility, designated CM BP IDs viz., IN565576 and IN619960 of National Securities Clearing Corporation Limited and Indian Clearing Corporation Limited respectively have been incorporated as pre-notified accounts in the SPEED-e facility. Clients will be able to transfer only MF units (Security type code 20) into these designated pre-notified pool accounts through SPEED-e facility. This feature is scheduled to be released on SPEED-e facility on March 13, 2010.

Circular No : NSDL/POLICY/ SPEED-e/2010/0001 Date: January 19, 2010

Sub: Participant-wise deadline for submission of instructions with current date as the execution date on SPEED-e As all Participants are aware, the deadline time for submission of instructions through SPEED-e facility by Clients and Clearing Members (CMs) with current date as the execution date is upto 7:00 p.m. IST on weekdays and 3:00 p.m. IST on Saturdays. This deadline is uniformly applicable to all Participants. Based on the feedback received from Participants, Participants would be given the flexibility to decide their own deadlines for their Clients and CMs within a permissible range. The feature will be released on SPEED-e on Saturday, January 23, 2010. Salient features of this facility are as follows: (i) The current deadline time of 7.00 pm for submission of instructions with current date as execution date can be extended till 8.15 pm or can be reduced till 6.00 pm on weekdays. Similarly, the deadline time of 3.00 pm for submission of instructions on SPEED-e on Saturdays can be extended till 4.15 pm or can be reduced till 1.30 pm. The deadline time for submission of inter depository delivery instructions on SPEED-e on weekdays and Saturdays will remain unchanged. To avail this feature, Participants will be required to submit a written request [duly authorized by the Compliance Officer of the Participant stating the Participant name, DP ID and the deadline time to be set-up on SPEED-e as mentioned in point no. (i) above] to SPEED-e cell of NSDL at least one day in advance, i.e. prior to the effective date for extending / reducing the deadline time on SPEED-e for submission of instructions by their Clients and CMs with current date as the execution date on weekdays and / or Saturdays. The request letter should be addressed to: SPEED-e Cell National Securities Depository Limited Trade World, A-Wing, 4th Floor Kamala Mills Compound, Senapati Bapat Marg Lower Parel Mumbai - 400 013. Tel : (022) 2499 4200 Fax : (022) 2497 2993

(ii)

(iii)

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(iv)

Upon receipt of the request from the Participant, NSDL will set-up the deadline time on SPEED-e system. The deadline time once set-up on SPEED-e system will continue with revised deadline time till request to make changes to the same is received from the Participant. Pursuant to the release of this feature, the current deadline time for submission of instructions with current date as the execution date on SPEED-e i.e., 7.00 pm for weekdays and 3.00 pm for Saturdays will continue to be effective till request to make changes to the deadline time (in the manner mentioned above) is received from Participants.

(v)

For more information / clarification, Participants are requested to contact the following officials: Name of the official Ms. Kirti Samant Mr. Sandeep Kumar Mr. Rahul Gupta Mr. Narayan Venkat Circular No : NSDL/POLICY/ 2009/0126 Date: December 31, 2009 Telephone Number (022) 2499 4424 (022) 2499 4361 (022) 2499 4372 (022) 2499 4479 Email address kirtis@nsdl.co.in sandeepk@nsdl.co.in rahulg@nsdl.co.in narayanv@nsdl.co.in

Sub: Launch of SPICE (Submission of Power of attorney based Instructions for Clients Electronically) on SPEED-e / IDeAS All Participants are hereby informed about the introduction of a facility for auto pay-in of securities named SPICE (Submission of Power of attorney based Instructions for Clients Electronically) using the infrastructure of SPEED-e and IDeAS. The details of the facility are given below: (I) Introduction : This facility is in respect of demat accounts operated on the basis of Power of Attorney (POA). Many investors execute POA in favour of their stock brokers (i.e. Clearing Members) and advise their Participants accordingly. Based on the POA, Clearing Members (CMs) submit instructions (auto pay-in) to the Participants (where Clients maintain demat accounts) to debit the demat accounts of the Clients. SPICE would enable such CMs to submit digitally signed instructions to Participant through the SPEED-e facility thereby eliminating the need to give paper based delivery instructions to the Participants. (II) a) b) c) d) Process : CMs can set up registration requests in respect of their Clients (who have given POA in their favour) on SPEED-e. Registration requests can be confirmed by the Clients Participant through SPEED-e or IDeAS (if not subscribed for SPEED-e facility). Upon confirmation by the Clients Participant, the Client accounts get registered for the SPICE facility. After Clients are registered for this facility, CM can submit digitally signed instructions to debit the demat accounts of Clients and credit its pool account through SPEED-e facility. Participants of the Clients (where Clients maintain demat accounts) will download these instructions and import it into their DPM system for execution.

e)

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(III) Pre-requisites: Entities Clearing Member Subscription to SPEED-e Remark Client should have given POA in favour of the CM for submission of instructions. Must have given POA in favour of the CM and POA must have been submitted to the Participant. Must have taken the POA (given by Clients in favour of the CM) documents in its records.

Participant of the CM Client (beneficiary accountholder) Participant of the Client

SPEED-e -

Either SPEED-e or IDeAS

(IV) Registration: The Participant of the CM (where the CM maintains the CM Pool Account) and the CM should have subscribed for the SPEED-e facility for availing the facility of SPICE. In case the CM has not subscribed for SPEED-e facility, the CM will be required to register on SPEED-e by following the existing process. CMs who wish to avail SPICE facility (existing as well as new subscribers of SPEED-e) will be required to submit an application as per Annexure 1 (enclosed) to their Participants (subscribed for SPEED-e facility). Clients of such CMs should have given Power of Attorney (POA) in favour of the CM and POA documents must be in the records of the Participants where the Clients are maintaining their demat accounts. Participants of the CM will be required to forward Annexure 1 (duly authorized by their Compliance Officer) to NSDL for activating the SPICE facility for their CMs. In case CMs shift their CM Pool Accounts, then such CMs will be required to re-register their Clients and follow the procedures mentioned above. (V) Workflow: Workflow enclosed at Annexure A. (VI) Back office file formats: Back office file formats for CMs and Participants enclosed at Annexure B. Further, the file formats will be displayed on SPEED-e website and NSDL SQLASSIST intranet site (https://sqlassist). Participants are also requested to inform their CMs about the new file formats. (VII) Charges : Particulars Client Participant CM Charges payable Free Free No additional charges for CMs for availing SPICE facility. The existing charge of Rs.125 payable per quarter towards subscription for SPEED-e will continue.

[ 178 ]

For more information / clarification, Participants are requested to contact the following officials : Name of the official Mr. Yogesh Parve Mr. Sandeep Kumar Mr. Narayan Venkat Telephone Number (022) 2499 4490 (022) 2499 4361 (022) 2499 4479 Email address yogeshp@nsdl.co.in sandeepk@nsdl.co.in narayanv@nsdl.co.in

Annexure 1 (Draft application to be given on the letter head of the Clearing Member to its Depository Participant) Date : Name of the Compliance Officer DP Name (DP ID ) Address Dear Sir/Madam, We wish to subscribe our Clearing Member (CM) Account for SPICE (Submission of Power of attorney based Instructions for Clients Electronically) facility which will facilitate us to submit instructions on behalf of Clients (who have given Power of Attorney in favour of us) on SPEED-e. We agree that if any securities are moved to our CM Pool Account which are not due to us for any reasons including but not limited to an error or fraud, we undertake to immediately return the securities to the Client. The details of our account are as under: CM-BP-ID I N

Yours faithfully, (Authorised Signatories) To be signed by the current authorized signator(ies) of the Clearing Member ================================================================= Authorisation Received an application for subscription for SPICE facility from ________________________(name of the Clearing member) having CM BP ID IN___________. The application form has been verified with respect to the mentioned CM account and certified that the same is in order. We request NSDL to activate the CM for SPICE facility. Name of the Compliance Officer ___________________ Signature of the Compliance Officer : ______________ (Stamp of the DP) Date: ___/___/_______ DD MM YYYY Place_____________

[ 179 ]

Annexure 2 SPEED-e File formats DPMWEB Import Header Record Description Batch Number Record Type Filler DP Id DP Role Total number of Detail Records Sender Date Sender Time Sender User Id Filler URL Registration No

Data Type Size End Status Remarks Integer 7 7 M Integer 2 9 M Header Record (11) Character 6 15 O Can be used for branch code in future Character 8 23 M Integer 2 25 M Integer 5 30 M Date 8 38 M Character 4 42 M Character 8 50 O Character 4 54 O Not in use Integer 5 59 M Total 59

Trailer Record Description Batch Number Record Type Filler CM pool Delivery Qty Filler Filler DFP Instruction Total Qty Filler Delivery Out Instruction Total Qty Inter Settlement Instruction Total Qty Filler Filler Filler Filler Irreversible Delivery Out Total Qty Inter Depository Transfer DFP Filler Filler Filler Grand Total of Qty

Data Type Size End Status Remarks Integer 7 7 M Integer 2 9 M Trailer Record (19) Character 6 15 O Can be used for branch code in future Decimal 15 30 O 12+3 without decimal point Decimal 15 45 O Not in Use Decimal 15 60 O Not in Use Decimal 15 75 O 12+3 without decimal point Decimal 15 90 O Not in Use Decimal 15 105 O 12+3 without decimal point Decimal 15 120 O 12+3 without decimal point Decimal 15 135 O Not in Use Decimal 15 150 O Not in Use Decimal 15 165 O Not in Use Decimal 15 180 O Not in Use Decimal 15 195 O 12+3 without decimal point Decimal 15 210 O 12+3 without decimal point Decimal 15 225 Not in Use Decimal 15 240 O Not in Use Character 7 247 O Not in Use Decimal 15 262 M 12+3 without decimal point Total 262

Inter Transfer Instruction(DFP) (904) Description Data Type Size End Status Remarks Batch Number Integer 7 7 M Record Type Integer 2 9 M Detail Record (12)

[ 180 ]

Line Number Transaction Type Transaction Flag Filler Client Id ISIN Quantity Filler Market Type Settlement Number Execution Date Filler Other DP Id Other Client Id

Integer Integer Character Character Integer Character Decimal Character Integer Character Date Character Character Integer

5 3 1 7 8 12 15 10 2 7 8 6 8 8

14 17 18 25 33 45 60 70 72 79 87 93 101 109

M M M O M M M O O O M O M O

904 It should be A for all orders Not in Use

12+3 without decimal point

Not in Use Required only if target client is House/NonHouse i.e. CM BP Id is not present For POA instruction submiteed by CM filler is '11'. For CC filler is '12'. Required only if target is a CM Not in Use Remarks

Filler

Integer

111

Other CM BP Id Filler Internal Reference Number/Remarks Sender Reference Number 1 Sender Reference Number 2 Internet Transaction Id Internet Instruction ID Consideration

Character Character Character Character Character Integer Integer Character

8 9 20 35 35 15 15 15

119 128 148 183 218 233 248 263

O O O O O O M M

Reason/Purpose

Character

20

283

Routing Indicator

Integer

285

Filler

Character

28 313 Total 313

Added for Internet Transaction ID, Added for Internet Instruction ID, Required only if target client is House/NonHouse i.e. CM BP Id and settlement number are not present and market type is 00. Required only if target client is House/NonHouse i.e. CM BP Id and settlement number are not present and market type is 00. 00 in case of SPEED-e batch 01,02,03,04,05 - in case routed through BO Not in Use

Delivery Out Instruction (906) Description Batch Number Record Type Line Number Transaction Type Transaction Flag

Data Type Size End Status Remarks Integer 7 7 M Integer 2 9 M Detail Record (12) Integer 5 14 M Integer 3 17 M 906 Character 1 18 M It should be A for all orders

[ 181 ]

Filler Client Id ISIN Quantity Filler Market Type Settlement Number Execution Date Filler Internal Reference Number/Remarks Sender Reference Number 1 Sender Reference Number 2 Internet Transaction Id Internet Instruction ID Filler

Character Integer Character Decimal Character Integer Character Date Character Character Character Character Integer Integer Character

7 8 12 15 10 2 7 8 41 20 35 35 15 15 35

25 33 45 60 70 72 79 87 128 148 183 218 233 248 283

O M M M O M M M O O O O O M O

Not in Use

12+3 without decimal point

Not in Use Remarks

Routing Indicator

Integer

285

Filler

Character

28 313 Total 313

Added for Internet Transaction ID, Added for Internet Instruction ID, Not in use (Fillers Added in the place of Consideration & Reason/purpose, for keeping the length of detail record in Download file same) 00 in case of SPEED-e batch 01,02,03,04,05 - in case routed through BO Not in Use

Inter Settlement Transfer Instruction (907) Description Data Type Size End Status Remarks Batch Number Integer 7 7 M Record Type Integer 2 9 M Detail Record (12) Line Number Integer 5 14 M Transaction Type Integer 3 17 M 907 Transaction Flag Character 1 18 M It should be A for all orders Filler Character 7 25 O Used for pledge closure/ invocation Client Id Integer 8 33 M ISIN Character 12 45 M Quantity Decimal 15 60 M 12+3 without decimal point Filler Character 10 70 O Market Type Integer 2 72 M . Settlement Number Character 7 79 M Execution Date Date 8 87 M Filler Character 32 119 O Other Market Type Integer 2 121 M Other Settlement Number Character 7 128 M Internal Reference Number/Remarks Character 20 148 O Remarks Sender Reference Number 1 Character 35 183 O Sender Reference Number 2 Character 35 218 O

[ 182 ]

Internet Transaction Id Internet Instruction ID Filler

Integer Integer Character

15 15 35

233 248 283

O M O

Routing Indicator

Integer

285

Filler

Character

28 313 Total 313

Added for Internet Transaction ID, Added for Internet Instruction ID, Not in use (Fillers Added in the place of Consideration & Reason/purpose, for keeping the length of detail record in Download file same) 00 in case of SPEED-e batch 01,02,03,04,05 - in case routed through BO Not in Use

Irreversible Delivery Out Instruction (912) Description Data Type Size End Status Remarks Batch Number Integer 7 7 M Record Type Integer 2 9 M Detail Record (12) Line Number Integer 5 14 M Transaction Type Integer 3 17 M 912 Transaction Flag Character 1 18 M It should be A for all orders Filler Character 7 25 O Not in Use Client Id Integer 8 33 M ISIN Character 12 45 M Quantity Decimal 15 60 M 12+3 without decimal point Filler Character 10 70 O Market Type Integer 2 72 M Settlement Number Character 7 79 M Execution Date Date 8 87 M Filler Character 6 93 O Irreversible Reason Code 1 Integer 4 97 O Irreversible Reason Code 2 Integer 4 101 O Irreversible Reason Code 3 Integer 4 105 O Irreversible Reason Code 4 Integer 4 109 O Filler Character 19 128 O Not in Use Internal Reference Number/Remarks Character 20 148 O Remarks Sender Reference Number 1 Character 35 183 O Sender Reference Number 2 Character 35 218 O Internet Transaction Id Integer 15 233 O Added for Internet Transaction ID, Internet Instruction ID Integer 15 248 M Added for Internet Instruction ID, Filler Character 35 283 O Not in use (Fillers Added in the place of Consideration & Reason/purpose, for keeping the length of detail record in Download file same) Routing Indicator Integer 2 285 M 00 in case of SPEED-e batch 01,02,03,04,05 - in case routed through BO

[ 183 ]

Filler

Character

28 313 Total 313

Not in Use

CM pool to pool transfer(934) Description Batch Number Record Type Line Number Transaction Type Transaction Flag Filler Client Id ISIN Quantity Filler Market Type Settlement Number Execution Date Filler Other DP Id Other Client Id

Filler Other CM BP Id Other Market Type Other Settlement Number Internal Reference Number/Remarks Sender Reference Number 1 Sender Reference Number 2 Internet Transaction Id Internet Instruction ID Filler

Routing Indicator

Filler

Data Type Size End Status Remarks Integer 7 7 M Integer 2 9 M Detail Record (12) Integer 5 14 M Integer 3 17 M 934 Character 1 18 M It should be A for all orders Character 7 25 O Not in Use Integer 8 33 M Character 12 45 M Decimal 15 60 M 12+3 without decimal point Character 10 70 O Integer 2 72 O Character 7 79 O Date 8 87 M Character 6 93 O Not in Use Character 8 101 O Integer 8 109 O Required only if target client is House/NonHouse i.e. CM BP Id is not present Integer 2 111 O Character 8 119 M Required only if target is a CM Integer 2 121 O Character 7 128 O Character 20 148 O Remarks Character 35 183 O Character 35 218 O Integer 15 233 O Added for Internet Transaction ID, earlier not in use Integer 15 248 M Added for Internet Instruction ID, earlier not in use Character 35 283 O Not in use (Fillers Added in the place of Consideration & Reason/purpose, for keeping the length of detail record in Download file same) Integer 2 285 M 00 in case of SPEED-e batch 01,02,03,04,05 - in case routed through BO Character 28 313 O Not in Use Total 313

Detail record for Inter Transfer Instruction (925) Description Data Type Size End Status Remarks Batch Number Integer 7 7 M Record Type Integer 2 9 M Detail Record (12) Line Number Integer 5 14 M Transaction Type Integer 3 17 M 925

[ 184 ]

Transaction Flag Filler Client Id ISIN Quantity Filler Market Type Settlement Number Execution Date Filler Other Client Code Filler Other Depository Id Filler Internal Reference Number/Remarks Sender Reference Number 1 Sender Reference Number 2 Internet Transaction Id Internet Instruction ID Consideration

Character Character Integer Character Decimal Character Integer Character Date Character Character Integer Character Character Character Character Character Integer Integer Character

1 7 8 12 15 10 2 7 8 6 16 2 8 9 20 35 35 15 15 15

18 25 33 45 60 70 72 79 87 93 109 111 119 128 148 183 218 233 248 263

M O M M M O O O M O M O M O O O O O M M

It should be A for all orders Not in Use

12+3 without decimal point

Not in Use

IN000026 Remarks

Reason / Purpose

Character

20

283

Routing Indicator

Integer

285

Added for Internet Transaction ID, earlier not in use Added for Internet Instruction ID, earlier not in use Required only if target client is House/NonHouse i.e. settlement number is not present and market type is 00. Required only if target client is House/NonHouse i.e. settlement number is not present and market type is 00. 00 in case of SPEED-e batch 01,02,03,04,05 - in case routed through BO Not in Use

Other Settlement Details Filler

Integer Character

13 298 15 313 Total 313

O O

when URL 90001

Routing Indicator 02 01 03 04 05 Routing Indicator Always 00

BackOffice Captured Captured and VR With held with DP Rejected Only VR Speede Capture and VR

when URL 10001

[ 185 ]

Response File Description File begin Indicator Header Record Description Batch Number Record Type Filler DP Id DP Role Batch Acceptance Status Data Type Size End Status Remarks Integer Integer Character Character Integer Character 7 2 6 8 2 1 7 9 15 23 25 26 M M O M M M A-Successful Verification Release,R- Failure during Verification- Release YYYYMMDD Not in use Header Record (11) Can be used for branch code in future Data Type Size End Status Remarks Character 2 2 M It should be '{}' by default

Total number of Detail Records Business Date Sender User Id Filler URL Registration No

Integer Date Character Character Integer Total

5 8 8 9 5

31 39 47 56 61 61

M M O O M

Detail Record (904, 906,907) Description Batch Number Record Type Line Number Transaction Type Transaction Flag Instruction Id Internal Reference Number Sender Reference Number 1 Sender Reference Number 2 Internet Transaction Id Internet Instruction ID Order Status Status change date time Filler Data Type Size End Status Remarks Integer Integer Integer Character Character Integer Character Character Character Integer Integer integer Date time Integer 7 2 5 3 1 9 20 35 35 15 15 2 14 7 7 9 14 17 18 27 47 82 117 132 147 149 163 170 M M M M M M O O O O M M M O Added for Internet Transaction ID, earlier not in use Added for Internet Instruction ID, earlier not in use List given below. System date time Can be used to represent Original Order Reference Number for pledge closure, pledge invocation, closure confirmation and invocation confirmation. Also can be used for SLB - Lend and Borrow Instruction id generated by DPM. Detail Record (12)

Client Id

Integer

178

[ 186 ]

ISIN Quantity

Character Decimal

12 15

190 205

M M 12+3 without decimal point (for manual and automatic Delivery Out, quantity executed, i.e. sent to DM) Can be used to represent lock-in code Can be used to represent lock-in reason

Filler Filler Market Type Settlement Number Execution Date/Closure Date

Character Character Integer Character Date

2 8 2 7 8

207 215 217 224 232

O O O O O

Execution date for account transfer/DO /Corporate Action/inter settlement, Closure Date for Pledging and Hypothecation (Pledgor, Pledgee) and SLB Can be used for branch code in future Applicable in case of DFP/ RFP/Pledge/SLB. Related DP Id for NSDL transfer instruction Applicable in case of DFP/ RFP/Intra transfer/Pledge/ Demat/ Remat/ SLB. For POA instruction submiteed by CM filler is '11'. For CC filler is '12'. only for DFP/RFP subject to other a/c is of CM Applicable in case of Inter Settlement transfer Applicable in case of Inter Settlement transfer Can be used to represent agreement no which is mandatory for pledge/SLB instruction

Filler Other DP Id/Related DP Id

Character Character

6 8

238 246

O O

Other Client Id/No. of certificates

Integer

254

Filler

Integer

256

Other CM BP Id Other Market Type Other Settlement Number Filler

Character Integer Character Character

8 2 7 20

264 266 273 293

O O O O

Rejection reason code 1 Rejection reason code 2 Rejection reason code 3 Rejection reason code 4 Routing Indicator

Integer Integer Integer Integer Integer

5 5 5 5 2

298 303 308 313 315

O O O O M 00 in case of SPEED-e batch 01,02,03,04,05 - in case routed through BO

Filler

Character Total

323 323

[ 187 ]

Detail Record (912- Irreversible Delivery Out) Description Batch Number Record Type Line Number Transaction Type Transaction Flag Instruction Id Internal Reference Number Sender Reference Number 1 Sender Reference Number 2 Internet Transaction Id Internet Instruction ID Order Status Status change date time Filler Client Id ISIN Quantity Data Type Size End Status Remarks Integer Integer Integer Character Character Integer Character Character Character Integer Integer integer Date time Integer Integer Character Decimal 7 2 5 3 1 9 20 35 35 15 15 2 14 7 8 12 15 7 9 14 17 18 27 47 82 117 132 147 149 163 170 178 190 205 M M M M M M O O O O M M M O M M M 12+3 without decimal point (for manual and automatic Delivery Out, quantity executed, i.e. sent to DM) Added for Internet Transaction ID, earlier not in use Added for Internet Instruction ID, earlier not in use List given below. System date time Detail Record (12)

Filler Market Type Settlement Number Execution Date Filler Irreversible Reason Code 1 Irreversible Reason Code 2 Irreversible Reason Code 3 Irreversible Reason Code 4 Filler Filler Rejection reason code 1 Rejection reason code 2 Rejection reason code 3 Rejection reason code 4 Routing Indicator

Character Integer Character Date Character Integer Integer Integer Integer Character Character Integer Integer Integer Integer Integer

10 2 7 8 6 4 4 4 4 19 20 5 5 5 5 2

215 217 224 232 238 242 246 250 254 273 293 298 303 308 313 315

O O O O O Can be used for branch code in future

O O O O O M 00 in case of SPEED-e batch 01,02,03,04,05 - in case routed through BO

Filler

Character Total

323 323

[ 188 ]

Detail Record (934 CM pool to pool) Description Batch Number Record Type Line Number Transaction Type Transaction Flag Instruction Id Internal Reference Number Sender Reference Number 1 Sender Reference Number 2 Internet Transaction Id Internet Instruction ID Order Status Status change date time Filler Data Type Size End Status Remarks Integer Integer Integer Character Character Integer Character Character Character Integer Integer integer Date time Integer 7 2 5 3 1 9 20 35 35 15 15 2 14 7 7 9 14 17 18 27 47 82 117 132 147 149 163 170 M M M M M M O O O O M M M O Added for Internet Transaction ID, earlier not in use Added for Internet Instruction ID, earlier not in use List given below.<00> System date time<null> Can be used to represent Original Order Reference Number for pledge closure, pledge invocation, closure confirmation and invocation confirmation. Also can be used for SLB - Lend and Borrow Instruction id generated by DPM. Detail Record (12)

Client Id ISIN Quantity

Integer Character Decimal

8 12 15

178 190 205

M M M 12+3 without decimal point (for manual and automatic Delivery Out, quantity executed, i.e. sent to DM) Can be used to represent lock-in code Can be used to represent lock-in reason List given below Execution date for account transfer/DO /Corporate Action/inter settlement, Closure Date for Pledging and Hypothecation (Pledgor, Pledgee) and SLB Can be used for branch code in future Applicable in case of DFP/ RFP/Pledge/SLB. Related DP Id for NSDL transfer instruction

Filler Filler Market Type Settlement Number Execution Date/Closure Date

Character Character Integer Character Date

2 8 2 7 8

207 215 217 224 232

O O O O O

Filler Filler

Character Character

6 8

238 246

O O

[ 189 ]

Filler

Integer

254

Applicable in case of DFP/ RFP/Intra transfer/Pledge/ Demat/ Remat/ SLB. only for DFP/RFP subject to other a/c is of CM Applicable in case of Inter Settlement transfer Applicable in case of Inter Settlement transfer Can be used to represent agreement no which is mandatory for pledge/SLB instruction

Filler Other CM BP Id Other Market Type Other Settlement Number Filler

Integer Character Integer Character Character

2 8 2 7 20

256 264 266 273 293

O O O O O

Rejection reason code 1 Rejection reason code 2 Rejection reason code 3 Rejection reason code 4 Routing Indicator

Integer Integer Integer Integer Integer

5 5 5 5 2

298 303 308 313 315

O O O O M 00 in case of SPEED-e batch 01,02,03,04,05 - in case routed through BO

Filler

Character Total

323 323

Detail Record (925 Inter-Depository ) Description Batch Number Record Type Line Number Transaction Type Transaction Flag Instruction Id Internal Reference Number Sender Reference Number 1 Sender Reference Number 2 Internet Transaction Id Internet Instruction ID Order Status Status change date time Filler Data Type Size End Status Remarks Integer Integer Integer Character Character Integer Character Character Character Integer Integer integer Date time Integer 7 2 5 3 1 9 20 35 35 15 15 2 14 7 7 9 14 17 18 27 47 82 117 132 147 149 163 170 M M M M M M O O O O M M M O Added for Internet Transaction ID, earlier not in use Added for Internet Instruction ID, earlier not in use List given below.<00> System date time<null> Can be used to represent Original Order Reference Number for pledge closure, pledge invocation, closure confirmation and invocation confirmation. Also can be used for SLB - Lend and Borrow Instruction id generated by DPM. Detail Record (12)

[ 190 ]

Client Id ISIN Quantity

Integer Character Decimal

8 12 15

178 190 205

M M M 12+3 without decimal point (for manual and automatic Delivery Out, quantity executed, i.e. sent to DM) Can be used to represent lock-in code Can be used to represent lock-in reason

Filler Filler Market Type Settlement Number Execution Date/Closure Date

Character Character Integer Character Date

2 8 2 7 8

207 215 217 224 232

O O O O O

Execution date for account transfer/DO /Corporate Action/inter settlement, Closure Date for Pledging and Hypothecation (Pledgor, Pledgee) and SLB Can be used for branch code in future

Filler Other Client Code Filler Other Depository Id Filler Filler Other Settlement Details Filler

Character Integer Integer Character Integer Character Integer Character

6 16 2 8 2 7 13 7

238 254 256 264 266 273 286 293

O O O O O O O O

IN000026 Spaces Spaces Can be used to represent agreement no which is mandatory for pledge/SLB instruction

Rejection reason code 1 Rejection reason code 2 Rejection reason code 3 Rejection reason code 4 Routing Indicator

Integer Integer Integer Integer Integer

5 5 5 5 2

298 303 308 313 315

O O O O M 00 in case of SPEED-e batch 01,02,03,04,05 - in case routed through BO

Filler

Character Total

323 323

Trailer Record Description Batch Number Record Type Filler CM pool Delivery Accepted Qty CM pool Delivery Rejected Qty Filler Data Type Size End Status Remarks Integer Integer Character Decimal Decimal Decimal 7 2 6 15 15 30 7 9 15 30 45 75 M M O O O O Trailer Record (19) Can be used for branch code in future 12+3 without decimal point 12+3 without decimal point Not in Use

[ 191 ]

Filler DFP Instruction Accepted Qty DFP Instruction Rejected Qty Filler Delivery Out Instruction Accepted Qty Delivery Out Instruction Rejected Qty Inter Settlement Instruction Accepted Qty Inter Settlement Instruction Rejected Qty Filler Filler Filler Filler

Decimal Decimal Decimal Decimal Decimal Decimal Decimal Decimal Decimal Decimal Decimal Decimal

30 15 15 30 15 15 15 15 30 30 30 30 15 15 15 15 30 30 7 15 15

105 120 135 165 180 195 210 225 255 285 315 345 360 375 390 405 435 465 472 487 502 502

O O O O O O O O O O O O O O O O O O O M M

Not in Use 12+3 without decimal point 12+3 without decimal point Not in Use 12+3 without decimal point 12+3 without decimal point 12+3 without decimal point 12+3 without decimal point Not in Use Not in Use Not in Use Not in Use 12+3 without decimal point 12+3 without decimal point 12+3 without decimal point 12+3 without decimal point Not in Use Not in Use Not in Use 12+3 without decimal point 12+3 without decimal point

Irreversible Delivery Out Accepted Qty Decimal Irreversible Delivery Out Rejected Qty Decimal Inter Depository Delivery Accepted Qty Decimal Inter Depository Delivery Rejected Qty Decimal Filler Filler Filler Grand Total of Accepted Qty Grand Total of Rejected Qty Decimal Decimal Character Decimal Decimal Total File end Indicator Record Description File end Indicator when URL is 90001

Data Type Size End Status Remarks Character Routing Indicator 02 01 03 04 05 2 2 M It should be '{}' by default

BackOffice Captured Captured and VR With held with DP Rejected Only VR Speede Capture and VR

when URL is 10001

Routing Indicator Always 00

[ 192 ]

Change Orders for the Day (COD) Description Data Type File begin Indicator Character Header Record Description Record Type DP Id Full/Incremental Flag Last Export date and time

Size End Status Remarks 2 2 M It should be {} by default

Data Type Integer Character Character Date

Filler Statement Preparation Date Statement Preparation Time Total number of Detail Records URL Registration No Filler

Date Date Time Integer Integer Character TOTAL

Size End Status Remarks 2 2 M Header Record (11) 8 10 M 1 11 M F- Full, I Incremental, Default to F 14 25 O Can be used to represent last export date and time in case of incremental import 8 33 O Not in use 8 41 M System Date 6 47 M System Time 9 56 M 5 61 M 9 70 O Not in use 70

Detail Record Description Record Type Line Number Filler Transaction Type Transaction No. Order Status from Order Status to Cancellation Status from Cancellation Status to Status change date time Filler

Data Type Integer Integer Character Integer Integer integer integer integer integer Date time Integer

ISIN Requested Quantity Booked Quantity

Character Decimal Decimal

Internet Transaction Id Internet Instruction ID Filler

Integer Number Character Total

Size End Status Remarks 2 2 M Detail Record (12) 9 11 M 6 17 O Can be used for branch code in future 3 20 M List given below 9 29 M Transaction number of DPM. 2 31 M List given below. 2 33 M List given below 2 35 M List given below 2 37 M List given below 14 51 O System date time 7 58 O May be used in future to represent original order reference no of pledge closure, pledge invocation, closure confirmation and invocation confirmation. It may also used for SLB. 12 70 M 15 85 M 12+3 without decimal point 15 100 M 12+3 without decimal point (for manual and automatic Delivery Out, quantity executed, i.e. sent to DM) 15 115 O Added for Internet Transaction ID, earlier not in use 15 130 M 10 140 O 140

[ 193 ]

Trailer Record Description Record Type Filler Filler Filler Total CM pool Delivery Requested Qty Total CM pool Delivery Booked Qty Total DFP Instruction Requested Qty Total DFP Instruction Booked Qty Filler Total Delivery Out Instruction Requested Qty Total Delivery Out Instruction Booked Qty Total Inter Settlement Instruction Requested Qty Total Inter Settlement Instruction Booked Qty Filler Filler Filler Filler Total Irreversible Delivery Out Requested Qty Total Irreversible Delivery Out Booked Qty Filler Filler Filler Filler Grand Total of Requested Qty Grand Total of Booked Qty Data Type Integer Character Decimal Decimal Decimal Decimal Decimal Decimal Decimal Decimal Decimal Decimal Decimal Decimal Decimal Decimal Decimal Decimal Decimal Decimal Decimal Decimal Character Decimal Decimal Total File end Indicator Record Description File end Indicator Data Type Character Size End Status Remarks 2 2 M It should be {} by default Size End Status Remarks 2 6 30 30 15 15 15 15 30 15 15 15 15 30 30 30 30 15 15 30 30 30 7 15 15 2 8 38 68 83 98 113 128 158 173 188 203 218 248 278 308 338 353 368 398 428 458 465 480 495 495 M O O O O O O O O O O O O O O O O O O O O O O M M Trailer Record (19) Can be used for branch code in future Not in Use Not in Use 12+3 without decimal point 12+3 without decimal point 12+3 without decimal point 12+3 without decimal point Not in Use 12+3 without decimal point 12+3 without decimal point 12+3 without decimal point 12+3 without decimal point Not in Use Not in Use Not in Use Not in Use 12+3 without decimal point 12+3 without decimal point Not in Use Not in Use Not in Use Not in Use 12+3 without decimal point 12+3 without decimal point

[ 194 ]

Annexure A Salient features of the facility and detailed work flow Sr. No. 1 Work Flow Reference no. of the file format as per Annexure B 1.1 - Client Registration by CM.

CM will register the Client IDs on SPEED-e on behalf of whom it wishes to submit instructions using Digital Signature Certificate (DSC) through upload link "Upload (POA Registration)" The status of the Client registration can be ascertained by the CM by downloading the response file through link "View status (POA Registration)". Participants (where the Client has the demat account) will download the Client registration file (uploaded by CM) through SPEED-e / IDeAS (IDeAS in case the Participant has not subscribed for SPEED-e facility) website through link Download (POA Registration) The downloaded file will carry the signature of NSDL. Participants will verify the file using signature verification utility (SVU). The SVU can be downloaded from SPEED-e / IDeAS website. Thereafter, the prescribed file as per 1.4 will be uploaded by Participants using DSC through link Upload (POA Authorisation). The file will contain details as to whether the Participant has accepted or rejected the Client registration for this facility. Participants should ensure that acceptance is provided only for those Clients (on whose behalf the CM will be submitting instructions through SPEED-e) who have given POA in favour of the CM. Participants can ascertain the status of the records with respect to the file uploaded by them by downloading a response file through link "View Status (POA Authorisation)". Once Clients are registered for this facility, CM can start submitting instructions on behalf of the Clients on SPEED-e through link Upload Auto- Payin Instruction Participants will download the instructions, verify it with the SVU and upload the same into the DPM System. For this purpose, a download link is provided on SPEED-e / IDeAS and necessary EXE will be required to be loaded in the DPM system. A separate indicator to identify POA based instructions submitted by CMs is provided in the download instructions file.

1.2 - Response file for Client Registration.

1.3 - Batch Download by Participant with respect to batch uploaded by CM for Client registration.

1.4 - Batch Upload by Participant for accepting / rejecting the requests submitted by the CM.

1.5 - View Response file

1.6 - Batch Upload by CM on behalf of Clients

Annexure 2

In case the Client revokes the POA then Participant should immediately ensure to upload rejection file on SPEED-e / IDeAS as the case may be and discontinue the facility for the Client. The requisite link to upload is Upload (POA Authorisation).

1.4 - Batch Upload by Participant for accepting / rejecting the requests submitted by the CM.

[ 195 ]

Annexure B 1.1 Batch Upload - Client registration by CM File begin Indicator Record Description File begin Indicator Header Record Description Batch Number Record Type CM BP ID Total number of Detail Records Filler Data Type Character Size 2 End Status Remarks 2 M It should be '{}' by default

Data Type Integer Integer Character Integer Character Total

Size 7 2 8 5 10 32

End Status Remarks 7 M 9 M Header Record (11) 17 M 22 M 32 O Default Spaces

Detail record Description Batch Number Record Type Line Number DP Id Client ID POA ID Filler

Data Type Integer Integer Integer Character Integer Integer Character Total

Size 7 2 5 8 8 8 12 50

End Status Remarks 7 M 9 M Header Record (12) 14 M 22 M 30 M 38 O 50 O Default spaces

File end Indicator Record Description File end Indicator

Data Type Character

Size 2

End Status Remarks 2 M It should be '{}' by default

1.2 Response file for Client Registration Header Record Description Batch Number Record Type CM BP ID Total number of Detail Records Response Creation Date Response Creation Time Detail Record Description Batch Number Record Type Line Number Transaction Flag Instruction ID Instruction capture date time Data Type Integer Integer Character Integer Date Character Size 7 2 8 5 8 4 End Status Remarks 7 M 9 M Header Record (11) 17 M 22 M 30 M 34 M

Data Type Integer Integer Integer Character Integer Date time

Size 7 2 5 1 15 14

End Status Remarks 7 M 9 M Detail Record (12) 14 M 15 M 30 M 44 M System date time

[ 196 ]

Order Status Rejection reason Rejection reason Rejection reason Rejection reason Filler

code code code code

1 2 3 4

Character Integer Integer Integer Integer Character Total

2 5 5 5 5 10 76

46 51 56 61 66 76

O O O O O

Default Default Default Default Default

'00000' '00000' '00000' '00000' spaces

Trailer Record Description Batch Number Record type Filler

Data Type Integer Character Character Total

Size 7 2 10 19

End Status Remarks 7 M 9 M Trailer Record (19) 19 O Default Spaces

1.3 Batch Download by Participant with respect to batch uploaded by CM for Client registration Header Description Batch Number Record Type DP Id Total number of Detail Records File create Date File create Time Data Type Integer Integer Character Integer Integer Integer Total Size 7 2 8 5 8 4 34 End Status Remarks 7 M 9 M Header Record (11) 17 M 22 M 30 O System Date 34 O System Time

Detail Record Description Batch Number Record Type Line Number Client Id CM BP Id POA ID Status Filler

Data Type Integer Integer Integer Integer Character Integer Character character Total

Size 7 2 5 8 8 8 1 11 50

End Status Remarks 7 M 9 M Detail Record (12) 14 22 M 30 M 38 O 39 M S - Submitted 50 O Default Spaces

Trailer Record Description Batch Number Record type Filler Data Type Integer Character Character Total Size 7 2 10 19 End Status Remarks 7 9 19 M M O Trailer Record (19) Default Spaces

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1.4 Batch Upload by Participant for accepting / rejecting the requests submitted by the CM. Header Description Batch Number Record Type DP Id Total number of Detail Records File create Date File create Time Data Type Integer Integer Character Integer Integer Integer Total Size 7 2 8 5 8 4 34 End Status Remarks 7 M 9 M Header Record (11) 17 M 22 M 30 O 34 O

Detail Record Description Batch Number Record Type Line Number Client Id CM BP Id POA ID Status Filler

Data Type Integer Integer Integer Integer Character Integer Character Character Total

Size 7 2 5 8 8 8 1 11 50

End Status Remarks 7 M 9 M Detail Record (12) 14 22 M 30 M 38 O 39 M A - Accepted R - Rejected 50 O Default Spaces

Trailer Record Description Batch Number Record type Filler

Data Type Integer Character Character Total

Size 7 2 10 19

End Status Remarks 7 M 9 M Trailer Record (19) 19 O Default Spaces

1.5 View Response file Header Description Batch Number Record Type DP ID Total number of Detail Records Response Creation Date Response Creation Time Detail Record Description Batch Number Record Type Line Number Transaction Flag Internet Instruction ID Data Type Integer Integer Integer Character Integer Size 7 2 5 1 15 End Status Remarks 7 9 14 15 30 M M M M M Detail Record (12) Data Type Integer Integer Character Integer Date Character Size 7 2 8 5 8 4 End Status Remarks 7 M 9 M Header Record (11) 17 M 22 M 30 M 34 M

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Order Status Instruction capture date time Rejection reason code 1 Rejection reason code 2 Rejection reason code 3 Rejection reason code 4 Filler

integer Date time Integer Integer Integer Integer Character Total

2 14 5 5 5 5 10 76

32 46 51 56 61 66 76

M M O O O O O

System date time Default '00000' Default '00000' Default '00000' Default '00000' Default spaces

Trailer Record Description Batch Number Record type Filler

Data Type Integer Character Character Total

Size 7 2 10 19

End Status Remarks 7 M 9 M Trailer Record (19) 19 O Default Spaces

1.6 Batch Upload by CM on behalf of Clients File begin Indicator Record Description File begin Indicator Header Record Description Batch Number Record Type Filler CM BP ID / DP Id / CC Id Total number of Detail Records Role Data Type Integer Integer Character Character Integer Character Size 7 2 6 8 5 2 End Status Remarks 7 9 15 23 28 30 M M O M M O Mandatory if batch has POA instructions. Role are as follows:-CM Header Record (11) Can be used for branch code in future. Data Type Character Size 2 End Status Remarks 2 M It should be '{}' by default

Total Detail record:Description Batch Number Record Type Line Number Transaction Type Transaction Flag Filler ISIN Quantity Market Type Settlement Number Execution Date

30

Data Type Integer Integer Integer Integer Character Character Character Decimal Integer Character Date

Size 7 2 5 3 1 7 12 15 2 7 8

End Status Remarks 7 M 9 M Detail Record (12) 14 M 17 M 940 for Auto-Payin Instruction 18 M It should be A for all orders 25 O Not in Use 37 M 52 M 12+3 without decimal point 54 M 61 M 69 M

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Source DP Id Source Client Id Target CM BP Id Filler Internal Reference Number/Remarks

Character Integer Character Character Character

8 8 8 1 20

77 85 93 94 114

M M M O O

Not in Use Remarks, Populate Reference Details as in CM BO Not in Use

POA ID Filler

Integer Character Total

8 22 144

122 144

O O

Trailer Record Description Batch Number Record Type Filler Filler Filler Filler DFP Instruction Total Qty Filler Delivery Out Instruction Total Qty Inter Settlement Instruction Total Qty Inter Depository Instruction Total Qty Auto - Payin Instruction Total Qty Filler Filler Irreversible Delivery Out Total Qty Pool to Pool Instruction Total Qty Filler Filler Filler Grand Total of Qty

Data Type Integer Integer Character Decimal Decimal Decimal Decimal Decimal Decimal Decimal Decimal Decimal Decimal Decimal Decimal Decimal Decimal Decimal Character Decimal Total

Size 7 2 6 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 7 15 262

End Status Remarks 7 M 9 M Trailer Record (19) 15 O Default spaces 30 O Default 15 Zero's 45 O Default 15 Zero's 60 O Default 15 Zero's 75 O 12+3 without decimal 90 O Default 15 Zero's 105 O 12+3 without decimal 120 O 12+3 without decimal 135 O 12+3 without decimal 150 O 12+3 without decimal 165 O Default 15 Zero's 180 O Default 15 Zero's 195 O 12+3 without decimal 210 O Default 15 Zero's 225 O Default 15 Zero's 240 O Default 15 Zero's 247 O Default spaces 262 M 12+3 without decimal

point point point point point

point

point

Circular No : Sub: Change in e-Token Specification for SPEED-e facility NSDL/POLICY/ As all Participants are aware, Participants and Clients who have subscribed to 2009/0120 SPEED-e facility as e-Token User can access the SPEED-e website through Date: December 7, 2009 digital signature certificate using the e-Token facility (Ref.: Circular No. NSDL/ POLICY/2008/0013 dated March 3, 2008). The specifications for e-Token were as given below: e-Token e-Token Memory Size Option Aladdin e-Token 32K

The 32K memory is now upgraded to 72K memory and its cost is around Rs.1000 (which is same as the cost for 32K e-Token). Henceforth, Participants procuring e-Tokens are advised to procure the 72K e-Token. They should also advise the same to their Clients. Existing users who have 32K e-Token can continue to use the same. For any clarification with respect to e-Token, Participants are requested to contact Mr. Ganesh Pawar / Mr. Rahul Mehta on 022-24994447/ 4456.

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Circular No : NSDL/POLICY/ SPEED-e/2009/0008 Date: September 10, 2009

Sub: Facility of Inter Depository Delivery Instructions on SPEED-e All Participants are hereby informed that facility to submit Inter Depository Delivery Instructions (IDD) on SPEED-e will commence on Saturday, September 12, 2009. In this regard, the deadline timings for submitting IDD instructions on SPEED-e will be as follows: Particulars Deadline time for Clearing Members (CMs) / Clients (smart card / e-token Users) to submit instructions on SPEED-e with same day execution date 1) 2) Days Weekdays (Monday to Friday) Saturdays Timings 5.00 pm

1.30 pm

Participants are requested to note the following: Clients and CMs can continue to submit future dated IDD instructions on SPEED-e after the aforesaid deadline time. Participants should download at least one batch of instructions from SPEED-e after the aforesaid deadline time and ensure to upload the same into the DPM System before the prescribed deadline time for executing Inter Depository Transfer instructions i.e., 6.00 pm on weekdays and 2.30 pm on Saturdays. Participants are requested to refer to NSDL Circular No. NSDL/POLICY/ SPEED-e/2009/0004 dated June 15, 2009 in regard to changes to the back office file formats. (i) Participants who route their SPEED-e instructions through back office system and thereafter upload the same into the DPM System are requested to be ready with the latest back office file formats by September 11, 2009 otherwise routing instruction through back office would not be feasible. Participants will then have to directly import instruction downloaded from SPEED-e into DPM system. Operations of SPEED-e remain unchanged for Participants who download instructions from SPEED-e and upload them directly into the DPM System.

3)

(ii)

4)

If the back office file formats of Clients / CMs are not ready by the version release date i.e. September 12, 2009, they can still continue to submit instructions with the existing file formats with respect to the existing features available on SPEED-e (i.e., Delivery-Out to Clearing Corporation, Inter-settlement, CM Pool to CM Pool and Delivery to Client in case of CMs and Delivery to CM and Delivery to Client in case of Clients). New web-import utility will be provided to Participants in the Compact Disk (CD) containing DPM System Version 9.7 (scheduled to be released on September 12, 2009, ref Circular No. NSDL/POLICY/2009/0081 dated September 5, 2009). Upon installing DPM System Version 9.7 in the DPM server, the new web-import will automatically get installed. Clients (smart card / e-token Users) who wish to submit IDD instructions will be required to mention the Consideration and Reasons/Purpose (ref Circular No. NSDL/POLICY/SPEED-e/2008/0007 dated December 13, 2008). These are mandatory fields in the SPEED-e system.

5)

6)

Alongwith the aforesaid launch, Pending Instruction option (under Inquiries) has been enhanced which will facilitate Participant to view various types of instructions submitted by their CMs and Clients on SPEED-e which are pending

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for download. Upon entering the execution date, following details will be displayed: ================================================================= Execution date Instruction Type Number of Pending Instructions Number of Late Submissions

================================================================= It may be noted that submission of IDT instruction through SPEED-e will be available for all smart card / e-token users of SPEED-e. Further, SPEED-e will reflect the following status transition for IDT instruction submitted from SPEED-e: Actions initiated Various status of instructions displayed on SPEED-e for Clients / CMs

Instruction submitted by Clients / Pending (Instructions that are yet to be CMs on SPEED-e authorized) / Received by SPEED-e Instruction downloaded by Participant After instructions are uploaded Received by DP Accepted by NSDL Transferred Waiting for Balances Failed Canceled by DP Rejected at DP Rejected Withheld by DP in Backoffice Received by DP Rejected by DP in its Backoffice Updated By DP For further information / clarification, Participants are requested to contact Mr. Sandeep Kumar Tel : (022) 2499 4361 (email : sandeepk@nsdl.co.in) / Mr. Rahul Gupta Tel : (022) 2499 4372 (email : rahulg@nsdl.co.in) / Mr. Narayan Venkat Tel : (022) 2499 4479 (email : narayanv@nsdl.co.in). Circular No : NSDL/POLICY/ SPEED-e/2009/0004 Date: June 15, 2009 Sub : Facility to submit Inter -Depository Delivery Instructions on SPEED-e All Participants are hereby informed that SPEED-e facility is being enhanced to include the feature of enabling investors / clearing members (CMs) to submit Inter Depository Delivery (IDD) instructions. This facility will be available only to Smart Card / E-token Users. IDD instructions can be submitted on interactive as well as batch mode basis. Participants who route their SPEED-e instructions through their back office and thereafter upload the same into the DPM System are requested to make necessary changes in their back office as highlighted in the enclosed file format at Annexure A by July 15, 2009. Changes in the existing file formats for Clients and CMs are enclosed at Annexure B which will also be displayed on the SPEED-e website. Participants are requested to inform their Clients /

by Participant on the DPM System Instruction Sent to other Depository

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CMs about the new file formats. Even after the release of new version, Clients / CMs can upload other type of instructions in batch mode as per the existing file formats. For further information / clarification, Participants are requested to contact Mr. Sandeep Kumar Tel : (022) 2499 4361 (email : sandeepk@nsdl.co.in) / Mr. Rahul Gupta Tel : (022) 2499 4372 (email : rahulg@nsdl.co.in) / Mr. Narayan Venkat Tel : (022) 2499 4479 (email : narayanv@nsdl.co.in). Circular No : NSDL/POLICY/ SPEED-e/2009/0003 Date: May 15, 2009 Sub : View facility on SPEED-e for Participants in respect of off-market instructions submitted by Clients on SPEED-e A facility to view off-markets instructions (submitted by smart card / e-token Users through SPEED-e) on SPEED-e has been provided for Participants subscribed for SPEED-e facility. Participants are requested to follow the process enclosed at Annexure I for viewing the off-market instruction details. Participants can view off-market instruction details of past three months. For further information / clarification, Participants are requested to contact Mr. Sandeep Kumar [Tel : (022) 2499 4361 / email : sandeepk@nsdl.co.in] / Mr. Rahul Gupta [Tel : (022) 2499 4372 / email : rahulg@nsdl.co.in]. Annexure I (i) (ii) Click on icon View Off Market Transactions under Inquiries. Make a search on all or any of the parameter(s) i.e.: (a) SPEED-e transaction no., (b) DP instruction no., (c) ISIN, (d) Client ID, (e) Execution date (From - To). Upon specifying the parameter(s), Participants can view details of offmarket instructions such as source & target Client ID, ISIN, Quantity, DPM instruction number, SPEED-e transaction / instruction number, Consideration, Reasons / Purpose etc.

(iii)

Circular No. NSDL/POLICY/ 2009/0027 Date: April 11, 2009

Sub: Launch of Virtual Keyboard on IDeAS / SPEED-e websites to facilitate Users to enter password in more secured manner and change in minimum configuration for accessing IDeAS / SPEED-e websites All Participants are hereby informed that NSDL is pleased to announce the launch of virtual keyboard on IDeAS (https://ideas.nsdl.com) / SPEED-e (https://speed-e.nsdl.com) websites to facilitate Users to enter their password in a more secured manner. This feature is released on April 11, 2009. Salient features of Virtual Keyboard are as follows: (i) This feature is available for password based Users of IDeAS and SPEED-e facility and Clearing Members availing the facility of IDeAS using password based option (hereinafter referred as Users). Virtual keyboard will be made available for Users on IDeAS / SPEED-e websites to enter their password at the time of registration, login, reset of password, change of password and during auto-expiry of password. At present, Users enter their password using a physical keyboard for login to IDeAS / SPEED-e websites. Users will now have the choice to enter their password either using the physical keyboard or virtual keyboard (after enabling the check box - Use Virtual Keyboard). Users will be required to enter the entire password (in toto) either using the physical keyboard or virtual keyboard for all the password fields provided on the screen.

(ii)

(iii)

(iv)

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The minimum configuration of a PC for accessing IDeAS / SPEED-e websites has been revised as follows: Operating System Browser RAM Microsoft Windows 2000, Windows Server 2003, Windows XP and Windows Vista. Microsoft Internet Explorer 6.0 and above. 512 MB

The above information about virtual keyboard will also be displayed on IDeAS / SPEED-e websites. Participants may guide their Clients in this regard. For further information / clarification, Participants are requested to contact Mr. Sandeep Kumar Tel : (022) 2499 4361 (email : sandeepk@nsdl.co.in) / Mr. Rahul Gupta Tel : (022) 2499 4372 (email : rahulg@nsdl.co.in) / Mr. Narayan Venkat Tel : (022) 2499 4479 (email : narayanv@nsdl.co.in). Circular No. NSDL/POLICY/ 2009/0025 Date: April 1, 2009 Sub: Withdrawal of User fee for Users of IDeAS facility and reduction in annual fees for SPEED-e facility As all Participants are aware, NSDLs common internet facility called IDeAS facilitates investors to view latest balances and transactions in their depository accounts. SPEED-e facilitates Users (Beneficial Owners and Clearing Members) to submit delivery instructions on the internet. SPEED-e facilitates Participants to eliminate paper [Delivery Instruction Slips (DIS)] resulting in reduction in cost of storage and processing of DIS and the risk involved in verifying specimen signatures of account holders at the time of processing DIS. NSDL is pleased to announce reduction in the fees for IDeAS and SPEED-e facilities with effect from April 1, 2009 as follows: Particulars IDeAS User Fee SPEED-e Admission Fee Annual Fee Rs. 6,00,000 Rs.1,00,000 for main DPM set-up and Rs. 50,000 for every additional DPM set-up subject to a maximum of Rs 3,00,000. Rs.2,00,000 Rs.25,000 irrespective of number of DPM set-ups Rs.10 per quarter Nil Existing Fees Revised Fees

The revised fee structure and features of IDeAS and SPEED-e facilities are enclosed at Annexure I and Annexure II respectively. For further information / clarification, Participants are requested to contact Mr. Sandeep Kumar Tel : (022) 2499 4361 (email : sandeepk@nsdl.co.in) / Mr. Rahul Gupta Tel : (022) 2499 4372 (email : rahulg@nsdl.co.in) / Mr. Narayan Venkat Tel : (022) 2499 4479 (email : narayanv@nsdl.co.in). Annexure I Fee structure for IDeAS and SPEED-e (for Participants) Type of fee IDeAS Admission fee NIL Annual Fee Rs.10,000 for first Fees for the ensuing calendar year DPM set-up and (January to December) will be Rs.5,000 for every charged in the monthly bill additional DPM set-up. for December. Fee

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SPEED-e Admission fee Rs. 2,00,000 Annual Fee Payable at the time of joining SPEED-e facility.

Rs. 25,000 irrespective Payable at the time of joining of number of DPM SPEED-e facility. Fees will be set-ups. charged in advance in the monthly bill of March for the ensuing financial year (April to March).

Note : If Participants subscribe for SPEED-e facility, no charges are payable by Participants for IDeAS facility. Type of User BO (Beneficial Owners) BO BO BO Facility Only IDeAS Only SPEED-e IDeAS and SPEED-e Only IDeAS Only SPEED-e IDeAS and SPEED-e CM (Clearing Members) Only IDeAS Only SPEED-e NIL Rs. 125 per quarter Rs. 125 per quarter Payable annually by CM to NSDL Rs. 125 per quarter NIL Fee Password based User

E-token* based User

* Charges for e-token will be Rs.1,000 approx. Annexure II Various features and advantages of IDeAS facility are given below: (I) Clients (Beneficial Owners) View the latest balances along with the value based on the previous day closing price* in depository account(s). View transactions that have taken place in depository account(s) during the last 30 days. Download month-wise transaction statement for the previous months (maximum 12 months) bearing NSDLs digital signature, which can be verified by using a Signature Verification Utility. SEBI has permitted the Participants to discontinue providing physical transaction statements to their Clients who subscribe for the IDeAS facility. However, Participants will be required to send a consolidated transaction statement, in physical form, for the entire financial year and the same shall be dispatched before 15th of May every year (Refer NSDL Circular No. NSDL/POLICY/2006/0010 dated March 24, 2006).
*Disclaimer : While care has been exercised by NSDL compiling price file, NSDL does not warrant completeness or accuracy and damages arising out of use of this information. For any specific / latest information, you may contact the respective stock exchange.

(II) Clearing Members (CMs) CMs will be able to view and download the latest balances and transactions

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in their pool accounts in respect of settlements for the current pay-in date, previous four and next four pay-in dates. Other features available on IDeAS for CMs are as follows: View ISIN-wise positions / transactions for a given market type and settlement number. View Delivery-out instructions which are in overdue status, for a given market type and settlement number. Download transactions in the Pool Account to determine shortages for follow-up with Clients. Download ISIN master to keep the back-office system up-to-date. Various features and advantages of SPEED-e facility are given below: (I) Features (a) Clients: Password based Users can submit market instructions in favour of maximum three pre-notified CM Accounts. E-token Users can submit both market as well off-market instructions in an interactive as well as batch upload. Submission of instruction(s) to freeze / unfreeze account(s) / ISIN(s) and / or specific quantity of securities under an ISIN. Further, freeze request executed by Clients through SPEED-e cannot be unfrozen by the Participant (applicable for e-token based Users). (b) CMs: CM Users can avail the following features both on interactive as well as on a batch submission mode: Delivery-out to Clearing Corporation Delivery to Client Inter-Settlement CM Pool to Pool (II) Advantages Check the latest balances in the depository account through IDeAS before submitting instructions and monitor the status of execution of the same. View status of execution of delivery instructions. Save time and efforts in obtaining delivery instruction slips and submitting them to Participant. Freeze depository accounts on SPEED-e. Freeze created through SPEED-e can be unfrozen only through SPEED-e (applicable for e-token based Users). Convenience for NRI Clients to operate their accounts. Circular No : NSDL/POLICY/ SPEED-e/2009/0002 Date : March 21, 2009 Sub : Partial settlement of pay-in instructions executed from Client to CM Pool Account on SPEED-e All Participants were informed about the feature of partial settlement of pay-in related account transfer instructions executed from Client to Clearing Member (CM) Pool account vide NSDL circular no. NSDL/POLICY/2009/0019 dated March 14, 2009. The above feature is scheduled to be released on Saturday i.e., March 21, 2009.

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In view of the above, Participants who have subscribed for SPEED-e facility are informed that subsequent to the release of this feature, Clients who submit Client to CM Pool account transfer instructions on SPEED-e will be enabled to view the Requested Quantity and Delivered quantity in the link viz., View Instructions / Delivery to Clearing Member on SPEED-e website. Further, the status of the Client to CM Pool account transfer instructions having partial balance in the Client account, subsequent to execution of pay-in, will get updated as Closed Partially Settled on SPEED-e website. The above information will be displayed to the SPEED-e Clients on the welcome screen on SPEED-e log-in. Participants may guide their Clients in this regard. For further information / clarification, Participants are requested to contact Mr. Sandeep Kumar Tel : (022) 2499 4361 (email : sandeepk@nsdl.co.in) / Mr. Rahul Gupta Tel : (022) 2499 4372 (email : rahulg@nsdl.co.in) / Mr. Narayan Venkat Tel : (022) 2499 4479 (email : narayanv@nsdl.co.in). Circular No : NSDL/POLICY/ SPEED-e/2009/0001 Date : March 13, 2009 Sub : Facility for Participants to mark holiday(s) on SPEED-e All Participants are hereby informed about the launch of Holiday Master feature on SPEED-e which will facilitate Participants (subscribed for SPEED-e facility) to mark holiday(s) on SPEED-e. After the Participant has marked holiday(s) on SPEED-e, Clients / Clearing Members (CMs) of the Participant will not be allowed to submit/ authorize instructions on SPEED-e with execution date as the holiday date. This release is scheduled on March 14, 2009. Salient features of this facility are as follows: a) b) A new function for allocation of rights has been introduced for marking and authorizing a holiday on SPEED-e to the Admin user. To avail of this facility of marking/authorizing a holiday, Admin User must assign the capture and authorization rights to different Functional Users. The capturer and authorizer cannot be the same User. Capturer can mark holiday(s) (clicking on link Add DP Holiday) / cancel the marked holiday(s) (clicking on link View / Cancel DP Holiday). The details thus captured shall remain in captured status i.e. pending for authorization. While marking the holiday(s) Capturer will be required to mention the reason for marking holiday. Care must be taken while capturing the reason as the reason of holiday, as captured by the Participant, will be displayed to Clients/ CMs of that Participant. Authorizer will be able to authorize the holiday(s) that are in captured status (clicking on link Authorize Add / Cancel Holiday). Further, the authorizer cannot modify the holiday details that are in captured status. The holiday(s) must be marked & authorized by Participants well-in advance i.e. latest by 6.30 pm of one working day prior to the date of holiday. Example: If Participants wish to mark & authorize Friday, March 27, 2009 as a holiday on SPEED-e, Participants must do so latest by 6.30 pm on Thursday, March 26, 2009.

c) d)

e)

f)

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g)

Once a holiday is captured and authorized by the Participant, the Clients of that Participant will be unable to submit or authorize instructions on SPEED-e with execution date as the holiday date. If there are instructions already executed by the Clients/ CMs with execution date falling on the date marked as holiday, Participants can still mark such a day as a holiday as such pending instructions can and should be downloaded and imported into DPM System. At the time of marking a holiday, a message will be displayed on the SPEED-e advising users of the Participants to check for any pending instructions to be downloaded for the date which is marked as holiday. After 6.45 pm of one day prior to the day which is marked as a holiday, Participants are advised to download all pending instructions from SPEED-e and in case there are any instructions, upload the same before 8.30 pm into the DPM System. A link viz., View / Cancel DP Holiday will facilitate Participants to view various status of holiday details viz., Captured, Active, Cancellation Requested, Cancelled. A link is also provided for Clients / CMs to view the holiday(s) along with the reasons, marked by the Participants.

h)

i)

j)

For further information / clarification, Participants are requested to contact Mr. Sandeep Kumar Tel: (022) 2499 4361 (email: sandeepk@nsdl.co.in) / Mr. Rahul Gupta Tel: (022) 2499 4372 (email: rahulg@nsdl.co.in) / Mr. Narayan Venkat Tel : (022) 2499 4479 (email : narayanv@nsdl.co.in). Circular No : NSDL/POLICY/SPEED-e/ 2008/0007 Date : December 13, 2008 Sub : Version Release - Incorporation of FIU details on SPEED-e for smart card / e-token Users Further to our Circular No. NSDL/POLICY/SPEED-e/2008/0006 dated November 10, 2008, Participants who have subscribed for SPEED-e facility are requested to note that NSDL has scheduled version release on SPEED-e on December 20, 2008 to incorporate the fields viz., 'Consideration' and 'Reasons/Purpose' for capturing the required details under the said fields, at the time of submitting off-market instructions by smart card / e-token Users. Participants are requested to take note of the following important operating instructions with respect to version release: 1) Compact Discs (CD) containing new version of the DPM System and instructions regarding upgradation is being sent to Participants by courier separately. In addition, the version release software will also be made available on the intranet site of NSDL viz., http://sqlassist/SPEED-e/ Ver8.11 on December 19, 2008. Participants are requested to install the software downloaded from the SQLassist or the CD only on December 20, 2008. If any problem is encountered in installing the software on December 20, 2008, Participants are requested to contact NSDL Help Desk on (022) 2499 4601 to 4610 and obtain a token number for the call. Participants are requested to note that the new file formats as informed

2)

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in our aforesaid circular will be applicable from December 20, 2008 onwards. Hence, Participants who are routing their SPEED-e instructions through their back office and thereafter uploading the same into the DPM System are requested to be ready with the latest back office file formats. Further, smart card / e-token Users who submit off market instructions on a batch mode also need to be ready with the latest file formats for uploading off market instructions on SPEED-e. Participants are requested to inform their smart card / e-token Users about the developments. 3) Participants are advised to download at least one batch of instructions from SPEED-e after 6.30 pm and upload the same into the DPM System on December 19, 2008.

For further information / clarification, Participants are requested to contact Mr. Sandeep Kumar Tel : (022) 2499 4361 (email : sandeepk@nsdl.co.in) / Mr. Rahul Gupta Tel : (022) 2499 4372 (email : rahulg@nsdl.co.in) / Mr. Narayan Venkat Tel : (022) 2499 4479 (email : narayanv@nsdl.co.in). Circular No : NSDL/POLICY/ 2008/0065 Date : September 26, 2008 Sub : Revocation of SPEED-e and IDeAS facility by NSDL consequent to closure of such Client accounts in the DPM system In continuation of NSDL Circular No. NSDL/POLICY/2008/0024 dated April 11, 2008, all Participants are hereby informed that with effect from September 26, 2008, NSDL shall also revoke the Client IDs of password Users and User IDs of smart card / e-token Users on SPEED-e / IDeAS at regular intervals after such Clients accounts are closed in the DPM System. Other details as informed in NSDL Circular Nos. NSDL/POLICY/2008/0020 and NSDL/POLICY/2008/0024 dated April 4 and 11, 2008 respectively remain unchanged. For further information / clarification, Participants are requested to contact Mr. Sandeep Kumar Tel : (022) 2499 4361 (email : sandeepk@nsdl.co.in) / Mr. Narayan Venkat Tel (022) 2499 4479 (email : narayanv@nsdl.co.in). Circular No : NSDL/POLICY/ 2008/0046 Date: June 26, 2008 Sub: Withdrawal of usage fee for password based Users of the SPEED-e facility As all Depository Participants (DPs) are aware, NSDL launched its common internet facility called SPEED-e on September 1, 2001, which facilitates Users (Beneficial Owners and Clearing Members) to submit delivery instructions on the internet. Users have the option of accessing SPEED-e facility either as a Password User or as a Smart Card / e-Token User. With a view to encourage investors to submit delivery instructions electronically over internet, NSDL is pleased to announce the withdrawal of usage fee of Rs.25 charged to DPs, every quarter, in respect of Password based Users of the SPEED-e facility, with effect from July 1, 2008. DPs are requested to pass on the benefit to the Password based Users of the SPEED-e facility.

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Circular No : NSDL/POLICY/ 2008/0024 Date : April 11, 2008

Sub : Revocation of SPEED-e and IDeAS facility consequent to closure of demat accounts Depository Participants (DPs) have represented to NSDL that Clients (Beneficial Owner) do not submit revocation request to DPs for revoking SPEED-e / IDeAS facility, at the time of closing their demat accounts. In this context, DPs have requested NSDL to allow them to revoke such Client accounts on SPEED-e / IDeAS on receipt of closure request with respect to demat accounts. DPs may unilaterally revoke the Client IDs in case of password Users and User IDs in case of smart card / e-token Users on SPEED-e / IDeAS as applicable, after carrying out the closure of demat accounts of such Clients. In case of smart card / e-token Users, DPs should send the Client details i.e. Client ID, User ID and Signature Revocation Form of such Clients to NSDL after carrying out the revocation of User ID. As all DPs are aware, NSDL vide its Circular No. NSDL/POLICY/2008/0020 dated April 4, 2008 informed DPs about the launch of download of Clients details on SPEED-e / IDeAS, whereby DPs can download and view the details of their respective Clients who have subscribed for the services of SPEED-e and / or IDeAS. This facility will enable the DPs to identify the accounts in SPEED-e / IDeAS for the purpose of revocation of access. Consequent to account closure, DPs are advised to provide the transaction statement to such Client for the period from the beginning of the quarter in which the account is closed till the date of closure. Further, the transaction statement should bear the words "Account Closed" and should be prominent. For this purpose, DPs can affix a rubber stamp or create a suitable system that will clearly show on the transaction statement that the account has been closed (Refer NSDL Circular No. NSDL/POLICY/2006/0014 dated May 11, 2006). For further information / clarification, DPs are requested to contact Mr. Sandeep Kumar Tel : (022) 2499 4361 (email : sandeepk@nsdl.co.in) / Mr. Narayan Venkat Tel (022) 2499 4479 (email : narayanv@nsdl.co.in).

Circular No : NSDL/POLICY/ 2008/0020 Date: April 04, 2008

Sub: Launch of new feature 'Client List Download' for DP on SPEED-e and IDeAS As all Participants are aware, NSDL has provided a common internet facility called SPEED-e and a facility called IDeAS (Internet-based Demat Account Statement) to view balances and transactions in demat accounts updated on an online but not real time basis. DPs were advised to maintain the list of clients who have subscribed for these facilities manually in a register. DPs have been representing to NSDL for a utility that will provide the list of clients who have subscribed for SPEED-e or/and IDeAS facility. NSDL is now pleased to announce the launch of 'Client List Download' on SPEED-e and IDeAS. This facility is expected to be released on April 4, 2008. In this feature, a new link "Download Client List" under the option "Inquiries" would be provided to DP Administrator and DP Functional Users. DPs can download a digitally signed file containing the details of the clients who have subscribed for SPEED-e or/and IDeAS in a TCL file. DPs can verify the digital signature of NSDL using a Signature Verification Utility. Detailed procedure regarding installation of Signature Verification Utility is already available to view and download on SPEED-e site.

[ 210 ]

DPs who have subscribed to SPEED-e facility will get the list of clients who have subscribed for SPEED-e or/and IDeAS facility & list of Clearing Members who have subscribed for SPEED-e facility. DPs who have subscribed for IDeAS facility will get the list of clients who have subscribed for only IDeAS facility. The downloaded file will provide the following details. Sr No 1 2 3 4 5 6 DP ID USER ID downloading the file No of records Downloaded file date & timestamp Registration Number Client Activation Date Column Remarks The DP ID of the DP user doing the download The USER ID of the DP user doing the download Will display total number of records generated in the downloaded file The date will be displayed in the following format (YYYYMMDDHHMMSS) Registration No. will be displayed only in case of a Password based user User Activation Date will be displayed in case of a password based user. Incase of Smart Card based users, the Client registration date will be displayed In case the client is a CM then Client Id as well as CM BP ID will be shown in the file. In case the client is an investor then only Client Id will be shown. This field can be Active/Suspended The user present in any other status will not be included in the file. This field will denote whether the client is using either SPEED-e or IDeAS or Both. It would display SPEED-e or IDeAS or SPEED-e & IDeAS in the file depending on the facility subscribed. This field will denote whether the client is smart card based or password based. If the client is password based then the field will be displayed as Password and if the client is smart card based then Smart Card will be displayed.

Client ID / CM BP ID

Status

Service

10

User Type

The downloaded file will contain the list of clients that are in Active/Suspended status at the time of download by the DP user in the SPEED-e system. Circular No : NSDL/POLICY/ 2008/0003 Date: April 03, 2008 Sub: SPEED-e Operations Manual for DPs NSDL is pleased to inform the Depository Participants (DPs) that the SPEED-e Operations Manual for DPs is now available for download on SQLASSIST Intranet site of NSDL (//sqlassist/SPEED-e Operations Manual). This operations manual is also available for download to DP Users (i.e. Admin and Functional User) on NSDL SPEED-e Website (https://speed-e.nsdl.com).

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Circular No : NSDL/POLICY/ SPEED-e/2008/0001 Date : January 3, 2008

Sub : Extension in Deadline for Submission of Instructions on SPEED-e As all Participants are aware, NSDL launched its common internet facility called SPEED-e on September 1, 2001. At present, SPEED-e allows the Clients to submit instructions with current date as the execution date only upto 6:00 p.m. IST (3:00 p.m. on Saturdays). Participants have requested NSDL to extend the deadline for submission of instructions on SPEED-e for their clients on weekdays. In this regard, NSDL is pleased to announce the following changes on SPEED-e with effect from January 7, 2008: Instructions with current date as the execution date can be executed on SPEED-e by the client upto 6:30 p.m. IST (earlier 6:00 p.m. IST). However, instructions with future date as the execution date can be executed at any time, even after 6.30 p.m. IST.

Further, there is no change in the deadline for submission of instructions with current date as the execution date on SPEED-e by the client on Saturdays which is 3:00 p.m. IST. Participants must ensure that all the instructions received from the clients within the aforesaid deadlines are duly executed in the DPM System and in case Participants encounter any difficulty in downloading the instructions from SPEED-e, the same should be reported to Help Desk immediately. In case of emergency, NSDL will download the file and give it to the Participants. Participants are requested to take note of the above and inform all the SPEED-e Users accordingly. Auto Cancellation of Unconfirmed Pledge/Hypothecation/SLB Orders due to Auto Corporate Actions Circular No : NSDL/PI/2001/1566 Date : October 13, 2001 In continuation of Circular No. NSDL/PI/2001/1559 dated October 12, 2001 regarding automatic cancellation of unconfirmed Pledge / Hypothecation / SLB orders, Participants are further advised that while re-executing the cancelled orders, proportionate quantity credited under the new ISINs upon conversion should be entered in respect of each cancelled order. Participants can refer to the Auto Corporate Action Details inquiry screen in the DPM for obtaining the details of ACAs viz; Instruction No., Type, Execution Date, Debit ISIN, Credit ISIN, Conversion Ratio and status All Participants are hereby informed about the effect on unconfirmed Pledge / Hypothecation / SLB orders subsequent to release of DPM Application software Version 3.1. All unconfirmed pledge / hypothecation creation, pledge /hypothecation closure, hypothecation invocation, lend initiation, borrow initiation, recall initiation and repay initiation requests for those ISINs for which Auto Corporate Actions have been executed so far will get automatically cancelled and securities will get transferred to the new ISINs on Monday, October 15, 2001. The cancelled Pledge / Hypothecation / SLB orders will be reflected in the changed orders for the day (COD) Export. Participants should re-execute such cancelled Pledge /Hypothecation / SLB orders immediately. Henceforth, whenever an Auto Corporate Action (ACA) is executed, all unconfirmed Pledge / Hypothecation / SLB orders will get cancelled automatically and securities will be transferred to the new ISINs on the execution date of ACA and Participants will have to re-execute those orders. Fresh instruction forms will not be required to be obtained from the clients for re-execution of the automatically cancelled Pledge/ Hypothecation / SLB orders on account of ACA.

Circular No : NSDL/PI/2001/1559 Date : October 12, 2001

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Auto Corporate Action for redemption Circular No : NSDL/PI/2002/0763 Date: May 14, 2002 As a part of software version 3.2, a facility has been introduced whereby securities can be redeemed by the Issuers through its R&T Agents, by executing an Automatic Corporate Action (ACA). In this regard, Participants are advised to note the following: 1. The details of ACA can be viewed in the main menu of the DPM system under "Inquiries" screen by selecting the option Corporate Action\Auto Corporate Action Allotment. The implications of ACA for various types of instructions are as under: Type of Instruction Free balances under Beneficiary Accounts, CM Pool Accounts and Intermediary Pool Accounts. Pending demat requests Pending remat / repurchase requests Unconfirmed Pledge. Hypothecation / SLB instructions Securities Pledged/ Hypothecated Effect of ACA on the Execution Date ACA executed

2. Sr. No. 1

2 3. 4.

The requests are cancelled The requests are cancelled and ACA executed The instructions are cancelled and ACA executed ACA not executed. Upon closure or invocation of the pledge/hypothecation, ACA is executed on the BOD of the next day of such closure /invocation. ACA not executed. When securities become free, ACA is executed on the BOD of the next day when securities become free. ACA not executed. When freeze is removed, ACA is executed on the BOD on the next day of removal of the freeze. ACA not executed. On the BOD of the next day when securities are moved to CM Pool account on pay-out or cancellation of delivery out instructions, ACA executed.

5.

6.

Locked-in securities

7.

Balances which are frozen

8.

Balances under the CM Delivery accounts

3.

No fresh Dematerialisation/ rematerialisation/ repurchase requests can be initiated before 21 days of the redemption date.

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4. 5.

No instructions can be initiated with execution date greater than the redemption date. Redemption by way of ACA is not applicable in case of Commercial Papers and Equity Shares.

Stipulated time for transfer of securities from CM Pool Account & Penalty Circular No : NSDL/PI/2004/0721 Date: April 22, 2004 Attention of Participants is invited to SEBI Circular No. SEBI/MRD/Policy/AT/ Cir-19/2004 dated April 21, 2004, which states as follows: "SEBI vide circular no. SMDRP/Policy/Cir-05/2001 dated February 01, 2001, had stipulated a time limit of 4 calendar days or 2 working days, whichever is later, for transferring the securities from the member's pool account to the beneficiary accounts of clients. Also, SEBI vide circular No. SMD/Policy/Cir6/2003 dated February 6, 2003 has stipulated the brokers to distribute the pay-out of securities and funds within 24 hours to their clients. Hence, with a view to harmonize the time limit for the pay-out from the pool account of the member to the client account, it is now clarified that, in partial modification of SEBI circular no. SMDRP/Policy/Cir-05/2001 dated February 01, 2001, the stock brokers/clearing members shall be required to transfer the securities from their respective CM Pool account to the respective beneficiary account of their clients within 1 working day after the pay-out day. The securities lying in the pool account beyond the stipulated 1 day shall attract a penalty at the rate of 6 basis point per week on the value of securities." Participants are requested to note that this will be effective from May 1, 2004.

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NOTES

[ 215 ]

NOTES

[ 216 ]

4. Transmission
Bye Law 9.10.1 NSDL shall effect the transmission of security balances of any Client due to death, lunacy, bankruptcy, insolvency or by any other lawful means other than transfer. In cases where the deceased is the Karta of a Hindu Undivided Family ("HUF") holding securities in such capacity, the surviving member(s) of the HUF may notify to NSDL the eldest surviving member of the HUF as the Karta of the HUF in accordance with law, and subject to production of such evidence and execution of such documents as may be prescribed in the Business Rules, the name of such newly designated Karta shall be entered in the records of NSDL as having title to the securities held in the beneficial owner account held by the deceased Karta. Provided however that such facility shall be permitted by NSDL only if the gross value of the securities lying to the credit of such beneficial account does not exceed such limit as may be prescribed by NSDL in its Business Rules from time to time. In all other cases, no change of name of account holder shall be permitted unless supported by a succession certificate and such other requirements as may be prescribed in accordance with law." Bye Law 9.11.1 In respect of every account, the Beneficial Owner(s) (in Nominating Person(s)) may nominate any person (Nominee) to whom his securities shall vest in the event of his death in the manner prescribed under the Business Rules from time to time. Transmission of Securities held jointly in the Depository 12.6.1.1. In case of death of one of the Clients in a joint account, the surviving Client(s) shall request the Participant to transmit the balances lying in the Client account to the account of the surviving Client(s). The surviving Client(s) shall make an application to the Participant in the form specified in Annexure O alongwith a copy of the death certificate duly attested by a Notary Public or by a Gazetted Officer. The Participant shall verify the death certificate and the signature of the surviving Client(s) before effecting the transmission. In case of death of one or more of the Clients in a joint account if the surviving client(s) wish to open a new account with the same Participant, then the Participant will open the new account in the name(s) of the surviving member(s), in the same order as in the original account, on the basis of the existing documents already in the possession of the Participant, provided that the said documents meet the prevailing requirements for opening an account. Further, the Annexure 'O' (copy enclosed) pertaining to Transmission Request Form (TRF) has been amended and various formats used alongwith TRF have been restructured and inserted as Annexures of Business Rules as below:

Bye Law 9.10.2.1.

Rule 12.6.1

12.6.1.2.

12.6.1.3.

[ 217 ]

(i) Annexure 'OC' - Format for Letter of Indemnity to be given by legal heir(s)/Legal representative(s) in case value of holding not exceeding Rs.1 lakh on the date of application (copy enclosed). (ii) Annexure 'OD' - Format for Affidavit to be given by legal heir(s)/Legal representative(s) in case value of holding not exceeding Rs.1 lakh on the date of application (copy enclosed). (iii) Annexure 'OE' - Format for No Objection Certificate to be given by legal heir(s)/Legal representative(s) in case value of holding not exceeding Rs.1 lakh on the date of application (copy enclosed). (iv) Annexure 'OF' - Format for Deed of Indemnity to be submitted by surviving member(s) of HUF in case value of holding not exceeding Rs.10 lakh on the date of application (copy enclosed). (v) Annexure 'OG' - Format for Affidavit to be submitted by surviving member(s) of HUF in case value of holding not exceeding Rs. 10 lakh on the date of application (copy enclosed). 12.6.1.4. Rule 12.6.2 After effecting the transmission, the Participant shall close the account of the deceased.

Transmission of Securities held singly in the Depository 12.6.2.1. In case of death of the sole Client, the legal heir(s) or legal representative(s) of the deceased shall request the Participant to transmit the balances lying in the Client account of the deceased to the account of the legal heir(s) or legal Representative(s). The legal heir (s) or the legal representative(s) of such securities shall make an application to the Participant in the form specified in Annexure O alongwith the following documents:i) ii) A copy of the death certificate duly attested by a Notary Public or by a Gazetted Officer. A copy of the Succession certificate duly attested by a Notary Public or by a Gazetted Officer 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 attested by a Notary Public or by a Gazetted Officer.

12.6.2.2.

iii) 12.6.2.3.

However, if the legal heir(s) or the legal representative(s) express inability to produce either of the documents mentioned under (ii) and (iii) of 12.6.2.2, and the market value of the securities held in each of the account of the deceased as on the date of application for transmission does not exceed Rs.1,00,000 then the Participant shall process the transmission request on the basis of the following documents:

[ 218 ]

i) ii) iii) iv) v) vi)

Request for transmission in Annexure O; Copy of the death certificate duly attested by a Notary Public or by a Gazetted Officer; Letter of Indemnity made on appropriate non judicial stamp paper; An Affidavit made on appropriate non judicial stamp paper; and No Objection Certificate(s) from all the legal heir(s) who do not object to such transmission. As an alternate to No Objection Certificate from all legal heir(s) who do not object to such transmission specified at 12.6.2.3 (v), a copy of Family Settlement Deed duly attested by a Notary Public or by a Gazetted Officer provided that the Family Settlement Deed clearly vest the securities in favour of the person seeking transmission in his/her name and vesting of securities in his/her name is not contingent upon any other onerous conditions in such Family Settlement Deed. Provided further that if the division of securities as per the Family Settlement Deed is amongst more than one person, then Family Settlement Deed can be considered as an agreement amongst the legal heirs for transmission of securities to each legal heir applying for transmission.

12.6.2.4.

The Participant shall ensure that the documents submitted by the legal heir(s) or the legal representative(s) are in order and shall then effect a transfer of the balances to the Client account of the legal heir(s) or the legal representative(s). After effecting the transmission, the Participant shall close the account of the deceased.

12.6.2.5. Rule 12.6.3

Transmission of Securities in case of Nomination 12.6.3.1. The Client(s) may make a nomination of his/their account in favour of any person by filing with the relevant Participant the form laid out in Annexure JA of these Business Rules. In the case of joint accounts, all the Clients shall be required to affix their signatures to the said form. Such nomination shall be conclusive evidence of the Client(s) disposition in respect of all the securities in the account for which nomination has been made. A nomination once made shall not be considered to have been varied, substituted or canceled, unless the Client(s) files another form as laid out in Annexure JA with the Participant, expressly signifying the interest to vary, substitute or cancel all nominations made earlier. Unless a fresh variation, substitution or cancellation is registered with the Participant, the Depository shall consider the nomination last validly recorded in its books as being conclusive evidence of the Client(s) disposition in respect of the securities.

12.6.3.2.

[ 219 ]

12.6.3.3.

A nomination, substitution shall be valid only if :a) b) c) d) e) f) g) h) it is submitted to the Participant by the rightful Client(s) or under his/their due authority. it is in prescribed form (Annexure J/JA) it is duly signed by Client(s) it is properly signed and witnessed signature of the Client(s) tally with the specimen signature records the details of the securities entered in the nomination forms match those in the records of the Participant the photograph of the Nominee is annexed to the nomination form the Nominee has signed the nomination form and guardian in case of the nominee being a minor

12.6.3.4.

If the form is valid in all respects and accepted by the Participant, the Participant shall register the nomination by generating a Nomination Registration Number (NRN), enter the same in the DPM (DP) and confirm the same to the Client(s) in writing. In the event of a substitution/ cancellation of a nomination a fresh NRN or a written certification of cancellation, as the case may be, shall be generated by the Participant and given to the Client(s) and the DPM (DP) shall be updated. The Participant shall at all times, irrespective of subsequent variations and cancellations, maintain an updated "Register of Nominations" which shall contain the following information :a) b) c) d) e) f) g) h) i) j) k) l) m) Serial number Date of Registration Nomination Registration Number Certificate of Cancellation of nomination Account number of the Client(s) Name(s) of the Client(s) Address of the Client(s) Name of nominee Address of nominee Schedule date of attaining majority (if the Nominee is a minor) All details of variation/ cancellation of nomination with respective dates Remarks and observations of the Participant, if any In case the nominee is a minor, the DP shall ensure that a fresh photograph and the signatures of the nominee are obtained once in every five years.

12.6.3.5.

12.6.3.6.

[ 220 ]

12.6.3.7.

The Participant shall ensure that such register is maintained properly and is verified periodically. All the nominations received should be bound and preserved for record purposes. These records shall form part of the records of the Participant. Upon the death of the sole Client or the death of all the Clients, as the case may be, the nominee shall request the Participant in writing alongwith a certified true copy of the death certificate (or a duplicate copy of the death certificate if original lost or misplaced) issued by the competent authority to transmit the securities covered by the nomination to the account of the Nominee, held with any Depository. If the Nominee does not have an account with the Depository, the Nominee shall be required to open an account with any Depository The provisions relating to Annexure "O" shall apply mutatis mutandis to the process of transmission of securities to the Nominee. Before executing any request made under any of the forms in respect of nomination, the Participant shall ensure the completeness of the form and validity of the signature of the Client(s). The details of various nominations made by the Client(s) shall form an integral part of the records of the Participant, Depository and the Issuer or its Registrar and Transfer Agent under Chapter 16 of these Business Rules and shall be Reconciled in accordance with Chapter 15 of these Business Rules.

12.6.3.8.

12.6.3.9.

12.6.3.10.

12.6.3.11.

Rule 12.6.4

Transmission of Securities held by Karta of Hindu Undivided Family (HUF) in the Depository 12.6.4.1. Upon death of the Karta of a Hindu Undivided Family (HUF), the surviving member(s) of the HUF may appoint the eldest surviving member of the HUF as the new Karta of the HUF. (A) For transmission of securities to the account of the new Karta from the account of the deceased Karta, the surviving members through the new Karta shall make a joint application to the Participant in the Form specified in Annexure "O" along with the following documents: i. ii. True Copy of the death certificate of the Karta, duly attested by a Notary Public or by a Gazetted Officer; An appropriate order by a competent court, Provided however that, if the surviving members or the New Karta express their inability to produce the order of a competent Court, and that the market value of securities lying to the credit of such account as on the date of application for transmission of securities does not exceed Rupees Ten Lakh then the Participant shall process the transmission request on the basis of the following documents:

[ 221 ]

a) b)

Request for transmission in Annexure "O", duly signed by the New Karta; A declaration of the list of surviving members of HUF in an affidavit in the prescribed form (Annexure "O"), duly notarised; Letter of Indemnity in the prescribed form (Annexure "O") from the surviving members.

c) (B)

Where there is an objection from any member of the HUF, transmission of securities held in the beneficial owner account should be effected only on the basis of a Decree by a competent Court or the Deed of Partition."

12.6.4.2.

The surviving members shall furnish to the Participant the certified copy of the Settlement Deed/ Deed of Partition / Decree of the relevant Court, duly stamped in case the HUF goes into separation/ partition for dealing with the securities lying in the beneficial owner account held by the deceased Karta, and furnish to the Participant the details of the beneficial owner accounts of the individual members in order to have the securities distributed to their respective accounts. The Participant shall ensure that the documents submitted by the surviving members or the new Karta are in order and shall then effect a transfer of the balances to the client account of the new Karta. After effecting the transmission, the Participant shall close the account held in the name of the deceased Karta.

12.6.4.3.

12.6.4.4. Rule 12.6.5

The Participant shall effect the request for transmission of securities within seven days of receipt of complete set of requisite documents.

Transmission of securities in case of nomination Circular No. NSDL/POLICY/ 2009/0078 Date: September 1, 2009 Sub : Amendment to Business Rules All Participants are hereby notified about the amendments to Business Rules, as given below: Transmission of securities in case of nomination In case of transmission of securities with nomination, the requirement to submit Affidavit and Verification forming part of Annexure O to Business Rules have been deleted. Thus, in case of transmission of securities with nomination, a request for transmission in Annexure O alongwith a certified true copy of the death certificate (or a duplicate copy of death certificate if original is lost or misplaced) would be sufficient.

RBI Clarification on Transmission of Government Securities Circular No. NSDL/POLICY/ 2009/0021 Date: March 19, 2009 Sub : RBI Clarification on Transmission of Government Securities All Participants are hereby informed that pursuant to enactment of the Government Securities Act, 2006, Reserve Bank of India has clarified that for recognition of title to Government Security of the deceased sole holder or joint holders, where there is no nomination in force, no limit is prescribed for the value of the securities in the provisions of Government Securities Act, 2006 read with the provisions of Regulation 6 of the Government Securities

[ 222 ]

Regulations, 2007. In view of the aforesaid, the procedure for transmission of securities under Rule 12.6.2.3 and proviso to 12.6.4.1 (A) (ii) of Business Rules of NSDL shall not apply to Government Securities. Participants are advised to take note of the same for transmission of Government Securities of value less than Rs.1 lac (Rs.10 lac for HUF) and follow provisions of Rule 12.6.1, Rule 12.6.2 & 12.6.3 [except Rule 12.6.2.3] and 12.6.4 [except proviso to 12.6.4.1 (A) (ii)]. Capturing of PAN details in the DPMAS in case of transmission Circular No. NSDL/ POLICY/2007/0006 Date: January 23, 2007 Sub : Transmission in depository account-Capturing description in the PAN field of the deceased Attention of Depository Participants (DPs) is invited to Circular No. NSDL/ POLICY/2007/0005 dated January 18, 2007 wherein DPs were informed about the process to be followed when a request for transmission of securities is received in case of death of Client(s) holding a depository account and such account is frozen (Suspended for Debit) due to non-compliance of PAN requirements. As explained in the above circular, DPs are required to obtain PAN details of legal heir(s)/legal representative(s)/nominee in case of death of the sole holder/death of all holders. Where the deceased was a joint holder, DPs are required to capture the PAN details of the surviving holder(s) in the DPM Application Software (DPMAS). In addition to above, DPs are requested to take the following steps in DPMAS: 1. 2. 3. Capture the description "TRANSMISIN" in the PAN field of the deceased. Do not enable the PAN flag appearing against the name of the deceased in the existing depository account. Enable the PAN flag only against the names of the surviving holder(s) after updation of the concerned PAN field(s).

Thereafter, as explained in the aforesaid circular, DPs are advised to follow the procedure for unfreezing of the depository account, transferring of securities and submitting requests for waiver fees in respect of such depository accounts. Circular No. NSDL/POLICY/ 2007/0005 Date: January 18, 2007 Sub : Clarification-Obtaining/Capturing of PAN details in the DPMAS in case of transmission in depository account Depository Participants (DPs) have been seeking clarification regarding capturing of PAN details when a request for transmission of securities is received in case of death of Client(s) holding a depository account and such account is frozen (Suspended for Debit) due to non-compliance of PAN requirements. In this regard, it is hereby clarified that DPs should: 1. 2. Capture the PAN details of the surviving holder(s) in the DPM Application Software (DPMAS), in case the deceased was a joint holder; Obtain the PAN details of the legal heir(s) or legal representative(s) of the deceased, in case the deceased was the sole holder of the depository account;

[ 223 ]

3.

Obtain the PAN details of the nominee in case of death of the sole holder or death of all the holders, where nomination had been made in respect of such depository account.

Thereafter, DPs are required to follow the procedure given hereunder: A) Unfreeze the Client account in the below given sequence (Refer Circular No. NSDL/POLICY/2006/0068 dated December 29, 2006): (i) Verify the PAN details as per the procedure laid down in Circular No. NSDL/POLICY/2006/0007 dated March 3, 2006 with respect to PAN details to be obtained / captured in the DPMAS. Update the PAN field and enable the PAN flag provided in the DPMAS in respect of the existing depository account. Ensure that the status of the updation is 'Closed,Settled'. (applicable only where transmission request is received from the surviving Client(s) as mentioned in point no. (1) above.) Remove the suspension by initiating unfreeze instruction and ensure that the status of the unfreeze instruction is 'Closed,Settled' prior to executing any other instruction in the DPMAS.

(ii)

(iii)

B)

Follow the procedure mentioned for account transfer in case of transmission as given in Rule 12.6 of Business Rules of NSDL under the following: Transmission of securities held jointly in the depository Transmission of securities held singly in the depository Transmission of securities in case of nomination

Rule 12.6.1 Rule 12.6.2 Rule 12.6.3 C)

For submitting requests for waiver of fees to NSDL, DPs are requested to follow the procedure mentioned in Circular No. NSDL/PI/2003/2103 dated December 29, 2003.

Transmission - Processing pending cases Circular No. NSDL/PI/2000/2034 Date : November 3, 2000 Further to our Circular No. NSDL/PI/2000/1983 dated October 25, 2000, all Participants are hereby advised that the pending transmission cases arising out of nomination in respect of beneficial owner's account(s) where a valid nomination exists, can be processed and disposed of under the provisions of amended Bye Law 9.11 and Business Rule 12.6.3 of NSDL. The Participants should satisfy themselves about the identity of the nominee. Further, the Participants should ensure that in respect of existing accounts where nominations have been obtained, Annexure JA duly filled in by all the account holder(s) is obtained immediately.

Transmission cum Demat - Removal of time limit Circular No. NSDL/PI/2001/0899 Date : June 25,2001 Attention of the Participants is invited to our Circular No. NSDL/PI/99/58 dated January 22, 1999 regarding the procedure for processing the requests for transmission alongwith the dematerialisation of securities in case of joint holdings. In this context, all Participants are hereby informed that such requests can be accepted even after two years from the date of the death of the deceased.

[ 224 ]

NOTES

[ 225 ]

NOTES

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5. Provision of transaction statement

Regulation 43 Every participant shall provide statements of account to the Beneficial Owner in such form and in such manner and at such time as provided in the agreement with the beneficial owner. 'Every Participant shall provide a transaction statement including statement of accounts, if any, to the Clients in such form as specified under the Business Rules. Such a statement shall be furnished to the Clients at monthly intervals, unless the Participant and its Clients have agreed otherwise. However, if there is no transaction in the account, then the Participant shall provide such statement to the Client atleast once a quarter. Provided that in case of a Participant who has not entered into an agreement as per Annexure B of this Bye Laws with its Client in terms of the proviso to Bye Law 6.4.2, then the Participant shall provide the transaction statement including statement of accounts, if any, to the Client as agreed between the Participant and the Client.' The aforesaid amendments come into effect immediately and should be incorporated in the agreements to be executed with new Clients. However, in case of existing Clients, Participants are advised to intimate them about the aforesaid amendments and implement the same w.e.f. June 1, 2003. Bye Law 7.4.1 In case of a dispute between a Client and a Participant with whom the Client had maintained his account, and the Participants unwillingness to give transaction statement to the Client, the Depository shall provide or cause to provide, through the Participant, such details about daily transactions as might be required by the Client. 'The Depository Participant undertakes to provide a transaction statement including statement of accounts, if any, to the Client at monthly intervals unless the Depository Participant and the Client have agreed for provision of such statements at shorter intervals. However, if there is no transaction in the account, then the Depository Participant shall provide such statement to the Client atleast once a quarter' The aforesaid amendments come into effect immediately and should be incorporated in the agreements to be executed with new Clients. However, in case of existing Clients, Participants are advised to intimate them about the aforesaid amendments and implement the same w.e.f. June 1, 2003. Rule 14.3.1 Circular No. NSDL/PI/2003/0671 Date : April 23,2003 'The Participant shall furnish a transaction statement including statement of accounts, if any, to every Client, who has opened an account with it, giving the details of the security-wise balances in the accounts of the Clients. Such a statement shall be furnished to the Clients at monthly intervals unless the Client and the Participant have agreed for provision of such statements at shorter intervals. However, if there is no transaction in the account, then the Participant shall provide such statement to the Client atleast once a quarter. A specimen of the transaction statement is given in Annexure V.' The aforesaid amendments come into effect immediately and should be incorporated in the agreements to be executed with new Clients. However, in case of existing Clients, Participants are advised to intimate them about the aforesaid amendments and implement the same w.e.f. June 1, 2003.

Bye Law 6.4.4 Circular No. NSDL/PI/2003/0671 Date : April 23, 2003

Clause 6 of DPClient Agreement Circular No. NSDL/PI/2003/0671 Date : April 23, 2003

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Transaction Statements to clients through Internet (Web-based or Email) Circular No. NSDL/POLICY/ 2008/0036 Date: May 21, 2008 Sub: Providing Transaction Statements to Clients by email or on website As all Depository Participants (DPs) are aware, NSDL had vide Circular nos. NSDL/PI/98/477 and NSDL/PI/2002/0398 dated September 22, 1998 and March 7, 2002 respectively clarified that DPs can provide transaction statements to their Clients by email or on website provided an agreement is executed with the Client. DPs have been requesting NSDL to permit providing of such transaction statements to their Clients by email or on website on terms and conditions to be signed by the Clients in this regard. In view of the above, DPs may provide transaction statements by email and/ or on website by entering into a legally enforceable arrangement with the Client subject to the following: A. General 1. This facility can be provided only on receipt of a written request from Client(s) duly signed (by all account holders in case of joint account) clearly stating their intention to receive transaction statements either by email or on website or both. The terms and conditions to be signed by the Client(s) (by all account holders in case of joint account) shall include the following clauses: (a) (b) The Client(s) is/are aware that it will not receive the transaction statements in paper form. The Client(s) will take all the necessary steps to ensure confidentiality and secrecy of the login name and password of the internet/email account. The Client(s) is/are aware that the transaction statement may be accessed by other entities in case the confidentiality/secrecy of the login name and password is compromised. In case transaction statements are sent by email, the Client(s) shall immediately inform the DP about change in email address, if any. DPs and Client(s) shall have the right to terminate such service provided a written notice is given atleast 10 days in advance to the other party.

2.

(c)

(d)

(e)

3.

The signature(s) of the Client(s) on the terms and conditions must be verified by a DP official and such official shall sign to the effect that the same is/are verified. In case, the DP is not able to provide transaction statement to its Clients by email or on website due to any reason (including bounced emails), the DP should ensure that the transaction statement is provided to the Client in paper form as per the time schedule stipulated in the Bye Laws & Business Rules of NSDL. If the Client(s) is/are desirous of receiving transaction statements in paper form, DPs shall be duty bound to provide the same.

4.

5.

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B.

Email 1. 2. The transaction statements should be digitally signed in accordance with the Information Technology Act, 2000. The transaction statements should be password protected.

C.

Website 1. DPs must implement Secure Socket Layer (SSL) security for their Internet facility featuring site authentication, encrypted communication and appropriate client authentication so as to restrict the access of transaction statements only to the Client. The transaction statements made available on website should be digitally signed in accordance with the Information Technology Act, 2000. DPs will be required to send a consolidated transaction statement in paper form or in electronic form (email) for the entire financial year and the same shall be dispatched before 15th May of every year. The transaction statements should be made available on the website for a period of atleast 12 months.

2.

3.

For further information / clarification, DPs are requested to contact Mr. Kaushal Shah / Ms. Prajakta Sadekar on Tel. No. (022) 24994214 / 4483 (email: kaushals@nsdl.co.in / prajaktas@nsdl.co.in). Circular No. NSDL/ NSDL/PI/2002/0398 Date : March 7, 2002 Participants were advised about the procedure for providing Transaction Statements on internet vide our Circular No. NSDL/PI/98/477 dated September 22, 1998. We have been receiving requests from some Participants to allow them to provide Transaction Statements through email as well. Participants may provide Transaction Statements to their Clients through Internet (web-based/email), provided an agreement has been executed with the Client as per the enclosed Annexure. Participant must implement Secure Socket Layer (SSL) security for their Internet facility featuring site authentication and encrypted communication. Annexure Agreement between the Participant and the Client for providing the Transaction Statement through Internet day of This agreement made and entered into this between situated at (hereinafter called "the Client") and situated at (hereinafter called "the Participant"). Witnesseth WHEREAS the Client has permitted the Participant to provide the transaction statement through internet (web-based and/or email).

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NOW THEREFORE in consideration of the Participant having agreed to provide the transaction statement through internet (web-based and/or email), both the parties to the agreement hereby covenant and agree as follows : i. ii. iii. The Participant shall install adequate systems to restrict the access of the transaction statement only to the Client. The Client shall take all the necessary steps to ensure confidentiality and secrecy of the login name and password. The Client is aware that the transaction statement may be accessed by other entities in case the confidentiality /secrecy of the login name and password is compromised. In case the Client opts for transaction statement through email, it shall immediately inform the Participant about change in email address, if any. The Participant shall verify and confirm with the Client about the change. Further, the Participant shall confirm with the Client about validity of the email address atleast once in a year. The Client agrees not to receive Transaction Statement in paper form from the Participant. Provided however that, in case when the Participant is not able to provide Transaction Statement to its Clients through internet (web-based / email) due to any unforeseen problems, the Participant should ensure that the Transaction Statement reaches to the Client in physical form as per the time schedule stipulated in the Bye Laws & Business Rules of NSDL. The Participant and the Client shall have the right to terminate this agreement after giving a notice of atleast 10 days to the other party. The above terms and conditions are in addition to and not in contravention of the terms and conditions forming a part of the "AGREEMENT BETWEEN THE PARTICIPANT AND THE PERSON SEEKING TO OPEN AN ACCOUNT WITH THE PARTICIPANT" signed by the Client at the time of opening the account with the Depository.

iv.

v.

vi. vii.

IN WITNESS WHEREOF the Participant and the Client has caused these presents to be executed as of the day and year first above written. Signed and delivered by (for and on behalf of the Client) (Witness)

Signed and delivered by (for and on behalf of the Depository Participant) Transaction Statements - Provisions through Internet Circular No. NSDL/PI/98/477 Date: September 22, 1998 We have been receiving requests from Participants to allow providing of transaction statements through Internet. Participants are requested to note that in case they desire to provide this service to their clients, they may do so provided an agreement is executed with the clients as per the format enclosed. (Witness)

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Annexure Agreement between the Depository Participant and the client for providing the Transaction Statement through Internet day of This agreement made and entered into this between situated at (hereinafter called "the Client") and situated at (hereinafter called "the Depository Participant"). Witnesseth WHEREAS the Client has permitted the Depository Participant to provide the transaction statement through internet. NOW THEREFORE in consideration of the Depository Participant having agreed to provide the transaction statement through internet, both the parties to the agreement hereby covenant and agree as follows : i. ii. iii. The Depository Participant shall install adequate systems to restrict the access of the transaction statement only to the Client. The Client shall take all the necessary steps to ensure confidentiality and secrecy of the log-in name and password. The Client is aware that the transaction statement may be accessed by other entities in case the confidentiality/ secrecy of the login name and password is compromised. The Depository Participant and the Client shall have the right to terminate this agreement after giving a notice of atleast 10 days to the other party. The above terms and conditions are in addition to and not in violation of the terms and conditions forming a part of the "Agreement between the Depository Participant and the person seeking to open an account with the Depository Participant" signed by the Client at the time of opening the account with the Depository.

iv.

v.

IN WITNESS WHEREOF the Depository Participant and the Client has caused these presents to be executed as of the day and year first above written. Signed and delivered by (for and on behalf of the Client) (Witness)

Signed and delivered by (for and on behalf of the Depository Participant) (Witness)

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Internet-based Demat Account Statement - IDeAS Circular No. NSDL/POLICY/ 2010/0074 Date: July 1, 2010 Sub: Auto-reset password facility on IDeAS As all Participants are aware, IDeAS facility was enhanced to facilitate Users to capture or modify their email addresses registered on IDeAS (Ref.:Circular No. NSDL/POLICY/2010/0057 dated May 25, 2010). New feature of auto-reset of password on IDeAS facility will be released on Saturday, July 10, 2010. This feature will assist those IDeAS users who have forgotten their passwords or have entered wrong passwords (upto three attempts). This feature is made available for Users exclusively availing IDeAS facility. If Users have subscribed for both IDeAS as well as SPEED-e facility, this auto-reset password facility is not available. The procedure for auto-reset of password is given below: (1) User would be required to enter the following details: a) b) c) User ID DP ID Client ID

In case the User cannot enter correct details, he/she will be required to follow the usual method for resetting the password (i.e., approaching its Participant). (2) Upon successfully entering the details as mentioned in point (1), IDeAS website will display a message that new password would be sent to the email address registered by the User on IDeAS facility. The password will be concealed in a PDF file and sent to the Users email address registered on IDeAS facility. Logic for opening the PDF file will be communicated to the User in the email. Upon entering the User ID and password (password provided in the PDF file), IDeAS website will force the User to change the password. Upon successfully changing the password, User will get access to IDeAS facility.

(3)

(4) (5)

For further information / clarification, Participants are requested to contact Mr. Sandeep Kumar Tel: (022) 2499 4361 (email : sandeepk@nsdl.co.in) / Mr. Rahul Gupta Tel : (022) 2499 4372 (email : rahulg@nsdl.co.in) / Mr. Narayan Venkat Tel : (022) 2499 4479 (email : narayanv@nsdl.co.in). Circular No. NSDL/POLICY/ 2010/0070 Date: June 25, 2010 Sub: Display of value of mutual fund holdings on IDeAS facility based on NAV. As Participants are aware, Clients of IDeAS facility can view the latest balances of their demat accounts on the internet along with the value based on the previous day closing price. IDeAs facility has been further enhanced to display the values in respect of mutual fund units (security type code 20) (held by the Clients in their demat accounts) based on the NAVs (i.e.,Net Asset Value). Further, the date of the NAV of mutual fund units would also be displayed on IDeAS facility. This aforesaid feature would be released on IDeAS facility with effect from Saturday, June 26, 2010.

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Circular No. NSDL/POLICY/ 2010/0058 Date: May 25, 2010

Sub: Change in registration process for Clients registered for IDeAS facility through DIRECT As Participants are aware that DIRECT (Direct Ideas REgistration of Client accounT) facilitates registration of depository accounts activated under the Individual category i.e. Resident-Ordinary, Resident-HUF, NRI-Repatriable, NRINonRepatriable and Foreign National-FN for IDeAS facility directly at NSDL (Refer Circular No. NSDL/POLICY/2009/0087 dated September 22, 2009). IDeAS facility has now been enhanced wherein account holder can enter User ID of his/her choice at the time of registering for IDeAS facility through DIRECT. As a result, the registration process for DIRECT has undergone a change which is given at Annexure A. This feature is scheduled to be released on IDeAS facility on Saturday, May 29, 2010. For further information / clarification, Participants are requested to contact Mr. Sandeep Kumar Tel : (022) 2499 4361 (email : sandeepk@nsdl.co.in) / Mr. Rahul Gupta Tel : (022) 2499 4372 (email : rahulg@nsdl.co.in) / Mr. Narayan Venkat Tel : (022) 2499 4479 (email : narayanv@nsdl.co.in). Annexure A (i) NSDL will register the Client for IDeAS facility provided email address of the sole holder or at least one of the account holder in case of joint accounts is captured in the DPM System. Participants are requested to take due care at the time of capturing email address of the account holder(s) in the DPM System, that is provided by the Client. PDF file containing registration link will be sent to the Sole Holders / First Holders (in case of joint accounts) email address (that is captured in the DPM System) within a week of activation of the depository account. In case the email address of the first holder is not available, then email will be sent to the second or third holder, as the case may be, whose email address is captured in the DPM System. The PDF file sent to the account holder will be password protected. Logic for opening the PDF file will be communicated to account holder in the email. Process for login to IDeAS website by the account holder after receiving the PDF file from NSDL is given in seriatim : a) b) The PDF file will have a registration link and registration password. Account holder will have to click on the registration link. The link will direct the account holder to IDeAS pre-registration webpage. Account holder will enter the password (provided in the PDF file) in the pre-registration webpage and click on Submit button. Registration page would be displayed on the screen. Account holder will enter details viz., User ID of his / her choice, date of birth and password & re-confirm password. In case the User ID entered is already registered for IDeAS facility, account holder will be required to enter another User ID of his / her choice. Further, this page would also display other details of the account holder viz, name of the account holder(s), DP ID, Client ID, email ID etc. (as captured in the DPM System) which would be static.

(ii)

(iii)

(iv)

c)

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d)

After successful entry of the above details by the account holder, confirmation page containing all the aforesaid details (mentioned in point no. c) would be displayed. Account holder will have to click on the Confirm button. Account holder will be directed to IDeAS login page (https:// ideas.ideas.nsdl.com) upon clicking Click here to login to IDeAS facility. Account holder will login to the IDeAS website by entering the User ID and password. IDeAS website will display the terms and conditions. After the account holder gives confirmation to the terms and conditions, the account holder will get access to IDeAS facility. The Statement of holdings and transactions will be displayed from the next business day onwards after the account holder has successfully login to the IDeAS facility i.e., if the account holder has successfully login to the IDeAS facility on Monday, the statement of holdings and transactions will start getting displayed from Tuesday onwards. Further, the transaction statement of current month will be available for download latest by 7th of the following month. In case the account holder does not register for IDeAS facility within 30 days of sending of the email, the registration link will get disabled. Account holder in such case will have to then opt for usual method for IDeAS registration (Ref : Circular No. NSDL/POLICY/ 2007/0059 dated October 5, 2007).

e)

f) g) h) i)

j)

Circular No. NSDL/POLICY/ 2010/0057 Date: May 25, 2010

Sub: Facility to reset password and view & change email ID on IDeAS facility All Participants are hereby informed that Users (i.e.Clients) of IDeAS facility will be given the ability to reset forgot passwords themselves by keying-in few parameters on IDeAS website. The new password would be sent at their email address registered on IDeAS website. This feature will be released on IDeAS facility in June 2010. As a preparatory step to the above facility, IDeAS facility is being enhanced to facilitate Users to view / change their email addresses registered on IDeAS. This feature is scheduled to be released on IDeAS facility on Saturday, May 29, 2010. In this regard, existing Users who login on to IDeAS facility after release of this feature will be required to follow the below given process: (i) Upon entering the User ID and password on IDeAS website, a screen would appear, which will prompt the User to either confirm the existing email ID (i.e., email ID entered by Users at the time of registration through usual method or available in the DPM system if registered through DIRECT) or change the email ID by entering a new email ID. Upon giving confirmation to the existing email ID or upon changing the existing email ID, User will be required to enter his/her login password. Thereafter, User will be provided access to the IDeAS facility.

(ii)

A separate link named View / Change Email ID is provided on IDeAS facility which will facilitate User to view as well as change his / her email ID. Upon changing the email ID, an auto generated email will be sent to both the existing and new email address (changed) of the User. User will receive the email from NSDL from the email ID: ideas@nsdl.co.in.

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Circular No. NSDL/POLICY/ 2010/0012 Date: February 3, 2010

Sub: Reduced de-registration period for Users who do not login to IDeAS facility registered through DIRECT As Participants are aware that DIRECT (Direct Ideas REgistration of Client accounT) facilitates registration of depository accounts activated under the Individual category i.e. Resident-Ordinary, Resident-HUF, NRI-Repatriable, NRINonRepatriable and Foreign National-FN for IDeAS facility directly at NSDL (Refer Circular No. NSDL/POLICY/2009/0087 dated September 22, 2009). The period for de-registration of User IDs of account holders registered through DIRECT (Direct Ideas REgistration of Client accounT) has been reduced from 60 days to 30 days. As a result, the User IDs of the account holders who do not login to the IDeAS facility within the specified period (i.e.,30 days) of sending the email from NSDL will be de-registered. In such case, the account holders will have to opt for usual method of IDeAS registration.

Circular No. NSDL/POLICY/ 2009/0087 Date: September 22, 2009

Sub: Launch of DIRECT (Direct Ideas REgistration of Client accounT) at NSDL upon activation of Client accounts As Participants are aware, NSDLs common internet facility called IDeAS facilitates demat account holders to view latest balances alongwith the value based on the previous day closing price and transactions that have taken place during last 30 days in the depository accounts. IDeAS also features the facility of downloading, printing and viewing digitally signed monthly transaction statements for previous 12 months. IDeAS facility has now been enhanced wherein depository accounts activated with effect from September 24, 2009 under the Individual category i.e. Resident-Ordinary, Resident-HUF, NRI-Repatriable, NRI-Non Repatriable and Foreign National-FN will be directly registered at NSDL for the IDeAS facility. Salient features of DIRECT are as follows: (i) NSDL will register the Client for IDeAS facility provided email address of the sole holder or at least one of the account holder in case of joint accounts is captured in the DPM System. Participants are requested to take due care at the time of capturing email address of the account holder(s) in the DPM System, that is provided by the Client. The User ID and password will be sent to the Sole Holders / First Holders (in case of joint accounts) email address (that is captured in the DPM System) within a week of activation of the depository account. In case the email address of the first holder is not available, then User ID and password will be sent to the second or third holder, as the case may be, whose email address is captured in the DPM System. The User ID and password sent to the account holder will be in a password protected PDF file. Logic for opening the PDF file will be communicated to Clients in the email. Process for login to IDeAS Website by the account holder after receiving PDF file from NSDL is given in seriatim : a) Account holder will login to the IDeAS website (https:// ideas.ideas.nsdl.com) with the requisite User ID and password (provided in the PDF file). The website will display the terms and conditions. After the account holder has given his/her confirmation to the terms and conditions, the system will force the account holder to change the password.

(ii)

(iii)

(iv)

b) c)

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d) e)

After the account holder has successfully changed the password, he/she will get the access to the IDeAS website. In case the account holder does not login to IDeAS within 60 days of sending of the email, the User ID of the account holder will be de-registered. Account holder in such case will have to then opt for usual method for IDeAS registration [Ref.: Circular No. NSDL/ POLICY/2007/0059 dated October 5, 2007].

For further information / clarification, Participants are requested to contact Mr. Sandeep Kumar Tel : (022) 2499 4361 (email : sandeepk@nsdl.co.in) / Mr. Rahul Gupta Tel : (022) 2499 4372 (email : rahulg@nsdl.co.in) / Mr. Narayan Venkat Tel : (022) 2499 4479 (email : narayanv@nsdl.co.in). Circular No. NSDL/POLICY/ 2009/0027 Date: April 11, 2009 Sub: Launch of Virtual Keyboard on IDeAS / SPEED-e websites to facilitate Users to enter password in more secured manner and change in minimum configuration for accessing IDeAS / SPEED-e websites All Participants are hereby informed that NSDL is pleased to announce the launch of virtual keyboard on IDeAS (https://ideas.nsdl.com) / SPEED-e (https://speed-e.nsdl.com) websites to facilitate Users to enter their password in a more secured manner. This feature is released on April 11, 2009. Salient features of Virtual Keyboard are as follows: (i) This feature is available for password based Users of IDeAS and SPEED-e facility and Clearing Members availing the facility of IDeAS using password based option (hereinafter referred as Users). Virtual keyboard will be made available for Users on IDeAS / SPEED-e websites to enter their password at the time of registration, login, reset of password, change of password and during auto-expiry of password. At present, Users enter their password using a physical keyboard for login to IDeAS / SPEED-e websites. Users will now have the choice to enter their password either using the physical keyboard or virtual keyboard (after enabling the check box - Use Virtual Keyboard). Users will be required to enter the entire password (in toto) either using the physical keyboard or virtual keyboard for all the password fields provided on the screen.

(ii)

(iii)

(iv)

The minimum configuration of a PC for accessing IDeAS / SPEED-e websites has been revised as follows: Operating System Browser RAM Microsoft Windows 2000, Windows Server 2003, Windows XP and Windows Vista. Microsoft Internet Explorer 6.0 and above. 512 MB

The above information about virtual keyboard will also be displayed on IDeAS / SPEED-e websites. Participants may guide their Clients in this regard. For further information / clarification, Participants are requested to contact Mr. Sandeep Kumar Tel : (022) 2499 4361 (email : sandeepk@nsdl.co.in) / Mr. Rahul Gupta Tel : (022) 2499 4372 (email : rahulg@nsdl.co.in) / Mr. Narayan Venkat Tel : (022) 2499 4479 (email : narayanv@nsdl.co.in). Circular No. NSDL/POLICY/ 2009/0025 Date: April 1, 2009 Sub: Withdrawal of User fee for Users of IDeAS facility and reduction in annual fees for SPEED-e facility As all Participants are aware, NSDLs common internet facility called IDeAS facilitates investors to view latest balances and transactions in their depository accounts. SPEED-e facilitates Users (Beneficial Owners and Clearing Members)

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to submit delivery instructions on the internet. SPEED-e facilitates Participants to eliminate paper [Delivery Instruction Slips (DIS)] resulting in reduction in cost of storage and processing of DIS and the risk involved in verifying specimen signatures of account holders at the time of processing DIS. NSDL is pleased to announce reduction in the fees for IDeAS and SPEED-e facilities with effect from April 1, 2009 as follows: Particulars IDeAS User Fee SPEED-e Admission Fee Annual Fee Rs. 6,00,000 Rs.1,00,000 for main DPM set-up and Rs. 50,000 for every additional DPM set-up subject to a maximum of Rs 3,00,000. Rs.2,00,000 Rs.25,000 irrespective of number of DPM set-ups Rs.10 per quarter Nil Existing Fees Revised Fees

The revised fee structure and features of IDeAS and SPEED-e facilities are enclosed at Annexure I and Annexure II respectively. For further information / clarification, Participants are requested to contact Mr. Sandeep Kumar Tel : (022) 2499 4361 (email : sandeepk@nsdl.co.in) / Mr. Rahul Gupta Tel : (022) 2499 4372 (email : rahulg@nsdl.co.in) / Mr. Narayan Venkat Tel : (022) 2499 4479 (email : narayanv@nsdl.co.in). Annexure I Fee structure for IDeAS and SPEED-e (for Participants) Type of fee IDeAS Admission fee NIL Annual Fee Rs.10,000 for first Fees for the ensuing calendar year DPM set-up and (January to December) will be Rs.5,000 for every charged in the monthly bill additional DPM set-up. for December. Payable at the time of joining SPEED-e facility. Fee

SPEED-e Admission fee Rs. 2,00,000 Annual Fee

Rs. 25,000 irrespective Payable at the time of joining of number of DPM SPEED-e facility. Fees will be set-ups. charged in advance in the monthly bill of March for the ensuing financial year (April to March).

Note : If Participants subscribe for SPEED-e facility, no charges are payable by Participants for IDeAS facility. Type of User BO (Beneficial Owners) BO BO Facility Only IDeAS Only SPEED-e IDeAS and SPEED-e NIL Fee Password based User

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E-token* based User BO Only IDeAS Only SPEED-e IDeAS and SPEED-e CM (Clearing Members) Only IDeAS Only SPEED-e NIL Rs. 125 per quarter Rs. 125 per quarter Payable annually by CM to NSDL Rs. 125 per quarter

* Charges for e-token will be Rs.1,000 approx. Annexure II Various features and advantages of IDeAS facility are given below: (I) Clients (Beneficial Owners) View the latest balances along with the value based on the previous day closing price* in depository account(s). View transactions that have taken place in depository account(s) during the last 30 days. Download month-wise transaction statement for the previous months (maximum 12 months) bearing NSDLs digital signature, which can be verified by using a Signature Verification Utility. SEBI has permitted the Participants to discontinue providing physical transaction statements to their Clients who subscribe for the IDeAS facility. However, Participants will be required to send a consolidated transaction statement, in physical form, for the entire financial year and the same shall be dispatched before 15th of May every year (Refer NSDL Circular No. NSDL/POLICY/2006/0010 dated March 24, 2006).
*Disclaimer : While care has been exercised by NSDL compiling price file, NSDL does not warrant completeness or accuracy and damages arising out of use of this information. For any specific / latest information, you may contact the respective stock exchange.

(II) Clearing Members (CMs) CMs will be able to view and download the latest balances and transactions in their pool accounts in respect of settlements for the current pay-in date, previous four and next four pay-in dates. Other features available on IDeAS for CMs are as follows: View ISIN-wise positions / transactions for a given market type and settlement number. View Delivery-out instructions which are in overdue status, for a given market type and settlement number. Download transactions in the Pool Account to determine shortages for follow-up with Clients. Download ISIN master to keep the back-office system up-to-date. Various features and advantages of SPEED-e facility are given below: (I) Features (a) Clients: Password based Users can submit market instructions in favour of maximum three pre-notified CM Accounts. E-token Users can submit both market as well off-market instructions in an interactive as well as batch upload. Submission of instruction(s) to freeze / unfreeze account(s) / ISIN(s) and / or specific quantity of securities under an ISIN. Further, freeze request executed by Clients through SPEED-e cannot be unfrozen by the Participant (applicable for e-token based Users).

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(b) CMs: CM Users can avail the following features both on interactive as well as on a batch submission mode: Delivery-out to Clearing Corporation Delivery to Client Inter-Settlement CM Pool to Pool (II) Advantages Check the latest balances in the depository account through IDeAS before submitting instructions and monitor the status of execution of the same. View status of execution of delivery instructions. Save time and efforts in obtaining delivery instruction slips and submitting them to Participant. Freeze depository accounts on SPEED-e. Freeze created through SPEED-e can be unfrozen only through SPEED-e (applicable for e-token based Users). Convenience for NRI Clients to operate their accounts. Circular No. NSDL/POLICY/ 2007/0059 Date: October 5, 2007 Sub: IDeAS Operational Manual for DPs In continuation to NSDL Circular No. NSDL/POLICY/2007/0057 dated September 29, 2007 informing DPs that the IDeAS Users (Password/Smart Card) will be able to view the Value of the holdings (in INR) on IDeAS. NSDL is now pleased to inform the DPs that the IDeAS Operational Manual for DPs will now be available for download on SQLASSIST Intranet site of NSDL (//sqlassist/IDeAS Operational Manual). This operational manual will also be available for download to DP Users (i.e. Admin and Functional User) on NSDL SPEED-e website (https://speed-e.nsdl.com). Sub : Display Value of holdings to subscribers of IDeAS As all Depository Participants (DPs) are aware, NSDL offers an Internet based facility called IDeAS (Internet-based Demat Account Statement) through its SPEED-e website (https://speed-e.nsdl.com). IDeAS enables a Client to view the latest balances as well as the transactions that have taken place in the last thirty days in its demat account. IDeAS also features the facility of download of digitally signed monthly transaction statements. DPs are advised to refer to our various circulars (NSDL/PI/2003/2054, NSDL/PI/2004/1157, NSDL/PI/2005/1920, NSDL/POLICY/2006/0010 and NSDL/POLICY/2006/0045 dated December 20, 2003, June 29, 2004, October 7, 2005, March 24, 2006 and October 5, 2006 respectively) in this regard. NSDL is now pleased to inform the DPs that the IDeAS Users (Password/Smart Card) will be able to view the Value of the holdings (in INR) on IDeAS w.e.f September 29, 2007. This facility will be available for Beneficial Owners only. Value of the holdings will be displayed only for listed ISINs with the date of the prices used for calculation of the value. DPs are requested to disseminate the above information to their IDeAS Users. For further information, DPs can visit SPEED-e website https://speede.nsdl.com or contact Mr. Charles Mathew / Mr. Vinith Nair on Tel. No. (022) 2499 4482 / 4414. Circular No. NSDL/POLICY/ 2006/0045 Date: October 5, 2006 Sub : New feature in IDeAS - viewing of transactions As all Participants are aware, NSDL offers an internet based facility called IDeAS (Internet-based Demat Account Statement) through https://speede.nsdl.com. IDeAS at present enables Clients (Beneficial owners) to view the latest balances and transactions that have taken place in the last five

Circular No. NSDL/POLICY/ 2007/0057 Date: September 29, 2007

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days, in their depository accounts. NSDL is pleased to inform that Clients will now be able to view the transactions for a period of past 30 days. Clients can select the period upto 30 days from the current date, to view the transactions. Further, IDeAS also features the facility of download of digitally signed monthly transaction statements for a period of 12 months (Refer Circular No. NSDL/ POLICY/2006/0010 dated March 24, 2006). Participants are requested to disseminate the above information to their Clients. Circular No. NSDL/PI/2004/1157 Date: June 29, 2004 NSDL launched IDeAS (Internet-based Demat Account Statement) w.e.f. January 1, 2004. IDeAS is a facility available on SPEED-e website for viewing balances and transactions in demat accounts (ref. Circular No. NSDL/PI/2003/ 2054 dated December 20, 2003). At present, subscribers to IDeAS (Beneficial owners) can view the latest balances and transaction that have taken place in the last five days in their depository accounts. Based on the feedback received from the users, Participants have requested NSDL to provide transaction statements on a monthly basis. Accordingly, NSDL is pleased to provide the facility to download the transaction statement on a monthly basis, to the subscribers of IDeAS, on a pilot basis, w.e.f. July 1, 2004. The transaction statements of a particular month will be available latest by 7th of the following month and will be available for download till the details of the following month are uploaded to IDeAS. It may be mentioned that if the subscription to IDeAS is during the month, transaction statement for that month will be for the period starting from the date of subscription till the end of that month. NSDL launched SPEED-e in September 2001 to enable demat account holders to submit delivery instructions through Internet. NSDL is now pleased to announce the launch of a facility called IDeAS (Internet-based Demat Account Statement) w.e.f. January 1, 2004. IDEAS is a facility for viewing balances and transactions in demat accounts updated on an online but not real time basis. This facility is available to the users of SPEED-e, Clearing Members who have subscribed to SPEED and to those Clients whose Participants are registered for IDeAS. Salient features of IDeAS: (A) Clients (Beneficial Owners) : Clients can view the latest balances and transactions that have taken place in the last five days in their depository accounts. Print-out of the screen can also be taken. (B) Clearing Members (CMs): CMs will be able to view and download the latest balances and transactions in their pool accounts in respect of settlements for the current pay-in date, previous four and next four pay-in days. Other features for CMs: a. b. c. d. View ISIN-wise positions / transactions for a given market type and settlement number. View Delivery-out instructions which are in overdue status, for a given market type and settlement number. Download transactions in the Pool Account and import into back-office system to determine shortages for follow-up with clients. Download ISIN master to keep the back-office system up-to-date.

Circular No. NSDL/PI/2003/2054 Date: December 20, 2003

Participants who wish to subscribe to IDeAS will have to pay one time Admission fee of Rs. 25,000/- and Annual fee of Rs. 10,000/- and Clients who wish to register for IDeAS will have to pay a quarterly fee of Rs. 10/-. Participants

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who have already subscribed to SPEED-e get IDeAS at no additional cost. However, Clients (who are already subscribers of SPEED-e) of such Participants who are desirous of subscribing to IDeAS will have to pay an additional quarterly fee of Rs. 5/- per account i.e. quarterly fee would be Rs. 30/- or Rs. 130/for password users/smart card users respectively. In case Clients of such Participants wish to subscribe only to IDeAS, they will have to pay a quarterly fee of Rs. 10/- per account. Participants are hereby informed that they will be required to register Clients for IDeAS while registration of CMs will be done directly by NSDL. It may be mentioned that existing SPEED-e users (both password and smart card users) can register online for IDeAS by clicking on the "Change Service" link on SPEEDe website https://speed-e.nsdl.com and selecting 'IDeAS'. After Participant authorises the request, users will be able to access IDeAS with the existing User Id and password. For further information, Participants can visit SPEED-e website https://speed-e.nsdl.com or contact Mr. Prashant Vagal/Mr. Pankaj Srivastava on Tel. No. (022) 56608037. Exemption from sending physical transaction statement to subscribers of IDeAS Circular No. NSDL/POLICY/ 2006/0010 Date: March 24, 2006 Sub : Exemption from sending physical transaction statement to subscribers of IDeAS As all Participants are aware, NSDL offers an Internet based facility called IDeAS (Internet-based Demat Account Statement) through its SPEED-e website (https://speed-e.nsdl.com). IDeAS can be availed of by a Beneficial Owner (Client) provided its Participant has subscribed to this service. IDeAS enables a Client to view the latest balances as well as the transactions that have taken place in the last five days in its demat account. IDeAS also features the facility of download of digitally signed monthly transaction statements. Participants are advised to refer to our various circulars (NSDL/ PI/2003/2054, NSDL/PI/2004/1157 and NSDL/PI/2005/1920 dated December 20, 2003, June 29, 2004 and October 7, 2005 respectively) in this regard. Clients can verify the digital signature of NSDL using a Signature Verification Utility. The detailed procedure regarding installation of Signature Verification Utility is available on SPEED-e website. NSDL is now pleased to inform the Participants that if a Client subscribes to IDeAS, SEBI has permitted the Participants to discontinue providing physical transaction statements to their Clients. However, the Participants will be required to send a consolidated transaction statement, in physical form, for the entire financial year and the same shall be dispatched before 15th of May every year. To enable the Participants to service the Clients, NSDL proposes to maintain month-wise transaction statements for a period of 12 months on IDeAS. Transaction statement for a particular month will be available for download latest by 7th of the following month (for eg. transaction statement of April 2006 will be available for download by May 7, 2006). However, if a Client subscribes to IDeAS during the month, the transaction statement for the broken period will be available in the next month i.e. if a Client subscribes on April 15, 2006, the transaction statement of April for that Client will show transactions from April 16-30, 2006 onwards. Participants are advised to bring the aforesaid changes to the notice of all their Clients. Participants who wish to subscribe to IDeAS will have to pay one time Admission

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fee of Rs. 25,000 and Annual fee of Rs. 10,000 and Clients who wish to register for IDeAS will have to pay a quarterly fee of Rs. 10. Participants who have already subscribed to SPEED-e get IDeAS at no additional cost. However, Clients (who are already subscribers of SPEED-e) of such Participants who are desirous of subscribing to IDeAS will have to pay an additional quarterly fee of Rs. 5 per account i.e. quarterly fee would be Rs. 30 or Rs. 130 for password users/smart card users respectively. In case Clients of such Participants wish to subscribe only to IDeAS, they will have to pay a quarterly fee of Rs. 10 per account. For further information, Participants can visit SPEED-e website https://speed-e.nsdl.com or contact Mr. Prashant Vagal / Mr. Narayan Venkat on Tel. No. (022) 2499 4481 / 4479. Transaction Statement - Controls on despatch Circular No. NSDL/PI/99/823 Date : October 20, 1999 All Participants are advised to ensure that the Transaction Statements required to be given to the clients as per Business Rule 14.3.1 of NSDL, are despatched directly to the addresses of clients as per the records (e.g account opening form) of the Participant and not through the franchisees / collection centres.

Transaction Statement - Provide transaction statement and not holding statement Circular No. NSDL/PI/2000/103 Date: January 31, 2000 As all Participants are aware, Transaction Statements are required to be given to all clients at fortnightly intervals. Further, if there is no transaction in the account, then the Participant has to provide the Transaction Statement to the client atleast once a quarter. NSDL has received complaints that in some cases only holding statements are issued to clients which do not indicate the transaction. This is a violation of NSDL's Byelaws and regulations. In this context, Participants are advised that the Transaction Statements be provided to the clients in the format prescribed in Annexure V of the Business Rules of NSDL. NSDL has also received complaints that in some cases clients have not been provided with the bill of charges while their accounts have been debited (as per authorisation given by clients). Participants are requested to provide such details to their clients. Transaction Statement - RBI directive on providing Transaction Statement to Bank clients Circular No. NSDL/PI/2003/0308 Date : February 22, 2003 Participants may be aware that w.e.f. January 16, 2003, Reserve Bank of India (RBI) has decided to retail Government Securities through stock exchanges. RBI has, vide its letter no. IDMC No. 3212/10.26.65 / 2002-03 dated February 6, 2003 informed NSDL that the Department of Banking Operations and Development (DBOD) vide its circular dated January 16, 2003 has enabled banks to trade in government securities on the stock exchanges. RBI has further informed that the government securities maintained by the banks with the depositories will be included for Statutory Liquidity Ratio (SLR) purposes and SLR is required to be maintained on a daily basis. In view of this, Transaction Statements should be provided to banking Clients as of every Friday giving details of the securities held by them on each day of the week. Participants are therefore advised to provide Transaction Statements to their bank Clients, so as to enable them to comply with the requirements of RBI.

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Transaction Statements - Footnote in the transaction statements sent to Clients Circular No. NSDL/POLICY/ 2010/0002 Date: January 4, 2010 Sub: Footnote in the Transaction Statements provided to Clients As all Participants are aware, NSDL has enabled the facility of holding mutual fund units in dematerialised form as per the scheme envisaged by SEBI vide its Circular No. SEBI/IMD/CIR No.11/183204/2009 dated November 13, 2009 for transacting in mutual funds [Ref.: Circular No.: NSDL/POLICY/2009/0116 dated December 5, 2009]. In order to spread awareness about this facility and encourage investors to avail this facility, following footnote has been incorporated in the Transaction Statements, of Client accounts (Active or Frozen) where PAN flag is enabled in DPM System. In case of accounts which are suspended for PAN noncompliance, the footnote related to PAN will continue to be displayed. You can now hold your mutual fund investments in this demat account. Contact your Depository Participant or your stock broker for more information. In order to incorporate the aforementioned changes in the DPM System, Participants are advised to: 1. 2. 3. Copy the enclosed zip file i.e. Client_Setup into C:\ drive of your DPM setup. Extract the folder i.e. Client_Setup in C:\ drive. Open Client_Setup folder and double click on the file named as Double_Click.Bat.

Participants who are providing the Transaction Statements through their back office system are advised to make necessary changes to their back office system and incorporate the aforesaid footnote in the Transaction Statements for the month ended January 2010 onwards. As regards conversion of physical units held in Statements of Account form into dematerialised form, this will be notified to the Participants after it is approved by SEBI. Participants may contact Mr.Ashish Kini or Mr.Ravindra Sahu at Tel. No. 022 24994494 or 022-24994212 or email IDs ashishk@nsdl.co.in or ravindras@nsdl.co.in for any information on holding/ transacting mutual fund units through the depository accounts. Circular No. NSDL/PI/2004/2291 Date : December 23, 2004 Further to our Circular No. NSDL/PI/2004/1104 dated June 21, 2004, regarding insertion of footnote in the transaction statements sent to the Clients, all Participants are hereby informed that w.e.f December 24, 2004, transaction statements printed from DPM system will bear the prescribed text of the footnote. Further, transaction statements printed from the DPM system will also contain the "client type" and "client sub type". Participants who print transaction statements from their back office are advised to incorporate these features in their back office. This software release is planned on December 24, 2004. Circular No. NSDL/PI/2004/1104 Date : June 21, 2004 As per the Bye Laws and Business Rules of NSDL, all Participants are required to provide transaction statements to their Clients. In this context, Participants are hereby advised to insert a footnote in the transaction statements stating that "any discrepancy in the statement should be brought to the notice of (name of the Participant) within one month from the date of the statement".

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Providing Statement of transaction to Beneficial Owner consequent to account closure Circular No. NSDL/POLICY/ 2006/0014 Date: May 11, 2006 All Participants are hereby advised that if a Beneficial Owner (Client) makes a request for closure of accounts, Participants should provide the Statement of Transaction (SOT) to such Client for the period from the beginning of the quarter in which the account is closed till the date of closure. Further, the SOT should bear the words "Account Closed" and should be prominent. For this purpose, Participants can affix a rubber stamp or create a suitable system that will clearly show on the SOT that the account has been closed.

Transaction Statements - Exemption from giving hard copies of transaction statements to Beneficial Owners by DPs Circular No. NSDL/PI/2004/1514 Date: August 24,2004 As per the Bye Laws and Business Rules of NSDL, Participants are required to provide a transaction statement including statement of accounts, if any, to the Clients at monthly intervals, unless the Participant and its Clients have agreed for provision of such statements at shorter intervals. However, if there is no transaction in the account, then the Participant is required to provide such statement to the Client atleast once a quarter. In this regard, Participants are informed that SEBI has vide its Circular No. MRD/DoP/Dep/Cir-27/2004 dated August 16, 2004 (copy enclosed) clarified that Participants can be exempt from giving hard copies of transaction statements to beneficial owners subject to certain conditions. Participants may implement the above subject to the conditions contained in SEBI circular as well as the condition that such transaction statements is provided to Clients as per the frequency specified under the Bye Laws and Business Rules of NSDL. Annexure Deputy General Manager Market Regulation Department Email:-sundaresanvs@sebi.gov.in MRD/DoP/Dep/Cir-27/2004 August 16, 2004 The Managing Director, National Securities Depository Ltd., Trade World, 4th Floor, Senapati Bapat Marg, Lower Parel, Mumbai - 400013 The Executive Director, Central Depository Services (India) Ltd., Phiroze Jeejeebhoy Towers, 27-28th Floor, Dalal Street, Mumbai - 400 023 Dear Sir/s, Sub: Exemption of Depository Participants(DPs) from giving hard copies of transaction statements to Beneficiary Owners(BOs) 1. In terms of Regulation 43 of SEBI (Depositories & Participants) Regulations, 1996, every DP is required to provide statements of account to the BO in such form and in such manner and at such time as provided in the agreement with the BO.

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2.

Based on various representations received from the Depository Participants, it has been decided to permit the DPs to provide transaction statements and other documents to the BOs under Digital signature, as governed under the Information Technology Act, 2000, subject to the DP entering into a legally enforceable arrangement with the BO for the said purpose. The providing of transaction statements and other documents in the aforesaid manner would be deemed to be in compliance of the provisions of the Regulation 43 of SEBI (Depositories & Participants) Regulations, 1996. However if the BOs are still desirous of receiving statements in hard copy, the DPs shall be duty bound to provide the same. The depositories are accordingly advised to ; 3.1 3.2 3.3 Make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision immediately, as may be necessary/applicable. bring the provisions of this circular to the notice of the DPs of the Depository and also to disseminate the same on the website. communicate to SEBI the status of the implementation.

3.

4.

This circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. Yours faithfully,

V S SUNDARESAN Transaction Statements - Exemption from providing transaction statements Circular No. NSDL/POLICY/ 2009/0056 Date: July 11, 2009 Sub: Clarification on sending transaction statements to Clients in respect of depository account with no transactions and no security balances. Participants are aware that NSDL has vide Circular No.: NSDL/POLICY/2009/ 0006 dated January 15, 2009 exempted Participants from sending transaction statements to Clients holding depository accounts with no transactions and no security balances subject to certain conditions. In this regard, Participants are hereby informed that the condition mentioned at point no.4 of Circular No.: NSDL/POLICY/2009/0006 dated January 15, 2009 relating to SMS alert facility has been deleted. Participants are requested to ensure compliance with the other conditions mentioned in the above referred circular. Circular No. NSDL/POLICY/ 2009/0024 Date: April 1, 2009 Sub: Discontinuation of sending transaction statements to Clients to whom transaction statements were returned undelivered. NSDL has been receiving representations from Participants seeking permission for discontinuation of sending Transaction Statements to those Clients to whom Transaction Statements were returned undelivered in the past. Participants are hereby informed that they may not send Transaction Statements to those clients to whom Transaction Statements were returned undelivered in the past subject to the following conditions: 1. 2. 3. Transaction Statements were returned undelivered on three consecutive occasions. The Participant maintains proof that the Transaction Statements were returned undelivered. The Transaction Statements were returned undelivered for the reasons which clearly establish that the client no longer resides at the given address (i.e. party shifted, etc.) and not for other reasons (i.e. residence/office closed, address incorrect, address incomplete, etc.)

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4.

The Participant informs such clients through alternative means (such as outbound call, SMS or email) that their Transaction Statements are returned undelivered and they need to communicate the proper (new) address.

The Participant ensures that on receipt of request for address modification from the client as per the stipulated procedure, the dispatch of Transaction Statements is immediately started. Further, the Participant ensures that Transaction Statements that were not delivered and dispatched due to discontinuation are also dispatched immediately without any additional cost to the clients. Circular No. NSDL/POLICY/ 2009/0006 Date: January 15, 2009 Sub: Exemption from sending Quarterly Transactions Statements to Clients in respect of demat accounts with no transactions and no security balances. NSDL has been receiving representations from Participants seeking exemption from sending Transaction Statements on quarterly basis to Clients holding demat accounts with no transactions and no security balances. Participants are hereby informed that they may not send the quarterly Transaction Statements to such Clients subject to the following: 1. Client is informed in advance that it will not be receiving Transaction Statements for such accounts till there are any transactions or security holdings in the demat account. KYC and PAN requirement in respect of all such depository accounts are complied. No Annual Maintenance Charges are levied for such an account. Client must have opted for the SMS alert facility as provided by NSDL. Information which is required to be disseminated by Participants by way of a note in the Transaction Statements will be required to be communicated to such Clients separately. The Internal Auditor of the Participant shall comment in its internal audit report on compliance of the aforesaid requirements.

2. 3. 4. 5.

6.

Participants are advised to note that in case there is any transaction i.e. credit or subsequent debit in the Client's demat account, the Participant must send Transaction Statements to the Client at stipulated intervals in accordance with Bye Laws & Business Rules of NSDL. As Participants are aware, furnishing of Transaction Statement is a requirement for those Clients who do not want to personally visit the Participant's office for various requests such as address change, Delivery Instruction Slips, etc. For the purpose of such requests, "In-person' identification/presence will be mandatory for such clients in respect of whom the Participant opts not to send the quarterly Transaction Statements. Circular No. NSDL/PI/2005/1692 Date : September 9, 2005 Participants have been seeking clarification from NSDL whether they could discontinue providing transaction statement to a Client under the following conditions: 1) 2) 3) The Client has given an account closure request to the Participant; The Client account has only those ISIN(s) in the account which is / are in suspended status and / or pending rematerialisation request(s). The Client authorises the Participant to remove the standing instruction to receive credits in the account.

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If the above conditions are satisfied, Participants need not provide transaction statement to the Client, provided the Participant waives all charges viz., annual maintenance charges etc. on such accounts from the date of such discontinuation. Circular No. NSDL/PI/2004/1515 Date: August 24, 2004 Participants have brought to the attention of NSDL that even after following the procedure prescribed in Circular No. NSDL/PI/2003/0309 dated February 22, 2003, dematerialisation requests pending disposal for a long time are not rejected. As a result, Participants continue to provide transaction statements as per NSDL Bye Laws and Business Rules. Participants have requested for waiver from this requirement. In this regard, Participants are advised to note that they need not provide transaction statements to such Clients, subject to the following: (a) The Client has requested the Issuer company to reject the dematerialisation request and return the physical securities (as prescribed under Circular No. NSDL/PI/2003/0309 dated February 22, 2003) to the Client directly. The Client is not interested in getting the securities dematerialised. The Client authorises the Participant to remove the standing instruction to receive credits in his/her account. Participant waives all charges viz. annual maintenance charges etc. on such accounts.

(b) (c) (d) SMS Alert Facility Circular No. NSDL/POLICY/ 2010/0088 Date: August 3, 2010

Sub: SMS Alert facility enhanced Alerts to Pledgor Clients upon invocation of pledged securities All Participants are hereby informed that with effect from August 6, 2010, SMS Alert facility will be enhanced whereby Pledgor Clients will receive alerts upon invocation of pledged securities in their demat accounts. For pledged securities invoked upto 7.00 pm, SMS Alerts will be sent on the same day. In case pledged securities are invoked after 7.00 pm, SMS Alerts will be sent on the following day. Sample text message of SMS Alert is given below: On __________ (date, dd/mm/yy), ___ (Quantity) ________ (Company Name), debited due to invocation of pledged securities from ur demat a/c no xxxx4086..NSDL A list of features of SMS Alert facility is enclosed for information of Participants.

Circular No. NSDL/POLICY/ 2010/0021 Date: March 4, 2010

Sub: SMS Alert facility enhanced Alerts for Credits All Participants are hereby informed that with effect from March 5, 2010, SMS Alert facility will be enhanced whereby Clients will receive alerts for credits (transfers) received in their demat accounts. These SMS Alerts will be sent on the same day for credits received upto 7.00 pm. In respect of credits received after 7.00 pm, SMS Alerts will be sent on the following day. Sample text message of SMS Alert is given below : (a) If the Client receives credit upto five ISINs in his/her demat account, the text message of the SMS alert would be as follows : On __________ (date, dd/mm/yy), ___ (Quantity) ________ (Company Name), credited to your demat a/c no xxxx4086..NSDL (b) If the Client receives credit of more than five ISINs in his/her demat account, the text message of the SMS alert would be as follows :

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Securities of more than 5 companies (ISINs) credited to ur demat a/c no xxxx5678 on __________ (date, dd/mm/yy). Check details with ur DP or on IDeAS website if subscribed..NSDL A list of features of SMS Alert facility is enclosed for information of Participants. Circular No. NSDL/POLICY/ 2010/0003 Date: January 6, 2010 Sub: SMS Alert Facility for credit/debit of Mutual Fund units. All Participants are hereby informed that with effect from January 7, 2010, SMS will be sent to the depository account holders for credits/debits of Mutual Fund units. A sample text of the SMS is as follows: Credit of Mutual Fund Units ________ units of __________ (Scheme Name / ISIN as the case may be) credited on . (date, dd-mm-yy) to your demat a/c no xxxx5678 NSDL Debit of Mutual Fund Units ________ units of __________ (Scheme Name / ISIN as the case may be) debited on . (date, dd-mm-yy) from your demat a/c no xxxx5678 NSDL The list of features of SMS alert facility is enclosed for information of Participants. Circular No. NSDL/POLICY/ 2009/0077 Date: August 29, 2009 Sub: SMS Alert Facility enhanced with change in address alerts. All Participants are hereby informed that with effect from September 1, 2009, an SMS will be sent to the client in case there is any change in address of the client recorded by the Participant in DPM system. In case two addresses of a client are recorded in the DPM system, SMS will be sent only when the address where the transaction statements are sent, is changed in the DPM system. Further, in case the indicator for address is changed based on the request of the client, an SMS will be sent. A sample text of the SMS is as follows: "As per ur request, address in ur demat account ________ (Client ID) is recorded as B-7102, Meera CHS, M. G. Road, Opp. Shoppers' Stop, Andheri (E), Mumbai - 400069" (message to show first 80 characters of new address) The list of features of SMS alert facility is enclosed for information of Participants. Accordingly, the terms and conditions are revised and displayed on our website www.nsdl.co.in SMS Alert facility for NSDL demat account holders Introduction NSDL provides SMS Alert facility for demat account holders whereby they can receive alerts directly from NSDL for following: 1) All Debits (transfers) 2) Credits for IPO, sub-division and bonus. 3) Failed instructions 4) Overdue instructions 5) Change of mobile number 6) Change of address Charges No charge is levied by NSDL on Depository Participants (DPs) for providing this facility to investors.

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Registration This facility will be available to the investors provided they have given their mobile numbers to their DPs and the DPs have captured the numbers in the DPM system and have also enabled (ticked) the SMS flag in their DPM system. Contact The investors may contact their respective DPs in case they do not receive SMS alert inspite of registering for this facility. Those investors who have provided their mobile numbers to their DPs but do not wish to avail this facility may also inform their DPs. For further details / information investors may contact us at: Investor Relationship Cell National Securities Depository Limited 4th Floor, A Wing, Trade World, Kamala Mills Compound Senapati Bapat Marg, Lower Parel, Mumbai 400 013. Tel.: (022) 2499 4200 / 4090 4200 Fax: (022) 2497 6351 Email: relations@nsdl.co.in Circular No. NSDL/POLICY/ 2009/0033 Date: May 6, 2009 Sub : SMS Alert Facility for pay-in related instructions (from Client to CM Pool account) remaining in overdue status due to insufficient balance. As all Participants are aware, after introduction of partial settlement of payin instructions from client account to the CM Pool Account, the instructions to debit the account of the client where there are insufficient balances will remain in Overdue status and will be carried forward till the pay-in deadline for execution. For such instructions which remain in Overdue status, SMS will be sent to the client about the instruction remaining in Overdue status w.e.f. May 8, 2009. The schedule for sending the SMS is explained with an example as follows: Condition SMS Alert Monday as Execution date & SMS for overdue status will be sent on insufficient balance in the account Tuesday morning Insufficient balance continues on Tuesday SMS for overdue status will be sent on Wednesday morning

Further, for those instructions which get executed (either fully or partially) at pay-in deadline, an SMS in the regular course for debiting the account of the client will be sent. The text of SMS alerts for instruction remaining in overdue status due to insufficient balance after the execution date is as follows: Insufficient qty in your demat a/c ________ (Client ID) for transfer of _______ (number of shares) shares of ____________ (Company Name/ISIN as the case may be). Available qty will get transferred by pay-in date ________ (date, dd/mm/yy) The revised terms & conditions are given in the Annexure and displayed on our website www.nsdl.co.in Participants may inform their clients suitably. Annexure SMS Alert facility for NSDL demat account holders Introduction NSDL has launched SMS Alert facility for demat account holders whereby investors can receive alerts for debits (transfers) to their demat accounts, credits for IPO and offer for sale allotment, sub-division and bonus. Alerts

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are also sent in case the instructions given by investors for debiting their demat accounts fail or pay-in related instructions remain pending for execution due to insufficient balance. These alerts are sent to those account holders who have provided their mobile numbers to their Depository Participants (DPs). Alerts for debits are sent, if the debits (transfers) are up to five ISINs in a day. In case debits (transfers) are for more than five ISINs, alerts are sent with a message that debits for more than five ISINs have taken place and that the investor can check the details with the DP or on IDeAS website, if the investor is an IDeAS subscriber. Benefits 1. Investors will get to know about debits and credits for IPO and offer for sale allotment, sub-division, bonus and failed debit instructions & payin related instructions remaining pending for execution due to insufficient balance without having to call-up their DPs. 2. Investors need not wait for receiving Transaction Statements from DPs to know about such debits and credits. 3. In case of any discrepancy, the investor can approach its DP for clarification sooner. Charges No charge is levied by NSDL on DPs for providing this facility to investors. Registration This facility is available to investors who request for such a facility and provide their mobile numbers to the DPs. In case mobile numbers already given have changed, investors need to inform their DPs about the new numbers by way of written requests. Investors who have not yet provided their mobile numbers to their DPs can also avail this facility by intimating their mobile numbers to their DPs and submit a written request for this facility. This facility is not available to investors who have registered mobile numbers originating outside India. Thus, this facility will be available to the investors provided they have given their mobile numbers to their DPs and the DPs have captured the numbers in the computer system and have also enabled (ticked) the SMS flag in their system. Contact The investors may contact their respective DPs in case they do not receive SMS alert inspite of registering for this facility. Those investors who have provided their mobile numbers to their DPs but do not wish to avail this facility may also inform their DPs. For further details / information investors may contact us at: Investor Relationship Cell National Securities Depository Limited 4th Floor, A Wing, Trade World, Kamala Mills Compound Senapati Bapat Marg, Lower Parel, Mumbai 400 013. Tel.: (022) 2499 4200 / 4090 4200 Fax: (022) 2497 6351 Email: relations@nsdl.co.in Terms and Conditions 1.1 Definition In these Terms and Conditions, the following terms shall have the following meanings: Alerts or Facility means the customized messages with respect to specific events/transactions relating to an Investors Account sent as

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Short Messaging Service (SMS) over mobile phone to the Investor; Investor means the person who holds an Account; Account means the demat account of the Investor with NSDL maintained through its Depository Participant; ISIN means an International Securities Identification Number assigned to a security; CSP means the cellular service provider through whom the Investor or NSDL receives the mobile services. 1.2 Availability 1.2.1 NSDL at its sole discretion may discontinue the Facility at any time by providing a prior intimation through its website or any other medium of communication. NSDL may at its discretion extend the Facility to investors who register mobile phones originating outside India. 1.2.2 The Alerts would be generated by NSDL and will be sent to the investors on the mobile number provided by the investor and the delivery of the Alert would be entirely based on the service availability of the service provider and connectivity with other cellular circles of the CSPs or in circles forming part of the roaming GSM network agreement between such CSPs. The Alerts are dependent on various factors including connectivity and, therefore, NSDL cannot assure final and timely delivery of the Alerts. 1.2.3 The investor will be responsible for the security and confidentiality of his/her Mobile Phone and mobile phone number to be used for this Facility. 1.3 Process 1.3.1 This Facility provides Alerts to investors over mobile phones for the debits (transfers), credits for IPO and offer for sale allotment, sub-division and bonus that have taken place in their accounts. Alerts are also sent in case the instructions given by investors for debiting their demat accounts fail or pay-in related instructions remain pending for execution due to insufficient balance. These Alerts will be sent to those investors who have requested for such a Facility and have provided their mobile numbers to their Depository Participants. Alerts will be sent for debits, if the debits (transfers) are up to five ISINs in a day. In case debits (transfers) are for more than five ISINs, Alerts will be sent with a message that debits for more than five ISINs have taken place and that the investor can check the details with the Depository Participant or on IDeAS website, if the investor is an IDeAS subscriber. Investors who have provided their mobile numbers to Depository Participants but do not wish to avail of this Facility may do so by informing their Depository Participants accordingly. 1.3.2 The investor is duty bound to acquaint himself/herself with the detailed process for using the Facility and interpreting the Alerts for which NSDL is not responsible for any error/omissions by the investor. 1.3.3 The investor acknowledges that the Alerts will be implemented in a phased manner and NSDL may at a later stage; as and when feasible, add more Alerts. NSDL may, at its discretion, from time

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to time change the features of any Alert. The investor will be solely responsible for keeping himself/herself updated of the available Alerts, which shall, on best-effort basis, be notified by NSDL through its website or any other medium of communication. 1.4 Receiving Alerts 1.4.1 The investor is solely responsible for intimating in writing to his/ her Depository Participant any change in his/her mobile phone number and NSDL will not be liable for sending Alerts or other information over his/her mobile phone number recorded with NSDL. 1.4.2 The investor acknowledges that to receive Alerts, his/her mobile phone must be in an on mode. If his/her mobile is kept off for a specified period from the time of delivery of an Alert message by NSDL, that particular message may not be received by the investor. 1.4.3 The investor acknowledges that the Facility is dependent on the infrastructure, connectivity and services provided by the CSPs within India. The investor accepts that timeliness, accuracy and readability of Alerts sent by NSDL will depend on factors affecting the CSPs and other service providers. NSDL shall not be liable for non-delivery or delayed delivery of Alerts, error, loss or distortion in transmission of Alerts to the investor. 1.4.4 NSDL will endeavor to provide the Facility on a best effort basis and the investor shall not hold NSDL responsible/liable for nonavailability of the Facility or non performance by any CSPs or other service providers or any loss or damage caused to the investor as a result of use of the Facility (including relying on the Alerts for his/her investment or business or any other purposes) for causes which are attributable to /and are beyond the control of NSDL. NSDL shall not be held liable in any manner to the investor in connection with the use of the Facility. 1.4.5 The investor accepts that each Alert may contain certain account information relating to the investor. The investor authorizes NSDL to send any other account related information, though not specifically requested, if NSDL deems that the same is relevant. 1.5 Withdrawal or Termination 1.5.1 NSDL may, in its discretion, withdraw temporarily or terminate the Facility, either wholly or in part, at any time. NSDL may suspend temporarily the Facility at any time during which any maintenance work or repair is required to be carried out or incase of any emergency or for security reasons, which require the temporary suspension of the Facility. 1.5.2 Not withstanding the terms laid down in clause 1.5.1 above, either the investor or NSDL may, for any reason whatsoever, terminate this Facility at any time. In case the investor wishes to terminate this Facility, he/she will have to intimate his/her Depository Participant accordingly. 1.6 Fees 1.6.1 At present, NSDL is levying no charge for this Facility on the Depository Participants. The investor shall be liable for payment of airtime or other charges, which may be levied by the CSPs in connection with the receiving of the Alerts, as per the terms and

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conditions between the CSPs and investors, and NSDL is in no way concerned with the same. 1.7 Disclaimer 1.7.1 This Facility is only an Alert mechanism for the investors and is not in lieu of the Transaction Statements required to be provided by the Depository Participant to its clients. 1.7.2 NSDL shall not be concerned with any dispute that may arise between the investor and his/her CSP and makes no representation or gives no warranty with respect to the quality of the service provided by the CSP or guarantee for timely delivery or accuracy of the contents of each Alert. 1.7.3 The investor shall verify the transactions and the balances in his/ her account from his/her Depository Participant and not rely solely on Alerts for any purpose. 1.7.4 NSDL will not be liable for any delay or inability of NSDL to send the Alert or for loss of any information in the Alerts in transmission. 1.8 Liability 1.8.1 NSDL shall not be liable for any losses, claims and damages arising from negligence, fraud, collusion or violation of the terms herein on the part of the investor and/ or a third party. Circular No. NSDL/ POLICY/2009/0030 Date: April 22, 2009 Sub : Intra day SMS Alert Facility All Participants are hereby informed that the SMS alert facility has been enhanced for sending the alerts in respect of transfer of securities (i.e. debit to client account) on the same day for delivery instructions effected upto 7.00 p.m. In respect of delivery instructions effected after 7.00 p.m., SMS alerts will be sent on the following day. Accordingly, the terms and conditions are revised. The same are given in the Annexure and displayed on our website www.nsdl.co.in Participants may inform their clients suitably. Circular No. NSDL/POLICY/ 2008/0042 Date: June 5, 2008 Sub : Launch of SMS Alert Facility for Investors for Bonus and Sub-divison. As all Depository Participants (DPs) are aware, NSDL's SMS Alert facility for demat account holders enables investors to receive alerts for debits (transfers) to their demat accounts, credits in respect of IPO & offer for sale allotment and for failed instructions due to insufficient balance. With effect from June 5, 2008, SMS Alert facility for demat account holders has been further enhanced. Investors can now receive alerts in respect of credits pursuant to sub-division and bonus. The text of SMS alerts being sent to the account holders is as follows: Sub-division "___ sub-divided shares of ______ (Company Name/ISIN as the case may be) credited on "Execution date" to your demat a/c no xxxx5678. Check with your DP or on IDEAS website if subscribed - NSDL" Bonus "___ shares of ______ (Company Name/ISIN as the case may be) credited on "Execution date" to your demat a/c no xxxx5678 in respect of Bonus. Check with your DP or on IDEAS website if subscribed - NSDL" The revised details of this facility and the terms & conditions thereof are given in the enclosed annexure.

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Circular No. NSDL/POLICY/ 2008/0026 Date: April 22, 2008

Sub : Launch of SMS Alert Facility for Investors for failed debit instructions As all Depository Participants (DPs) are aware, NSDLs SMS Alert facility for demat account holders enables investors to receive alerts for debits (transfers) to their demat accounts and credits in respect of corporate actions for IPO and offer for sale. With effect from April 15, 2008, SMS Alert facility for demat account holders has been further enhanced. Investors can now receive alerts in respect of debit instructions failed on account of insufficient balance (Rejection code 3166E i.e. Cancelled Overdue Status). The text of SMS alerts being sent to the account holders is as follows: Ur reqst for transfer of ______ (number of shares) shares of ____________ (Company Name/ISIN as the case may be) from demat a/c no_________ (Client ID) on __________ (date, dd/mm/yy) has failed due to insuff bal. Contact ur DP for details.NSDL The revised details of this facility and the terms & conditions thereof are given in the enclosed annexure.

Circular No. NSDL/POLICY/ 2007/0058 Date: September 29, 2007

Sub : Regarding launch of SMS Alert Facility for Investors for credits As all Depository Participants (DPs) are aware, NSDL has launched SMS Alert facility for demat account holders whereby investors can receive alerts for debits (transfers) to their demat accounts. In continuation of NSDL Circular Nos. NSDL/POLICY/2007/0046 dated August 10, 2007 and NSDL/POLICY/2007/ 0053 dated September 21, 2007, all DPs are requested to note that SMS Alert facility for demat account holders has been further enhanced wherein investors can receive alerts for credits that have taken place in their demat accounts in respect of corporate actions for IPO and offer for sale. In such cases, the following message is being sent to the account holders: ______ (number of shares) shares of ____________ (Company Name) credited to your demat a/c no_________ (Client ID) on __________ (date, dd/mm/ yy) in respect of Public OfferNSDL The revised details of this facility and the terms & conditions thereof are given in the enclosed annexure.

Circular No. NSDL/POLICY/ 2007/0053 Date: September 21, 2007

Sub : Communication to investors -Regarding launch of SMS Alert Facility for Investors As all Depository Participants (DPs) are aware, NSDL has launched SMS Alert facility for demat account holders whereby investors can receive alerts for debits (transfers) to their demat accounts. In continuation of NSDL Circular No. NSDL/POLICY/2007/0046 dated August 10, 2007, all DPs are hereby advised to note that SMS alert facility for demat account holders has further been enhanced wherein cases of debits (transfers) for more than five ISINs, alerts are being sent with a message that debits for more than five ISINs have taken place and that the investor can check the details with the DP or on IDeAS website, if the investor is an IDeAS subscriber. In such cases, the following message is being sent to the account holders : Securities of more than 5 companies (ISINs) debited from ur demat a/c No ________ (Client ID) on __________ (date, dd/mm/yy). Check details with ur DP or on IDeAS website if subscribed..NSDL In order to create Client awareness and facilitate Clients to enroll for the SMS Alert facility, all DPs are advised to communicate the following message alongwith the transaction statement sent to their Client accounts (Active or Frozen) for the month / quarter ended September 2007: NSDL has launched SMS Alert facility for demat account holders whereby

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investors can receive alerts for debits (transfers) to their demat accounts. Under this facility, investors can receive alerts for the debits (transfers) that have taken place in their demat accounts, a day after the debit (transfer). The alerts are sent to those account holders who have provided their mobile numbers to their Depository Participants (DPs) and DPs have activated such a facility in the computer system. These alerts are sent giving details, if the debits (transfers) are up to five ISINs in a day. In case debits (transfers) are for more than five ISINs, alerts are sent with a message that debits for more than five ISINs have taken place and that the investor can check the details with the DP or on IDeAS website, if the investor is an IDeAS subscriber. Please contact us for more information and enrollment for SMS Alert facility Circular No. NSDL/POLICY/ 2007/0046 Date: August 10, 2007 Sub : Launch of SMS Alert Facility for Investors All Participants are hereby informed that NSDL is making a soft launch of SMS Alert Facility from August 10, 2007 whereby a few investors on a pilot basis will be able to receive alerts for debits (transfers) taking place in their demat accounts. The full fledged roll out of this facility for all investors will commence on September 1, 2007. The details of this facility and the terms & conditions thereof are given in the enclosed annexure. For those demat accounts where investors have intimated their mobile numbers to their Participants with a request for activating the SMS facility and the Participant has accordingly captured the mobile number and enabled the SMS flag (ticked) in the DPM system, the SMS Alert Facility will be activated. Participants are requested to note that the mobile number captured in the DPM system should be a ten digit number with the first digit as "9". Participants are advised to maintain records of those Clients who have opted for this facility. Those Clients who have given their mobile numbers to their Participants and do not wish to avail this facility may inform their Participants. Accordingly, the Participants should disable the SMS flag (untick).

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NOTES

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6. Internal Controls/Reporting to NSDL/SEBI

a. General Regulation 46 Every participant shall have adequate mechanism for the purposes of reviewing, monitoring and evaluating the participant's internal accounting controls and systems. Every participant shall submit periodic returns to the Board and to every depository in which it is a participant in the format specified by the Board or the bye-laws of the depository, as the case may be. The Participant shall submit the following returns to the Depository: i. net worth certificate computed in a manner laid down in the Business Rules duly certified by a Chartered Accountant on the annual audited accounts of the Participant; ii. In case the Participant is a clearing member of the clearing corporation of any exchange, the details regarding any suspension/termination or defaults or any disputes in relation to its dealings with such clearing corporation within two working days of such an event; iii. number of complaints received from Clients, their nature, status and manner of redressal once every month; iv. number of transfers effected for off-market settlement of trades once every month. Each Participant shall furnish to the Depository every year, a copy of its audited financial statement within six months from the end of the Participant's financial year. Provided that when the Depository is satisfied that circumstances warrant an extension of time to furnish such report, it may grant such extension to the Participant. Clause 16 of NSDLDP Agreement Rule 5.2.3 The Participant shall comply with such accounting, audit, financial requirements including requirements for submission of periodic returns on its activities in relation to NSDL, in such form and manner and within such time period as may be specified in the Bye Laws and Business Rules. Each Participant shall conduct a review, at least annually, of its business relating to the operations of the Depository, which shall be reasonably designed to assist in detecting and preventing violation of and achieving compliance of the Bye Laws and Business Rules of the Depository.

Regulation 48

Bye Law 6.3.6

Bye Law 10.2.1.

Alteration in Memorandum of Association (MOA) for permitting the Participant to undertake Depository Participant activities Circular No. NSDL/POLICY/ 2010/0083 Date: July 22, 2010 Sub: Alteration in Memorandum of Association (MOA) for permitting the Participant to undertake Depository Participant activities All Participants are hereby informed that at the time of submitting application for granting registration as a Participant, SEBI has advised Participants to submit relevant extract of MOA categorically permitting the applicant company to undertake Depository Participant activities. In view of the above, Participants are advised to examine their MOA and arrange to make necessary alteration in objects clause of MOA, if required.

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Sub: Format for application to SEBI for opening of wholly owned subsidiaries or entering into joint ventures in other countries Circular No. NSDL/POLICY/ 2011/0006 Date: January 14, 2011 Sub: Format for application to SEBI for opening of wholly owned subsidiaries or entering into joint ventures in other countries All Participants are hereby informed that SEBI has vide its email dated January 12, 2011 informed about the format for application to SEBI for opening of wholly owned subsidiaries or entering into joint ventures in other countries. Participants are advised to take note of the above. FORMAT FOR APPLICATION TO SEBI FOR OPENING OF WHOLLY OWNED SUBSIDIARIES OR ENTERING INTO JOINT VENTURES IN OTHER COUNTRIES (Applicable for Stock Brokers, Bankers to an Issue, Merchant Bankers, Registrar to an Issue and Share Transfer Agents, Underwriters, Depository Participants, Debenture Trustees and Credit Rating Agencies) SEBI receives applications from intermediaries for granting NOCs for setting up joint ventures, subsidiaries etc. Depending on the information submitted by the intermediaries, SEBI seeks further information/ clarifications. This process takes some time to grant such NOCs. In order to streamline the entire process, a format has now been devised so that the intermediaries send all the relevant information at the time of application itself. This will enable SEBI to process the applications expeditiously. FORMAT FOR APPLICATION TO SEBI FOR OPENING OF WHOLLY OWNED SUBSIDIARIES OR ENTERING INTO JOINT VENTURES IN OTHER COUNTRIES Please read the instructions carefully before filling up the Application: 1. 2. 3. 4. Fill in all the particulars as are applicable clearly. The information should be complete in all respects. Please attach the relevant enclosure. In case, the applicant is a Stock Broker/Depository Participant, the application may be submitted directly to SEBI along-with NOC obtained from all the Stock Exchanges/Depositories, where the applicant is a member/participant. GENERAL INFORMATION: Details of all registrations of the applicant company and its group/associate entities in India or abroad: 1. Name of the entity name, if any) 2. Type o Intermediary 3. Registration Number 4. Date of Registration 5. Validity of Registration (Earlier

I 1

2 3 4

Networth of applicant company based on the latest audited results (in Rs. Cr.) Names of Promoters / Directors / Key Personnel of the applicant company a) Details of regulatory action taken/initiated/ pending, if any, against the applicant/group/ associate entities/ promoters/directors/key personnel /principal officer of the applicant company (in India/abroad) Provide corrective measures taken in respect of pending/completed actions initiated by SEBI during the last 5 years

b)

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Note: If the intermediary has already submitted details of corrective measures to SEBI in the past in case of the above, only a copy of the same may be provided. 5 6 7 Any fee remaining unpaid to SEBI by applicant/ associates/its sub-brokers Amount of proposed investment/end investment (converted in Indian Rupees) Whether the applicant is setting up a Wholly Owned subsidiary (WOS) or a Step Down Subsidiary (SDS) or entering into Joint Venture (JV) or acquiring stake in an existing company for the purpose of setting up SDS or making further investments through the JV/WOS/SDS Details of the Overseas Subsidiary (provide relevant details in case of equity participation in existing foreign company or joint venture with a foreign company) a) Name of the foreign entity b) Country of Incorporation c) Overseas Regulatory Authority which regulates the entity d) Purpose for setting up the WOS/SDS/JV/Equity Participation e) Nature of activities

II a.

UNDERTAKING Pursuant to setting up Wholly Owned Subsidiary (WOS)/ investment in step down subsidiary, we shall maintain Networth for each category of registration as per SEBI Act, 1992 & Regulations/ circulars issued there under and bye laws/ rules/ regulations/ circulars etc. issued by respective stock exchanges/Depositories. Signature Name Designation

Place: Date: III a. ENCLOSURE Certificate of Networth, duly certified by a Chartered Accountant.

SEBIs Master Circular for Depositories Circular No. NSDL/POLICY/ 2011/0003 Date: January 4, 2011 Sub: SEBI's Master Circular for Depositories Attention of Participants is invited to SEBI's Master Circular no. CIR/MRD/DP/ 41 /2010 dated December 31, 2010 (copy enclosed) for Depositories, which is a compilation of circulars communications issued by SEBI up to December 31, 2010. Participants are advised to ensure compliance with the same. As regards Guidelines for dematerialisation of shares sent for transfer by (A) Investors and (B) Custodian mentioned at point no. 4.15 of SEBI's aforesaid Master Circular, Participants are hereby requested to note that SEBI had vide its Circular No. SEBI/MRD/Cir - 10/2004 dated February 10, 2004 decided to withdraw the transfer-cum-demat scheme (ref. NSDL Circular No. NSDL/PI/ 2004/0261 dated February 11, 2004).

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Circular No. NSDL/POLICY/ 2011/0003 Date: December 31, 2010

Sub: Master Circular for Depositories Securities and Exchange Board of India (SEBI) has been issuing various circulars/ directions from time to time. In order to enable the users to have an access to all the applicable circulars/directions at one place, Master Circular for Depositories has been prepared. This Master Circular is a compilation of the circulars/communications issued by SEBI up to December 31, 2010 and shall come into force from the date of its issue. Table of Contents Section-1 - Beneficial Owner (BO) Accounts 1.1 Opening of BO Account by non-body corporates 1.1.1 Proof of Identity (PoI) 1.1.2 Proof of Address (PoA) 1.1.3 Acceptance of third party address as correspondence address 1.2 1.3 1.4 1.5 1.6 1.7 2.1 2.2 2.3 2.4 2.5 2.6 Exemptions from and clarifications relating to mandatory requirement of PAN Fees/Charges to be paid by BO Transfer of funds and securities from Clearing Member pool account to BO Account Printing of Grievances Redressal Mechanism on Delivery Instruction Form Book Exemption to Depository Participants (DPs) from providing hard copies of transaction statements to BOs Safeguards on transfer of securities in dematerialized mode Charges to be paid by Issuers Activation of International Securities Identification Number (ISIN) in case of IPO Registrar and Transfer Agents Mandatory admission of debt instruments on both the Depositories American Depository Receipts (ADRs)/Global Depository Receipts (GDRs) Electronic Clearing System (ECS) facility 2.6.1 Dividend Distribution 2.6.2 Refund in public/rights issues Section-3 - Depositories/ Depository Participant (DP) Related 3.1 3.2 3.3 3.4 Designated e-mail ID for redressal of investor complaints Approval of amendments to Bye Laws / Rules of Stock Exchanges and Depositories Preservation of Records Foreign investments in infrastructure companies in securities markets

Section-2 - Issuer related

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3.5 3.6 3.7 3.8 3.9 3.10

Activity schedule for depositories for T+2 rolling Settlement Settlement of transactions in case of holidays Supervision of branches of depository participants Designated e-mail ID for regulatory communication with SEBI Disclosure of investor complaints and arbitration details on Depository website Disclosure of regulatory orders and arbitration awards on Depository website Pledge of Shares through depository system SMS alerts for demat accounts operated by Power of Attorney Opening of demat account in case of HUF Exemption from sending quarterly statements of transactions by depository participants (DPs) to clients in respect of demat accounts with no transactions and no security balances Withdrawal by issuers from the depository Discontinuation of sending transaction statements by depository participants to clients Further issue of shares under Section 86 of Companies Act and Companies (Issue of Share capital with Differential Voting Rights) Rules, 2001 Updation of bank accounts details, MICR code and IFSC of bank branches by Depository Participants (DPs) Establishment of connectivity by Clearing House/Clearing Corporation (CH/CC) with the Depository - Clarification

Section-4 - Other communications to Depositories having policy implications 4.1. 4.2. 4.3. 4.4.

4.5. 4.6. 4.7.

4.8. 4.9.

4.10. Computing and monitoring of the Aggregate Value of Portfolio of Securities (AVPS) of the BOs held in dematerialised form by Stock Broker DPs 4.11. Deadline time for accepting non pay-in related instructions 4.12. Clarification on our circular no. SMDRP/Policy/Cir-28/99 dated August 23, 1999 4.13. Voting rights in respect of securities held in pool account 4.14. Operation of minor's demat account 4.15. Guidelines for dematerialisation of shares sent for transfer by (A) Investors and (B) Custodians SCHEDULE

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Section 1: Beneficial Owner (BO) Accounts 1.1 Opening of BO Account by non body corporates 1.1.1 1.1.1.1 Proof of Identity (PoI) With effect from July 02, 2007, PAN is the sole identification number for all transactions in the securities market, irrespective of the amount of transaction1. A copy of the PAN card with photograph may be accepted as Proof of Identity. In this regard, intermediaries shall:I. Put necessary systems in place so that the databases of the clients and their transactions are linked to the PAN details of the client. Build necessary infrastructure to enable accessibility and query based on PAN thereby enabling retrieval of all the details of the clients. Collect copies of PAN cards issued to the existing as well as new clients by the Income Tax Department and maintain the same in their record after verifying with the original. Cross-check the aforesaid details collected from their clients with the details on the website of the Income Tax Department i.e. http://incometaxindiaefiling.gov.in/challan/ enterpanforchallan.j sp2.

II.

III.

IV.

1.1.1.2

For individuals falling under the category exempted from the mandatory requirement of PAN (Para 1.2), a copy of any one of the following may be accepted as Proof of Identity3 I. II. III. IV. V. Passport Voter ID Card Driving license PAN card with photograph Identity card/document with applicant's Photo, issued by a) b) c) d) e) f) g) h. Central/State Government and its Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Colleges affiliated to Universities, Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council etc., to their Members; and Credit cards/Debit cards issued by Banks

1 2

Reference circular MRD/DoP/Cir-5/2007 dated April 27, 2007. IT Department since changed the link for verification: http://incometaxindiaefiling.gov.in/portal/knowpan.do Reference Circular MRD/DoP/Dep/Cir-29/2004 dated August 24, 2004 and circular SMDRP/POLICY/ Cir-36 /2000 dated August 4, 2000.

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1.1.2

Proof of Address (PoA)4 A copy of any one of the following documents may be accepted as proof of address: I. II. III. IV. V. VI. Ration Card Passport Voter ID Card Driving license Bank Passbook Verified copies of a) b) c) VII. VIII. Electricity bills (not more than 2 months old), Residence Telephone bills (not more than 2 months old) and Lease and License agreement / Agreement for sale.

Self-declaration by High Court and Supreme Court judges, giving the new address in respect of their own accounts. Identity card/document with address, issued by a) b) c) d) e) f) g) Central/State Government and its Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Colleges affiliated to universities; and Professional Bodies such as ICAI, ICWAI, Bar Council etc., to their Members.

DP shall ensure that all documents pertaining to proof of identity and proof of address are collected from all the account holders.5 Submission of the aforesaid documents is the minimum requirement for opening a BO Account. DPs must verify the copy of the aforementioned documents with the original before accepting the same as valid. While opening a BO Account, DPs shall exercise duediligence6 while establishing the identity of the person to ensure the safety and integrity of the depository system. 1.1.3 Acceptance of third party address as correspondence address7 SEBI has no objection to a BO authorizing the capture of an address of a third party as a correspondence address, provided that the Depository Participant (DP) ensures that all prescribed 'Know Your Client' norms are fulfilled for the third party also. The DP shall obtain proof of identity and proof of address for the third party. The DP shall also ensure that customer due diligence norms as specified in Rule 9 of Prevention of Money Laundering Rules, 2005 are complied with in respect of the third party.
4

5 6

Reference Circular MRD/DoP/Dep/Cir-29/2004 dated August 24, 2004 and circular SMDRP/POLICY Cir-36 /2000 dated August 4, 2000. Reference Circular MRD/DoP/Dep/Cir-09/06 dated July 20, 2006 Reference point 5 of part II on 'Customer Due Diligence' of master circular no. ISD/AML/CIR-1/2008 dated December 19, 2008. Reference circular CIR/MRD/DP/37/2010 dated December 14, 2010

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The depository participant should further ensure that the statement of transactions and holding are sent to the BO's permanent address at least once in a year. However, the above provision shall not apply in case of PMS (Portfolio Management Services) clients. 1.2 1.2.1 Exemptions from and clarifications relating to mandatory requirement of PAN Mandatory requirement of Permanent Account Number (PAN)
8

The demat accounts for which PAN details have not been verified are "suspended for debit" until the same is verified with the Depository Participant (DP). With effect from August 16, 2010 such PAN non-compliant demat accounts were also "suspended for credit" other than the credits arising out of automatic corporate actions. It was clarified that other credits including credits from IPO/FPO/ Rights issue, off-market transactions or any secondary market transactions would not be allowed into such accounts. 1.2.2 Central and State Government and officials appointed by Courts9 PAN card may not be insisted upon in case of transactions undertaken on behalf of Central Government and/or State Government and where transactions are conducted by officials appointed by Courts e.g. Official liquidator, Court receiver etc.10 However DPs, before implementing the above exemption, shall verify the veracity of the claim of the organizations by collecting sufficient documentary evidence in support of their claim for such an exemption. 1.2.3 Investors in Sikkim11 Investors residing in the state of Sikkim are exempted from the mandatory requirement of furnishing PAN card details for their demat accounts.12 DPs shall verify the veracity of the claim of the investors that they are residents of Sikkim, by collecting sufficient documentary evidence in support of their address.13 1.2.4 UN entities and multilateral agencies exempt from paying taxes/ filling tax returns in India14 UN entities/ multilateral agencies exempt from paying taxes/filing tax returns in India are also exempt from the mandatory requirement of submitting their PAN card details, subject to the DPs collecting documentary evidence in support of such claims. 1.2.5 FIIs/Institutional Clients15 Custodians shall verify the PAN card details of institutional clients with the original PAN card and provide duly certified copies of such verified PAN details to the brokers. This requirement is applicable in respect of institutional clients, namely, FIIs, MFs, VCFs, FVCIs,

8 9

Reference Reference Reference 11 Reference 12 Reference 13 Reference 14 Reference 15 Reference

10

Circular MRD/DP/22/2010 dated July 29, 2010. Circular MRD/DoP/Cir-20/2008 dated June 30, 2008. Rule 114C (1)(c) of Income Tax Rules. Circular MRD/DoP/Dep/Cir-09/06 dated July 20, 2006. Hon'ble High Court of Sikkim judgment dated March 31, 2006. Circular MRD/DoP/Dep/Cir-29/2004 dated August 24, 2004. Circular MRD/DoP/Dep/Cir-09/06 dated July 20, 2006. Circular MRD/DoP/Dep/SE/Cir-13/06 dated September 26, 2006.

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Scheduled Commercial Banks, Multilateral and Bilateral Development Financial Institutions, State Industrial Development Corporations, Insurance Companies registered with IRDA and Public Financial Institution as defined under section 4A of the Companies Act, 1956. 1.2.6 HUF, Association of Persons (AoP), Partnership Firm, unregistered Trust, Registered Trust, Corporate Bodies, minors, etc.11 The BO account shall be in the name of natural persons, PAN card details of the respective HUF, AoP, Partnership Firm, Unregistered Trust, etc shall be obtained. The PAN number of Registered Trust, Corporate Bodies and minors shall be obtained when accounts are opened in their respective names. 1.2.7 Mismatch in PAN card details, difference in maiden name and current name of investors.11 DPs can collect the PAN card proof as submitted by the account holder subject to the DPs verifying the veracity of the claim of such investors by collecting sufficient documentary evidence in support of the identity of the investors.16 1.2.8 NRI/PIOs17 Citizens of India residing outside India, foreign citizens and other persons (like companies/ trusts/ firms) having no office of their own in India may obtain PAN card based on the copy of their passport as ID proof and a copy of passport/ bank account in the country of residence as address proof, based on the Directorate of Income Tax (Systems) guidelines.18 1.3 1.3.1 Fees/Charges to be paid by BO Account opening, custody and credit of securities19 With effect from February 1, 2005 I. No investor shall pay any charge towards opening of a Beneficial Owner (BO) Account except for statutory charges as applicable; No investor shall pay any charge for credit of securities into his/her BO account; and No custody charge shall be levied on any investor who is opening a BO account.

II. III. 1.3.2

Account Closure20 No Account closure charges shall be levied on BO on the closure of any account.

1.3.3

Inter Depository Transfer21 Inter-depository transfer of shares does not attract Stamp duty and it does not require compliance with section 108 of the Companies Act 1956.

16 17

Reference Reference 18 Reference 19 Reference 20 Reference 21 Reference

Circular MRD/DoP/Dep/Cir-29/2004 dated August 24, 2004. Circular MRD/DoP/Dep/SE/Cir-17/06 dated October 27, 2006. Income Tax (Systems) PAN Circular No. 4 dated October 11, 2006. Circular MRD/DoP /SE/Dep/Cir-4/2005 dated January 28, 2005. Circular D&CC/FITTC/CIR - 12/2002 dated October 30, 2002. Circular SMDRP/Policy/Cir-29/99 dated August 23, 1999.

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1.3.4

Transfer of a BO Account22 With effect from January 09, 2006 No charges shall be levied by a depository on any DP and by a DP on any BO when the BO transfers all the securities lying in his account to another branch of the same DP or to another DP under the same depository or another depository, provided the BO Account(s) at transferee DP and at transferor DP are one and the same, i.e. identical in all respects. In case the BO Account at transferor DP is a joint account, the BO Account at transferee DP should also be a joint account in the same sequence of ownership.

1.3.5

Account Maintenance Charges collected upfront on annual/ half yearly basis on demat accounts23 In the event of closing of the demat account or shifting of the demat account from one DP to another, the AMC collected upfront on annual/half yearly basis by the DP, shall be refunded by the DP to the BO for the balance of the quarter/s. For instance, in case annual AMC has been paid by the BO and if the BO closes/shifts his account in the first quarter, he shall be refunded the amount of the balance 3 quarters i.e. 3/4th of the AMC. Likewise, if a BO closes/shifts his account in the third quarter, he shall be refunded the amount for the balance one quarter i.e. 1/4th of the AMC. For the purpose of the above requirement the year shall begin from the date of opening of the account in quarterly rests. The above requirements shall be applicable to all existing and new accounts held with DPs which collect annual/half yearly upfront AMC. It is clarified that the above requirements shall not be applicable to those DPs who collect quarterly/ monthly AMC.

1.3.6

Dissemination of tariff/charge structure of DPs on the website of depositories 24 DPs shall submit to their depository the tariff/charge structure every year, latest by 30th April, and also inform the depository the changes in their tariff/charge structure as and when they are effected with a view to enabling the BOs to have a comparative analysis of the tariff/charge structure of various DPs. For this purpose depositories shall put in place necessary systems and procedures including formats, periodicity, etc. for collection of necessary data from the DPs and dissemination of the same on their website which would enable the investors to have a comparative analysis of the tariff/charge structure of various DPs.

22 23

Reference Circular MRD/DoP/Dep/Cir-22 /05 dated November 9, 2005. Reference Circular MRD/DP/20/2010 dated July 1, 2010. 24 Reference Circular MRD/Dep/Cir- 20/06 dated December 11, 2006.

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1.4

Transfer of funds and securities from Clearing Member pool account to BO Account25 Clearing members shall transfer the funds and securities from their respective Pool account to the respective beneficiary account of their clients within 1 working day after the pay-out day. The securities lying in the pool account beyond the stipulated period shall attract a penalty at the rate of 6 basis point per week on the value of securities. The penalty so collected by the depositories shall be credited to a separate account with the depository and earmarked for defraying the expenses in connection with the investors' education and awareness programs conducted by the depository. The securities lying in the pool account beyond the above period shall not be eligible either for delivery in the subsequent settlement(s) or for pledging or stock lending purpose, until the same are credited to the beneficiary accounts. The securities lying in the Clearing member's pool account beyond the specified time period shall be identified based on the settlement number. The clearing corporation/houses of the stock exchanges shall provide the settlement-wise details of securities to the depositories and the depositories shall maintain the settlementwise records for the purpose. Further, stock exchanges shall execute direct delivery of securities to the investors. Clearing corporation/clearing house (CC/CH) shall ascertain from each clearing member, the beneficial account details of their respective clients due to receive pay out of securities. Based on this, the CC/CH shall send pay out instructions to the depositories so that the client receives pay out of securities directly to the extent of instructions received from the respective clearing members. To the extent of instruction not received, the securities shall be credited to the CM pool account.

1.5

Printing of Grievances Redressal Mechanism on Delivery Instruction Form Book 26 To promote investor awareness regarding mechanism for redressing investor grievances, the information placed below shall be printed on the inside back cover of the Delivery Instruction Form (DIF) Book issued by all Depository Participants. There will be occasions when you have grievances against a listed company/ intermediary registered with SEBI. In the event of such grievance you should first approach the concerned company/ intermediary against whom you have a grievance. However, you may not be satisfied with their response. Therefore you should know whom you should turn to get your grievance redressed. SEBI takes up grievances related to issue and transfer of securities and non-payment of dividend with listed Companies. In addition, SEBI also takes up grievances against the various intermediaries registered with it and related issues. Given below are types of grievances for which you could approach SEBI.

25

Reference Circular SMDRP/Policy/Cir-05/2001 dated February 1, 2001 & Circular SEBI/MRD/Policy/ AT/Cir-19/2004 dated April 21, 2004. 26 Reference Circular No. SEBI/MRD/DOP/Cir-22/2004 dated July 14, 2004.

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Nature of grievance - Regarding Type-I: Refund order/ Allotment Advice Type-II: Non-receipt of dividend.

Type-III: Non-receipt of share Type-IV: Debentures certificates after transfer Type-V: Non-receipt of letter of rights Type VI: Collective Investment Schemes offer for

Type VII: Mutual Funds/ Venture Capital Funds/ Foreign Venture Capital Investors/ Foreign Institutional Investors/ Portfolio Managers, Custodians Type VIII: Brokers/Debenture Trustees /Depository Participants/ Merchant Bankers /Registrars and Transfer Agents / Bankers to Issue/ Underwriters/ Credit Rating Agencies/ Securities lending Intermediaries Type IX: Exchanges/ Clearing and Settlement Organizations/ Depositories Type X: Derivative Trading Type XI: Buyback /Delisting /Substantial Acquisition /Takeovers /Corporate Governance /Corporate Restructuring /Compliance with Listing Conditions For faster action send Type I to Type XI complaints, to the OIAE Division of SEBI at Mumbai or Regional Offices at the following addresses: Address of SEBI Offices SEBI, Head Office, Plot No.C4-A, 'G' Block, Bandra Kurla Complex, Bandra (East), Mumbai -400 051. 022-26449000 / 40459000 (iggc@sebi.gov.in) Office of Investor Assistance and Education, SEBI Bhavan, Plot No. C4-A, 'G' Block, Bandra Kurla Complex, Bandra (E), Mumbai 400 021 022-26449188 / 26449199 (investorcomplaints@sebi.gov.in) SEBI, Northern Regional Office, 5th Floor, Bank of Baroda Building,16, Sansad Marg, New Delhi - 110 001 011- 23724001-05 (sebinro@sebi.gov.in) SEBI, Eastern Regional Office, L&T Chambers, 3rd Floor, 16, Camac Street, Kolkata - 700 016 033-23023000. (sebiero@sebi.gov.in) SEBI, Southern Regional Office, 3rd Floor, D Monte Bldg, No. 32, D' Monte Colony, TTK Road, Alwarpet, Chennai 600 018 044-24995676/5525/7385/ 7480 (sebisro@sebi.gov.in) SEBI, Ahmedabad Regional, Office Unit No: 002, Ground Floor, SAKAR I, Near Gandhigram Railway Station, Opp. Nehru Bridge Ashram Road, Ahmedabad 380 009 Tel : 079-26583633-35 E-mail : sebiaro@sebi.gov.in The following types of grievances should be taken up with: With the Stock Exchange: At the Investor Information Centre of all the recognised Stock Exchanges Related to securities traded/listed with the exchanges Trades effected on the exchange w.r.t the companies listed on it or by the members of exchange

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With the Department Of Company Affairs (DCA/ concerned Registrar of Companies (ROC) Against unlisted companies For non-receipt of annual report, AGM Notice Fixed deposit in manufacturing companies Forfeiture of shares

With the Reserve Bank of India Fixed deposits in Banks Fixed deposits in Non Banking Finance Companies

For more information visit our website - http\\:investor.sebi.gov.in The following types of grievances should be taken up with: With the Stock Exchange: At the Investor Information Centre of all the recognised Stock Exchanges Related to securities traded/ listed with the exchanges Trades effected on the exchange w.r.t the companies listed on it or by the members of exchange

With the Department Of Company Affairs (DCA/ concerned Registrar of Companies (ROC) Against unlisted companies For non-receipt of annual report, AGM Notice Fixed deposit in manufacturing companies Forfeiture of shares

With the Reserve Bank of India Fixed deposits in Banks Fixed deposits in Non Banking Finance Companies

For more information visit our website - http\\:investor.sebi.gov.in 1.6 Exemption to DPs from giving hard copies of transaction statements to BOs 27 DPs are permitted to provide transaction statements and other documents to the BOs under Digital signature, as governed under the Information Technology Act, 2000, subject to the DP entering into a legally enforceable arrangement with the BO for the said purpose. While such practice in the aforesaid manner shall be deemed to be in compliance of the provisions of the Regulation 43 of SEBI (Depositories & Participants) Regulations, 1996; if the BO is still desirous of receiving statements in hard copy, DPs shall be duty bound to provide the same.

27

Reference Circular MRD/DoP/Dep/Cir-27/2004 dated August 16, 2004.

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1.7

Safeguards to address the concerns of the investors on transfer of securities in dematerialized mode28 Following safeguards shall be put in place to address the concerns of the investors arising out of transfer of securities from the BO Accounts: a. The depositories shall give more emphasis on investor education particularly with regard to careful preservation of Delivery Instruction Slip (DIS) by the BOs. The Depositories may advise the BOs not to leave "blank or signed" DIS with the Depository Participants (DPs) or any other person/entity. The DPs shall not accept pre-signed DIS with blank columns from the BO(s). If the DIS booklet is lost / stolen / not traceable by the BO, then the BO shall immediately intimate the DP in writing about the loss. On receipt of such intimation, the DP shall cancel the unused DIS of the said booklet. The DPs shall not issue more than 10 loose DIS to one accountholder in a financial year (April to March). The loose DIS can be issued only if the BO(s) come in person and sign the loose DIS in the presence of an authorised DP official 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 (c) above The DPs shall put in place appropriate checks and balances with regard to verification of signatures of the BOs while processing the DIS. The DPs shall cross check with the BOs under exceptional circumstances before acting upon the DIS. The DPs shall mandatorily verify with a BO before acting upon the DIS, in case of an account which remained inactive i.e., where no debit transaction had taken place for a continuous period of 6 months, whenever all the ISIN balances in that account (irrespective of the number of ISINs) are transferred at a time. However, in case of active accounts, such verification may be made mandatory only if the BO account has 5 or more ISINs and all such ISIN balances are transferred at a time. The authorized official of the DP verifying such transactions with the BO, shall record the details of the process, date, time, etc., of the verification on the instruction slip under his signature.

b. c.

d.

e.

f.

g. h.

28

Reference Circular SEBI/MRD/Dep/Cir-03/2007 dated February 13, 2007 and Circular SEBI/MRD/ Dep/Cir-03/2008 dated February 28, 2008.

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2.1

Charges paid by Issuers

29

With effect from April 01, 2009 depositories may levy and collect the charges towards custody from the issuers, on a per folio (ISIN position) basis as at the end of the financial year, as per the details given below: Issuers to pay @ Rs.8.00 (*) per folio (ISIN position) in the respective depositories, subject to a minimum as mentioned below: Nominal value of admitted securities (Rs.) Upto 5 crore Above 5 crore and upto 10 crore Above 10 crore and upto 20 crore Above 20 crore Annual Custodial Fee payable by a Issuer each to Depository (Rs.) (*) 6,000 15,000 30,000 50,000 * Plus service tax as applicable If the issuer fails to make the payment, Depositories may charge penal interest subject to a maximum of 12% per annum. 2.2 Activation of ISIN in case of IPO30 Depositories shall activate the ISINs only on the date of commencement of trading on the stock exchanges. 2.3 2.3.1 Registrar and Share Transfer Agent Appointment of a single agency for share registry work31 All work related to share registry pertaining in terms of both physical and electronic shares shall be maintained at a single point i.e. either in-house by the company or by a SEBI registered Registrar and Transfer Agent. 2.3.2 Inter-Depository transfers32 In case of inter-Depository transfers of securities, the Registrars shall communicate the confirmation of such transfers within two hours, failing which such transfers shall be deemed to have been confirmed. The Registrars shall not reject inter-Depository transfers except where a. A Depository does not have adequate balance of securities in its account or b. 2.3.3 There is mismatch of transfer requests from the Depositories. Common Registrars and Share Transfer agents33 Every company shall appoint the same Registrars and Share Transfer agents for both the depositories.

29

Reference Circular MRD/DoP/SE/Dep/Cir-2/2009 dated February 10, 2009 and Circular SEBI/ MRD/SE/DEP/Cir-4/2005 dated January 28, 2005. 30 Reference Circular SEBI/MRD/DEP/Cir-2/06 dated January 19, 2006. 31 Reference Circular D&CC/FITTC/Cir-15/2002 dated December 27, 2002. 32 Reference Circular no. SMDRP/Policy/Cir-28/99 dated August 23, 1999. 33 Reference Circular SMDRP/Policy/Cir-28/99 dated August 23, 1999.

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2.3.4

Dematerialisation requests29, 61 Registrars and Share Transfer agents shall accept partial dematerialisation requests and will not reject or return the entire dematerialization request where only a part of the request had to be rejected. In cases where a DP has already sent information about dematerialisation electronically to a Registrar but physical shares have not yet been delivered, the Registrar shall accept the demat request and carry out dematerialization on an indemnity given by the DP and proof of dispatch of document given by DP.

2.4

Mandatory admission of debt instruments on both the Depositories34 Debt instruments shall necessarily be admitted on both the Depositories.

2.5 2.5.1

American Depository Receipts (ADRs)/Global Depository Receipts (GDRs) Delivery of underlying shares of GDRs/ADRs in dematerialised form35 Underlying shares of GDRs/ADRs shall be compulsorily delivered in dematerialised form. Pursuant to RBI directions in this regard, a nonresident holder of ADRs/GDRs issued by a company registered in India, on surrender of such ADRs/GDRs, can acquire the underlying shares when such shares are released by the Indian Custodian of the ADR/GDR issue. Further, the company whose shares are so released, or a Depository shall enter in the register or books, wherein such securities are registered or inscribed, an address outside India of the non-resident holder of shares.

2.5.2

Tracking of underlying shares of GDRs/ADRs36 To ensure easy tracking of the underlying shares released on conversion of the "depositories receipts" all such shares shall be credited to a separate Depository Receipts (DRs) account of the respective investor. In this regard, Depositories shall ensure that the following information is provided to the domestic custodian holding the underlying shares on a regular basis: 1. 2. 3. 4. Total number of shares at the beginning of the month Number of shares transferred into the account (credited) during the month Number of shares transferred out of the account (debited) during the month. Balance at the end of the month.

This service can be availed of only by foreign investors other than the OCBs.

34

Reference Circular D&CC/FITTC/Cir-13/2002 dated November 1, 2002 and Circular MRD/ DoP/SE/Dep/Cir-36/04 dated October 27, 2004. 35 Reference Circular SMDRP/Policy/Cir-9/99 dated May 6, 1999. 36 Reference Circular D&CC/FITTC/Cir-09/2002 dated July 4, 2002 and Ciruclar D&CC/FITTC/Cir10/2002 dated September 25, 2002.

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2.6 2.6.1

Electronic Clearing System (ECS) facility Dividend Distribution37 Companies shall use ECS facility for distribution of dividends and other cash benefits to the investors. If ECS facility is not available, companies may use warrants for distribution of dividends. In order to avoid fraudulent encashment of dividend and other cash benefits, all companies shall print the bank account details, furnished by the Depositories, on the payment instruments.

2.6.2

Use of ECS for refund in public/rights issues.38& 56 For locations where facility of refund through ECS is available details of applicants shall be taken directly from the database of the depositories in respect of issues made completely in dematerialised form. Accordingly, DPs shall maintain and update on real time basis the MICR (Magnetic Ink Character Recognition) code of Bank branch of BOs and other bank details of the applicants in the database of depositories. This is to ensure that the refunds through ECS are made in a smooth manner and that there are no failed/wrong credits.

SECTION-3: DEPOSITORIES/ DEPOSITORY PARTICIPANT (DP) RELATED 3.1 Designated e-mail ID for redressal of investor complaints39 Depositories and registered DPs shall designate an exclusive e-mail ID for the grievance redressal division/compliance officer exclusively for registering investor complaints. The designated email ID and other relevant details shall be prominently displayed on the websites and in the various aterials / pamphlets/advertisement campaigns initiated by the Depositories and DPs for creating investor awareness. 3.2 Approval of amendments to Bye Laws / Rules of Stock Exchanges and Depositories40 Depositories and exchanges shall submit the following information while seeking SEBI approval for amendment to Bye Laws/ Rules/ Regulations and amendments thereto: i ii The objective/purpose of amendments. Whether the amendment is consequential to any directive/ circulars/ guidelines from SEBI/ Government and the details thereof. Whether such amendments necessitate any consequential amendments to any other Bye Laws/ Rules/ Regulations. The proceedings of the Governing Board or Governing Council, as the case may be, wherein these proposed amendments were approved by the Exchanges/ Depositories.

iii iv

37

Reference Circular D&CC/FITTCIR-3/2001 dated October 15, 2001 and Circular D&CC/FITTC/Cir04/2001 dated November 13, 2001. 38 Reference Circular SEBI/MRD/DEP/Cir-3/06 dated February 21, 2006 and circular SEBI/CFD/DILDIP/ 29/2008/01/02 dated February 1, 2008 and Letter no. MRD/DEP/PP/123624/08 dated April 23, 2008. 39 Reference Circular MRD/DoP/Dep/SE/Cir-22/06 dated December 18, 2006. 40 Reference Circular LGL/Cir-2/2003 dated February 19, 2003.

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If documents other than Bye Laws/ Rules/ Regulations are sent for approval, the justification and need for forwarding the same to SEBI, indicating whether it forms a part of any Bye Law/ Rule/ Regulation.

Further, all Exchanges shall ensure that requests for dispensation of the requirement of pre-publication shall be accompanied with proper justification and indicate how the public interest or interest of trade shall be served by such dispensation of pre-publication. 3.3 Preservation of Records41 i. Depositories and Depository Participants are required to preserve the records and documents for a minimum period of 5 year. Depositories and DPs shall preserve respective original forms of documents either in physical form or an electronic record, copies of which have been taken by CBI, Police or any other enforcement agency during the course of their investigation till the trial is completed.

ii.

3.4

Foreign investments in infrastructure companies in securities markets42 Pursuant to Government of India Policy, foreign investments in infrastructure companies in the securities markets, namely Stock Exchanges, Depositories and Clearing Corporations shall be as under: a) Foreign investment shall be allowed in such companies up to 49% with a separate Foreign Direct Investment (FDI) cap of 26% and Foreign Institutional Investment (FII) cap of 23%; FDI shall be allowed with specific prior approval of FIPB; FII shall be allowed only through purchases in the secondary market; FII shall not seek and will not get representation on the Board of Directors; No foreign investor, including persons acting in concert, will hold more than 5% of the equity in these companies.

b) c) d) e)

The aforesaid limits for foreign investment in respect of recognised Stock Exchanges shall be subject to 5% shareholding limit as prescribed under the Securities Contracts (Regulation) (Manner of Increasing and Maintaining Public Shareholding in Recognised Stock Exchanges) Regulations, 2006.

41

Reference Circular SEBI/MRD/DEP/Cir-24/05 dated December 22, 2005, circular SEBI/MRD/SE/Cir16/2005 dated August 04, 2005 and circular MRD/DoP/DEP/Cir- 20 /2009 dated December 9, 2009. 42 Reference Circular MRD/DSA/SE/Dep/Cust/Cir-23/06 dated December 22, 2006.

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3.5

Activity schedule for depositories for T+2 rolling Settlement43 The activity schedule for T+2 Rolling Settlement is as under: Sr. No. 1 2 Day T T+1 By 1.00 pm Time Description of activity Trade Day Completion of custodial confirmation of trades to CC/CH. (There is no separate extended time limit for late confirmations). Completion of process and download obligation files to brokers/ custodians by the CC/CH. Pay-in of securities and funds. Pay-out of securities and funds.

By 2.30 pm

T+2

By 11.00 am By 1.30 pm

3.6

All Depositories shall adhere to the aforementioned activity schedule to implement T+2 rolling settlement. DPs shall adhere to the designated activities within the prescribed time limits as under: 1. DPs shall accept instructions for pay-in of securities from clients in the physical form atleast upto 4 p.m. and in electronic form atleast upto 6 p.m. on T+1. 2. DPs shall complete execution of pay-in instructions latest by 10:30 a. m. on T+2. 3. Depositories shall download the processed pay-in files to the Exchange / Clearing House / Clearing Corporation latest by 11:00 a.m. on T+2. 4. Pay-out of securities by the Exchange / Clearing House / Clearing Corporation to the Depositories shall be executed by 1:30 p.m. on T+2. 5. Pay-out of securities shall be completed by the Depositories by 2:00 p.m. on T+2. All instructions received by the DPs shall have an execution date, which may be either a current date or a future date. Instructions shall be valid till the pay-in deadline or till 'end of day' (EOD) of the execution date, whichever is earlier. DPs shall ensure that the validity period of instructions is brought to the notice of the client while accepting the instructions. In case the client account does not have sufficient balance before pay-in deadline or till EOD, such instructions shall fail. Settlement of transactions in case of holidays44 Due to lack of uniformity of holidays and force majeure conditions which necessitate sudden closure of one or more Stock Exchanges and banks in a particular state, result in situations where multiple settlements have to be completed by the Stock Exchanges on the working day immediately following the day(s) of the closure of the banks. Accordingly the Stock Exchanges/Depositories are advised to follow the guidelines and adhere to the time line.

43

Reference Circular DCC/FITTC/Cir-19/2003 dated March 4, 2003 and Circular MRD/DoP/SE/Dep/ Cir-18/2005 dated September 2, 2005. 44 Reference Circular SEBI/MRD/Policy/AT/Cir- 19/2004 dated April 21, 2004

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The Stock Exchanges shall clear and settle the trades on a sequential basis i.e., the pay-in and the pay-out of the first settlement shall be completed before the commencement of the pay-in and pay-out of the subsequent settlement/s. The cash/Securities pay out from the first settlement shall be made available to the member for meeting his pay-in obligations for the subsequent settlement/s. Further, in-order to meet his pay-in obligations for the subsequent settlement, the member may need to move securities from one depository to another. The Depositories shall, therefore, facilitate the inter-depository transfers within one hour and before pay-in for the subsequent settlement begins. The Stock Exchanges/Depositories shall follow a strict time schedule to ensure that the settlements are completed on the same day. The Clearing Corporation/Clearing House of the Stock Exchanges shall execute Auto DO facility for all the settlements together, so as to make the funds and the securities available with the member on the same day for all the settlements, thereby enabling the availability of the funds/securities at the client level by the end of the same day.

3.7

Supervision of branches of DPs45 To ensure compliance with Regulation 46 of the SEBI (Depositories and Participants) Regulations, 1996, and Clause 19 of the Code of Conduct for Participants contained in the Third Schedule to the Regulations the DP shall ensure that it has satisfactory internal control procedure in place, inclusive of their branch offices. DPs are therefore required in terms of these provisions to put in place appropriate mechanisms to ensure that their branches are carrying on the operations in compliance with the applicable regulations, bye-laws, etc. DPs are also required to put in place suitable internal control systems to ensure that all branches exercise due diligence in opening accounts, complying with KYC requirements, in ensuring systems safety in complying with client instructions, manner of uploading client instructions, in verifying signatures and maintaining client records, etc. DPs shall also ensure that the branches are suitably integrated. Depositories shall examine the adequacy of the above mechanisms during their inspections of DPs. The Depositories shall also carry out surprise inspections/ checks of the DP branches apart from the regular inspection of the DPs. Depositories shall also put in place appropriate mechanisms for monitoring opening of branches by DPs.

3.8

Designated e-mail ID for regulatory communication with SEBI46 Depositories shall create a designated e-mail id for regulatory communication and inform it to SEBI. This e-mail id shall be exclusive and shall not be person-centric.

45 46

Reference Circular MIRSD/DPS-III/Cir-9/07 dated July 3, 2007. Reference Circular MIRSD/DPS- III/Cir-23/08 dated July 25, 2008.

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3.9

Disclosure of investor complaints and arbitration details on Depository website 47 Depositories shall disclose the details of complaints lodged by Beneficiary Owners (BO's)/ investors against Depository Participants (DPs) in their website. The aforesaid disclosure shall also include details pertaining to arbitration and penal action against the DPs. The format for the reports for the aforesaid disclosure consists of the following reports: a. b. c. d. e. f. g. h. i. g. h. Report 1A: Complaints received against DPs during 2009-10 Report 1B: Redressal of Complaints received against DPS during 2008-09 Report 1C: Redressal of Complaints received against DPs during 2009-10 Report 2A: Details of Arbitration Proceedings (where Investor is a party) during 2008-09: Report 2B: Details of Arbitration Proceedings (where Investor is a party) during 2009-10 Report 3A: Penal Actions against DPs during 2008-09 Report 3B: Penal Actions against DPs during 2009-10 Report 4A: Redressal of Complaints lodged by investors against Listed Companies during 2008 -09 Report 4B: Redressal of Complaints lodged by investors against Listed Companies during 2009 -10 The DPs shall cross check with the BOs under exceptional circumstances before acting upon the DIS. The DPs shall mandatorily verify with a BO before acting upon the DIS, in case of an account which remained inactive i.e., where no debit transaction had taken place for a continuous period of 6 months, whenever all the ISIN balances in that account (irrespective of the number of ISINs) are transferred at a time. However, in case of active accounts, such verification may be made mandatory only if the BO account has 5 or more ISINs and all such ISIN balances are transferred at a time. The authorized official of the DP verifying such transactions with the BO, shall record the details of the process, date, time, etc., of the verification on the instruction slip under his signature.

47

Reference Circular SEBI/MRD/ OIAE/ Dep/ Cir- 4/2010 dated January 29, 2010.

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Report 1A: Complaints received against Depository Participants (DPs)# during 2009-10: Updated on dd yyyy mmm (to be updated weekly) (In excel sheet)
Details of Complaint Sr. Date of Name of No. Receipt Complainant 1 2 3 Type of SEBI Ref. Name of Status** ComplaNo. DP int* (if applicable Status Date## Status of Complaint Date of Name of Date of Filing Arbitrator Arbitration Arbitration (s) Award

N
# including against its authorized persons, employees, etc. ## Status date is the date of resolution/reference to arbitration/finding it non-actionable. If under process, it is the date of updation of this sheet. */** As per Table 1A

Report 2A: Redressal of Complaints received against Depository Participants (DPs) during 2008-09: Updated on mmm dd yyyy (to be updated every quarter) (In excel sheet)
Of the Complaints received during 2008-09 Sr. Name Status of DP No. of No. of No. of Complaints No. of (active/ BOs Complaint the inactive/ in accounts received Resolved Non Arbitrat Pending No. of Decided Decided Pending Dp process of at the against through actiona ion for Arbitrat by by for termination beginning the DP the ble** Advised Redressal on the Arbitrator Redressal /withdrawal) of the * Depository with filed Arbitrin with year Depository by BOs ator favour of Arbitrthe BOs ators

1 2 3

N
Total *including against its authorized persons, employees, etc. **Non actionable means the complaint that are incomplete / outside the scope of Depository (Arrange the DPs in descending number of complaints filed against them during the period)

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Report 1C: Redressal of Complaints received against Depository Participants (DPs) during 2009-10: Updated on mmm dd yyyy (to be updated every quarter) (In excel sheet)
Of the Complaints received during 2008-09 Sr. Name Status of DP No. of No. of No. of Complaints No. of (active/ BOs Complaint the inactive/ in accounts received Resolved Non Arbitrat Pending No. of Decided Decided Pending Dp process of at the against through actiona ion for Arbitrat by by for termination beginning the DP the ble** Advised Redressal on the Arbitrator Redressal /withdrawal) of the * Depository with filed Arbitrin with year Depository by BOs ator favour of Arbitrthe BOs ators

1 2 3

N
Total *including against its authorized persons, employees, etc. **Non actionable means the complaint that are incomplete / outside the scope of Depository (Arrange the DPs in descending number of complaints filed against them during the period)

Report 2A: Details of Arbitration Proceedings (where BO is a party) during 2008-09: Updated on mmm dd yyyy (to be updated every quarter) (In excel sheet)
Sr. No. Name No. of of Awards Arbitrator Passed No. of Awards in favor of BOs Filed by DP Filed by DP No. of No. of Awards Awards appealed Implemented No. of cases pending for redressal at the end of period Pending For more than 6 months, For more than 3 but less than 6 months

1 2 3

N
Total

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(In case of panel of arbitrators, the cases / awards would appear against every member of the panel) (Arrange the arbitrators in descending number of awards passed by them during the period) Report 2B: Details of Arbitration Proceedings (where BO is a party) during 2009-10: Updated on mmm dd yyyy (to be updated every quarter) (In excel sheet)
Sr. No. Name No. of of Awards Arbitrator Passed No. of Awards in favor of BOs Filed by DP Filed by DP No. of No. of Awards Awards appealed Implemented No. of cases pending for redressal at the end of period Pending For more than 6 months, For more than 3 but less than 6 months

1 2 3

N
Total

(In case of panel of arbitrators, the cases / awards would appear against every member of the panel) (Arrange the arbitrators in descending number of awards passed by them during the period) Report 3A: Penal Actions against Depository Participants (DPs) during 2008-09: Updated on mmm dd yyyy (to be updated every quarter) (in excel sheet)
Sr. No. Name of DP Registration No. of No. Complaints received Action against DP, its authorized person and employees together No. of Penal Orders issued Monetary Penalties levied No. of Arbitration Awards (Rs. lakh) issued against DP For complaints For others For complaints For others

1 2 3

N
Total

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Report 3B: Penal Actions against Depository Participants (DPs) during 2009-10: Updated on mmm dd yyyy (to be updated every quarter) (in excel sheet)
Sr. No. Name of DP Registration No. No. of Complaints received Action against DP, its authorized person and employees together No. of Penal Orders issued For complaints For others Monetary Penalties levied (Rs. lakh) For complaints For others No. of Arbitration Awards issued against DP

1 2 3

N
Total

Report 4A: Redressal of Complaints lodged by investors against Listed Companies during 2008 -09: Updated on mmm dd yyyy (to be updated every quarter) (In excel format)
Sr. No. Name of the Company Received No. of Complaints Redressed through Depository Non-Actionable *Pending for Redressal with Depository

1 2 3

N
Total

*Non actionable means the complaint that are incomplete / outside the scope of Depository (Arrange the companies in descending number of complaints filed against them during the period)

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Report 4B: Redressal of Complaints lodged by investors against Listed Companies during 2009 -10: Updated on mmm dd yyyy (to be updated every quarter) (In excel format)
Sr. No. Name of the Company Received No. of Complaints Redressed through Depository Non-Actionable *Pending for Redressal with Depository

1 2 3

N
Total

*Non actionable means the complaint that are incomplete / outside the scope of Depository (Arrange the companies in descending number of complaints filed against them during the period) Table 1 A Type Type I Ia Ib Ic Id Ie Type II II a II b II c II d Type III III a III b Type IV IV a Details Account Opening Related Denial in opening an account Account opened in another name than as requested Non receipt of Account Opening Kit Delay in activation/ opening of account Non Receipt of copy of DP Client Agreement/Schedule A of Charges Demat/Remat Related Delay in Dematerialisation request processing Delay in Rematerialisation request processing Delay in/ Non-Receipt of Original certificate after demat rejection Non Acceptance of demat/remat request Transaction Statement Related Delay in/ Non-Receipt of Statements from DP Discrepancy in Transaction statement Improper Service Related Insistence on Power of Attorney in its favour

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IV b IV c IV d IV e IV f IV g Type V Va Vb Vc Type VI VI a VI b VI c Type VII VII a VII b Type VIII VIII a

Deactivation/ Freezing/ Suspension related Defreezing related Transmission Related Pledge Related SMS Related Non-updation of changes in account (address/ signatories/ bank details/ PAN/ Nomination etc.) Charges Related Wrong/ Excess Charges Charges paid but not credited Charges for Opening/closure of Account Delivery Instruction Related (DIS ) Non acceptance of DIS for transfer Delay in/ non Execution of DIS Delay in Issuance / Reissuance of DIS Booklet Closure Non closure/ delay in closure of account Closure of a/c without intimation by DP Manipulation/ Unauthorised Action Unauthorised Transaction in account ** Status

Type I Ia Ib Ic II III IV V 3.10

Description Non actionable Complaint incomplete Outside the scope of Depository Pertains to non-responding company. Resolved Under Process Referred to Arbitration Forwarded to Company/RTA for appropriate action. Disclosure of regulatory orders and arbitration awards on Depository website48 Depositories shall post all their regulatory orders and arbitration awards issued since April 1, 2007. Further, all regulatory orders and arbitration awards as and when issued shall be posted on their website immediately.

48

Reference Circular SEBI/MRD/ DP/ 19/2010 dated June 10, 2010.

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SECTION 4: OTHER COMMUNICATIONS TO DEPOSITORIES HAVING POLICY IMPLICATIONS 4.1. Pledge of Shares through depository system49 Section 12 of the Depositories Act and Regulation 58 of the SEBI (Depositories and Participants) Regulations, 1996 along with the relevant Bye Laws of the Depositories clearly enumerate the manner of creating pledge. It is felt that there is a need to communicate to the BOs that any procedure followed other than as specified under the aforesaid provisions of law shall not be treated as pledge. In order to clarify the same, the depositories are advised to issue a communiqu to the DPs advising them to inform BOs about the procedure for pledging of shares held in demat form as enumerated in the relevant sections of the Depositories Act and SEBI (Depositories and Participants) Regulations, 1996. Depositories may also advise DPs that an off-market transfer of shares leads to change in ownership and cannot be treated as pledge. Further, this issue may also be taken up in the investor awareness programs wherein the manner of creation of pledge can be effectively communicated to the BOs directly. 4.2. SMS alerts for demat accounts operated by Power of Attorney50 Subscription to SMS Alert facility for depository accounts operated through Power of Attorney (POA) would be mandatory except in case of accounts held by non-individuals, foreign nationals, and NRIs. 4.3. Opening of demat account in case of HUF51 It is noted that as per law, in case of HUF, shares can be held in the name of Existing Karta on behalf of HUF. Therefore, HUF demat accounts can be opened in the name of Existing Karta but not in the name of Deceased Karta and HUF entity. 4.4. Exemption from sending quarterly statements of transactions by depository participants (DPs) to clients in respect of demat accounts with no transactions and no security balances52 SEBI has provided exemption to Depository Participants from sending quarterly transaction statements to the clients in respect of demat accounts with no transactions and no security balances subject to the following conditions: Client is informed in advance that it will not be receiving Transaction Statements for such accounts till there are any transactions or security holdings in the demat account. KYC and PAN requirement in respect of all such depository accounts are complied. No Annual Maintenance Charges are levied for such an account. Information which is required to be disseminated by Participants by way of a note in the Transaction Statements will be required to be communicated to such Clients separately.

49 50

Reference MRD/DoP/MAS - OW/16723/2010 dated August 17, 2010 Reference: SEBI/MRD/DEP/VM/169784 /09 dated July 15, 2009 51 Reference: SEBI/ MRD/CDSL/ 149156 /2009 dated January 01, 2009 52 Reference: MRD/CDSL/VM/155773/2009 dated February 27, 2009, MRD/DoP/NSDL/VM/168994 /2009 dated July 07, 2009and MRD/CDSL/VM/168989 /2009 dated July 07, 2009

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The Internal Auditor of the Participant shall comment in its internal audit report on compliance of the aforesaid requirements.

4.5.

Withdrawal by issuers from the depository53 As regards voluntary withdrawal by issuers from the depository, it is informed that listed companies may not be allowed to withdraw from the depository system unless they delist their securities from the stock exchanges. As regards companies under liquidation are concerned, it is informed that deactivation of the ISIN may be only done in cases where companies have been liquidated. In other cases where companies are being liquidated, deactivation of ISIN resulting in total freezing may not be desirable as it will disallow investors to hold shares in dematerialized form

4.6.

Discontinuation of sending transaction statements by depository participants to clients54 SEBI allowed discontinuation of sending transaction statements by depository participants to clients subject to the following conditions: Transaction statements were returned undelivered on three consecutive occasions. The depository participant (DP) maintains proof that the transaction statements were returned undelivered. The transaction statements were returned undelivered for the reasons which clearly establish that the client no longer resides at the given address (i.e. party shifted, etc.) and not for other reasons (i.e. residence/office closed, address incorrect, address incomplete, etc.). The DP informs such clients through alternative means (such as outbound call, SMS or email) that their transaction statements are returned undelivered and they need to communicate the proper (new) address. The DP ensures that on receipt of request for address modification from the client as per the stipulated procedure, the dispatch of transaction statements is immediately started. Further, the DP ensures that transaction statements that were not delivered and dispatched due to discontinuation are also dispatched immediately without any additional cost to the clients.

4.7.

Further issue of shares under Section 86 of Companies Act and Companies (Issue of Share capital with Differential Voting Rights) Rules, 200155 In all cases of shares issued by companies under Section 86(a) (ii) of Companies Act and Companies (Issue of Share Capital with Differential Voting Rights) Rules, 2001, separate ISIN may be allotted to differentiate such shares from ordinary shares.

47 54

Ref: MRD/DoP/NSDL/VM/ 162378 /2009 dated May 06, 2009 Reference:MRD/NSDL/VM/158886 /2009 dated March 30, 2009 55 Reference: MRD/DoP/MC/141442 /2008 dated October 17, 2008

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4.8.

Updation of bank accounts details, MICR code and IFSC of bank branches by Depository Participants (DPs)56 Please refer to SEBI Circular No. SEBI/MRD/DEP/Cir- 3/06 dated February 21, 200638 whereby depositories were advised to instruct Depository Participants (DPs) to update the MICR code and bank details of the client in database of depositories. It has been informed by RBI that they have been receiving complaints from managers to the issues that the funds routed through the electronic mode are getting returned by destination banks because of incorrect or old account numbers provided by beneficiary account holders. RBI has stated that Investors will have to ensure through their DPs that bank account particulars are updated in master record periodically, to ensure that their refunds, dividend payments etc. reach the correct account, without loss of time. RBI has also suggested incorporation of Indian Financial System Code (IFSC) of customer's bank branches apart from 9 digit MICR code; since IFSC of bank's branches is used for remittance through National Electronic Funds Transfer (NEFT). It is advised that necessary action be taken in this matter to ensure that correct account particulars of investors are available in the database of depositories.

4.9.

Establishment of connectivity by Clearing House / Clearing Corporation (CH/CC) with the Depository - Clarification57 On examination of the provisions of Regulations 19(a) and 31 of the SEBI (Depositories and Participants) Regulations, 1996, it is advised that registration of a CC/CH of a stock exchange as a DP with SEBI is not mandatory and a pre-requisite for it to obtain connectivity with the depositories. However, if the CC/CH of a stock exchange desires to function as any other "Depository Participant", i.e. to open BO accounts for investors or clearing member account, registration as DP with SEBI is mandatory. In view of the above, Depositories are advised to provide continuous electronic means of communication / connectivity to the CH/CC of the Exchanges without insisting for a mandatory registration as DP with SEBI with a condition that such entities would not be permitted to open BO accounts for investors or clearing member account.

4.10.

Computing and monitoring of the Aggregate Value of Portfolio of Securities (AVPS) of the BOs held in dematerialised form by Stock Broker DPs For the purpose of computing the AVPS of the beneficial owners held in dematerialised form under Regulation 19(a)(viii) of SEBI (Depositories and Participant) Regulations, 1996, the securities held by bank and financial institutions as well as promoters holdings of a company held in dematerialised form, may be excluded58.

56 57

Reference: MRD/DEP/PP/123624 /2008 dated April 23, 2008 Reference: MRD/DoP/ Dep/82334 /2006 dated December 14, 2006 58 Reference: SMDRP/RKD /NSDL/2494 /98 dated November 18, 1998, SMDRP/CDSL / 18300 /2000 dated November 16, 2000

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In view of the potential risk to the system and also to maintain the integrity of the market, the depositories are advised to develop an appropriate systemic alert in the depository system, so as to enable the system to generate and convey automatic alerts to those SBDPs that reach a pre-determined level of exposure. These alerts would serve as forewarnings to the SBDPs to the fact that they are approaching their respective maximum exposure limits. [Note: For this purpose, the depositories may monitor the value of securities with its SBDPs on an "end of the day" basis.]59 4.11. 4.13.1. Deadline time for accepting non pay-in related instructions60 The depositories are advised that any overrun of the time specified for 'spot delivery contract' in the SCRA would result in the contract becoming illegal under section 16 of the SCRA (unless it is put through the stock exchange). The DP-BO agreement cannot add anything to or subtract anything from this position. However, it should be the responsibility of the DP to ensure that the client's contract is not rendered illegal on account of delayed execution of the delivery instruction. Keeping the hardships to change all the existing DP-BO agreements to enforce the above into consideration, it is advised that suitable bye laws can be made under section 26(2)(e) and (d) of Depositories Act, 1996 for imposing such obligation on the DPs. Therefore, it is advised to amend/insert bye laws which should expressly provide that the DPs shall execute the non pay-in related instructions on the same day or on the next day of the instruction. Further, pending such amendment, suitable instructions may be issued to DPs to adhere to such time limit. to The above clause may be suitably incorporated in the DP-BO agreement while opening new accounts. Clarification on our circular no. SMDRP/Policy/Cir-28/99 dated August 23, 199961. Please refer to para 4 of the captioned circular which is reproduced below :-"In cases where a DP has already sent information about dematerialisation electronically to a Registrar but physical shares have not been received, the registrar will accept the demat request and carry out dematerialization on the indemnity given by the DP and proof of dispatch of document given by DP." para2.3.4 It is clarified that the above provision shall be applicable to all the securities like scrips, bonds, debentures, debenture stock or other marketable securities eligible to be held in dematerialised form in a depository as defined in Regulation 28 of the SEBl (Depository and Participants) Regulations, 1996.

4.13.2.

4.13.3. 4.12.

59 60

Reference:MRD/DRK/SU/16034/2003 dated August 22, 2003 Reference: MRD/VSS/ARR/ 12255/2004 dated June 10, 2004 61 Reference: D&CC/ 1099 / 2002 dated November 01, 2002

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4.13.

Voting rights in respect of securities held in pool account62 It was informed that the corporate benefits availed by the clearing member, clearing corporation and intermediaries shall be held in trust on behalf of beneficiary owners. Therefore, the clearing member, clearing corporation as well as the intermediaries cannot have voting rights in respect of securities held in the pool account.

4.14.

Operation of minor's demat account63 Under [The] Hindu Minority and Guardianship Act, 1956, permission of Court is required in the case of transfer by a natural guardian of immovable property of a minor. However, shares are not immovable properly. Section 2(7) of Sale of Goods Act. 1930 includes shares within the definition of "goods''. Neither the Indian Contract Act nor the Sale of Goods Act provide for transfer by sale or otherwise by guardian /natural guardian of goods/movable property in the name of minor to the effect that permission of court is required in the matter of such transfer. In the case of accounts of minor in banks also, the guardian is entitled to open, operate and even close the account also. The DP account can, therefore, be operated by a natural guardian without any order from the court though the same is neither expressly permitted nor prohibited.

4.15.

Guidelines for dematerialisation of shares sent for transfer by (A) Investors and (B) Custodians.64 The operational guidelines for dematerialisation of shares sent for transfer by (A) Investors and (B) Custodians are as under. The guidelines are framed in order to reduce the to and fro movement of shares between companies and investors/custodians. The implementation of the guidelines is subject to the condition that the company shall get a certificate from a Chartered Accountant or a Company Secretary holding a Certificate of Practice that the company has followed the procedure mentioned in the schemes and to the effect that: the company has followed the necessary procedures for effecting the original transfer. the Register of Members of the company was accordingly amended and the shares were transferred in favour of the transferee. the company has adequate procedures and has satisfied itself that the transferee and the entity requesting dematerialisation are one and the same and before confirming the dematerialisation request, the company has further amended its Register of Members to indicate the transfer from the transferee to NSDL, the company has defaced and cancelled/mutilated all the certificates. the company has adequate systems to ensure that the investor does not lose his corporate benefits on account of the transfer entries made in favour of NSDL.

62 63 64

Reference: SMDRP/NSDL/26563/2001 dated April 10, 2001 Reference: SMDRP/NSDL/4615 /2000 dated March 13, 2000 Reference: SMDRP/NSDL / 3055 /1998 dated August 11, 1998

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4.13.1. GUIDELINES FOR DEMATERIALISATION OF SHARES SENT FOR TRANSFER BY THE INVESTORS 1. The Issuer or its Registrar & Transfer Agent shall on completion of the process of registration of shares submitted for transfer, intimate the investor providing an option to dematerialise such shares. The investor intending to exercise the option of dematerialising shares shall be required to send the dematerialisation request within 15 days of the date of the option letter, failing which the Issuer or its Registrar & Transfer Agent shall proceed to despatch the certificates. Requests received subsequent to despatch of the certificates shall be rejected. The format of the letter to the investor is enclosed in Appendix. Investors exercising the option (on receipt of a letter mentioned in 1 above ) of dematerialising the shares shall submit the following documents to the Participant: 3. Dematerialisation Request Form (DRF) Original option letter received from the Issuer or its Registrar & Transfer Agent.

2.

The words "as mentioned in the letter have already been " shall be inserted in place of words "are hereby" on the Client portion of the Dematerialisation Request Form (DRF). The Participant shall add the words "an option letter in respect of" after the words "We hereby acknowledge the receipt of" in the acknowledgment portion of the DRF and return the counterfoil of the DRF to the investor duly signed and stamped. The Participant shall add the words "option letter in respect of" after the words "The application form is verified with the" and replace the words "option letter" in place of the word "certificates " on the Participant Authorisation portion of the DRF. The Participant shall affix its seal and signature on the original option letter. The Participant shall execute the request for dematerialisation in the Depository Participant Module (DPM). The Participant shall forward such details of the certificate of security to the depository and shall confirm to the depository that an agreement has been entered between the participant and the beneficial owner. The Participant shall maintain records indicating the names of beneficial owners of the securities surrendered, the number of securities and other details of the certificate of security sent for dematerialisation. The Participant shall despatch the DRF along with the original option letter to the Issuer or its Registrar & Transfer Agent and keep a copy thereof for its records.

4.

5.

6. 7. 8.

9.

10.

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11.

The Issuer or its Registrar & Transfer Agent shall process the dematerialisation request for its validity and verify the signature(s) on the DRF with the signature(s) on the transfer deed. If the request is in order, the Issuer or its Registrar & Transfer Agent shall deface the certificates with the words "Dematerialised" and then confirm the dematerialisation request. The Issuer or its Registrar Transfer Agent shall substitute in its records the name of the depository as the registered owner and shall send a certificate to the depository and to every Stock Exchange where the security is listed. Immediately upon the receipt of information from the Issuer or its Registrar & Transfer Agent regarding confirmation of dematerialisation, the depository shall enter in its records the name of the person who has surrendered the certificate of security as the Beneficial Owner, as well as the name of the participant from whom it has received intimation under guideline no. 8 and shall sent an intimation of the same to participant. The Issuer or its Registrar & Transfer Agent shall maintain a record of certificates of securities which have been dematerialised. If the request is rejected, the Issuer or its Registrar & Transfer Agent shall despatch the certificates to the investor. NSDL shall obtain from the company a certificate certified by a Chartered Accountant or a Company Secretary holding a Certificate of Practice that the company has followed the above procedure and to the effect that: the company has followed the necessary procedure for effecting the original transfer. the Register of Members (RoM) of the company was accordingly amended and the shares were transferred in favour of the transferee. the company has adequate procedures and has satisfied itself that the transferee and the entity requesting for dematerialisation are one and the same and before confirming the dematerialisation request, the company has further amended its Register of Members (RoM) to indicate the transfer from the transferee to NSDL. the company has defaced and cancelled/mutilated all the certificates. the company has adequate systems to ensure that the investor does not lose his corporate benefits on account of the transfer entries made in favour of NSDL.

12.

13.

14.

15.

16. 17.

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Appendix (letter head of the Issuer or its Registrar & Transfer Agent) Reference No.: (unique number) Date: To, Sole/First Holder Name Address Dear Sir/Madam, Your request for transfer of the below mentioned shares has been approved. If you wish to hold these shares in the dematerisalised form, you may send this letter along with the dematerialisation request forms through your Depository Participant with whom you have opened a Depository Account. If the dematerialisation request is not received within 15 days from the date of this letter, the relevant certificate(s) shall be despatched to you. Dematerialisation requests received after despatch of certificates or fifteen days from the date of this letter shall be rejected. However, if you desire to obtain the certificates immediately you may indicate the same to us. Details of the certificates are as given below: Name of the sole/first holder : Name of the second holder : Name of the third holder : Folio No. : Certificate Nos. : Distinctive Nos. (from) : Distinctive Nos. (to) : Quantity : (If the space is insufficient, an annexure containing the certificate details may be attached) Yours faithfully, Authorised Signatory Participant shall affix its seal & sign below, after this letter is submitted by the investor (Sign and Seal of Depository Participation) 4.13.2. GUIDELINES FOR DEMATERIALISATION OF SHARES SENT FORTRANSFER BY CUSTODIANS 1. The Participant (who is also a Custodian), while lodging shares for transfer with the Issuer or its Registrar and Transfer (R&T) Agent, shall indicate its intention of dematerialisation of those shares after they are duly transferred in the name of the Beneficial Owner(s). This can be done by way of putting a stamp stating "For Dematerialisation" on the transfer deed(s). The Issuer or its R&T Agent shall, on completion of the process of transfer / registration of shares, intimate the Participant about the same, giving details of the shares transferred and rejected, if any. Such details shall be provided on lodgementwise (i.e. batch-wise) basis. In case there are some shares

2.

[ 291 ]

kept pending for transfer in respect of which a notice has been sent to the seller seeking confirmation of the sale, the Issuer or its R&T Agent shall inform the same to the Participant. On completion of the process of transfer/ registration of such shares, the Issuer or its R&T Agent shall intimate the Participant in the manner mentioned before. 3. The Participant shall add the words "letter in respect of" after the words "the application form is verified with the" and replace the word "letter" in place of word "certificate" on the Participant Authorisation portion of the DRF. The Participant shall replace the words "as mentioned in the letter have already been" in place of the words "are hereby" on the Client portion of the Dematerialisation Request Form (DRF). The Participant shall affix its seal and signature on the letter received from Issuer or its R&T Agent. The Participant shall execute the request for dematerialisation in the Depository Participant Module (DPM) The Participant shall forward such details of the certificate of security to the depository and shall confirm to depository that an agreement has been entered between the Participant and the beneficial owner. The Participant shall maintain records indicating the names of beneficial owners of the securities surrendered, the number of securities and other details of the certificate of security sent for dematerialisation. The Participant shall despatch the DRF along with the aforesaid letter (as mentioned at point 2 above ) to the Issuer or its R&T Agent and keep a copy thereof for its records. The Issuer or its R&T Agent shall process the dematerialisation request for its validity and verify the signature(s) on the DRF with the signature(s) on the transfer deed. If the request is in order, the Issuer or its R&T Agent shall deface the certificates with the word "Dematerialised" and then confirm the dematerialisation request on the system. The Issuer or its R&T Agent shall substitute in its records the name of the depository as the registered owner and shall send a certificate to the depository and to every Stock Exchange where the security is listed. Immediately upon the receipt of information from the Issuer or its R&T Agent regarding confirmation of dematerialisation, the depository shall enter in its records the name of the person who has surrendered the certificate of security as the Beneficial Owner, as well as the name of the Participant from whom it has received intimation under guideline no. 7 and shall sent an intimation of the same to Participant.

4.

5. 6. 7.

8.

9.

10.

11.

12.

13.

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14. 15.

The Issuer or its R&T Agent shall maintain a record of certificates of securities which have been dematerialised. If the request is rejected, the Issuer or its R&T Agent shall despatch the certificates and/or relevant documentation to the Participant, indicating the reasons for rejection. NSDL shall obtain from the company a certificate certified by a Chartered Accountant or a Company Secretary holding a Certificate of Practice that the company has followed the above procedure and to the effect that: the company has followed the necessary procedure for effecting the original transfer. the Register of Members (RoM) of the company was accordingly amended and the shares were transferred in favour of the transferee. the company has adequate procedures and has satisfied itself that the transferee and the entity requesting for dematerialisation are one and the same and before confirming the dematerialisation request, the company has further amended its Register of Members (RoM) to indicate the transfer from thetransferee to NSDL. the company has defaced and cancelled/mutilated all the certificates. the company has adequate systems to ensure that the investor does not lose his corporate benefits on account of the transfer entries made in favour of NSDL. SCHEDULE CIRCULARS

16.

SMDRP/Policy/Cir-28/99 dated August 23, 1999 SMDRP/PoLICY/Cir-36/2000 dated August 4, 2000 D&CC/FITTC/CIR-3/2001 dated october 15, 2001 D&CC/FITTC/Cir- 04/2001 dated November 13, 2001 SMDRP/Policy/Cir-05/2001 dated February 1, 2001 D&CC/FITTC/Cir-13/2002 dated November 1, 2002 D&CC/FITTC/Cir-09/2002 dated July 4, 2002 D&CC/FITTC/Cir-10/2002 dated September 25, 2002 D&CC/FITTC/Cir-15/2002 dated December 27, 2002 D&CC/FITTC/CIR - 12/2002 dated october 30, 2002 DCC/FITTC/Cir-19/2003 dated March 4, 2003 LGL/Cir-2/2003 dated February 19, 2003 MRD/DoP/Dep/Cir-29/2004 dated August 24, 2004 MRD/DoP/Dep/Cir-27/2004 dated August 16, 2004

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MRD/DoP/SE/Dep/Cir-36/04 dated october 27, 2004 SEBI/MRD/DoP/Cir-22/2004 dated July 14, 2004 SEBI/MRD/Policy/AT/Cir-19/2004 dated April 21, 2004 SEBI/MRD/SE/DEP/Cir-4/2005 dated January 28, 2005 SEBI/MRD/DEP/Cir-24/05 dated December 22, 2005 SEBI/MRD/SE/Cir-16/2005 dated August 04, 2005 MRD/DoP/Dep/Cir-22 /05 dated November 09, 2005 MRD/DoP/SE/Dep/Cir-18/2005 dated September 2, 2005 MRD/DoP/Dep/SE/Cir-22/06 dated December 18, 2006 MRD/DSA/SE/Dep/Cust/Cir-23/06 dated December 22, 2006 SEBI/MRD/DEP/Cir-3/06 dated February 21, 2006 SEBI/MRD/DEP/Cir-2/06 dated January 19, 2006 MRD/Dep/Cir- 20/06 dated December 11, 2006 MRD/DoP/Dep/Cir-09/06 dated July 20, 2006 MRD/DoP/Dep/SE/Cir-17/06 dated october 27, 2006 MRD/DoP/Dep/SE/Cir-13/06 dated September 26, 2006 MRD/DoP/Dep/Cir-09/06 dated July 20, 2006 MRD/DoP/Cir- 5/2007 dated April 27, 2007 MIRSD/DPS-III/Cir-9/07 dated July 3, 2007 SEBI/MRD/Dep/Cir-03/2007 dated February 13, 2007 SEBI/CFD/DILDIP/29/2008/01/02 dated February 1, 2008 MIRSD/DPS- III/Cir-23/08 dated July 25, 2008 SEBI/MRD/Dep/Cir-03/2008 dated February 28, 2008 MRD/DoP/Cir-20/2008 dated June 30, 2008 MRD/DoP/SE/Dep/Cir-2/2009 dated February 10, 2009 CIR/MRD/DP/19/2010 dated June 10, 2010 CIR/MRD/DP/20/2010 dated July 1, 2010 CIR/MRD/DP/22/2010 dated July 29, 2010 CIR/MRD/Do/37/2010 dated December 14, 2010 COMMUNICATIONS

SMDRP/NSDL / 3055 /1998 dated August 11, 1998 SMDRP/RKD /NSDL/2494 /98 dated November 18, 1998 SMDRP/NSDL/4615 /2000 dated March 13, 2000 SMDRP/CDSL / 18300 /2000 dated November 16, 2000 SMDRP/NSDL/26563/2001 dated April 10, 2001 D&CC/ 1099 / 2002 dated November 01, 2002 MRD/DRK/SU/16034/2003 dated August 22, 2003 MRD/VSS/ARR/ 12255/2004 dated June 10, 2004

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 Circular No. NSDL/POLICY/ 2010/0055 Date: May 19, 2010

MRD/DoP/ Dep/82334 /2006 dated December 14, 2006 MRD/DEP/PP/123624 /2008 dated April 23, 2008 MRD/DoP/MC/141442 /2008 dated october 17, 2008 SEBI/ MRD/CDSL/ 149156 /2009 dated January 01, 2009 MRD/CDSL/VM/ 155773 /2009 dated February 27, 2009 MRD/NSDL/VM/158886 /2009 dated March 30, 2009 MRD/DoP/NSDL/VM/ 162378 /2009 dated May 06, 2009 MRD/DoP/NSDL/VM/168994 /2009 dated July 07, 2009 MRD/CDSL/VM/168989 /2009 dated July 07, 2009 SEBI/MRD/DEP/VM/169784 /09 dated July 15, 2009 MRD/DoP/MAS - OW/16723/2010 dated August 17, 2010

Sub: SEBIs Master Circular for Depositories Attention of Participants is invited to SEBIs Master Circular no. CIR/MRD/DP/ 11/2010 dated April 6, 2010 (copy enclosed) for Depositories, which is a compilation of all circulars issued by SEBI up to March 31, 2010. Participants are advised to ensure compliance with the same. As regards point no. 1.7(h) of SEBIs aforesaid Master Circular, Participants are requested to refer NSDL procedure mentioned at point no. 5(iii)(c) of NSDL Master Circular no. NSDL/POLICY/2009/0082 dated September 9, 2009.

Submission of Form-B in softcopy (through email). Circular No. NSDL/POLICY/ 2009/0070 Date: August 17, 2009 Sub: Submission of Form-B in softcopy (through email). As all Participants are aware, Participants are required to submit Form B in paper form after it is duly signed by the authorized officials which contains details about hardware & network equipments installed for NSDL DPM setup at the time of initial DPM Infrastructure set-up and subsequently as and when there are any changes in the Infrastructure set-up e.g. Change / Upgrade of Server, Addition / removal of Desktop, Change in connectivity etc. All Participants are hereby informed that henceforth they can submit Form B in electronic form by email to form-b@nsdl.co.in for faster and easier communication. In this context, Participants can choose one of the following options: 1. Digitally Signed Emails using Class 2 or Class 3 DSC issued by recognised Certifying Authorities or NSDL Certifying Authority. 2. Scanned Form B. Explanation: Participants may generate the paper Form B, obtain authorized officials signature, put their official stamp & scan the same. The original paper document can be retained by Participant for their

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record, whereas scanned image of Form B may be sent to NSDL by email. Participants can also maintain the aforesaid record in electronic form. NSDL, after verification of submitted Form B, will send confirmation email to the Participants email ID. Participants are also requested to take care of the size (not more than 2 MB) of the email as NSDL has enabled the restriction on the size of the emails. In case the size of email is more than 2 MB, Participants are requested to segregate the contents of such email into separate emails restricting the size of each email to 2 MB. In case of any further information/ clarification is required, Participants may contact Mr.Sanjay Mirchandani/ Mr.Sankalp Parlia/ Mr.Ganesh Pawar/ Mr.Rahul Mehta/ Mr.Vikas Gorule on 24994454/ 4451/ 4447/ 4456/ 4455. Compliance Schedule for reports/ certificates by Participants Circular No. NSDL/POLICY/ 2009/0066 Date: July 28, 2009 Sub: Compliance Schedule for reports/ certificates by Participants All Participants are hereby informed that a "Compliance Schedule" for reports/ certificates to be submitted by Participants based on various circulars issued from time to time is enclosed at Annexure to facilitate compliance by Participants. Participants are requested to refer to Bye Laws and Business Rules of NSDL and circulars issued thereunder for detailed guidance. Annexure Sr. No. 1. Particulars Investor Grievance Report (Monthly) Reference (i) Circular No. NSDL/PI/98/500 dated October 6, 1998. (ii) Circular No. NSDL/PI/2004/ 1688 dated September 16, 2004. Deadline By 10th of the following month. Manner of sending By email at dp_igreport@nsdl.co.in. Alternatively, by hard copy to the Investor Relationship Cell.

2.

Compliance Certificate (July December)

Circular No. NSDL/ POLICY/2006/ 0023 dated July 6, 2006.

By hard copy to January 31st every Business Partner Inspection Department. year.

3.

Charge Structure.

(i) Circular No. NSDL/POLICY/ 2006/0064 dated December 26, 2006. (ii) Circular No. NSDL/POLICY/ 2007/0003 dated January 8, 2007.

April 30th By email at every year. dpfees@nsdl.co.in

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Sr. No. 4.

Particulars Internal/ Concurrent Audit Report (October - March)

Reference Circular No. NSDL/ POLICY/2008/ 0077 dated November 3, 2008.

Deadline

Manner of sending

May 15th By hard copy to every year Business Partner Inspection Department.

5.

Details of all service centres.

Circular No. NSDL/ POLICY/2007/ 0055 dated September 25, 2007.

June 30th By email at every year. servicecentreinfo@nsdl.co.in

6.

Compliance Certificate (January - June)

Circular No. NSDL/ POLICY/2006/ 0023 dated July 6, 2006.

July 31st By hard copy to Business every year Partner Inspection Department.

7.

Networth Certificate and Audited Financial Statements. Internal/ Concurrent Audit Report (April September)

Circular No. NSDL/PI/98/414 dated September 1, 1998.

September By hard copy to 30th every Participant Interface Department. year.

8.

Circular No. NSDL/ POLICY/2008/ 0077 dated November 3, 2008.

November By hard copy to Business 15th every Partner Inspection Department. year

Written communication to NSDL Circular No. NSDL/PI/2005/1393 Date : August 3, 2005 Attention of Participants is invited to our circular no. NSDL/PI/2002/1528 dated September 9, 2002, wherein Participants were advised to send all written communication to NSDL, duly signed by its compliance officer or any senior officials mentioning the name and designation. However, it has been observed that a few Participants are not adhering to the above circular even after repeated reminders to them. In view of the foregoing, NSDL would like to advise the Participants to strictly ensure compliance of the above circular failing which any correspondence received from the Participants would not be acted upon by NSDL. Circular No. NSDL has been receiving letters from Participants without mentioning the NSDL/PI/2002/1528 name and designation of the person who has written the letter. Such letters Date : September 9, 2002 are being signed by an Authorised Signatory. In this regard, all Participants are hereby informed that all communications to NSDL should be written either by the Compliance Officer or by any other senior official of the Participant, clearly mentioning the name & designation of such person. All Participants are further advised to provide details of their existing Compliance Officers alongwith their specimen signatures, as per the form enclosed, latest by September 20, 2002. In case of change of Compliance Officer, Participants are advised to inform NSDL by submitting the enclosed

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form alongwith a letter signed by the existing Compliance Officer of the Participant or by any other official (e.g. Director of the company, Head of the Depository operations, etc.) senior to the Compliance Officer. Compliance Officer details Circular No. NSDL/PI/2005/2550 Date : December 29, 2005 Sub : Compliance Officers details All Participants are hereby informed that NSDL is in the process of updating the details pertaining to compliance officers of Participants. In this regard, Participants are advised to provide the details alongwith their specimen signatures, as per the enclosed format, latest by January 7, 2006 as well as send a soft copy of the same at participant-interface@nsdl.co.in In case of change of Compliance Officer, Participants are advised to inform NSDL by submitting the enclosed form alongwith a letter signed by the existing Compliance Officer of the Participant or by any other senior official (e.g. Director of the company, Head of the Depository operations, etc.). Annexure Details of the Compliance Officer Date Name of the Participant DP Id Address - Row 1 Building/Tower/Chamber/Mansion Address Row 2 - Street/Road Address Row 3 - Area Name Address - City Name Address - Pin Code Telephone Code Board Tel Nos Board Fax Nos Name of Compliance Officer Designation Specimen Signature Direct Tel No Extension no Mobile number Email Address of compliance officer Alternate Compliance Officer (if any) Designation Specimen Signature Direct Tel No Extension no

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Mobile number Email Address of alternate compliance officer Please note that all fields are mandatory Participant Seal Submission of Compliance Certificate by Participants Circular No. Sub: Submission of internal/concurrent audit report and Compliance NSDL/POLICY/ Certificate electronically. 2010/0017 As Participants are aware, the internal/concurrent audit report and the Date: February 22, 2010 compliance certificate are required to be given by Participants in hard copy form [Ref.: Circular no.: NSDL/POLICY/2009/0105 dated November 10, 2009 and Circular no. NSDL/POLICY/2008/0077 dated November 3, 2008]. Participants can now submit the internal/concurrent audit report and the Compliance Certificate, if they so desire, in electronic form subject to the conditions mentioned in the Annexure 'A'. Accordingly, the 'Compliance Schedule' informed to Participants vide Circular No. NSDL/POLICY/2010/0006 dated January 13, 2010 is revised and enclosed as Annexure 'B' highlighting the changes and as Annexure 'C' without highlighting any changes. Annexure A Procedure for electronic submission of Internal/Concurrent audit report and Compliance certificate: 1. Internal / Concurrent Audit Report 1.1. The auditors must sign the report using a class II or class III digital signature certificate (DSC) issued in his/her name and valid in terms of provisions of Information Technology Act, 2000 and rules framed there under. 1.2. Audit report must be prepared in MS Excel format as per prevalent guidelines (Ref.: Circular No. NSDL/POLICY/2009/0105 dated November 10, 2009). Annexures, if any, must also be prepared in MS Excel format. 1.3. The auditor may digitally sign the report using the features available in MS Excel itself. Annexures, if any, may be part of the same file (as different sheet in same file) or may be prepared as a separate Excel file. In case Annexures are prepared as separate Excel file, they need to be digitally signed individually. 2. Compliance Certificate 2.1. The Compliance Officer / Alternate Compliance Officer of the Participant must sign the compliance certificate using a class II or class III DSC issued in his/her name and valid in terms of provisions of Information Technology Act, 2000 and rules framed thereunder. 2.2. Compliance certificate may be prepared as a MS Excel or MS Word or PDF file as per prevalent guidelines (Ref.: Circular No. NSDL/ POLICY/2006/0023 dated July 6, 2006). Annexures, if any, should also be prepared as MS Excel or MS Word or PDF file. 2.3. The Compliance Officer / Alternate Compliance Officer may digitally sign using the features available in MS Excel / Word or some other specialized software. Annexures, if any, may be part of the same file or may be prepared as a separate Excel / Word /

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3.

4.

PDF file. In case, Annexures are prepared as a separate file(s), they need to be digitally signed individually. The holder of the DSC shall give following declaration as part of the audit report/compliance certificate I hereby declare that digital signature certificate being used by me for signing this document is a valid digital signature certificate in terms of provisions of Information Technology Act, 2000 and rules framed thereunder on this date and that it has not been revoked by the issuing authority till this date. The Compliance Officer / Alternate Compliance Officer / authorised person of Participant shall forward the digitally signed audit report and/or certificate (and Annexures, if any) to NSDL from an email ID which is present in the database maintained by Participant Interface Department of NSDL to nsdl-bp-inspection@nsdl.co.in. Annexure B

Sr. Particulars No. 1.

Reference

Deadline

Manner of sending

Investor Grievance (i) Circular No. NSDL/PI/98/500 By 10th of the By email at dp_igreport@nsdl.co.in. Report (Monthly) dated October 6, 1998. following Alternatively, by hard (ii) Circular No. NSDL/PI/2004/ month. copy to the Investor 1688 dated September 16, Relationship Cell. 2004. Compliance Certificate (July December) Circular No. NSDL/ POLICY/2006/ 0023 dated July 6, 2006. January 31st every year. Digitally signed compliance certificate by email at nsdl-bpinspection@nsdl.co.in. Alternatively, by hard copy to Business Partner Inspection Department. By email at dpfees@nsdl.co.in

2.

3.

Charge Structure.

(i) Circular No. NSDL/POLICY/ April 30th 2006/0064 dated December 26, every year. 2006. (ii) Circular No. NSDL/POLICY/ 2007/0003 dated January 8, 2007. Circular No. NSDL/ POLICY/2008/ May 15th 0077 dated November 3, 2008. every year

4.

Internal/ Concurrent Audit Report (October March)

Digitally signed report by email at nsdl-bpinspection@nsdl.co.in. Alternatively, by hard copy to Business Partner Inspection Department. Digitally signed compliance certificate by email at nsdl-bpinspection@nsdl.co.in. Alternatively, by hard copy to Business Partner Inspection Department.

5.

Compliance Certificate (January - June)

Circular No. NSDL/ POLICY/2006/ July 31st 0023 dated July 6, 2006. every year

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Sr. Particulars No. 6. Networth Certificate and Audited Financial Statements. Internal/ Concurrent Audit Report (April September)

Reference

Deadline

Manner of sending By hard copy to Participant Interface Department.

Circular No. NSDL/PI/98/414 dated September September 1, 1998. 30th every year.

7.

Circular No. NSDL/ POLICY/2008/ November 0077 dated November 3, 2008. 15th every year

Digitally signed report by email at nsdl-bpinspection@nsdl.co.in. Alternatively, by hard copy to Business Partner Inspection Department.

Annexure C Sr. Particulars No. 1. Reference Deadline Manner of sending

Investor Grievance (i) Circular No. NSDL/PI/98/500 By 10th of the By email at dp_igreport@nsdl.co.in. Report (Monthly) dated October 6, 1998. following Alternatively, by hard (ii) Circular No. NSDL/PI/2004/ month. copy to the Investor 1688 dated September 16, Relationship Cell. 2004. Compliance Certificate (July December) Circular No. NSDL/ POLICY/2006/ 0023 dated July 6, 2006. January 31st every year. Digitally signed compliance certificate by email at nsdl-bpinspection@nsdl.co.in. Alternatively, by hard copy to Business Partner Inspection Department. By email at dpfees@nsdl.co.in

2.

3.

Charge Structure.

(i) Circular No. NSDL/POLICY/ April 30th 2006/0064 dated December 26, every year. 2006. (ii) Circular No. NSDL/POLICY/ 2007/0003 dated January 8, 2007. Circular No. NSDL/ POLICY/2008/ May 15th 0077 dated November 3, 2008. every year

4.

Internal/ Concurrent Audit Report (October March)

Digitally signed report by email at nsdl-bpinspection@nsdl.co.in. Alternatively, by hard copy to Business Partner Inspection Department. Digitally signed compliance certificate by email at nsdl-bpinspection@nsdl.co.in. Alternatively, by hard copy to Business Partner Inspection Department.

5.

Compliance Certificate (January - June)

Circular No. NSDL/ POLICY/2006/ July 31st 0023 dated July 6, 2006. every year

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Sr. Particulars No. 6. Networth Certificate and Audited Financial Statements. Internal/ Concurrent Audit Report (April September)

Reference

Deadline

Manner of sending By hard copy to Participant Interface Department. Digitally signed report by email at nsdl-bpinspection@nsdl.co.in. Alternatively, by hard copy to Business Partner Inspection Department.

Circular No. NSDL/PI/98/414 dated September September 1, 1998. 30th every year. Circular No. NSDL/ POLICY/2008/ November 0077 dated November 3, 2008. 15th every year

7.

Circular No. NSDL/POLICY/ 2006/0023 Date : July 6, 2006

Sub : Submission of Compliance Certificate by Participants As all Participants are aware, as SEBI registered Intermediaries, Participants are required to comply with the following: (i) The Depositories Act, 1996, SEBI (Depositories and Participants) Regulations, 1996, Guidelines / Directives / Instructions issued by SEBI, the Government of India and other Regulatory Bodies from time to time; (ii) The Bye Laws & Business Rules and various circulars issued by NSDL, from time to time.

Further, Participants are required to comply with the provisions of Prevention of Money Laundering Act, 2002 and the rules and guidelines issued, thereunder. In this regard, Participants are advised to submit a 'Compliance Certificate' to NSDL in the format given in Annexure I, duly signed and stamped by the Compliance Officer of the Participant, at half yearly intervals (January to June and July to December to be submitted by July 31 and January 31 of every year respectively). Annexure I (To be provided on DP's letterhead) Date:___________ To The Vice President Business Partner Inspection Department National Securities Depository Limited Trade World, A Wing, 5th floor Kamala Mills Compound Senapati Bapat Marg Lower Parel Mumbai - 400 013. Dear Sir, Sub : Compliance Certificate for the period _______ to ________ I ________________ (name of the Compliance Officer) hereby certify that the depository operations of ___________________ (DP Name and DP Id) are in compliance with all applicable laws and especially with respect to the following: (a) (b) (c) (d) The Depositories Act, 1996; The SEBI (Depositories and Participants) Regulations, 1996; The Bye Laws and Business Rules of NSDL. Directives / Circulars / Clarifications / Guidelines issued by SEBI, the Government of India, Regulatory Bodies and NSDL, from time to time.

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(e)

Prevention of Money Laundering Act, 2002 and the Rules and Guidelines notified thereunder by SEBI or Statutory / Regulatory Authorities.

Activities in which the company has not been in Compliance, if any, are as under: a) b) c) d) In respect of the areas of non- compliance, the following steps have been taken so as to ensure compliance in future. a) b) c) d) Name and Designation of Compliance Officer Signature of Compliance Officer DP Id Stamp of the DP : : : :

Acknowledgment by NSDL for submission of Compliance reports by Depository Participants Circular No. NSDL/POLICY/ 2006/0050 Date : October 19, 2006 Sub : Acknowledgment by NSDL for submission of Compliance reports by Depository Participants Depository Participants (DPs) are required to submit various reports such as Internal Audit, Concurrent Audit, Investor Grievances, KYC, Compliance certificates etc. to the different departments of NSDL to meet the respective compliance requirements. In this regard, DPs are requested to note that with effect from November 1, 2006, the recipient department of NSDL will give an acknowledgment about the receipt of the report(s) at the email address of the Compliance Officer. In view of the above, DPs are requested to submit the email id(s) of the Compliance Officer, if not submitted earlier or if there are any changes at participant-interface@nsdl.co.in (Refer Circular No. NSDL/PI/2005/2550 dated December 29, 2005). Format for filing charge structure Circular No. NSDL/POLICY/ 2007/0003 Date: January 8, 2007 Sub : Format for filing charge structure with NSDL every year by April 30 Attention of Depository Participants (DPs) is invited to NSDL Circular No. NSDL/ PI/2006/0064 dated December 26, 2006 (copy enclosed) regarding filing of charge structure with NSDL and penalty therefor in case of non-compliance. The details of charge structure should be provided as per the enclosed format (in MS Excel) and e-mailed to NSDL at dpfees@nsdl.co.in Further, any subsequent changes (addition/deletion/modification) in the charge structure of the DP should also be intimated to NSDL in the above format, at the above e-mail Id before such changes become effective. Annexure
DP Name Statutory charges at the time of account opening Advance/ Deposit Account Maintenance Demat Remat Transaction (Debit) Pledge Creation Pledge Creation confirmation Pledge Closure Pledge Closure confirmation Pledge Invocation Failed instruction charges Other charges, if any Remarks

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Audited networth certificate - Financial statement Circular No. NSDL/POLICY/ 2009/0084 September 16, 2009 (Relevant Extracts) Sub: Amendments to Bye Laws All Participants are hereby notified that Bye Law 6.2.1 (iv) and Bye Law 10.2.1 of the Bye Laws of NSDL have been amended. The amended Bye Law 6.2.1 (iv) and Bye Law 10.2.1 are given below: Amended Bye Law 6.2.1 (iv): The Participant (both prospective and existing) in the category of stock broker has a minimum networth of rupees three crore. Provided further that in case of non-banking finance company (NBFC) and a registrar to an issue or share transfer agent, minimum networth as specified in the SEBI Regulations will apply. Provided, however, that if the Participant is already acting as a Participant on March 14, 2008, it will be required to fulfill this requirement by March 31, 2010. Circular No. NSDL/PI/2003/1979 Date : December 11, 2003 (Relevant Extracts) All Participants are hereby notified that Rules 21.1.1 (i), 21.2.2.1 (i), (iii) & (iv) of the Business Rules of NSDL have been amended and will come into effect from January 1, 2004. Further, Annexure A pertaining to computation of networth has also been amended. The revised Rules 21.1.1 (i), 21.2.2.1 (i), (iii) & (iv) and Annexure A are enclosed. Annexure 'A' of the Business Rules of NSDL: COMPUTATION OF NETWORTH Sr. No Particulars Paid-up Capital + Free Reserves - Share Application Money (total reserves less Revaluation Reserves and Specified Reserves) Less: Accumulated Losses Receivable (more than 6 months old) Receivable from Group Companies Intangible Assets Preliminary and Preoperative expenses not written off Value of Stock Exchange Card Loan in excess of value of Pledged Securities Loan in excess of value of Pledged Assets Investment in Group Companies Networth required for other depositories Loans and advances to group Companies Statutory Contingent Liabilities Current Year (Rs.) Previous Year (Rs.)

A B C D E F G H I J K L

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Notes: 1. Details of item mentioned under Sr. no. C, F, G, H, I, K and L shall be provided as annexure to the certificate. 2. In case of statutory contingent liabilities, only 50% of the liabilities shall be deducted. 3. In case of Bank DPs, if provisions for NPAs have been made as per RBI guidelines and Auditor's certificate to this effect has been provided, no deduction to be made for receivables more than six months old. 4. Security-wise details of all investments (quoted as well as unquoted securities) shall be provided as annexure to the certificate. The applicant for Participantship should submit a certificate of Net worth computed in accordance with these guidelines from the Chartered Accountant in the following format: CERTIFICATE FOR PARTNERSHIP FIRMS This is to certify that the Networth of M/s as on as per the statement of computation of even date annexed to this report is Rupees only. It is further certified that the computation of Networth based on my/ our scrutiny of the books of accounts, records and documents is true and correct to the best of my/our knowledge and as per information provided to my/our satisfaction. Place: Date: For (Name of Accounting Firm) Name of Partner Chartered Accountant Membership Number CERTIFICATE FOR INDIVIDUALS This is to certify that the Networth of Mr/Ms as on as per the statement of computation of even date annexed to this report is Rupees only. It is further certified that the computation of Networth based on my/ our scrutiny of the books of accounts, records and documents is true and correct to the best of my/our knowledge and as per information provided to my/our satisfaction. Place: Date: For (Name of Accounting Firm) Name of Partner Chartered Accountant Membership Number

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CERTIFICATE FOR CORPORATES This is to certify that the Networth of as on as per the statement of computation of even date annexed to this report is Rupees only. It is further certified that the computation of Networth based on my/ our scrutiny of the books of accounts, records and documents is true and correct to the best of my/our knowledge and as per information provided to my/our satisfaction. Place: Date: For (Name of Accounting Firm) Name of Partner Chartered Accountant Membership Number Off-market transactions report Circular No. NSDL/PI/98/002 Date: January 1, 1998 Attention of the Participants is invited to Bye Law 6.3.6 (iv) of NSDL, in terms of which the Participants are required to submit a return pertaining to the number of transfers effected for off-market settlement of trades once every month. Since such information is available at the DM in the electronic form, the Participants need not submit the same in a paper form separately. NSDL, however, reserves the right to call for such information from the Participants at any point of time.

b. Internal / Concurrent Audit Bye Law 10.3.1 Every Participant shall ensure that an internal audit in respect of its depository operations is conducted at intervals of not more than six months by a qualified Chartered Accountant or a Company Secretary or a Cost and Management Accountant, holding a Certificate of Practice and a copy of the internal audit report shall be furnished to the Depository. The Chartered Accountants, Company Secretaries or Cost and Management Accountants who are engaged in Internal Audit or Inspection of the Participant in respect of its depository operations, should not have any conflict of interest with the said Participant. Subject: Internal and Concurrent Audit for depository operations. Participants are aware that as per Bye Law 10.3, each Participant is required to have its depository operations audited by a qualified Chartered Accountant or a Company Secretary or a Cost and Management Accountant holding a Certificate of Practice. Such audit should be conducted atleast twice a year and a copy of the report should be submitted to NSDL. Attention of all Participants is invited to Circular no. NSDL/POLICY/2008/ 0077 dated November 3, 2008 regarding guidelines related to scope of audit and format of the audit report. Since then, there have been certain additions / modifications in the guidelines. In view of the above and findings during review of audit reports submitted by Participants, various requirements related to internal and concurrent audit have been consolidated for the benefit of Participants and their auditors. The consolidated guidelines are enclosed as Annexure 1 (a MS Excel file containing two sheets). Participants are advised to take note of the following:

Bye Law 10.3.4

Circular No. NSDL/POLICY/ 2009/0105 Date: November 10, 2009

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1.

2.

3.

Objectives of audit Following are the broad objectives of internal audit of depository operations: i) To assure the management that the operations of the Participant are in compliance with the requirements of The Depositories Act, 1996, SEBI (Depositories & Participants) Regulations, 1996, NSDL Bye Laws and Business Rules, its agreement with the Client and NSDL and various circulars issued by NSDL from time to time. ii) To assure management that the DPM is managed and maintained in a manner that there is no threat to business continuity, integrity of data processing system is maintained at all times and methods are put in place to ensure that records are not lost, destroyed or tampered with or in the event of loss or destruction of data, sufficient backup of records is available at all times. iii) To assure management that the capacity of computer system, staff strength and internal procedures are commensurate with the level of business activity. iv) To assure management that the business operations of the Participant are conducted in a manner that the foreseeable risks are addressed with appropriate internal control mechanism. v) To assure management that the business operations of the Participant are conducted as per the operations manual and in strict adherence with NSDL prescribed procedures. Audit program should cover all facets of the depository operations. Auditor may expand the scope of audit / add more audit points to achieve the objectives listed above. Participants are advised to extend full co-operation to their auditors to enable them to perform an effective audit. All circulars / guidelines issued by NSDL / SEBI from time to time and other information / records desired by the auditors should be made available to them within a reasonable time. Participants should submit the audit report to NSDL as per schedule given below: Audit Period April 1 to September 30 October 1 to March 31 Due date for submission of report to NSDL November 15 May 15

4.

5.

6.

New Participants which are operational for less than three months in an audit period can submit audit report for that audit period along with the audit report for next audit period. For example, if a Participant is made operational by NSDL on July 2, 2009, then it can submit single audit report for the period July 2, 2009 March 31, 2010. As prescribed vide Circular no. NSDL/POLICY/2006/0021 dated June 24, 2006, activities related to account opening, control and verification of Delivery Instruction Slips (DIS) are subject to concurrent audit which must be completed by the next working day. If such audit cannot be completed by next working day due to large volume, it must be completed within a week. The guidelines provided in Annexure 1 in respect of these activities are applicable for concurrent audit as well. Participants can appoint same auditor for concurrent and internal audit. If both audits are performed by the same auditor, then a consolidated report must be submitted instead of two separate reports. If two audits are being performed by different auditors, then two separate reports should be submitted.

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7.

8.

9.

10.

The guidelines provided in this circular are applicable for audit period October 1, 2009 to March 31, 2010 and onwards. Audit report for period April 1, 2009 to September 30, 2009 may be submitted as per existing guidelines (i.e. guidelines provided in Circular no. NSDL/POLICY/2008/ 0077 dated November 3, 2008) or as per the new guidelines provided in this circular. Internal and/or concurrent audit reports which are not as per guidelines will be treated as non submission of the report. NSDL reserves the right to advise a Participant to change its auditor if quality of the report is not satisfactory or if the audit is not carried out as per the guidelines. A training program will be conducted for internal / concurrent auditors by NSDL shortly. Schedule and details of the program will be communicated to the Participants. Participants may request their auditors to take benefit of the training program. Participants may encourage their auditors to acquire certification under NCFM NSDL Depository Operations module.

Annexure 1
Internal / Concurrent Audit Report for depository operations Name of the auditee DP ID(s) Audit period Name of the auditor Membership No. of the auditor Name of the audit firm I / We hereby declare that Circular no. NSDL/Policy/2009/0105 dated November 10, 2009 was read, understood and this report is based on the guidelines given in this Circular. I / We hereby further declare that I / we have no conflict of interest with the Participant. Signature of the auditor INXXXXXXXX INXXXXXXXX DD-MMM-YY to DD-MMM-YY

Stamp of the auditor / audit firm

Date

DD-MMM-YY Activity wise sampling details

Srl. no. 1 2 3 4 5 6 7 8

Area Account Opening (100%) Demat requests Remat requests DIS book issuance (100%) DIS execution (atleast 25%) Transmission (100%) Client data modifications Pledge / hypothecation instructions

Count for the audit period

No. of samples checked

[ 308 ]

Checklist Srl. No. Audit Areas Auditor's Observation Auditor's Remarks Management's Comment*

1 Audit of Account Opening 1.1 Whether proof of identity and proof of address have been obtained for all accounts as per SEBI and NSDL guidelines? 1.2 Whether PANs are obtained for all the accounts, wherever applicable? Yes No If no, then number of accounts with discrepancies must be mentioned here

Yes No If no, then number of accounts with discrepancies must be mentioned here Yes No If no, then number of accounts with discrepancies must be mentioned here Yes No If no, then number of accounts with discrepancies must be mentioned here

1.3 Whether PANs are verified with the database of Income Tax Department for all the accounts? 1.4 Whether the in- person verification of the account holders has been done before activation of the account as per the NSDL guidelines? 1.5 Whether prescribed DP - Client agreement has been executed for all the accounts? 1.6 Whether a separate DP - Client agreement has been executed with clients who want to hold warehouse receipts in their account? 1.7 Whether data entered in DPM system matches with the details mentioned in the account opening form? 1.8 Whether signature of account holder(s) as given in the account opening form has been scanned in the DPM system clearly and correctly? 1.9 Whether all account opening forms are completely filled? 2 Client Data Modification 2.1 Whether clients' request for changes in data (e.g. address, signature, bank details, nomination) have been processed as per prescribed procedure? 2.2 Whether clients' request for closure / freezing / unfreezing of account have been processed as per prescribed procedure?

Yes No If no, then number of accounts with discrepancies must be mentioned here Yes No If no, then number of accounts with discrepancies Not Applicable must be mentioned here Yes No If no, then number of accounts with discrepancies must be mentioned here Yes No If no, then number of accounts with discrepancies must be mentioned here Yes No If no, then number of accounts with discrepancies must be mentioned here

Yes No Not Applicable Yes No Not Applicable

If no, then number of accounts with discrepancies should be mentioned

If no, then number of accounts with discrepancies should be mentioned

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Srl. No.

Audit Areas

Auditor's Observation

Auditor's Remarks

Management's Comment*

3 Demat / remat request 3.1 Whether the demat requests have been accepted and processed as per the prescribed procedure? 3.2 Whether date of receiving the demat request and date of forwarding the documents to Issuer / Registrar & Transfer Agent have been recorded correctly? 3.3 Whether demat requests received have been sent to Issuer / Registrar & Transfer Agent within seven days from the date of receipt of the request from the account holder? 3.4 Whether there are sufficient provisions / arrangements for safe keeping of security certificates received from account holders for dematerialization and certificates received after rejection of the demat request from Issuer / Registrar & Transfer Agent? 3.5 Whether any demat request was rejected due to error attributable to Participant? 3.6 Whether Participant has taken necessary corrective and preventive measures to avoid rejections attributable to Participants? 3.7 Number of remat request processed during the audit period 3.8 Whether the remat requests have been accepted and processed as per the prescribed procedure? 4 Delivery Instruction Slip (DIS) 4.1 Issuance of DIS 4.1.1 Whether physical inventory of DIS booklets is reconciled with the DIS issue records periodically? 4.1.2 Whether the DIS issued to client has prestamped client ID and pre-printed unique serial number? 4.1.3 Whether DIS booklets have been issued on receipt of requisition slips signed by all the joint holders? Yes No Yes No Not Applicable Yes No If no, then number of cases with discrepancies must be mentioned here If no, then number of cases with discrepancies must be mentioned here

Yes No

Yes No

If no, then number of cases with discrepancies must be mentioned here

Yes No

Yes No Yes No Not Applicable

Yes No

If no, then number of cases with discrepancies must be mentioned here If no, then number of cases with discrepancies must be mentioned here

Yes No

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Srl. No.

Audit Areas

Auditor's Observation Yes No

Auditor's Remarks

Management's Comment*

4.1.4 Whether issuance of loose DIS to account holder is done as per prescribed procedure? 4.1.5 If DIS booklet is handed over to the authorized person other then account holder, then whether the signature of authorized person and his proof of identity are verified before issuance of DIS booklet? 4.1.6 Whether DIS (booklet or loose) issued to account holder is immediately updated in back office or issuance register? 4.2 Verification of DIS 4.2.1 Whether date and time stamp is affixed on both Participant and client copy of DIS received? 4.2.2 Whether Participant affixes 'late stamp' on DIS received beyond the prescribed deadline time? 4.2.3 Whether Participant verifies that the DIS received from client was actually issued to same client ID? 4.2.4 Whether serial number of all the executed DISs (irrespective of whether executed through back office or directly in DPM system) and DISs reported as lost / misplaced / stolen by the account holder are blocked in the back office or in the DIS issuance register to prevent any re-acceptance? 4.2.5 Whether DIS(s) given by account holder are available for all instructions executed in DPM system (instruction other than those given by account holders through Speed-e / electronically)? 4.2.6 Whether signature(s) on DIS match with the signature(s) scanned in the DPM system? 4.2.7 Whether corrections / cancellation on DIS, if any, are authenticated by the client (all holders for joint accounts)?

If no, then number of cases with discrepancies must be mentioned here If no, then number of cases with discrepancies must be mentioned here

Yes No

Yes No

If no, then number of cases with discrepancies must be mentioned here

Yes No

If no, then number of cases with discrepancies must be mentioned here If no, then number of cases with discrepancies must be mentioned here If no, then number of cases with discrepancies must be mentioned here If no, then number of cases with discrepancies must be mentioned here

Yes No

Yes No

Yes No

Yes No

If no, then number of cases with discrepancies must be mentioned here

Yes No

If no, then number of cases with discrepancies must be mentioned here If no, then number of cases with discrepancies must be mentioned here

Yes No

[ 311 ]

Srl. No.

Audit Areas

Auditor's Observation Yes No

Auditor's Remarks

Management's Comment*

4.2.8 Whether Participant accepts instructions by fax from account holder? 4.2.9 Whether original DIS has been received within three working days for all faxed instructions? 4.2.10 Is there a system in place to prevent multiple execution of the same instruction, in case fax instructions are accepted? 4.2.11 Whether Participant has obtained an indemnity from account holder who want to give instruction over fax? 4.2.12 If Participant is accepting delivery instruction in form of an annexure to a DIS, whether it is done as per the prescribed procedure? 4.2.13 Whether information under columns Consideration and Reason / Purpose are mentioned for off market instructions? 4.2.14 Whether Participant follows maker checker system to process the instructions? 4.2.15 Whether there is an additional level of verification for high value instructions (instruction with value over Rs. 5 lakhs)? 4.2.16 Whether there is an additional level of verification for instructions received for dormant accounts? 4.2.17 Whether instructions executed in the DPM system are as per DIS?

Yes No Not Applicable Yes No Not Applicable Yes No Not Applicable Yes No Not Applicable Yes No

If no, then number of cases with discrepancies must be mentioned here

If no, then number of cases with discrepancies must be mentioned here If no, then number of cases with discrepancies must be mentioned here If no, then number of cases with discrepancies must be mentioned here

Yes No

If no, then number of cases with discrepancies must be mentioned here If no, then number of cases with discrepancies must be mentioned here If no, then number of cases with discrepancies must be mentioned here If no, then number of cases with discrepancies must be mentioned here

Yes No

Yes No

Yes No

5 Transaction Statement 5.1 Whether transaction statements are generated from back office or DPM system? 5.2 If generated from back office, whether the details match with statement generated from DPM system? Back office DPM system Yes No If no, then number of cases with discrepancies must be mentioned here

[ 312 ]

Srl. No.

Audit Areas

Auditor's Observation Yes No

Auditor's Remarks

Management's Comment*

5.3 Whether transaction statements are provided to the account holders as per prescribed frequency? 5.4 If Participant does not send transaction statement on quarterly basis to clients holding account with no transaction and no security balance, then whether the relevant guidelines have been followed? 5.5 If Participant is sending transaction statement through internet (web based / email), then whether the relevant guidelines have been followed/

If no, then the periodicity of providing the statement must be mentioned

Yes No Not Applicable

Yes No Not Applicable

6. Compliance under Prevention of Money Laundering Act, 2002 (PMLA) 6.1 Whether Participant has adopted a policy to comply with its obligations under PMLA? 6.2 Whether Participant has appointed a Principal officer as required under PMLA? 6.3 Whether there is a mechanism to deal appropriately with the alerts forwarded by NSDL? 7. Operations Manual 7.1 Whether Participant has prepared a Operations Manual? Yes No If no, then the periodicity of providing the statement must be mentioned If no, then mention the areas not covered in operations manual If no, then mention when is it updated If no, then mention how is the work done by those persons If no, then give details here Yes No

Yes No

Yes No

7.2 Whether Operations Manual covers all depository activities?

Yes No

7.3 Whether Operations Manual is updated as and when required? 7.4 Whether Operations Manual is available to persons who need to refer it?

Yes No

Yes No

7.5 Whether procedures mentioned in the Operations Manual are followed? 8. Maintenance of record and documents 8.1 Whether Participant has outsourced record keeping activity (partly or fully)?

Yes No

Yes No

If yes, then the name of the agency / firm and nature of arrangement must be mentioned here

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Srl. No.

Audit Areas

Auditor's Observation Yes No

Auditor's Remarks

Management's Comment*

8.2 If yes, whether NSDL's approval has been obtained? 8.3 Whether Participant has informed NSDL about place(s) of record keeping? 9 Service centre 9.1 Whether NSDLs approval has been obtained for all the service centres opened during the audit period? 9.2 Whether prescribed procedure has been followed for any service centre closed / terminated during the audit period? 9.3 Whether contact details of all the service centres available on the NSDL website are correct? 9.4 Whether NCDO / NCFM - Depository Module qualified person is appointed at each service centres? 9.5 Whether internal audit has been conducted at any service centre?

Yes No

Yes No

If no, then details of non compliance must be mentioned here If no, then details of non compliance must be mentioned here If no, then details of non compliance must be mentioned here If no, then details of non compliance must be mentioned here If yes, then mention count of centres audited and locations thereof.

Yes No

Yes No

Yes No

Yes No

10 Status of compliance for deviations / observations noted in latest NSDL inspection and internal / concurrent audit report 10.1 Whether Participant has taken adequate preventive and corrective measures in respect of deviations noted during latest NSDL inspection? 10.2 Whether Participant has taken adequate preventive and corrective measures in respect of deviations noted during latest internal / concurrent audit? 10.3 Comment on the issues for which NSDL has specifically sought auditor's certification in audit report 11 Billing 11.1 Whether all account holder are billed as per the agreed schedule of charges? 11.2 Whether Participant has given atleast one month's prior notice for any modification in the schedule of charges? Yes No Yes No If no, then details of the non compliance must be mentioned here

Yes No

If no, then details of the non compliance must be mentioned here

Yes No

If no, then details of the non compliance must be mentioned here

Yes No Not Applicable

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Srl. No. 12 Back Office

Audit Areas

Auditor's Observation

Auditor's Remarks

Management's Comment*

12.1 If Participant is using any back office software for depository operations, then whether balances as per back office are reconciled on a daily basis with DPM system? 13 Miscellaneous areas 13.1 Whether all transmission cases have been processed as per prescribed procedure?

Yes No

Yes No Not Applicable Yes No Not Applicable

If no, then number of accounts with discrepancies must be mentioned here

13.2 Whether there is any supplementary agreement / letter of confirmation / power of attorney obtained / executed with account holder which are in contravention to prescribed DP - Client agreement / NSDL guidelines? 13.3 Whether Participant has collected requisite documents to claim waiver of settlement fees? 13.4 Whether pledge and hypothecation instructions are processed as per prescribed procedure? 13.5 Whether Participant has executed software utilities provided by NSDL on a monthly basis and taken appropirate action in respect of the exceptions identified? 13.6 Whether all investors' grievances have been redressed?

Yes No Not Applicable Yes No Not Applicable Yes No

Yes No Not Applicable Yes No

If no, then give details of grievances pending redressal here If no, then mention the forms and the discrepancies observed therein.

13.7 Whether forms in use for various activities are as prescribed?

13.8 Comment on improvements made in the operations since last audit 14 System areas 14.1 Whether hardware and software installed on machines used for depository operations are as per the specifications mentioned in the latest Form B submitted to NSDL? Yes No If no, then mention the mismatch

[ 315 ]

Srl. No.

Audit Areas

Auditor's Observation Yes No

Auditor's Remarks

Management's Comment*

14.2 Whether Participant is taking backup on a daily basis? 14.3 Whether one copy of data backup is maintained at local site and another at remote site? 14.4 Whether a separate set of backup media for even / odd dates (or day wise) is maintained to ensure that corruption of one media does not result in loss of all backups for that day? 14.5 If backup is taken on a media other than DAT, NSDL's approval for this has been obtained? 14.6 Whether updated anti virus is installed on the server and all the client machines? 14.7 Whether ASR set / ERD is prepared as per prescribed guidelines? 14.8 Whether robocopy feature is working on one client machine? 14.9 Whether all the software installed on server and client machines are licensed? 14.10 Whether RAID has been configured as per the prescribed guidelines? 14.11 Whether database reorg and shrinking are done as per the prescribed guidelines? 14.12 Whether scheduled switch to fallback connectivity is done and the record thereof is maintained? 14.13 Whether all the hardware / equipments used for depository operations are covered under AMC / warranty?

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

If no, then mention whether the Participant has given the presribed undertaking to NSDL?

14.14 Whether UPS / alternate power arrangement is available for all the hardware / equipments used for depository operations?

Yes No

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Srl. No.

Audit Areas

Auditor's Observation Yes No

Auditor's Remarks

Management's Comment*

14.15 Whether adequate physical and logical access restrictions for usage of system are in place? 14.16 Whether backup of back office data is taken?

Yes No Not Applicable Yes No Not Applicable Yes No

14.17 If back office is directly connected to DPM system, whether it is in accordance with NSDL guidelines? 14.18 Whether atleast one staff managing the systems is NSDL trained? Important References (only illustrative, not exhaustive) 1 NSDL Bye Laws and Business Rules 2 Compliance Manual 3 Circular No. NSDL/POLICY/2009/0029 dated April 16, 2009- Master Circular on 'Account Opening' - Version 2.2 4 Circular No. NSDL/POLICY/2009/0082 dated September 09, 2009- Master Circular on 'Delivery Instruction Slip ' Version 1.0 5 Other circulars issued by NSDL time to time

Management's Comment* - Manadatory if auditor's observation is negative. Circular No. NSDL/POLICY/ 2008/0077 Date: November 3, 2008 Sub: Internal and Concurrent Audit for depository operations. Attention of all Participants is invited to recent amendment in Bye Law 10.3 of NSDL communicated vide circular no. NSDL/POLICY/2008/0072 dated October 17, 2008 which prescribes that every Participant shall ensure that its depository operations are audited by a qualified Chartered Accountant or a Company Secretary holding a Certificate of Practice. Such audit should be conducted atleast twice a year and a copy of the report should be submitted to NSDL. In view of the above change, various circulars issued till date by NSDL having impact on scope of internal / concurrent audit and format of the audit report and findings during review of audit reports submitted by Participants, various requirements related to internal and concurrent audit have been consolidated for the benefit of Participants and their auditors. The consolidated guidelines are enclosed as Annexure 1.

[ 317 ]

1.

The amended schedule for submission of Internal Audit Report (IAR) is given belowPeriod of Internal Audit April 1 to September 30 October 1 to March 31 Due date for submission of report to NSDL November 15 May 15

2.

The Participants which remain operational for less than three months in an audit period should submit audit report for that audit period along with the audit report for next audit period. For example, if a Participant is made operational by NSDL on July 5, 2009, then it should submit first audit report for period - July 5, 2009 to March 31, 2010. If the Participant was made operational on June 26, 2009 then it should submit its first IAR for period - June 26, 2009 to September 30, 2009.

3.

Participants may note that submission of 'Concurrent Audit' report prescribed vide Circular No. NSDL/POLICY/2006/0021 dated June 24, 2006 is in addition to the requirement of submission of IAR. Participants may also note that if internal audits and concurrent audits are being done by same auditor, then a consolidated report can be submitted instead of two separate reports. If concurrent audit report is to be submitted separately, frequency of such report shall be same as that of IAR. As prescribed vide Circular No. NSDL/POLICY/2006/0021 dated June 24, 2006, scope of concurrent audit includes account opening, control and verification of Delivery Instruction Slips (DIS). Concurrent audit for all these areas should be done by the next working day. If audit cannot be completed by next working day due to large volume, it must be completed within a week. The concurrent audit report must cover these areas. The guidelines provided in Annexure 1 for above areas are applicable for concurrent audit also. Participants are hereby informed that internal and/or concurrent audit reports which are not as per guidelines will be treated as non submission of the report. NSDL reserves the right to advise a Participant to change it's auditor if quality of the report is not satisfactory or the audit is not carried out as per guidelines. Participants are advised to note that the guidelines provided in this circular are applicable from October 1, 2008. The Participants may submit audit reports for July - September 2008 quarter as per the guidelines existing prior to issuance of this circular, on or before December 31, 2008. First half yearly audit should be conducted for period October 1, 2008 to March 31, 2009 and report for this audit should be submitted to NSDL latest by May 15, 2009. A training program shall be conducted shortly for internal / concurrent auditors by NSDL. Schedule and details of the program shall be communicated later. Participants may advise their auditors to take benefit of the program. Participants may encourage their auditors to acquire NCFM - Depository module qualification.

4.

5.

6.

7.

8.

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Annexure 1 A. Objectives of internal audit: The following are the broad objectives of` internal audit for depository operations (a) To assure the management that the operations of the Participant are in compliance with the requirements of The Depositories Act, 1996, SEBI (Depositories & Participants) Regulations, 1996, NSDL Bye Laws and Business Rules, its agreement with the Client and NSDL and various circulars issued by NSDL from time to time. To assure management that the DPM is managed and maintained in a manner that there is no threat to business continuity, integrity of data processing system is maintained at all times and methods are put in place to ensure that records are not lost, destroyed or tampered with or in the event of loss or destruction of data, sufficient backup of records is available at all times. To assure management that the capacity of computer system, staff strength and internal procedures are commensurate with the level of business activity. To assure management and NSDL that the business operations of the Participant are conducted in a manner that the foreseeable risks are addressed with appropriate internal control mechanism. To assure management that the operations are conducted in a manner that there is no loss of revenue and receivables are received promptly. To assure management and NSDL that the business operations of the Participant are conducted as per the operations manual and in strict adherence with NSDL prescribed procedures.

(b)

(c)

(d)

(e)

(f)

B.

Audit program: Internal audit program should cover all facets of the depository operations. Auditor may expand the scope of audit / add more audit points to achieve the objectives listed above. Participants are advised to extend full cooperation to their auditors to enable them to perform an effective audit. All circulars / guidelines issued by NSDL / SEBI from time to time and other information / records desired by the auditors should be made available to them within a reasonable time. IAR must contain auditor's observation on all the audit points given below: 1. Operations Manual The Operations Manual prepared by the Participant should be reviewed by the auditor. The Operations Manual should have organization chart showing hierarchy of the staff members involved in depository activities, a chart showing accountability at each level, segregation of duties, maintenance of records and documents, procedure to be followed for reporting exceptional issues related to systems (e.g. problem in hardware or any component of hardware/ software, backup, UPS, telephone line, reducing hard disk space, decreasing speed of machine, etc.) and operations (e.g. failure in executing delivery instructions, failure of transactions leading to auction of clients, delay in confirmation back to clients, loss of certificates sent for demat, frauds, misappropriation of securities

[ 319 ]

etc.), procedure to comply with the requirements related to antimoney laundering, Compliance Certificate etc. Auditor shall certify 1.1. Whether Operations Manual covers all depository activities? 1.2. Whether the Operations Manual is updated as and when required? 1.3. Whether the Operations Manual is available to persons who need to refer it? 1.4. Whether procedures mentioned in the Operations Manual are followed? 1.5. Whether there are procedures / systems in place to ensure compliance with guidelines? Auditor may refer following circulars: a) Circular No. NSDL/POLICY/2006/0025 dated July 6, 2006Submission of information to Financial Intelligence UnitIndia (FIU-IND) under Prevention of Money Laundering Act, 2002 (PMLA). Circular No. NSDL/POLICY/2007/0017 dated March 22, 2007- Important-Mandatory comments in IAR and Clarification for Concurrent Audit Report. Circular No. NSDL/POLICY/2007/0039 dated July 11, 2007 - Amendment to the Rules framed under the PMLA. Circular No. NSDL/POLICY/2007/0055 dated September 25, 2007- Submission of details of all places from where depository services are offered and approval of new branches and franchisees in the prescribed format. Circular No. NSDL/POLICY/2008/0003 dated January 17, 2008- SEBI's advise to Depositories and its Participants on Compliance with PMLA and Rules framed there-under. The auditor should review the Operations Manual atleast once in a year (in first half yearly audit) and provide his comments in report. If the Participant has not prepared the Operations Manual, auditor should mention this fact in the report and management comments should be obtained. 2. Anti Money Laundering 2.1. Whether the Participant has complied with the relevant laws, rules and instructions on Anti Money Laundering? While commenting on this area, auditor shall also mention whether the Participant has drawn up a policy for implementation of Anti-Money Laundering mechanism and has appointed a 'Principal Officer'. If the Participant has not drawn up a policy and/or has not appointed a Principal Officer, auditor shall mention this fact in the report and management comments shall be obtained. Auditor may refer following circulars: a) Circular No. NSDL/POLICY/2006/0025 dated July 17, 2006Submission of information to FIU-IND under PMLA.

b)

c) d)

e)

[ 320 ]

b)

Circular No. NSDL/POLICY/2007/0017 dated March 22, 2007- Important-Mandatory comments in IAR and Clarification for Concurrent Audit Report. Circular No. NSDL/POLICY/2007/0039 dated July 11, 2007Amendment to the Rules framed under the PMLA. Circular No. NSDL/POLICY/2008/0003 dated January 17, 2008- SEBI's advice to Depositories and its Participants on Compliance with PMLA and Rules framed there-under. Circular No. NSDL/POLICY/2008/0052 dated July 26, 2008 Filing of Suspicious Transaction Report (STR) to FIU-IND under PMLA.

c) d)

e)

3.

Audit of Account opening 3.1 Whether the Participant has undertaken necessary due diligence to comply with the 'Know Your Client' (KYC) norms, 'in-person' verification, maintenance of records of 'in-person' verification, Permanent Account Number (PAN) verification, verification of original documents, etc., as prescribed by SEBI / NSDL for all categories of accounts? Auditor may refer following circulars: a) b) c) Circular No. NSDL/PI/2001/1307 dated August 27, 2001Speed-e accounts. Circular No. NSDL/POLICY/2006/0005 dated February 7, 2006- KYC compliance. Circular No NSDL/POLICY/2007/0071 dated November 12, 2007- Modification of Account Opening Form & DIS Incorporation as per FIU-IND under PMLA guidelines. Circular No. NSDL/POLICY/2007/0077 dated December 19, 2007- Master Circular on 'Account Opening' - Version 1. Circular No. NSDL/POLICY/2008/0018 dated March 24, 2008- Guidelines on opening of Trust accounts. Circular No. NSDL/POLICY/2008/0030 dated April 30, 2008SEBI's clarification on 'In-person' verification of Beneficial Owner (BO) at the time of account opening. Circular No. NSDL/POLICY/2008/0037 dated May 27, 2008Clarification on acceptance of copy of the bank statement as proof of address. Circular No. NSDL/POLICY/2008/0040 dated June 4, 2008Clarification with respect to capturing of landmark details under the address field in the DPM.

d) e) f)

g)

h)

3.2 Whether data entered in DPM is exactly matching with the details mentioned in the account opening form? 3.3 Whether signature of the client on the account opening form is exactly same as that scanned in DPM? (Circular No. NSDL/ POLICY/2007/0002 dated January 4, 2007). For points 3.2 and 3.3 above, auditor should randomly verify data entered in the DPM and the signature(s) of the client(s) scanned vis a vis the details in the account opening form(s).

[ 321 ]

Auditor shall record the findings in following manner: i) ii) Number of accounts verified: Number of accounts where signature scanned and/or data entered matches:

iii) Number of accounts where signature and /or data entered do not match: 3.4 Whether PAN is verified and captured in DPM as per prescribed procedure? (Circular No.NSDL/POLICY/2007/0026 dated May 10, 2007). 3.5 Whether the Participant has executed utilities provided by NSDL at regular intervals and has taken necessary actions? (Circular Nos.NSDL/POLICY/2006/0042, NSDL/POLICY/2006/0047, NSDL/ POLICY/2006/0057 dated September 23, 2006, October 16, 2006 and November 24, 2006 respectively). 4. Audit of changes in Client Master details 4.1 Whether changes in Client Master details (i.e. change of address, change of signature and change in bank details / Nomination / Transmission / Closure / Freezing / Unfreezing etc.) are being done as per prescribed procedure? Auditor may refer following circulars: a) b) c) d) Circular No. NSDL/PI/2002/0365 dated March 4, 2002Closure of account with Zero Balances. Circular No. NSDL/PI/2002/2175 dated December 18, 2002Closure of account wherein request received on Plain Paper. Circular No. NSDL/PI/2003/0309 dated February 22, 2003Closure of account wherein demat is pending. Circular No. NSDL/POLICY/2006/0068 dated December 29, 2006- Closure of account with zero balance after December 31, 2006 that are frozen due to non compliance of PAN requirements. Circular No. NSDL/POLICY/2007/0005 dated January 18, 2007- Clarification- Obtaining/Capturing of PAN details in the DPM in case of transmission in depository account. Circular No. NSDL/POLICY/2007/0006 dated January 23, 2007- Capturing of PAN details in the DPM in case of transmission in depository account. Circular No. NSDL/POLICY/2007/0030 dated June 18, 2007Requirement of submission of Transaction Statement for various depository related activities. Circular No. NSDL/POLICY/2007/0077 dated December 19, 2007- Master Circular on 'Account Opening' - Version 1 Circular No. NSDL/POLICY/2008/0034 dated May 21, 2008Procedure to be followed by Participants on Minor attaining majority. CircularNo.NSDL/POLICY/2008/0040 dated June 4, 2008 Clarification with respect to capturing of landmark details under the address field in the DPM System

e)

f)

g)

h) i)

j)

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k)

Circular No. NSDL/POLICY/2008/0066 dated September 29, 2008-Deadline for closure of PAN non-compliant BO accounts with no security balances.

4.2 Whether the Participant has collected the requisite documents to claim waiver of settlement fees consequent to transfer of securities with respect of SEBI directive on account closure? (Circular No. NSDL/POLICY/2007/0060 dated October 5, 2007). 5. Audit of demat requests 5.1. Whether demat requests received are sent to Issuer/ Registrar & Transfer agent within seven days from the date of receipt of the request from the clients? 5.2. Whether controlling office/service centers have a provision for safekeeping of security certificates received from clients for dematerialisation and security certificates received after rejection of the demat request from Issuer/Registrar & Transfer Agent? 6. Audit of delivery instructions 6.1. Whether prescribed guidelines are followed for issuance, acceptance and execution of instruction slips (including Interdepository instruction slips and Pledge slips)? 6.1.1. Issuance of DIS The procedure followed by the Participants for a) b) Issuance of DIS booklets to clients including loose slips. Existence of controls on DIS issued to clients including pre-stamping of Client Id and unique preprinted serial numbers. Record maintenance for issuance of DIS booklets (including loose slips) in the back office.

c)

6.1.2. Verification of DIS The procedure followed by the Participants for a) b) c) d) Date and time stamping (including late stamping) on instruction slips. Blocking of used/reported lost/stolen instruction slips in back office system / manual record. Blocking of slips in the back office system / manual record which are executed in DPM directly. Two step verification for a transaction for more than Rs. 5 lakh especially in case of off-market transactions. Instructions received from dormant accounts. Auditor may refer following circulars: a) b) Circular No. NSDL/PI/98/519 dated October 13, 1998- Date and time stamping. Circular No. NSDL/PI/2002/0740 dated May 9, 2002- Fax instructions.

e)

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c)

Circular No. NSDL/PI/2003/0406 dated March 7, 2003 & Circular No. NSDL/PI/2004/1911 dated October 21, 2004- Late stamping. Circular No. NSDL/PI/2004/1401 dated August 5, 2004- Guidelines on issuance/re-issuance and acceptance of DIS. Circular No. NSDL/POLICY/2007/0011 dated February 15, 2007- SEBI circular on safeguards to address the concerns of the investors on transfer of securities in dematerialized mode. Circular No. NSDL/POLICY/2007/0030 dated June 18, 2007- Requirement of submission of Transaction Statement for various depository related activities. Circular No NSDL/POLICY/2007/0071 dated November 12, 2007- Modification of Account Opening Form & DIS - Incorporation of details as per FIU-IND under PMLA guidelines. Circular No. NSDL/POLICY/2008/0002 dated January 11, 2008- Procedure for execution of transactions based on receipt of electronic instructions. Circular No. NSDL/POLICY/2008/0004 dated January 24, 2008- Facility for submitting consolidated DIS accompanied by computer print-outs by Power of Attorney holder on behalf of its Clients. Circular No. NSDL/POLICY/2008/0011 dated February 29, 2008- SEBI circular on safeguards to address the concerns of the investors on transfer of securities in dematerialized mode.

d)

e)

f)

g)

h)

i)

j)

7.

Audit of other transactions/services 7.1. Whether transaction statements are provided to the clients as per prescribed guidelines? 7.1.1. Whether the transaction statements are generated from back office or DPM? 7.1.2. If generated from back office, whether the details match with statement generated from DPM? Auditor may refer following circulars: a) b) c) Circular No. NSDL/PI/2000/103 dated January 31, 2000- Format of transaction statement. Circular No. NSDL/PI/2002/0398 dated March 7, 2002- Transaction statement through internet. Circular No. NSDL/PI/2003/0308 dated February 22, 2003- RBI directive on providing Transaction Statement to Bank clients. Circular No. NSDL/PI/2004/1104 dated June 21, 2004- Footnote in transaction statement sent to client.

d)

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e)

Circular No. NSDL/PI/2004/1514 dated August 24, 2004- Exemption from giving hard copies of transaction statements to BO by Participants. Circular No. NSDL/PI/2004/2291 dated December 23, 2004- Features to be incorporated in back office "client type" and "client sub type". Circular No. NSDL/PI/2005/1692 dated September 9, 2005- Conditions for Exemption from sending transaction statements. Circular No. NSDL/PI/2005/2088 dated October 28, 2005- Dispatch of transaction statement. Circular No. NSDL/POLICY/2006/0010 dated March 24, 2006- Exemption from sending physical transaction statement to subscribers of IDeAS. Circular No. NSDL/POLICY/2006/0014 dated May 11, 2006- Providing Statement of transaction to BO consequent to account closure. Circular No. NSDL/POLICY/2008/0036 dated May 21, 2008- Providing Transaction Statements to clients by email or on website.

f)

g)

h) i)

j)

k)

8.

Audit of branch / franchisee 8.1. Whether depository related activities carried out by branch / franchisee (whether offering the services as a service centre, collection centre, drop box centre or called by any other name) are in accordance with procedure/system explained in Operations Manual? Auditor may visit the branches / franchisees and ensure compliance of the same. (Circular No. NSDL/PI/ 2005/2088 dated October 28, 2005). 8.2. Whether NCFM qualified person is available at each branch / franchisee? If no, then the number of branches/franchisees where qualified person is not available should be mentioned in the report? (Circular No. NSDL/POLICY/2007/0067 dated November 1, 2007). 8.3. Whether NSDL's approval has been obtained for all the branches / franchisees opened during the audit period? 8.4. Whether the prescribed procedure has been followed for any branch / franchisee closed / terminated during the audit period? (Circular no. NSDL/PI/2002/0346 dated February 26, 2002). 8.5. Whether the branches / franchisees handling more than 5000 accounts have direct electronic connectivity with the office of the Participant, which is directly connected to the Depository? (Circular No. NSDL/POLICY/2007/0055 dated September 25, 2007). 8.6. Which methodology is adopted by the Participant with respect to records maintained pertaining to each depository activity (Account opening forms, DIS, DIS requisition slips, DIS issuance register, etc.)? Auditor shall comment 'centralised' if records are maintained at controlling office and 'decentralised' if records are maintained at various centres. Auditor shall list

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down each activity with methodology of record keeping commented against it. 9. Back office software 9.1. Whether there is a mechanism in place whereby the balances as per back office system are reconciled on a daily basis with the DPM? (Circular no. NSDL/PI/2005/2088 dated October 28, 2005). 10. Audit of DPM Procedures 10.1. Whether necessary measures have been adopted as per Circular No. NSDL /PMC/Email- 62/05 dated May 3, 2005 to ensure business continuity of the Participant? (Circular No. NSDL/PI/ 2005/1898 dated October 5, 2005). 11. Audit of Client Billing Auditor may refer Circular No. NSDL/PI/2005/2392 dated December 6, 2005. 12. Exceptional Reporting 12.1. In addition to above mentioned points, auditor shall verify all other depository related operational areas including supplementary agreements/power of attorney executed with clients, handling of investor grievances, records and documents maintained, format of stationery, information on timely submission of reports/dues, etc. and shall submit only an exceptional report with a statement that "All other operational areas have been verified and found satisfactory and the exceptions are mentioned hereunder". Report shall point out findings and conclusions, recommendations, reservations, qualifications, areas where internal controls are weak/do not exist, areas where internal controls exist, but exceptions are observed. C. Audit report: In addition to comments on above-mentioned 12 mandatory audit points, the audit report should also contain the following: 1. A certification by the auditor that a. b. 100% verification is carried out for demat account opening (i.e. all accounts opened during the audit period). 100% verification is carried out for controls over issuance of DIS booklets including loose slips (all DIS issued from controlling office and all branch / franchisees). At least 25% of the DIS processed is verified (Circular no. NSDL/ POLICY/2006/0021 dated June 24, 2006 and NSDL/POLICY/ 2007/0017 dated March 22, 2007). Auditor shall mention the exact percentage of samples verified.

c.

2. 3. 4.

Samples verified for other depository activities such client master changes, demat requests, pledge instructions etc. If any major/significant deviations and deviations of recurring nature are observed, then these should be highlighted in the audit report. If the observation is in the nature of a deviation or a recommendation, management response should be sought and

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recorded in the report. (Circular No. NSDL/PI/2001/0467 dated April 4, 2001). 5. Comments by the auditor on whether the Participant has complied with all the observations noted during last NSDL visit. (Circular No. NSDL/PI/2001/0847 dated June 15, 2001). Comment on the issues for which NSDL has specifically sought auditor's certification to be included in IAR. Comment by auditor on whether there were any pending compliances on deviations reported by auditor in last audit report on which management has assured to take necessary action, if yes, whether same has been complied with. If no, auditor should highlight on the deviations which continue to be non-complied. Comments on improvements made in the operations since last audit. (Circular No. NSDL/PI/2001/0847 dated June 15, 2001). Approximate man hours spent and level of persons engaged in this work.

6. 7.

8. 9.

10. A statement by the auditor that this circular was read, understood and the IAR is based on the guidelines given in this circular. 11. A statement by the auditor that the auditor is neither related to officials of the Participant and/or does not have any interest in the management of the Participant nor has any partner/proprietor in the firm who is also a Participant official. 12. Auditor's membership number should be mentioned at the end of the report. It may be noted that for the purpose of compliance with Bye Law 10.3 of NSDL, the audit must be conducted in accordance with the aforesaid guidelines. The circulars referred above under various head are indicative and not exhaustive. Circular No. NSDL/POLICY/ 2007/0017 Date: March 22, 2007 Sub : Important-Mandatory comments in Internal Audit Report and Clarification for Concurrent Audit Report. Attention of Depository Participants (DPs) is invited to revised NSDL Circular no. NSDL/POLICY/2006/0027 dated July 17, 2006 regarding guidelines in respect of internal audit of the Depository Participant (DP) operations. In this regard, some of the important areas of Internal Audit Report are reiterated for the attention and necessary action to be initiated by DPs: 1) (I) Internal Audit Report (IAR) Compliance with regard to submission of IAR in revised format and comment on compliance letters sent by NSDL: a) b) IAR should be submitted strictly as per the revised format given in NSDL Circular No. NSDL/POLICY/2006/0027 dated July 17, 2006; Auditor has to comment on the issues for which NSDL vide its compliance letters has specifically asked for auditor's certification. Non-compliance with the point nos. (I) a and b will be considered as non-submission of IAR and penalty will be levied accordingly.

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(II)

Audit Points to be included in IAR with effect from quarter ending December 2006: a) The auditor should mandatorily comment on the execution of utilities and the action taken by the DPs with respect to NSDL Circular Nos. NSDL/POLICY/2006/0042,NSDL/POLICY/2006/0047, NSDL/POLICY/2006/0057 dated September 23, 2006, October 16, 2006 and November 24, 2006 respectively. Report on the signature(s) matched and deviation found, if any, with respect to signature(s) of the Client(s) scanned in the DPM Application Software against the signature(s) on the account opening form(s) (Refer Circular No. NSDL/POLICY/2007/0002 dated January 4, 2007). DPs are advised to inform their internal auditors to add the following area to point no. 6. Audit of Service Centres of Circular no. NSDL/POLICY/2006/0027 dated July 17, 2006: Point No. 6. regarding Audit of Service Centres: 6.3. Certify that franchisee outlet(s) has / have been opened by the Depository Participant pursuant to NSDL approval. These audit points should be included in the IAR with effect from quarter ending December 2006 to be submitted by March 31, 2007.

b)

c)

(III)

Mandatory comments required by Internal Auditor in IAR It has been observed that in the IAR submitted for the quarter ending September 2006, internal auditors have not commented or audit report has not been found in order as mentioned in the circular no. NSDL/ POLICY/2006/0027 dated July 17, 2006 in certain areas such as availability of operational manual, Anti Money Laundering Measures adopted by the DP, exception reporting etc. In view of the deficiencies observed, it is reiterated that all DPs are advised to communicate to their internal auditor to mandatorily comment upon the given below areas as mentioned in revised circular no. NSDL/POLICY/2006/0027 dated July 17, 2006: a) b) Certify the operation manual covering all depository activities of the DP, ensuring compliance with relevant NSDL guidelines; Compliance related with the relevant laws, rules and instructions on Anti Money Laundering Measures (Refer Circular No. NSDL/ POLICY/2006/0025 dated July 17, 2006); Exceptional reporting; Improvements brought about in the operations between the last audit and the current audit; Management comment on the deviations pointed out by the internal auditor; DP's compliance with all observations noted during NSDL visit.

c) d) e) f) 2)

Clarification regarding Concurrent Audit Report (CAR) Attention of DPs is invited to NSDL Circular no. NSDL/POLICY/2006/

[ 328 ]

0021 dated June 24, 2006 regarding Concurrent Audit of account opening, control and verification of Delivery Instruction Slips (DIS). DPs have sought clarification whether the requirement of 100% Concurrent Audit applies to control and verification of DIS as well. It is clarified as follows: (a) (b) 100% verification needs to be carried out only in respect of account opening. As regards Delivery Instruction Slips (DIS) : (i) auditor should carry out 100% verification with respect to control over issuance and acceptance of DIS booklets including loose slips; however with respect to verification (execution and processing) of DIS, auditor should verify atleast 25% of the DIS processed. The sample percentage checked in this regard should be mentioned in the CAR. Deviation and/or non-compliance observed in the aforesaid areas should be mentioned in the CAR by the Concurrent Auditor. The top Management of the DP should comment on the observations made by the Concurrent Auditor. (3) Consolidated report for CAR and IAR, in case auditor is the same entity: If the Auditor for Internal and Concurrent Audit is the same entity, consolidated report should be submitted on quarterly basis (time frame for submission CAR and IAR is mentioned in Circular No. NSDL/POLICY/2006/0027 dated July 17, 2006). Circular No. NSDL/POLICY/ 2006/0021 Date : June 24, 2006 Sub : Concurrent Audit - Account opening, Control and Verification of Delivery Instruction Slips Attention of Participants is invited to NSDL Circular no. NSDL/PI/2002/1271 dated July 30, 2002 regarding the scope of internal audit and subsequent amendments / modifications intimated vide various circulars from time to time. All Participants are advised that w.e.f. August 1, 2006, the process of demat account opening, control and verification of Delivery Instruction Slips (DIS) shall be subject to Concurrent Audit. In this regard, Participants are advised as follows: 1. Appoint a firm of qualified Chartered Accountant(s) or Company Secretary(ies) holding a certificate of practice for conducting the concurrent audit. Participants in case they so desire, may entrust the concurrent audit to their Internal Auditors. In respect of account opening, the auditor should verify all the documents including KYC documents furnished by the Clients and verified by the officials of the Participant (Refer Circular Nos. NSDL/PI/2002/ 1271 dated July 30, 2002, NSDL/PI/2004/1622 dated September 7, 2004, NSDL/POLICY/2006/0005 dated February 7, 2006 and NSDL/POLICY/ 2006/0007 dated March 3, 2006). The scope of concurrent audit with respect to control and verification of DIS should cover the areas given below: Issuance of DIS

(ii)

2.

3. (I)

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The procedure followed by the Participants with respect to : (a) (b) (c) (II) Issuance of DIS booklets including loose slips. Existence of controls on DIS issued to Clients including prestamping of Client Id and unique pre-printed serial numbers. Record maintenance for issuance of DIS booklets (including loose slips) in the back office.

Verification of DIS The procedure followed by the Participants with respect to : (a) (b) (c) (d) (e) Date and time stamping (including late stamping) on instruction slips; Blocking of used/reported lost/stolen instruction slips in back office system / manual record. Blocking of slips in the back office system / manual record which are executed in DPM directly. Two step verification for a transaction for more than Rs. 5 lakh, especially in case of off-market transactions. Instructions received from dormant accounts. In this regard, Participants are requested to refer Circular Nos. NSDL/PI/2002/1271 dated July 30, 2002 and NSDL/PI/2004/1401 dated August 5, 2004.

4.

The Concurrent Auditor should conduct the audit in respect of all accounts opened, DIS issued and controls on DIS as mentioned above, during the day, by the next working day. In case the audit could not be completed within the next working day due to large volume, the auditor should ensure that the audit is completed within a week's time. Any deviation and/or non-compliance observed in the aforesaid areas should be mentioned in the audit report of the Concurrent Auditor. The Management of the Participant should comment on the observations made by the Concurrent Auditor. The Concurrent Audit Report should be submitted to NSDL, on a quarterly basis, in a hard copy form, at the address given hereunder. Further, the time frame for submission of concurrent audit would be same as mentioned in our Circular No. NSDL/PI/2002/1271 dated July 30, 2002. However, the first concurrent audit report for the month of August and September 2006, should be submitted alongwith Internal Audit report for the quarter ending September 2006. The Vice President Business Partners Inspection Department National Securities Depository Limited Trade World, A-Wing, 5th floor Kamala Mills Compound Senapati Bapat Marg Lower Parel Mumbai - 400 013.

5.

6.

7.

Participants may note that if the Auditor for Internal and Concurrent Audit is the same, consolidated report may be submitted.

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Circular No. NSDL/PI/2000/515 Date : April 20,2000

Attention of all Participants is invited to Bye Law 10.3 of the Bye Laws of NSDL which states that every Participant shall ensure that an internal audit shall be conducted in respect of the operations of the Depository by a qualified Chartered Accountant or a Company Secretary holding a Certificate of Practice at intervals of not more than three months and a copy of the internal audit report shall be furnished to the Depository. Attention is also invited to Circular No. NSDL/PI/98/51 dated February 6, 1998 wherein the schedule for submission of internal audit reports and broad contents of internal audit report were specified. SEBI (Depositories and Participants) Regulations, 1996, require that every Participant should have adequate mechanism for the purpose of reviewing, monitoring and evaluating internal controls and systems. Further, the Regulations also require certain set of records to be maintained by every Participant. It is expected that internal audit is conducted with the objective of assuring the Participant that the unmanaged residual risk in the business operations is minimum, operations are in compliance with the requirements of SEBI (Depositories & Participants) Regulations, 1996, NSDL's Bye Laws, Business Rules and the agreement with the clients. On the basis of inspection of the operations of the participants over the past two years and the review of internal audit reports submitted by participants, it is found necessary to state in detail the objectives and the contents of an internal audit report.

Internal Audit - Management comments Circular No. NSDL/PI/2001/0467 Date : April 4, 2001 Attention of all Participants is invited to our Circular No. NSDL/PI/2000/515 dated April 20, 2000 regarding objectives and contents of an internal audit report. Participants are hereby informed that the internal audit reports which do not have management comments on the adverse observations made by auditors will be treated as non submitted reports and penalty will be imposed on the Participants accordingly

c. Grievance Redressal Clause 24 of NSDL-DP Agreement The Participant shall resolve any investor grievance which has been received against the Participant or NSDL and submit a report of the grievances resolved to NSDL and Securities and Exchange Board of India in accordance with the period stipulated in the Securities and Exchange Board of India (Depositories & Participants) Regulations, 1996

Grievance redressal - Reporting Circular No. NSDL/POLICY/ 2010/0040 Date: April 19, 2010 Sub: Revision of Investor Grievance Report Format This is further to Circular Nos. NSDL/PI/98/500 dated October 6, 1998, NSDL/ PI/2001/0191 dated January 31, 2001, NSDL/PI/2003/1871 dated November 25, 2003, NSDL/PI/2004/0183 dated January 29, 2004 and NSDL/PI/2004/1688 dated September 16, 2004 relating to submission of Investor Grievance Reports (IGRs) by Participants for a particular month by 10th of the following month, in a specified format. All Participants are hereby informed that :1. IGR format has been revised and enclosed as Annexure. The IGR in revised format is to be submitted by the Participants from April 2010 onwards i.e. IGR in new format for the month of April 2010 has to be submitted to NSDL by May 10, 2010.

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2.

IG Report may be forwarded electronically i.e. via email at dp_igreport@nsdl.co.in from the email ID of the Compliance Officer. Alternatively, the report can be submitted in hard copy. Where the Participants have not received any grievance / complaint in a given month, a nil report should be submitted to NSDL. Annexure

3.

INVESTOR GRIEVANCE REPORT FORMAT FOR PARTICIPANT DP Name: IG Report for the month of Nature of Complaint No of No of No of Manner cases cases cases of pending received resolved Redressal at the during the during the (Letter / beginning month month E-mail of the month etc.) (1) Account Opening Related Denial in opening an account Account opened in another name than as requested Non receipt of Demat Account Opening Kit Delay in activation/ opening of account Non Receipt of copy of DP Client Agreement/ Schedule A of Charges Demat/remat Related Delay in Dematerialisation request processing Delay in Rematerialisation request processing Non Acceptance of demat/remat request Transaction Statement Related (2) (3) (4) No of cases pending at the end of the month (5) = (1+2-3) No of Reason cases for pending pendency for more as than shown in 30 days column(6) (6) (7) DP Id:

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Nature of Complaint

No of No of No of Manner cases cases cases of pending received resolved Redressal at the during the during the (Letter / beginning month month E-mail of the month etc.) (1) (2) (3) (4)

No of cases pending at the end of the month (5) = (1+2-3)

No of Reason cases for pending pendency for more as than shown in 30 days column(6) (6) (7)

Delay in/ NonReceipt of Statements Discrepancy in transaction statement Improper Services Related Insistence of Power of Attorney in its favour. Deactivation/ Freezing/ Suspension related Defreezing related Transmission related Pledge related SMS related Non-updation of changes in account (address/ signatories/bank details/ PAN/ Nomination etc.) Charges Related Charges levied for Opening/ closure of Account Charges paid but not credited Wrong/ Excess Charges Delivery Instruction Related Non acceptance of DIS for transfer Delay in/ non Execution of DIS Delay in Issuance / Reissuance of DIS Booklet Account Closure Related

[ 333 ]

Nature of Complaint

No of No of No of Manner cases cases cases of pending received resolved Redressal at the during the during the (Letter / beginning month month E-mail of the month etc.) (1) (2) (3) (4)

No of cases pending at the end of the month (5) = (1+2-3)

No of Reason cases for pending pendency for more as than shown in 30 days column(6) (6) (7)

Non closure/ delay in closure of account Closure of a/c without intimation by DP Manipulation/ Unauthorised action Related Unauthorised Transaction in account Manipulation Unauthorised changes in account (address/ signatories/bank details/ PAN/ Nomination etc.) Erroneous Transfer Company/RTA related Action Cash Action Non Cash Initial Public Offer/ Follow-on Public Offer Related Others (Specify) Total Circular No. NSDL/PI/2003/1871 Date : November 25, 2003 Attention of Participants is invited to Bye Law 6.3.6 (iii) of the Bye Laws of NSDL which requires every Participant to submit to the Depository a report giving number of complaints received from Clients, nature of complaints, status and manner of redressal, every month (latest by 10th of the following month). Participants are hereby informed that with effect from January 1, 2004, the aforesaid report can be submitted to NSDL either electronically (via e-mail) or in hard copy form. Such details can be e-mailed to NSDL at dp_igreport@nsdl.co.in. For submitting the reports electronically, we advise the Participants to provide the e-mail Id of the compliance officer to NSDL and ensure that the report is submitted only from the e-mail Id of that person. All Participants are therefore advised to provide e-mail Id's of compliance officers latest by December 1, 2003.

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Circular No. NSDL/PI/2001/0191 Date: January 31, 2001

With reference to our Circular No. NSDL/PI/98/500 dated October 6, 1998, attention of all Participants is once again invited to Regulation 20(2)(e) of SEBI (Depositories and Participants) Regulations, 1996 which states that the Participant shall redress the grievances of beneficial owners within thirty days of the date of the receipt of the complaint and keep the Depository informed about the number and the nature of redressals. Attention is also invited to Bye Law 6.3.6 (iii) of NSDL Bye Laws which states that the Participant shall submit to the Depository the number of complaints received from Clients, their nature, status and manner of redressal once every month. Participants are advised to submit this report every month to Mr. Harpinder Saini, Officer-In-Charge, Investor Grievance Cell, NSDL latest by 10th of the following month. In case there are no grievances, a nil report should be submitted.

Circular No. NSDL/PI/98/500 Date : October 6, 1998

Attention of all Participants is invited to Regulation 20(2)(e) of SEBI (Depositories and Participants) Regulations, 1996 which states that the participant shall redress the grievances of beneficial owners within thirty days of the date of the receipt of the complaint and keep the depository informed about the number and the nature of redressals. Attention is also invited to Bye Law 6.3.6 (iii) of NSDL Bye Laws which states that the Participant shall submit to the Depository the number of complaints received from Clients, their nature, status and manner of redressal once every month. Participants are advised to submit this report every month to Mr. Harpinder Saini, Officer-In-Charge, Investor Grievance Cell, NSDL on or before 10th of the following month. In case there are no grievances, a nil report should be submitted.

d. Termination of Participant Procedure- Termination of Participant Bye Laws 6.5.4 (viii) The Participant, upon cancellation of the certificate of registration by the Securities and Exchange Board of India, shall issue a public notice in one national English daily newspaper and in one vernacular daily newspaper, informing the public about the closure of its depository operations. In case of termination of operations of the Participant by the Depository, such public notice may be issued by the Depository at the cost of the Participant

e. SEBI Annual Fees Schedule of payment of SEBI Annual Fees Circular No. NSDL/PI/2003/0021 Date: January 3, 2003 Attention of Participants is invited to Regulation 20(2)(f) of the Securities and Exchange Board of India (Depositories and Participants) Regulations, 1996 and Part A and Part B of the second schedule thereunder, regarding payment of annual fees of Rs. 1000/- by Participants to Securities and Exchange Board of India (SEBI). At present, NSDL collects this fee by way of banker's cheque/demand draft for Rs. 1000/- in favour of "Securities and Exchange Board of India" and forwards the same to SEBI in April and October every year. Participants are hereby informed that SEBI annual fees will be included in the bill of February 2003 (in case of Participants registered with SEBI between October and March) and

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August 2003 (in case of Participants registered with SEBI between April and September) for onward remittance to SEBI. f. Information to SEBI Weekly demat information to SEBI not to be furnished Circular No. NSDL/PI/2003/2056 Date : December 20, 2003 SEBI has vide its circular no. SEBI/MRD/DEP/Cir-44/2003 dated December 12, 2003 informed NSDL that henceforth, Participants need not furnish the information to SEBI as prescribed in SEBI circular no. SMDRP/DRP/Cir-30/99 dated August 25, 1999 regarding processing of application for dematerialisation. Participants are advised to take note of the same.

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NOTES

[ 337 ]

NOTES

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7. Grievance Redressal
Regulation 20 (1) (e) The participant shall redress the grievances of beneficial owners within thirty days of the date of receipt of the complaint and keep the depository informed about the number and the nature of redressals Nature of Non-Compliance Non-submission of monthly report of Client Complaints as required under Bye Law 6.3.6 (iii) to be submitted every month (latest by 10th of the followina month). Bye Law 14.3.5 Penalty Rs.500 per month.

Business Rule 18.1.1(30)

All claims, differences or disputes referred to in this Chapter shall be submitted to arbitration within six months from the end of the quarter of the date from which the claim, difference or dispute arose or shall be deemed to have arisen. The time taken in conciliation proceedings, if any, initiated and conducted as per the provisions of the Act and the time taken to administratively resolve the claims, differences or disputes shall be excluded for the purpose of determining the period of six months. Provided that in cases where after examining sufficient documentary proof submitted by the party for not filing the arbitration case within the limitation period, the Depository considers that the reasons for delay were indeed beyond the control of the party, the limitation period can be extended in those cases for a further period of three months by the Depository after recording the reasons for the same in writing.

Clause 16 of DPClient Agreement

The Depository Participant undertakes to resolve all legitimate grievances of the Client against the Depository Participant within a period of thirty days.

SEBI Circular - Exclusive E-mail Id for redressal of Investor Complaints Circular No. NSDL/POLICY/ 2010/0064 Date: June 18, 2010 Sub: Disclosure of regulatory orders and arbitration details on Depository website Attention of Participants is invited to SEBIs Circular No. CIR/MRD/DP/19/2010 dated June 10, 2010 (copy enclosed) regarding disclosure of regulatory orders and arbitration awards issued by depository on depositorys website. Participants are requested to take note of the same. Circular No. Sub: Disclosure of investor complaints and arbitration details on NSDL/POLICY/ Depository website 2010/0018 Attention of Participants is invited to SEBI's Circular No. SEBI/MRD/OIAE/ Date: February 23, 2010 Dep/Cir- 4/2010 dated January 29, 2010 (copy enclosed) regarding disclosure of details of complaints lodged by investors (Beneficiary Owners) against Participants including details pertaining to arbitration and penal action against the Participants on depository's website. Participants are hereby informed that such details will henceforth be displayed on NSDL's website. Annexure Deputy General Manager Market Regulation Department Division of Policy E-mail: harinib@sebi.gov.in SEBI/MRD/ OIAE/ Dep/ Cir- 4/2010 January 29, 2010 1. 2. The Managing Director and CEO, NSDL The Managing Director and CEO, CSDL

[ 339 ]

Dear Sir / Madam, Sub: Disclosure of investor complaints and arbitration details on Depository website 1. SEBI has received feedback from investors and investor associations to improve transparency in the grievance redressal mechanism. Based on the feedback and inputs received from them transparency in grievance redressal is identified as a key area to augment investor protection. It is envisaged that transparency will also improve the general functioning of the market by providing investors the wherewithal to make informed choice. Accordingly, it has been decided that the Depositories shall henceforth disclose the details of complaints lodged by Beneficiary Owners (BOs)/ investors against Depository Participants (DPs) in their website. The aforesaid disclosure shall also include details pertaining to arbitration and penal action against the DPs. The format for the reports for the aforesaid disclosure, prepared following due deliberations and inputs from the Depositories, are given as annexure to this circular (12 pages), consisting of the following reports: a. b. c. d. e. f. g. h. i. j. Report 1A: Complaints received against DPs during 2009-10 Report 1B: Redressal of Complaints received against DPS during 2008-09 Report 1C: Redressal of Complaints received against DPs during 2009-10 Report 2A: Details of Arbitration Proceedings (where Investor is a party) during 2008-09: Report 2B: Details of Arbitration Proceedings (where Investor is a party) during 2009-10 Report 3A: Penal Actions against DPs during 2008-09 Report 3B: Penal Actions against DPs during 2009-10 Report 4A: Redressal of Complaints lodged by investors against Listed Companies during 2008 -09 Report 4B: Redressal of Complaints lodged by investors against Listed Companies during 2009 -10 The Depositories are accordingly advised to: a. bring the provisions of this circular to the notice of the DPs, Companies and their Registrar & Transfer Agents (RTAs) and also to disseminate the same on the website; arrange to disclose details as per the aforesaid reports in their website within a period of one month from the date of this circular on a continuous basis; arrange to update the aforesaid reports on a quarterly basis, except the reports 1A, which shall be updated on a weekly basis; make amendments to the relevant bye-laws, rules and regulations for the implementation of the aforesaid disclosures, if necessary; communicate to SEBI, the status of the implementation of the provisions of this circular in the Monthly Development Report;

2.

3.

b. c. d. e. k. l.

For any clarification in this matter, the Chief General Manager, Office of Investor Assistance and Education, SEBI may be contacted at 26449400. This circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992 and Section 19 of the Depositories Act, 1996 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

Yours faithfully, Harini Balaji

[ 340 ]

Report 1A: Complaints received against Depository Participants (DPs)# during 2009-10: Updated on mmm dd yyyy (to be updated weekly) (In excel sheet) Details of Complaint Type of Complaint* SEBI Ref. No. (if applicable Name of DP Status** Status Date## Status of Complaint Name of Date of Date of Arbitrator(s) Arbitration Filing Award Arbitration

Sl. No.

Date of Receipt

Name of Complainant

[ 341 ]

# including against its authorized persons, employees, etc. ## Status date is the date of resolution/reference to arbitration/finding it non-actionable. If under process, it is the date of updation of this sheet. */** As per Table 1A

Report 1B: Redressal of Complaints received against Depository Participants (DPs) during 2008-09: Updated on mmm dd yyyy (to be updated every quarter) (In excel sheet) Of the Complaints received during 2008-09 No. of Complaints Arbitrat ion Advised Pending No. of Arbitration for redressal filed by BOs with Depository Decided by the Arbitrators Decided by Arbitrators in favour of the BOs Pending for Redressal with Arbitrators

Sl. Name Status of DP No. of No. of BOs Complai No. of (active/ nts the inactive/ in accounts at the received Resolved DP process of Non termination beginning against actiona through /withdrawal) of the the DP ble** the year * Depository

1 2 3

[ 342 ]

Total

* including against its authorized persons, employees, etc. ** Non actionable means the complaint that are incomplete / outside the scope of Depository (Arrange the DPs in descending number of complaints filed against them during the period)

Report 1C: Redressal of Complaints received against Depository Participants (DPs) during 2009-10: Updated on mmm dd yyyy (to be updated every quarter) (In excel sheet) Of the Complaints received during 2008-09 No. of Complaints Arbitrat ion Advised Pending No. of Arbitration for redressal filed by BOs with Depository Decided by the Arbitrators Decided by Arbitrators in favour of the BOs Pending for Redressal with Arbitrators

Sl. Name Status of DP No. of No. of BOs Complai No. of (active/ nts the inactive/ in accounts at the received Resolved DP process of Non termination beginning against actiona through /withdrawal) of the the DP ble** the year * Depository

1 2 3

[ 343 ]

* including against its authorized persons, employees, etc. ** Non actionable means the complaint that are incomplete / outside the scope of Depository (Arrange the DPs in descending number of complaints filed against them during the period)

Report 2A: Details of Arbitration Proceedings (where BO is a party) during 2008-09: Updated on mmm dd yyyy (to be updated every quarter) (In excel sheet) No. of Awards in favor of BOs No. of Awards appealed Pending For more than 6 months No. of Awards Implemented Filed by DP Filed by BO No. of cases pending for redressal at the end of period

Sl. No.

Name of Arbitrator

No. of Awards Passed

For more than 3 months, but less than 6 months

[ 344 ]

Total

(In case of panel of arbitrators, the cases / awards would appear against every member of the panel) (Arrange the arbitrators in descending number of awards passed by them during the period)

Report 2B: Details of Arbitration Proceedings (where BO is a party) during 2009-10: Updated on mmm dd yyyy (to be updated every quarter) (In excel sheet) No. of Awards in favor of BOs No. of Awards appealed Pending For more than 6 months No. of Awards Implemented Filed by DP Filed by BO No. of cases pending for redressal at the end of period

Sl. No.

Name of Arbitrator

No. of Awards Passed

For more than 3 months, but less than 6 months

[ 345 ]

Total

(In case of panel of arbitrators, the cases / awards would appear against every member of the panel) (Arrange the arbitrators in descending number of awards passed by them during the period)

Report 3A: Penal Actions against Depository Participants (DPs) during 2008-09: Updated on mmm dd yyyy (to be updated every quarter) (in excel sheet) Action against DP, its authorized person and employees together No. of Penal Orders issued Monetary Penalties levied (Rs. lakh) For complaints For others For complaints For others No. of Arbitration Awards issued against DP No. of Complaints received

Sl. No.

Name of DP

Registration No.

[ 346 ]

Report 3B: Penal Actions against Depository Participants (DPs) during 2009-10: Updated on mmm dd yyyy (to be updated every quarter) (in excel sheet) Action against DP, its authorized person and employees together No. of Penal Orders issued Monetary Penalties levied (Rs. lakh) For complaints For others For complaints For others No. of Arbitration Awards issued against DP No. of Complaints received

Sl. No.

Name of DP

Registration No.

[ 347 ]

Report 4A: Redressal of Complaints lodged by investors against Listed Companies during 2008 -09: Updated on mmm dd yyyy (to be updated every quarter) (In excel format) No. of Complaints Received Redressed through Depository Non-Actionable* Pending for Redressal with Depository

Sl. No.

Name of the Company

[ 348 ]

Total

*Non actionable means the complaint that are incomplete / outside the scope of Depository (Arrange the companies in descending number of complaints filed against them during the period)

Report 4B: Redressal of Complaints lodged by investors against Listed Companies during 2009 -10: Updated on mmm dd yyyy (to be updated every quarter) (In excel format) No. of Complaints Received Redressed through Depository Non-Actionable* Pending for Redressal with Depository

Sl. No.

Name of the Company

[ 349 ]

Total

*Non actionable means the complaint that are incomplete / outside the scope of Depository (Arrange the companies in descending number of complaints filed against them during the period)

Table 1 A Type Type I Ia Ib Ic Id Ie Type II II a II b II c II d Type III III a III b Type IV IV a IV b IV c IV d IV e IV f IV g Type V Va Vb Vc Type VI VI a VI b VI c Type VII VII a VII b Type VIII VIII a VIII b Details Account Opening Related Denial in opening an account Account opened in another name than as requested Non receipt of Account Opening Kit Delay in activation/ opening of account Non Receipt of copy of DP Client Agreement/Schedule A of Charges Demat/Remat Related Delay in Dematerialisation request processing Delay in Rematerialisation request processing Delay in/ Non-Receipt of Original certificate after demat rejection Non Acceptance of demat/remat request Transaction Statement Related Delay in/ Non-Receipt of Statements from DP Discrepancy in Transaction statement Improper Service Related Insistence on Power of Attorney in its favour Deactivation/ Freezing/ Suspension related Defreezing related Transmission Related Pledge Related SMS Related Non-updation of changes in account (address/ signatories/bank details/ PAN/ Nomination etc.) Charges Related Wrong/ Excess Charges Charges paid but not credited Charges for Opening/closure of Account Delivery Instruction Related (DIS ) Non acceptance of DIS for transfer Delay in/ non Execution of DIS Delay in Issuance / Reissuance of DIS Booklet Closure Non closure/ delay in closure of account Closure of a/c without intimation by DP Manipulation/ Unauthorised Action Unauthorised Transaction in account Manipulation

[ 350 ]

VIII c Type IX IX a IX b IX c Type X

Unauthorised changes in account (address/ details/PAN etc.) signatories/bank Company/ RTA related Action Cash Action NonCash Initial Public Offer/ Follow-on Public Offer Related Others ** Status

Type I Ia Ib Ic II III IV V

Description Non actionable Complaint incomplete Outside the scope of Depository Pertains to non-responding company. Resolved Under Process Referred to Arbitration Forwarded to Company/RTA for appropriate action. Sub : SEBI Circular - Exclusive E-mail Id for redressal of Investor Complaints Attention of Depository Participants (DPs) is invited to SEBI Circular No. MRD/ DoP/Dep/SE/Cir-22/06 dated December 18, 2006 with respect to designating an exclusive e-mail ID of the grievance redressal division / compliance officer in which the investors would be able to register their complaints and also take necessary follow-up actions as necessary. Copy of the SEBI circular is enclosed for your information and necessary action. For the information of DPs, NSDL has already designated an exclusive email ID i.e. relations@nsdl.co.in for registration of investor complaints. Annexure GENERAL MANAGER MARKET REGULATION DEPARTMENT MRD/DoP/Dep/SE/Cir-22/06 December 18, 2006 1. 2. 3. All Stock Exchanges NSDL CDSL

Circular No. NSDL/POLICY/ 2006/0066 Date: December 27, 2006

Dear Sir/s, Sub: Exclusive e-mail ID for redressel of Investor Complaints. 1. SEBI has been mandated, inter-alia, under the SEBI Act, 1992 to protect the interests of investors in the Indian securities market. To this end, several investor protection measures and regulatory reforms have been initiated by SEBI from time to time for the benefit of investors and to

[ 351 ]

make the Indian securities market a more transparent and safer place for their investments. 2. In the recent past, SEBI has been receiving representations from various investors requesting for a direct and quicker forum for enabling them to register their complaints expeditiously with the intermediaries/listed companies/stock exchanges. It has also been observed in several cases that pursuant to registering a complaint, the investors do not have any mode for a follow-up or monitoring the processing of their complaints. In order to address the aforesaid representations, it is felt desirable to designate an exclusive e-mail ID of the grievance redressel division / compliance officer in which the investors would be able to register their complaints and also take necessary follow-up actions as necessary. Such a process would not only expedite the redressal of the complaints of the investors but also enable several investors across the country to register their complaints through a single, centralized, exclusive email ID that is designated for the purpose. Accordingly, all the stock exchanges/registered brokers/registered subbrokers/listed companies/depositories/registered depository participants are advised to designate an e-mail ID of the grievance redressel division/compliance officer exclusively for the purpose of registering complaints by investors. The above entities are also advised to display the email ID and other relevant details prominently on their websites and in the various materials/pamphlets/advertisement campaigns initiated by them for creating investor awareness. The Stock Exchanges are advised to : 5.1 make necessary amendments to the relevant bye-laws, rules and regulations and clauses of the listing agreement for the implementation of the above decision immediately; bring the provisions of this circular to the notice of the member brokers/clearing members of the exchange/listed companies and also to disseminate the same on their websites; and communicate to SEBI, the status of the implementation of the provisions of this circular in the Monthly Development Report.

3.

4.

5.

5.2

5.3 6.

The depositories are advised to:6.1 6.2 bring the provisions of this circular to the notice of the DPs of the depositories and also to disseminate the same on their websites; include the details of the e-mail ID in the advertisement campaigns released by them from time to time for better understanding of the investors; make necessary amendments to the relevant bye-laws and business rules for the implementation of the above decision immediately, as may be applicable/necessary; and communicate to SEBI, the status of the implementation of the provisions of this circular in the Monthly Development Report

6.3

6.4

[ 352 ]

7.

This circular is being issued in exercise of the powers conferred by Section 11 (1) of Securities and Exchange Board of India Act, 1992 to protect the interest of investors in securities and to promote the development of, and to regulate, the securities market.

Yours faithfully,

V S SUNDARESAN Grievance redressal - reporting Circular No. NSDL/POLICY/ 2010/0040 Date: April 19, 2010 Sub: Revision of Investor Grievance Report Format This is further to Circular Nos. NSDL/PI/98/500 dated October 6, 1998, NSDL/ PI/2001/0191 dated January 31, 2001, NSDL/PI/2003/1871 dated November 25, 2003, NSDL/PI/2004/0183 dated January 29, 2004 and NSDL/PI/2004/1688 dated September 16, 2004 relating to submission of Investor Grievance Reports (IGRs) by Participants for a particular month by 10th of the following month, in a specified format. All Participants are hereby informed that :1. IGR format has been revised and enclosed as Annexure. The IGR in revised format is to be submitted by the Participants from April 2010 onwards i.e. IGR in new format for the month of April 2010 has to be submitted to NSDL by May 10, 2010. IG Report may be forwarded electronically i.e. via email at dp_igreport@nsdl.co.in from the email ID of the Compliance Officer. Alternatively, the report can be submitted in hard copy. Where the Participants have not received any grievance / complaint in a given month, a nil report should be submitted to NSDL. Annexure INVESTOR GRIEVANCE REPORT FORMAT FOR PARTICIPANT DP Name: IG Report for the month of Nature of Complaint No of No of No of Manner cases cases cases of pending received resolved Redressal at the during the during the (Letter / beginning month month E-mail of the month etc.) (1) Account Opening Related Denial in opening an account Account opened in another name than as requested (2) (3) (4) No of cases pending at the end of the month (5) = (1+2-3) No of Reason cases for pending pendency for more as than shown in 30 days column(6) (6) (7) DP Id:

2.

3.

[ 353 ]

Nature of Complaint

No of No of No of Manner cases cases cases of pending received resolved Redressal at the during the during the (Letter / beginning month month E-mail of the month etc.) (1) (2) (3) (4)

No of cases pending at the end of the month (5) = (1+2-3)

No of Reason cases for pending pendency for more as than shown in 30 days column(6) (6) (7)

Non receipt of Demat Account Opening Kit Delay in activation/ opening of account Non Receipt of copy of DP Client Agreement/ Schedule A of Charges Demat/remat Related Delay in Dematerialisation request processing Delay in Rematerialisation request processing Non Acceptance of demat/remat request Transaction Statement Related Delay in/ NonReceipt of Statements Discrepancy in transaction statement Improper Services Related Insistence of Power of Attorney in its favour. Deactivation/ Freezing/ Suspension related Defreezing related Transmission related Pledge related

[ 354 ]

Nature of Complaint

No of No of No of Manner cases cases cases of pending received resolved Redressal at the during the during the (Letter / beginning month month E-mail of the month etc.) (1) (2) (3) (4)

No of cases pending at the end of the month (5) = (1+2-3)

No of Reason cases for pending pendency for more as than shown in 30 days column(6) (6) (7)

SMS related Non-updation of changes in account (address/ signatories/bank details/ PAN/ Nomination etc.) Charges Related Charges levied for Opening/ closure of Account Charges paid but not credited Wrong/ Excess Charges Delivery Instruction Related Non acceptance of DIS for transfer Delay in/ non Execution of DIS Delay in Issuance / Reissuance of DIS Booklet Account Closure Related Non closure/ delay in closure of account Closure of a/c without intimation by DP Manipulation/ Unauthorised action Related Unauthorised Transaction in account Manipulation Unauthorised changes in account (address/ signatories/bank details/ PAN/ Nomination etc.) Erroneous Transfer

[ 355 ]

Nature of Complaint

No of No of No of Manner cases cases cases of pending received resolved Redressal at the during the during the (Letter / beginning month month E-mail of the month etc.) (1) (2) (3) (4)

No of cases pending at the end of the month (5) = (1+2-3)

No of Reason cases for pending pendency for more as than shown in 30 days column(6) (6) (7)

Company/RTA related Action Cash Action Non Cash Initial Public Offer/ Follow-on Public Offer Related Others (Specify) Total Circular No. NSDL/PI/2003/1871 Date : November 25, 2003 Attention of Participants is invited to Bye Law 6.3.6 (iii) of the Bye Laws of NSDL which requires every Participant to submit to the Depository a report giving number of complaints received from Clients, nature of complaints, status and manner of redressal, every month (latest by 10th of the following month). Participants are hereby informed that with effect from January 1, 2004, the aforesaid report can be submitted to NSDL either electronically (via e-mail) or in hard copy form. Such details can be e-mailed to NSDL at dp_igreport@nsdl.co.in. For submitting the reports electronically, we advise the Participants to provide the e-mail Id of the compliance officer to NSDL and ensure that the report is submitted only from the e-mail Id of that person. All Participants are therefore advised to provide e-mail Id's of compliance officers latest by December 1, 2003. Circular No. NSDL/PI/2001/0191 Date : January 31, 2001 With reference to our Circular No. NSDL/PI/98/500 dated October 6, 1998, attention of all Participants is once again invited to Regulation 20(2)(e) of SEBI (Depositories and Participants) Regulations, 1996 which states that the Participant shall redress the grievances of beneficial owners within thirty days of the date of the receipt of the complaint and keep the Depository informed about the number and the nature of redressals. Attention is also invited to Bye Law 6.3.6 (iii) of NSDL Bye Laws which states that the Participant shall submit to the Depository the number of complaints received from Clients, their nature, status and manner of redressal once every month. Participants are advised to submit this report every month to Mr. Harpinder Saini, Officer-In-Charge, Investor Grievance Cell, NSDL latest by 10th of the following month. In case there are no grievances, a nil report should be submitted Circular No. NSDL/PI/98/500 Date : October 6,1998 Attention of all Participants is invited to Regulation 20(2)(e) of SEBI (Depositories and Participants) Regulations, 1996 which states that the participant shall redress the grievances of beneficial owners within thirty days of the date of the receipt of the complaint and keep the depository informed about the number and the nature of redressals. Attention is also

[ 356 ]

invited to Bye Law 6.3.6 (iii) of NSDL Bye Laws which states that the Participant shall submit to the Depository the number of complaints received from Clients, their nature, status andmanner of redressal once every month. Participants are advised to submit this report every month to Mr. Harpinder Saini, Officer-In-Charge, Investor Grievance Cell, NSDL on or before 10th of the following month. In case there are no grievances, a nil report should be submitted.

[ 357 ]

NOTES

[ 358 ]

8. DP Service Centres
Regulation 52 Bye Law 6.3.23 No participant shall assign or delegate its functions as participant to any other person, without the prior approval of the depository. No Participant shall assign its business as a Participant to any other person except with the prior approval of the Executive Committee which may notify from time to time the terms and conditions subject to which it may assign its business as a Participant to any other person. Nature of Non-Compliance Qualified personnel (NCFM / NSDL certified for depository operations) not appointed in at least 90% of the total service centres (other than drop boxes) of the Participants. Penalty Rs.1,000 per month per service centre (other than drop box). Further, Rs. 5,000 per month per service centre upon recurrence of the deviation in the same service centre wherein non-compliance was observed earlier. In case of new service centre or in case of resignation or transfer of qualified personnel from the existing service centre, time period of three months will be allowed within which qualified personnel should be appointed. Rule 18.1.1 (32) Depository services are offered through service centres without approval of Depository Termination / Closure of franchisee/ branch services contrary to Depository instructions. (a) Carrying out certain functions which are prohibited by Depository through franchisees (like in-person verification of clients at the time of opening of accounts and verification of delivery instruction slips). (b) Dispatch of periodic transaction statements by Participants through its service centre (branch as well as franchisees) other than one which is directly connected to the Depository or through its centralised processing unit under the supervision of its head office. Adequate internal controls for the branches of Depository Participants Circular No. NSDL/POLICY/ 2007/0038 Date: July 9, 2007 Sub : SEBI Circular - adequate internal controls for the branches of Depository Participants A copy of SEBI's Circular No. MIRSD/DPS-III/Cir-9/07 dated July 3, 2007 regarding ensuring compliance with Regulation 46 of the SEBI (Depositories and Participants) Regulations, 1996 by the branches of Depository Participants (DPs) is enclosed for the information of all DPs. DPs are requested to take note of the above. Rs. 2,500 per occasion

Sr. No. Rule 18.1.1 (31)

Rule 18.1.1 (21)

Rs.500 per occasion.

Rule 18.1.1 (33)

Matter to be referred to Disciplinary Action Committee.

[ 359 ]

Annexure CHIEF GENERAL MANAGER MARKET INTERMEDIARIES REGULATION AND SUPERVISION DEPARTMENT MIRSD/DPS-III/ Cir - 9 /07 July 3, 2007 The Chairman & Managing Director National Securities Depository Ltd. Trade World, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai 400 013 Dear Sir/s, Sub: Supervision of branches of depository participants 1. It has come to SEBIs notice that the Depository Participants (DPs) are operating through branch offices which are having Depository Participant Modules (DPMs) directly linked to the Depository server and branch offices which are connected through back offices software of the DP. Certain DPs are connected with the Depository through one or more DPMs. Some of the DPs have offline branches which function either as full fledged braches offering all DP services or only as collection centre. In terms of Regulation 46 of the SEBI (Depositories and Participants) Regulations, 1996, every DP shall have adequate mechanism for the purpose of reviewing, monitoring and evaluating its internal accounting controls and systems. Further, clause 19 of the Code of Conduct for Participants contained in the Third Schedule to the Regulations inter alia states that the DP shall ensure that it has satisfactory internal control procedure in place. It is clarified that these provisions apply to DPs in respect of all their branches also. DPs are therefore required in terms of these provisions to put in place appropriate mechanisms to ensure that their branches are carrying on the operations in compliance with the applicable regulations, bye-laws, etc. Further, DPs are also required to put in place suitable internal control systems to ensure that all branches are exercising due diligence in opening accounts, complying with KYC requirements, in ensuring systems safety in complying with client instructions, manner of uploading client instructions, in verifying signatures and in maintaining client records, etc. DPs shall also ensure that the branches are suitably integrated. The DPs whose systems do not measure up to the above are hereby advised to ensure such compliance immediately. Depositories shall examine the adequacy of the above mechanisms during their inspections of DPs. The Depositories shall also carry out surprise inspections/ checks of the DP branches apart from the regular inspection of the DPs. Depositories shall also put in place appropriate mechanisms for monitoring opening of branches by DPs. The Depositories are advised to:a. Bring the provisions of this circular to the notice of the DPs of the Depositories and also to disseminate the same on the website; b. Include the aforesaid clarifications, as applicable, in the advertisement campaigns released by them from time to time for better understanding of the investors; c. Make amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision immediately, as may be applicable/necessary; d. Communicate to SEBI the status of the implementation of the provisions of this circular in the Monthly Development Report. This circular is being issued in exercise of the powers conferred by Section 11 (1) of Securities and Exchange Board of India Act, 1992 to protect the interest of investors in securities and to promote the development of, and to regulate, the securities market. The Managing Director & CEO Central Depository Services (India) Ltd. Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai 400 023

2.

3.

4. 5.

6.

Yours faithfully, P K Kuriachen

[ 360 ]

Branch direct connectivity - More than 5000 accounts Circular No. NSDL/PI/99/689 Date: August 27,1999 All Participants are hereby informed that SEBI has in the meeting relating to dematerialisation of securities held on August 16, 1999, inter-alia, decided that the branch offices of Participants that are handling more than 5000 accounts should have either direct electronic connectivity with the Depository or with the office of the Participant which is directly connected to the Depository. All Participants are therefore requested to inform us the number of branches which are handling more than 5000 accounts, how many of these are directly connected with NSDL and how many of these are connected with the office of the Participant which is directly connected to the Depository. SEBI has also decided that in view of the increase in volume of transactions, number of accounts, dematerialisation requests and forthcoming rolling settlement, the Participants should open more branches, particularly in the cities where such services are still not available. SEBI directive on creating awareness among demat account holders for PAN card Circular No. NSDL/POLICY/ 2006/0056 Date: November 21, 2006 Sub : SEBI directive on creating awareness among demat account holders for PAN card. Attention of all Depository Participants (DPs) is invited to our circular no. NSDL/POLICY/2006/0007 and NSDL/POLICY/2006/0043 dated March 3 and September 27, 2006 respectively regarding SEBI directive on Permanent Account Number (PAN). SEBI in its meeting discussed the issue of creating awareness among the demat account holders about PAN card being mandatory for demat account. DPs are advised to display posters and pamplets provided by NSDL in this regard prominently, at each of their offices from where the depository services are being provided by them. DPs may also make their clients aware about this requirement by disseminating similar information alongwith their mailers or through their website etc., with a view to ensure compliance in this regard by account holders as per the deadline prescribed by SEBI for the same on or before December 31, 2006. Qualified personnel - Mandatory Circular No. NSDL/PI/2000/1044 Date : June 30,2000 In continuation to our Circular Nos. NSDL/PI/99/637 dated August 13, 1999 and NSDL/PI/2000/223 dated February 24, 2000, Participants are hereby informed that NSDL has extended the deadline for mandatory appointment of persons qualified in the Certification Programme. The revised schedule is as under 50% of the existing branches - October 1, 2000 all branches -January 1, 2001. In order to enhance the standards of client servicing and operational efficiency it is necessary to create a pool of qualified manpower. Keeping the need for service standards in mind, NSDL launched a certification program on depository operations in May 1999. This examination titled "NSDL-Depository Operations Module" is based on the infrastructure of NCFM (NSE's certification in financial markets). This examination can be taken at Mumbai, Delhi, Calcutta, Chennai, Hyderabad, Ahmedabad and Pune at NSE offices. Candidates should score a minimum of 60% of marks to get a certificate in the NSDL-Depository Operations Module. To increase the scope of coverage and overcome the difficulty expressed by many candidates in completing the examination in the allotted time, the following changes have been incorporated in the NSDL-Depository Operations Module with effect from June 7, 2000: 1. The test duration will be 75 minutes instead of 30 minutes.

Circular No. NSDL/PI/2000/864 Date : June 6, 2000

[ 361 ]

2.

The total marks for the examination will be 100 instead of 50.

It is mandatory that 50% of all branches of every Participant must have atleast one employee who has successfully cleared the certification program. Circular No. NSDL/PI/99/637 Date: August 13,1999 Combined efforts of NSDL and its business partners alongwith timely regulatory support at critical junctures has facilitated the adoption of the depository culture by most of the players in the Indian Capital Market. Depository services are available in all major cities and towns across the country. Almost all the actively traded scrips are available for dematerialisation and trading in the demat form. Trading in depository securities is now available in ten major stock exchanges across the country. NSDL recognises that quantitative progress would be ineffective if it is not backed by quality depository services. Thus, it was imperative to ensure that the staff of our business partners are sensitised to service standards and efficient depository operations. Towards this objective, NSDL conducted a series of Branch Empowerment Programmes (BEP) for the staff of the Participants across the country. These programmes focused on the importance of service standards and adhering to these standards offered by the Participants to their clients. NSDL has also embarked upon a series of Procedural Training Programmes (PTP) which are more detailed and cover all the operational aspects of depository services. As you are aware, with quality depository services in mind, NSDL launched a Certification Programme on depository. Candidates successfully clearing such a programme add to the human resources pool qualified in depository operations. Participants are hereby informed that it will be mandatory for all branches, including franchisees, of Participants to have atleast one person qualified in the Certification Programme in a phased manner, as per the schedule given below : 1. For New Branches Oct 1, 1999 2. For 50% of the existing branches Jan 1, 2000 3. For all branches April 1, 2001 Additional information regarding the Certification Programme is available on the website of NSDL at www.nsdl.co.in. The same can also be obtained by sending an email to ncfm@nsdl.co.in or writing to Mr. V. R. Narasimhan, Senior Vice President, National Securities Depository Limited. List of holidays Circular No. NSDL/POLICY/ 2006/0017 Date : June 5, 2006 Sub : Intimation of list of holidays for the calendar year to clients by Participants. All Participants are hereby informed that NSDL has been receiving complaints from the demat account holders (Clients) that the Participants do not give adequate notice to the Clients about non-availability of depository services due to holidays. In order to avoid hardship to the Clients, Participants are advised to send a communication to all the Clients about the list of holidays for the calendar year. Further, the list of holidays should be displayed in a prominent place, at each of the office from where the depository services are being provided.

Submission of details of all places from where depository services are offered Circular No. NSDL/POLICY/ 2010/0006 Date: January 13, 2010 Sub: Discontinuance of submitting details of service centres every year As all Participants are aware, Participants are required to submit the details of all the places from where they are offering depository services in the prescribed format as on March 31, by June 30, every year (Ref.: Circular No. NSDL/POLICY/2007/0055 dated September 25, 2007). The service centre

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details information is made available on website of NSDL. Any addition/ deletion/modification as informed by the Participants are updated on the website. Participants are requested to verify the same on NSDL website at www.nsdl.co.in and inform about discrepancies, if any. In view of the aforesaid, the Participants will no longer be required to submit the full list of service centres every year, as mentioned above. However, Participants must ensure to obtain prior approval of NSDL for opening new service centres. Accordingly, the 'Compliance Schedule' informed to Participants vide Circular No. NSDL/POLICY/2009/0066 dated July 28, 2009 is revised and enclosed as Annexure 'A' highlighting the changes and as Annexure 'B' without highlighting any changes. For any clarification with respect to service centres, Participants are requested to contact Mr. Dilip Singhal / Mr. Kaushal Shah on 022-24994363 / 4214. Annexure A Sr. Particulars No. 1. Reference Deadline Manner of sending

Investor Grievance (i) Circular No. NSDL/PI/98/500 By 10th of the By email at dp_igreport@nsdl.co.in. Report (Monthly) dated October 6, 1998. following Alternatively, by hard (ii) Circular No. NSDL/PI/2004/ month. copy to the Investor 1688 dated September 16, Relationship Cell. 2004. Compliance Certificate (July December) Circular No. NSDL/ POLICY/2006/ 0023 dated July 6, 2006. January 31st every year. By hard copy to Business Partner Inspection Department. By email at dpfees@nsdl.co.in

2.

3.

Charge Structure.

(i) Circular No. NSDL/POLICY/ 2006/0064 dated December 26, 2006. (ii) Circular No. NSDL/POLICY/ 2007/0003 dated January 8, 2007. Circular No. NSDL/ POLICY/2008/ 0077 dated November 3, 2008.

April 30th every year.

4.

Internal/ Concurrent Audit Report (October March) Compliance Certificate (January - June)

May 15th every year

By hard copy to Business Partner Inspection Department. By hard copy to Business Partner Inspection Department. By hard copy to Participant Interface Department.

5.

Circular No. NSDL/ POLICY/2006/ 0023 dated July 6, 2006.

July 31st every year

6.

Networth Certificate and Audited Financial Statements. Internal/ Concurrent Audit Report (April September)

Circular No. NSDL/PI/98/414 dated September 1, 1998.

September 30th every year.

7.

Circular No. NSDL/ POLICY/2008/ 0077 dated November 3, 2008.

November 15th every year

By hard copy to Business Partner Inspection Department.

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Annexure B Sr. Particulars No. 1. Reference Deadline Manner of sending

Investor Grievance (i) Circular No. NSDL/PI/98/500 By 10th of the By email at dp_igreport@nsdl.co.in. Report (Monthly) dated October 6, 1998. following Alternatively, by hard (ii) Circular No. NSDL/PI/2004/ month. copy to the Investor 1688 dated September 16, Relationship Cell. 2004.

2.

Compliance Certificate (July December)

Circular No. NSDL/ POLICY/2006/ 0023 dated July 6, 2006.

January 31st every year.

By hard copy to Business Partner Inspection Department. By email at dpfees@nsdl.co.in

3.

Charge Structure.

(i) Circular No. NSDL/POLICY/ 2006/0064 dated December 26, 2006. (ii) Circular No. NSDL/POLICY/ 2007/0003 dated January 8, 2007. Circular No. NSDL/ POLICY/2008/ 0077 dated November 3, 2008.

April 30th every year.

4.

Internal/ Concurrent Audit Report (October March) Compliance Certificate (January - June)

May 15th every year

By hard copy to Business Partner Inspection Department. By hard copy to Business Partner Inspection Department. By hard copy to Participant Interface Department.

5.

Circular No. NSDL/ POLICY/2006/ 0023 dated July 6, 2006.

July 31st every year

6.

Networth Certificate and Audited Financial Statements. Internal/ Concurrent Audit Report (April September)

Circular No. NSDL/PI/98/414 dated September 1, 1998.

September 30th every year.

7.

Circular No. NSDL/ POLICY/2008/ 0077 dated November 3, 2008.

November 15th every year

By hard copy to Business Partner Inspection Department.

Circular No. NSDL/POLICY/ 2007/0055 Date: September 25, 2007

Sub: Submission of details of all places from where depository services are offered and approval of new branches and franchisees in the prescribed format Attention of Depository Participants (DPs) is invited to NSDL Circular No. NSDL/ POLICY/2007/0038 dated July 9, 2007 wherein a copy of the SEBI Circular No. MIRSD/DPS-III/Cir-9/07 dated July 3, 2007 regarding ensuring compliance with Regulation 46 of the SEBI (Depositories and Participants) Regulations, 1996 by the branches of DPs was enclosed for the information of all DPs. In light of

[ 364 ]

the SEBI guidelines, the requirement of obtaining approval for branch/ franchisee and submission of such information to NSDL have undergone changes, which are undermentioned: 1) Submission of details of all places from where the depository services are offered : As all DPs are aware, NSDL vide its Circular No. NSDL/POLICY/2006/ 0036 dated September 7, 2006 informed DPs to provide the details of all the places from where they are offering any of the depository services to their Clients. In light of the SEBI circular, the prescribed format has undergone certain changes. Hence, DPs are advised to provide the details of all such places from where the depository services are offered as of September 30, 2007, in the format (MS Excel Sheet) mentioned as per Annexure 1 and e-mailed to NSDL at servicecentreinfo@nsdl.co.in latest by October 31, 2007. 2) Approval for opening of new branches and franchisees : As all DPs are aware, DPs are required to obtain permission of NSDL prior to appointment of a franchisee (whether offering the services as a service centre, collection centre, drop box centre or called by any other name) (Refer NSDL Circular No. NSDL/PI/2003/0282 dated February 18, 2003). The format for submission of franchisee details has undergone certain changes, in light of the SEBI circular. If DPs wish to appoint a franchisee on or after October 1, 2007, DPs would be required to obtain the permission of NSDL and submit the franchisee details in the format (MS Excel sheet) mentioned as per Annexure 2. Further, on the similar lines, DPs would also be required to obtain the permission of NSDL for opening of a new branch (whether offering the services as a service centre, collection centre, drop box centre or called by any other name). The details of such branch should be provided in the format (MS Excel sheet) mentioned as per Annexure 3. 3) As regards mode of submission, Annexure 2 and 3 should be submitted to NSDL strictly in the prescribed format (MS Excel sheet) in hard copy signed by the compliance officer as well as in soft copy at servicecentreinfo@nsdl.co.in As all DPs are aware, NSDL vide its Circular No. NSDL/PI/99/689 dated August 27, 1999, had informed DPs that in case the branch offices of DPs are handling more than 5000 accounts, they should have either direct electronic connectivity with the DP or with the office of the DP, which is directly connected to the Depository. In view of this, if any of the branch/franchisee does not comply with this requirement, DPs would be required to mention the same in the compliance certificate submitted from January 31, 2008 onwards (i.e. for the half year ending December 31, 2007). DPs would be required to submit the details of all the branches/ franchisees offering depository related services as of March 31, by June 30, every year. The details should be strictly submitted in the prescribed format (Annexure 1) and e-mailed to NSDL at servicecentreinfo@nsdl.co.in

4)

5)

[ 365 ]

6)

DPs are also advised to note that any subsequent updates (addition/ deletion/modification) in the above information should be intimated to NSDL at the above e-mail id within seven days of such change.

Annexure 1 - List of Branches / Franchisees Sr. DP Category No. Name Place from where the DP wishes to open the Franchisee SubContact Add1 Add2 Add3 City Pin State STD Phone Fax Email In case of Franchisee NCFM Qualified Person Category- Person code Offering services as Branch / Franchisee / Service centre, Name Date Franchisor- Name Registration Expiry Collection of Franchisee number Date centre, drop agreement NSDL executed. If box centre or called by approval yes, is the any other copy maintained in name the records. If no, please specify the reason for not executing the agreement.

Type of connectivity with the back office of the main / additional DPM setup ? Online / Offline Account opening Demat / Remat

Types of service provided and process involved - manual/electronic*

Number Remaof demat rks accounts serviced

Issuance of Delivery Instruction Slips

Processing / Execution of Delivery Instructions

Pledge

Securities Client Dispatch of Any other Lending and Modification Transaction service Borrowing like change of statement provided address etc please specify in the box [ ] Manual ElectroProcess- nic ing processing Y/N Y/N Y/N

Manual Electro- Manual Electro- Manual Electro- Manual Electro- Manual Electro- Manual Electro- Manual ElectroProcess- nic Process- nic Process- nic Process- nic Process- nic Process- nic Process- nic ing process- ing process- ing process- ing process- ing process- ing process- ing processing ing ing ing ing ing ing Y/N Y/N Y/N Y/N Y/N Y/N Y/N Y/N Y/N Y/N Y/N Y/N Y/N Y/N

* DPs are advised to mention whether the activities are processed manually or through electronically. In case if it is manually processed, please mention the details of target branch/franchisee/DPM set-up i.e. place from where the electronic processing happens, in the remark column. Manual processing means collection of documents and submitting it to the required destination. Electronic processing means entering the data into the computer system or back office for onward transmission to relevant main office electonically. "Online" means the source entity has established a direct electronic connectivity with the back office of the main / additional DPM set-up. "Offline" means no direct connectivity is established with the main / additional DPM set-up.

[ 366 ]

Annexure 2 - Appointment of Franchisee Sr. DP Category - SubNo. Name Place Category from - Offering where the services as DP wishes Franchisee to open / Service the centre, Franchisee Collection centre, drop box centre or called by any other name Please Contact Add1 Add2 Add3 City Pin State STD Phone Fax Email mention Person code the number of years of experience in the capital market Franchisee Details NCFM Qualified Person

Name Date of NSDL approval

Franchisor- Name Registration Expiry Franchisee number Date agreement executed. If yes, is the copy maintained in the records. If no, please specify the reason for not executing the agreement.

Type of connectivity with the back office of the main / additional DPM setup ? Online / Offline Account opening Demat / Remat

Types of service proposed to be provided and process involved - manual/electronic*

Number Remaof demat rks accounts serviced

Issuance of Delivery Instruction Slips

Processing / Execution of Delivery Instructions

Pledge

Securities Client Dispatch of Any other Lending and Modification Transaction service Borrowing like change of statement provided address etc please specify in the box [ ] Manual ElectroProcess- nic ing processing Y/N Y/N Y/N

Manual Electro- Manual Electro- Manual Electro- Manual Electro- Manual Electro- Manual Electro- Manual ElectroProcess- nic Process- nic Process- nic Process- nic Process- nic Process- nic Process- nic ing process- ing process- ing process- ing process- ing process- ing process- ing processing ing ing ing ing ing ing Y/N Y/N Y/N Y/N Y/N Y/N Y/N Y/N Y/N Y/N Y/N Y/N Y/N Y/N
* DPs are advised to mention whether the activities are processed manually or through electronically. In case if it is manually processed, please mention the details of target branch/franchisee/DPM set-up i.e. place from where the electronic processing happens, in the remark column. Manual processing means collection of documents and submitting it to the required destination. Electronic processing means entering the data into the computer system or back office for onward transmission to relevant main office electonically. "Online" means the source entity has established a direct electronic connectivity with the back office of the main / additional DPM set-up. "Offline" means no direct connectivity is established with the main / additional DPM set-up.

[ 367 ]

Annexure 3 - Appointment of Branch Sr. DP Category - SubContact Add1 Add2 Add3 City No. Name Place Category - Person Offering From services as where the Branch / DP wishes Service to open centre, Collection the branch centre, drop box centre or called by any other name Pin State STD Phone Fax code Email NCFM Qualified Person

Name

Registration number

Expiry Date

Type of connectivity with the back office of the main / additional DPM setup ? Online / Offline Account opening Demat / Remat

Types of service proposed to be provided and process involved - manual/electronic*

Number Remaof demat rks accounts serviced

Issuance of Delivery Instruction Slips

Processing / Execution of Delivery Instructions

Pledge

Securities Client Dispatch of Any other Lending and Modification Transaction service Borrowing like change of statement provided address etc please specify in the box [ ] Manual ElectroProcess- nic ing processing Y/N Y/N Y/N

Manual Electro- Manual Electro- Manual Electro- Manual Electro- Manual Electro- Manual Electro- Manual ElectroProcess- nic Process- nic Process- nic Process- nic Process- nic Process- nic Process- nic ing process- ing process- ing process- ing process- ing process- ing process- ing processing ing ing ing ing ing ing Y/N Y/N Y/N Y/N Y/N Y/N Y/N Y/N Y/N Y/N Y/N Y/N Y/N Y/N

* DPs are advised to mention whether the activities are processed manually or through electronically. In case if it is manually processed, please mention the details of target branch/franchisee/DPM set-up i.e. place from where the electronic processing happens, in the remark column. Manual processing means collection of documents and submitting it to the required destination. Electronic processing means entering the data into the computer system or back office for onward transmission to relevant main office electonically. "Online" means the source entity has established a direct electronic connectivity with the back office of the main / additional DPM set-up. "Offline" means no direct connectivity is established with the main / additional DPM set-up.

[ 368 ]

Branch services - Display of type of services Circular No. NSDL/PI/2000/1531 Date : August 24,2000 NSDL has noticed that Participants provide depository services to their clients through their Service Centres located at different places and all centres do not provide similar services. These services are of various types, such as : Account Opening; Dematerialisation / Rematerialisation; Accepting debit / credit instruction forms; Providing transaction statements; or Any other depository services.

In the interest of transparency, Participants are hereby advised that they should display the types of services provided by them at each Service Centre. For example, if the Calcutta service center of a Participant is providing only account opening and dematerialisation services, then it must be mentioned on the display board in the Calcutta office that only these two services are provided by the Participant at that office. The display board / chart should be prominently visible to the clients. Requirement of NCFM/NSDL certified personnel at service centres Circular No. NSDL/POLICY/ 2009/0012 Date: February 11, 2009 Sub: Amendment to Business Rules - Requirement of NCFM/NSDL certified personnel at service centres All Participants are hereby informed that in order to increase the availability of trained personnel for depository operations, it has been decided to include NSDL certified personnel for depository operations in addition to NCFM certified personnel as eligible persons at service centres of Participants. Accordingly, Sr. No. 33 of Rule 18.1.1 of the Business Rules of NSDL has been amended, as per the details given below: Sr. No. Nature of Non-Compliance (33) Qualified personnel (NCFM / NSDL certified for depository operations) not appointed in at least 75% of the total service centres (other than drop boxes) of the Participants. Penalty Rs.50 per day per service centre (other than drop box) till the appointment of qualified person(s) to the extent of shortages.

Clarification regarding franchise/service centre and NCFM qualified person Circular No. NSDL/PI/2003/1047 Date : June 25,2003 Attention of Participants is invited to our Circular No. NSDL/PI/2003/0282 dated February 18, 2003 advising Participants to obtain NSDL's prior approval for appointing franchisee/service centre, etc. In this regard, Participants have 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. It is hereby clarified that any depository related services offered to the investors whereby they can interact with a person (who could be an employee of the Participant or of an outside agency appointed by the Participant) for submitting various documents and receiving acknowledgment thereof, will be treated as a Branch / franchisee/service centre. In such circumstances, a Participant can offer services to its clients only if one employee of the

[ 369 ]

Participant or any other person providing the service has qualified in the NCFM (depository module) examination. 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. Branch Services - SEBI directive on Branch connectivity Circular No. NSDL/PI/2003/0392 Date : March 6,2003 All Participants are hereby informed that Securities and Exchange Board of India (SEBI) vide its letter no. CS/4753/2003 dated March 4, 2003 has intimated to NSDL as under: "With the introduction of T+2 settlement from April 1, 2003 it is imperative that the transfer of securities takes place in an efficient and efficacious manner without any settlement failure. This requires that Depository Participants (DPs) throughout the country should have technological compatibility with the existing infrastructure. Since they have their offices in various cities/towns, it is necessary that all the branches of a DP should be linked electronically to its head office. This would ensure that all the clearing and settlement instructions are communicated without fail. This would also mitigate risk of settlement failure." Participants are advised to ensure compliance of the above. Discontinuation of depository services from Service Centres Circular No. NSDL/POLICY/ 2010/0049 Date: May 10, 2010 Sub: Discontinuation of depository services from Service Centres All Participants are aware that NSDL has vide Circular no. NSDL/PI/2002/0346 dated February 26, 2002 informed Participants about the procedure to be followed in case of termination of franchisees. Participants are advised to follow the procedure as given below for discontinuing depository services from any type of service centre (branches, franchisees, collection centres, drop boxes or places called by any other name from where depository services are provided): 1. Advance notice of atleast 30 days about discontinuing of depository services is given to all Clients, who are availing depository services through such service centre. Clients who are being provided depository services through such service centre should be informed about the alternate arrangements made for availing the services.

2.

Information should be given to NSDL about discontinuation of depository services from such service centre atleast 30 days in advance. Procedure for Termination of Franchisee Circular No. NSDL/PI/2002/0346 Date : February 26, 2002 All Participants may be aware that as per the Bye Laws of NSDL, Participants are required to take prior approval of NSDL before assigning its business to any person/franchisee for offering depository services. In this regard, it has been observed that whenever a Participant decides to terminate the services of a franchisee, the investors who avail of the depository services through such franchisees are not informed. As a result, the investors are put to avoidable hardships. Participants are hereby advised as follows:

[ 370 ]

1.

The Participant shall terminate the franchisee only after giving notice of atleast 30 days to all its Clients, who are availing of depository services through the franchisee. The Participant shall inform its Clients who are being provided depository services through the franchisee, about the alternate arrangements made to service the Clients. The Participant shall inform NSDL about termination of such franchisee services atleast 30 days in advance.

2.

3.

[ 371 ]

NOTES

[ 372 ]

9. Charges
Regulation 20 (1) (f) The participant shall pay annual fees specified in Part A of the Second Schedule in the manner specified in Part B thereof. PART A (relevant extract) Annual fees payable by participant PART B (relevant extract) Rs. 1000

Fees to be paid to the depository in which the payer is a participant. The Depository shall forward the fees collected from participants to the Board, with a demand draft or bankers cheque payable to the "Securities and Exchange Board of India" at Mumbai. Clause 6 of NSDL DP Agreement The Participant shall pay such fees and charges that may be payable to NSDL in accordance with the schedule specified under the Business Rules and any deposits or other amounts payable in accordance with the Bye Laws and Business Rules. a) In case of any default on the part of the Participant to pay any of the amounts specified above within a period of 30 days from the date of demand, without prejudice to the rights of the Depository to take disciplinary action under Chapter 11 of the Bye Laws, the Participant will be liable to pay interest at such rate at the rate of not more than 24 % or such other rate as may be specified by the Executive Committee from time to time on the amount from the due date of payment of such amount. However, the Executive Committee may permit the payment of such amount even without interest after such due date, provided it is satisfied that there exist sufficient grounds for such delayed payment.

b)

Clause 1 of DPClient Agreement

The Client shall pay such charges to the Depository Participant for the purpose of opening and maintaining his account, for carrying out the instructions of the Client and for rendering such other services as may be agreed to from time to time between the Depository Participant and the Client as set out in Schedule A. The Depository Participant shall reserve the right to revise the charges by giving not less than thirty days notice in writing to the Client. On the failure of the Client to pay the charges as laid out in clause (1) of this agreement within a period of thirty days from the date of demand Depository Participant shall terminate this agreement and close the account of the Client by requiring it to specify whether the balances in its account be transferred to the account of the Client held with another Participant or be rematerialised in the manner specified in the Bye laws and Business rules. The Client further agrees that in the event of the Client committing a default in the payment of any of the amounts provided in clause (1) within a period of thirty days from the date of demand, without prejudice to the right of the Depository Participant to close the account of the Client, the Depository Participant may charge interest @ not more than 24% p.a. or such other rate as may be specified by the Executive Committee from time to time for the period of such default. In case the Client has failed to make the payment of any of the amounts as provided in clause (1) of this agreement, the Depository Participant shall have the right to discontinue the Depository services till

Clause 8 of DPClient Agreement

Clause 9 of DPClient Agreement

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such time he makes the payment along with interest, if any, after giving two days notice to the Client. Rule 4.1.4 Rule 5.3 The permission to use the DPM shall be subject to the payment by the User of such charges as may be specified by the Depository. The Participant shall have the discretion to charge any fees to its Clients. Further, the Participant may charge different types of fees to its various Clients. Provided further that the Participant shall file the charge structure with the Depository as and when called for. Payment of bills by Participants Circular No. NSDL/POLICY/ 2010/0099 Date: August 31, 2010 Sub: Payment of bills by Participants All Participants are hereby advised that in order to ensure proper credit of payments and tax deducted at source (TDS) in respect of payments made to NSDL, they must provide the following details alongwith payments made to NSDL: (1) (2) (3) (4) (5) Name of the Participant DP ID TDS amount (if any) Bill details (Bill Number and Date) against which payment is being made Cheque / demand draft details (number, date and amount)

The aforesaid details can be mentioned in a separate letter or can be provided in the enclosed form (Annexure A). Further, Participants are advised to write the name of the Participant and DP ID on the reverse of cheque / demand draft. Participants can also make payments to NSDL electronically through RTGS or NEFT system. For payments made electronically, a separate communication must be sent to NSDL at accounts@nsdl.co.in mentioning the date of payment, amount paid, bank name and account number to which it is being credited in addition to the details mentioned at point nos.(1) to (4) above. A sample email is enclosed at Annexure B. For Participants desirous of making payments electronically to NSDL through RTGS or NEFT system, the bank details where payment is required to be made (bank name, bank account number and IFSC code) can be obtained by sending an email to accounts@nsdl.co.in. Annexure A Details of bill payment by Depository Participant to NSDL A DP ID Name of Participant Bill No. Bill Date Participants bill details

[ 374 ]

B Sr.No. 1 2 3 4 5 6 7 8 C Sr.No. 1 2 3

Payment details Particulars Bill amount Previous outstanding (if any) Total Amount Payable (1 + 2) Credit note issued (if any) (details below) TDS Amount paid now (details below) Total Credits (4 + 5 +6) Balance outstanding (if any) (3 - 7) Credit Note Details Credit Note Number Credit Note Date Credit Note for (Narration) Credit Note amount xxxxx xxxxx xxxxx xxxxx xxxxx Amount Rs. Amount Rs. xxxxx xxxxx xxxxx

Total Rs. DPayment Details Sr.No. Cheque Number Cheque Date 1 2 3 Total Rs. Annexure B (Sample email to Accounts Department, NSDL after payment of NSDL Participant bill) The Accounts Department National Securities Depository Limited accounts@nsdl.co.in This is to inform you that we have made payment electronically to NSDL as per the details given below: 1 2 3 Amount Paid Date of Credit Bank details of NSDL where payment is made Bank name IFSC Code Bank account number Rs.xxxxx DD/MM/YYYY Drawn on Cheque Amount

[ 375 ]

Bill details against which payment is made Bill number Bill date

TDS amount

Yours faithfully, Name of the Participant DP ID Policy-SEBI Circular regarding Account Maintenance Charges collected upfront on annual or half yearly basis on BO accounts Circular No. NSDL/POLICY/ 2010/0078 Date: July 2, 2010 Sub: Account Maintenance Charges (AMC) collected upfront on annual/ half yearly basis on Beneficial Owner (BO) accounts All Participants are advised to note that SEBI has vide circular no. CIR/MRD/ DP/20/2010 dated July 1, 2010 (copy enclosed) advised that in the event of closing of the demat account or shifting of the demat account from one Participant to another, the AMC collected upfront on annual/half yearly basis by the Participant, shall be refunded by the Participant to the BO for the balance of the quarter/s. Participants are advised to ensure compliance with the requirement and communicate the same to all the BOs.

Securities and Exchange Board of India CIRCULAR CIR/MRD/DP/ 20 /2010 To, All Depositories, Dear Sir(s), Sub: Account Maintenance Charges collected upfront on annual/ half yearly basis on demat accounts 1. The Depository Participants (DPs) have a system of collecting account maintenance charge (AMC) from beneficial owners (BOs) towards maintenance of demat accounts for varied periodicity of collection (viz. monthly, quarterly, half yearly and annually). It has been noticed that in cases where AMC is collected on an annual upfront basis, on closure/shifting of demat account, the AMC for the balance period for which no service has been provided by the DP, is not refunded to the BO. In view of the above, it has been decided that in the event of closing of the demat account or shifting of the demat account from one DP to another, the AMC collected upfront on annual/half yearly basis by the DP, shall be refunded by the DP to the BO for the balance of the quarter/s. For instance, in case annual AMC has been paid by the BO and if the BO closes/shifts his account in the first quarter, he shall be refunded the amount of the balance 3 quarters i.e. 3/4th of the AMC. Likewise, if a BO closes/shifts his account in the third quarter, he shall be refunded the amount for the balance one quarter i.e. 1/4th of the AMC. For the purpose of the above requirement the year shall begin from the date of opening of the account in quarterly rests. The above requirements shall be applicable to all existing and new accounts held with DPs which collect annual/half yearly upfront AMC. It is hereby clarified that the above requirements shall not be applicable to those DPs who collect quarterly/ monthly AMC. The Depositories are advised to:a) make amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision immediately, as may be applicable/necessary ; b) bring the provisions of this circular to the notice of their DPs and also to disseminate the same on their website; and c) Communicate the same to all the BOs. This circular is being issued in exercise of the powers conferred by Section 11(1) of Securities and Exchange Board of India Act, 1992 and section 19 of the Depositories Act, 1996 to protect the interest of investors in securities and to promote the development of, and to regulate, the securities market. July 1, 2010

2.

3. 4. 5.

6.

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Yours faithfully, Harini Balaji Deputy General Manager 022-26449372 harinib@sebi.gov.in Service tax on fees/charges payable by Participants Circular No. NSDL/POLICY/ 2010/0028 Date: March 23, 2010 Sub: Service tax on fees/charges payable by Participants All Participants are hereby informed that with effect from April 1, 2010, service tax will be levied at applicable rates on fees/charges payable by Participants. Participants are requested to take note of the same. Format for filing charge structure with NSDL Circular No. NSDL/POLICY/ 2007/0003 Date: January 8, 2007 Sub : Format for filing charge structure with NSDL every year by April 30 Attention of Depository Participants (DPs) is invited to NSDL Circular No. NSDL/ PI/2006/0064 dated December 26, 2006 (copy enclosed) regarding filing of charge structure with NSDL and penalty therefor in case of non-compliance. The details of charge structure should be provided as per the enclosed format (in MS Excel) and e-mailed to NSDL at dpfees@nsdl.co.in Further, any subsequent changes (addition/deletion/modification) in the charge structure of the DP should also be intimated to NSDL in the above format, at the above e-mail Id before such changes become effective.
DP Name Statutory charges at the time of account opening Advance/ Deposit Account Maintenance Demat Remat Transaction (Debit) Pledge Creation Pledge Creation confirmation Pledge Closure Pledge Closure confirmation Pledge Invocation Failed instruction Other charges, if any Remarks

Charges - waiver request to be submitted within one month Circular No. NSDL/POLICY/ 2009/0098 Date: October 23, 2009 Sub: Facility for submitting fee waiver requests electronically through SQLASSIST All Participants are hereby informed that a new facility is made available to request for fee waivers electronically through SQLASSIST intranet site (https:/ /sqlassist). Participants are requested to take note of the following: 1. The waiver requests can be applied using interactive screens or through file upload. Participants would be required to follow maker-checker concept for setting up waiver requests on SQLASSIST Intranet site. Detailed procedure for applying for waiver requests through SQLASSIST is given at Annexure 1. Participants are not required to send any documents in paper form to NSDL except in case of waiver requests for account closure upon interdepository transfers where the number of instructions per client are more than 25. In such cases, Participants are advised to follow the existing procedure with respect to collection and submission of documents to NSDL as mentioned in Circular no. NSDL/POLICY/2006/ 0001 dated January 5, 2006 and NSDL/POLICY/2006/0003 dated January 30, 2006. For all other types of waiver requests i.e. (i) account closure and intradepository transfers (irrespective of number of instructions per client), (ii) account closure and inter-depository transfers (limited to upto 25

2.

3.

[ 377 ]

instructions per client account) and (iii) transmission requests, Participants are not required to send any document in paper form to NSDL. However, Participants are required to maintain such documents and produce it to officials of NSDL on demand. 4. Waiver requests for transactions effected in the preceding month can be applied through SQLASSIST till the end of the current month. For example, waiver for a transaction effected in November 2009 can be applied by the Participant through SQLASSIST anytime between November 1, 2009 till December 31, 2009. Participants can also submit waiver request for transactions effected in the current month. This revised procedure will be applicable for all waiver requests applied on or after November 1, 2009 (i.e. waivers requests for the month of October 2009 onwards can be applied using this system). The existing requirement to conduct 100% internal audit in respect of amount claimed by the Participant for waiver will continue in respect of waiver requests for transfer upon account closure (Ref. : Circular No. NSDL/POLICY/2007/0060 dated October 5, 2007). Such an internal audit must be carried out for all types of waiver requests made through SQLASSIST. It is reiterated that in case any deviation is observed with respect to claims for waiver, a penalty of Rs. 500 per instruction for which waiver is granted may be levied on the concerned Participant.

5.

6.

7.

For further information / clarification, Participants are requested to contact Mr. Dilip Singhal at Tel No. (022) 2499 4363 / email ID: dilips@nsdl.co.in / Ms. Shobha Shetty at Tel No. (022) 2499 4214 / email ID: shobhas@nsdl.co.in. Circular No. NSDL/PI/2003/2103 Date: December 29, 2003 Attention of Participants is invited to our Circular No. NSDL/PI/99/496 dated June 29, 1999 advising Participants to submit requests for waiver of fees to NSDL, alongwith all the requisite documents, within one month from the date of bill. Participants are hereby informed that w.e.f January 1, 2004, they will be required to provide only the following documents alongwith a letter in the format as per Annexure: (1) (2) Copy of death certificate of the deceased; Indemnity/Affidavit by the nominee/legal heir, as the case may, in case of single holder account.

Participants should also note that w.e.f January 1, 2004, only one request per month per DPM set-up in respect of waiver of fees will be entertained by NSDL. The requirement of submitting the claim within one month from the date of bill will continue. Annexure I Procedure for submitting waiver request (To be provided on DP's letter head) Date: To, The Vice President Participant Interface Dept. National Securities Depository Limited Trade World, A-wing, 4th floor Kamala Mills Compound, Senapati Bapat Marg Lower Parel (W), Mumbai - 400 013.

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Dear Sir, Sub.: Request for waiver of settlement fees for the month of (year) on account of transmission of securities. ,

This is to certify that all requisite details/documents as required under the Bye Laws and Business Rules of NSDL have been obtained by (DP name) for effecting transmission of securities in respect of client account(s) as enclosed. We hereby declare that all the information provided herewith is true to the best of our knowledge and further confirm that (DP name) will be fully responsible in case any claims made towards waiver of settlement fees are found to be invalid. Name and Designation of Compliance Officer Signature of Compliance Officer DP Id Seal of DP Annexure II Enclosure to letter Details of transmission cases for the month of , (year) Amount (in Rs.) for which waiver is sought

Sr. Source Source Name of Joint DPM Exe- Target Target Reason, No. DP Id Client the A/c Instruction cution DP Id Client if Id Deceased (Y/N) No. Date Id source A/c is not closed

Notes: (1) Please provide the details in a soft copy, if total number of transactions exceed 25. (2) Enclose copies of death certificates. (3) Enclose copies of Indemnity/Affidavit, in case of single holdings. (4) Enclose a print-out of client master report of target Client in case of inter-depository transfers. Circular No. NSDL/PI/99/496 Date: June 29, 1999 All Participants are hereby advised that all requests for waiver of fees should be submitted to NSDL alongwith all the supporting documents within one month from the date of the bill. No request for waiver will be entertained thereafter

SEBI Directive on reduction in Charges Circular No. NSDL/POLICY/ 2010/0043 Date: April 29, 2010 With reference to Circular no. NSDL/POLICY/2010/0029 dated March 26, 2010, all Participants are hereby informed that Securities and Exchange Board of India has vide its letter no. MRD/DP/SG-OW/2569/2010 dated April 26, 2010 (copy enclosed) advised NSDL to intimate the Participants to pass on the benefits of the reduction in Settlement fees, to the beneficial owners. Participants are advised to ensure compliance of the above.

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Securities and Exchange Board of India MARKET REGULATION DEPARTMENT - Division of Policy E-mail: surabhig@sebi.gov.in Ph. no.:91+22+26449315 MRD/DP/SG-OW/ 2569 /2010 April 26, 2010

The Managing Director & CEO, National Securities Depository Ltd. Trade World, A wing, 4th and 5th Floor, Kamala Mills Compound, Lower Parel, Mumbai400 013

Dear Sir, Sub: Reduction in settlement fees

1. 2.

Piease refer to your letter No. Secretarial/SEBI/2010/MO/044 dated March 19,2010. It is observed from your aforesaid letter that with effect from April 1, 2010, you have reduced settlement fees charged to the Depository Participants (DPs) from Rs.5 to Rs. 4.50 per debit instruction. You may please advise your DPs to pass the benefit of the reduction in settlement fees, to the beneficial owners.

3.

Please acknowledge receipt and confirm compliance.

Yours faithfully,

Surabhi Gupta Assistant General Manager Circular No. NSDL/POLICY/ 2007/0079 Date: December 27, 2007 Sub : SEBI directive on reduction in charges With reference to NSDL Circular No. NSDL/POLICY/2007/0075 dated December 3, 2007, all Depository Participants (DPs) are hereby informed that Securities and Exchange Board of India has vide its letter no. MRD/DoP/PP/111495/07 dated December 20, 2007 (copy enclosed) advised NSDL to intimate the DPs to pass on the benefits of the reduction in settlement fees, to the beneficial owners. DPs are advised to ensure compliance of the above.

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Annexure CHIEF GENERAL MANAGER Market Regulation Department - Division of Policy MRD/DoP/PP/111495/07 December 20, 2007 The Chairman & Managing Director, National Securities Depository Limited 4th Floor, Trade World, Kamla Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai - 400 013 Dear Sir, Sub : Reduction in settlement fees 1. 2. Please refer to your letter no. Secretarial/SEBI/2007/PS/0111 dated November 30, 2007. It is observed from your aforesaid letter that with effect from January 1, 2008, you have proposed to reduce settlement fees charged to the Depository Participants (DPs) from Rs. 6 to Rs. 5 per debit instruction. You may please advise your DPs to pass the benefit of proposed reduction in settlement fees to the beneficial owners. Please acknowledge receipt and confirm compliance.

3.

Yours faithfully,

S. V. MURALI DHAR RAO

Circular No. NSDL/PI/2005/1478 Date: August 12, 2005

With reference to our circular no. NSDL/PI/2005/1440 dated August 9, 2005, all Participants are hereby informed that Securities and Exchange Board of India has vide its letter no. MRD/DOP/NSDL/VM/46618/05 dated August 10, 2005 (copy enclosed) advised NSDL to intimate the Participants to pass on the benefits of the reduction in charges for debit instructions, to the beneficial owners. Participants are advised to ensure compliance of the above. Annexure

GENERAL MANAGER MARKET REGULATION DEPARTMENT Tel. 2216 4465 Fax : 2216 4394 E-mail : sundaresanvs@sebi.gov.in MRD/DOP/NSDL/VM/46618/05 August 10, 2005 The Managing Director National Securities Depository Limited 4th Floor, Trade World, Kamla Mills Compound Senapati Bapat Marg, Lower Parel Mumbai 400 013

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Dear Sir, 1. 2. Sub : Reduction in charges. Please refer to your letter no. NSDL/JS/SEBI/2973/2005 dated August 1, 2005 It is observed from your aforesaid letter that you have proposed to reduce the charges to the Depository Participants (DPs) for debit instruction from Rs. 8/- to Rs. 6/- with effect from October 01, 2005. You may please intimate your DPs to pass on the proposed reduction in the charges towards debit instructions to the beneficial owners. Please acknowledge receipt and confirm compliance.

3.

Yours faithfully, V.S. SUNDARESAN Circular No. NSDL/PI/2003/2111 Date: December 29, 2003 With reference to our circular no. NSDL/PI/2003/1979 dated December 11, 2003, all Participants are hereby informed that Securities and Exchange Board of India has vide its letter no. MRD/VSS/SU/24221/2003 dated December 22, 2003 (copy enclosed) advised NSDL to intimate the Participants to pass on the benefits of the reduction in charges for debit instructions, to the beneficial owners. Participants are advised to ensure compliance of the above. Annexure (Letter from SEBI) DEPUTY GENERAL MANAGER MARKET RGULATION DEPARTMENT Email : sundersanvs@sebi.gov.in MRD/VSS/SU/24221/2003 December, 22, 2003 Shri C. B. Bhave Managing Director NSDL 4th Floor, Trade World, Kamla Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai-400 013. Dear Sir, Sub : Reduction in charges. 1. 2. Please refer to your letter no. NSDL/PI/SEBI/2003/PP/1398 dated December 09, 2003. It is observed from your aforesaid letter that you have proposed to reduce the fee charges from Rs. 10/- to Rs. 8/- per debit instruction, with effect from 1-1-2004. You may please intimate your Depository Participants to pass on the proposed reduction in the charges for debit instruction, to the beneficial owners. Please acknowledge receipt and confirm compliance

3.

Yours faithfully,

V.S. SUNDARESAN

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SEBI Directive on Review of Dematerialisation Charges DEPUTY GENERAL MANAGER Market Regulation Department MRD/DoP/SE/Dep/Cir-4/2005 Date:January 28,2005 1. 2. 3. The Executive Directors/Managing Directors/ Administrators of all Stock Exchanges The Managing Director, NSDL The Executive Director, CDSL

Dear Sir/s, Sub: Review of Dematerialisation Charges 1. Investors have been representing to SEBI seeking a reduction in the charges paid by them for dematerialisation of securities. The rationalization of charge structure for dematerialisation was discussed at the Secondary Market Advisory Committee of SEBI (SMAC). After careful consideration of the recommendations of the SMAC, as a first step, it has been decided to rationalize the existing charge structure as under: 2.1 Effective from February 1, 2005 :a) b) c) 2.2 No investor shall be required to pay any charge towards opening of a Beneficiary Owner (BO) Account except for statutory charges as may be applicable; No investor shall be required to pay any charge for credit of securities into his/her BO account; and No custody charge shall be levied on any investor who would be opening a BO account on or after February 1, 2005.

2.

With effect from April 1, 2005 the custody charges shall not be levied on any investor. However, the Depositories may levy and collect the charges towards custody from the issuers, on a per folio (ISIN position) basis as at the end of the financial year, according to the table given below: Issuers to pay @ Rs.5.00 (*) per folio (ISIN position) in the respective depositories, subject to a minimum as mentioned below: Nominal value of admitted securities (Rs.) Upto 5 crore Above 5 crore and upto 10 crore Above 10 crore and upto 20 crore Above 20 crore * Plus service tax as applicable The issuers would be required to pay custody charges to the Depository with whom they have established connectivity based on the total number of folios (ISIN positions) as on 31st March of the previous financial year or the minimum amount, as the case may be, by 30th April of the each financial year failing which Depositories may charge penal interest subject to a maximum of 12% p.a. Annual Custodial Fee payable by a Issuer to each Depository (Rs.) (*) 4,000 10,000 20,000 30,000

[ 383 ]

3.

All the Stock Exchanges are advised to:a) b) c) implement the above with immediate effect by making necessary amendments to the byelaws and Listing Agreement, as applicable; to bring the provisions of this circular to the notice of the listed companies/Issuers and also to put up the same on the website for easy access to the investors ; and communicate to SEBI the status of the implementation of the provisions of this circular and the action taken in this regard in Section II, item no. 13 of the Monthly Development Report for the month of February, 2005. make amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision immediately, as may be applicable/necessary ; bring the provisions of this circular to the notice of the DPs of the Depositories and the issuers whose securities have been admitted into the depositories and also to disseminate the same on the website; and communicate to SEBI the status of the implementation of the provisions of this circular in the Monthly Development Report for the month of February, 2005.

4.

The Depositories are advised to:a) b)

c) 5.

This circular is being issued in exercise of the powers conferred by Section 11 (1) of Securities and Exchange Board of India Act, 1992 to protect the interest of investors in securities and to promote the development of, and to regulate, the securities market.

Yours faithfully,

V S SUNDARESAN Closure of accounts with zero balances Circular No. NSDL/PI/2002/0365 Date: March 4, 2002 NSDL has been receiving requests from some Participants regarding closure of Client accounts with zero balances without obtaining the necessary instructions from the Clients, in cases where the Clients have not paid their dues to the Participant. In this context, Participants are requested to refer to clause 8 of the Agreement between the Participant and its Client (Annexure B of Bye Laws of NSDL), which is reproduced hereunder: "On the failure of the Client to pay the charges as laid out in clause (1) of this agreement within a period of thirty days from the date of demand Depository Participant shall terminate this agreement and close the account of the Client by requiring it to specify whether the balances in its account be transferred to the account of the Client held with another Participant or be rematerialised in the manner specified in the Bye laws and Business rules." Participants may note that, since such accounts have zero balances, the need for asking Client to rematerialise or to specify another demat account does not arise. Participants may close such accounts after complying with the procedure laid down in clause 8 of the Agreement between the Participant and its Client.

[ 384 ]

SEBI directive on non levy of charges for transfer of securities consequent to account closure Circular No. NSDL/POLICY/ 2007/0060 Date : October 5, 2007 Sub : Exemption from submitting documents for claiming waiver of settlement fees consequent to transfer of securities with respect to SEBI directive on account closure As all Depository Participants (DPs) are aware, DPs are exempted from payment of settlement fee (Rs.6 per debit from beneficiary account) consequent to transfer of securities with respect to SEBI directive on account closure (Circular No. NSDL/POLICY/2006/0001 dated January 05, 2006 and NSDL/POLICY/2006/ 0003 dated January 30, 2006). For the purpose of claiming/granting these exemptions, certain documents are required to be submitted by DPs to NSDL. DPs have represented to NSDL about the costs and efforts involved in processing and despatch of requisite documents to NSDL. Upon consideration of the representations and discussions with DPs, it is decided to revise the procedure for claiming waiver of settlement fees consequent to transfer of securities with respect to SEBI directive on account closure. The revised procedure is applicable with effect from October 1, 2007. (I) Exemption from submission of documents to NSDL Where the number of instructions does not exceed 25 per Client account, DPs are advised to follow the below given procedure for Intra and Inter Depository Transfer: (a) Collect the requisite documents from the Client as required in Bye Laws & Business Rules of NSDL and various circulars issued by NSDL in this regard, before effecting the transfer of securities (intra and inter depository transfers). However, the documents collected from the Clients will not be forwarded to NSDL. Such documents would be required to be maintained by the DP and produced to the officials of NSDL at the time of inspection or demanded otherwise. Submit an undertaking (Annexure I) that the DP has verified all the documents and transfer of securities to the target demat account are in accordance with the Bye Laws & Business Rules of NSDL and relevant circulars/guidelines issued by NSDL with respect to waiver of settlement fees claimed by the DP. 100% audit to be carried out by the internal auditor of the DP with respect to the amount claimed by the DP and the requisite documents collected and maintained in support of the same. DPs are advised to inform their internal auditors to expand the scope of the audit by adding the following areas and make suitable comments in their audit report.

(b)

(c)

9. Audit in respect of waiver of settlement fees claimed consequent to transfer of securities with respect of SEBI directive on account closure Whether the DP has collected the requisite documents as per the Bye Laws & Business Rules of NSDL and various circulars issued by NSDL in respect of waiver of settlement fees claimed by the DP as per NSDL Circular No. NSDL/ POLICY/2007/0060 dated October 5, 2007 ? DPs are advised to ensure that the abovementioned point is covered by the internal auditor and reported in the internal audit report with effect from quarter ending December 2007 onwards to be submitted by March 31, 2008.

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(II)

Penalty in case of non compliance / deviation In case, it is observed that the DP has not complied with the abovementioned requirements/procedures or any deviation is observed with respect to point no. I above, a penalty of Rs. 500 per instruction for which waiver is granted, would be levied on the concerned DP.

(III)

Requirement of submission of documents to NSDL Where the number of instructions exceeds 25 per Client account, DPs are advised to follow the below given procedure for Inter and Intra Depository Transfer: (a) Inter Depository Transfers DPs are advised to follow the existing procedure with respect to collection and submission of documents to NSDL as mentioned in NSDL Circular No. NSDL/POLICY/2006/0001 dated January 05, 2006 and NSDL/POLICY/2006/0003 dated January 30, 2006. (b) Intra Depository transfer DPs are advised to follow the procedure mentioned in point I on page 1. (c) Internal Audit DPs need not carry out 100% audit for instructions exceeding 25 per Client account with respect to inter-depository transfer, since the existing procedure is continued.

(IV) Format for submission of waiver details DPs are advised to submit the details of the waiver claimed for such Client accounts in the format given in Annexure II. (V) Submission deadline DPs would be required to submit the undertaking / documents alongwith the waiver details for claiming waiver of settlement fees with respect to SEBI directive on account closure within one month from the date of the bill. In case if DPs fail to submit the requests to NSDL by the prescribed deadline i.e. within one month from the date of the bill, such waiver requests will not be granted. However, DPs would still be required to comply with the SEBI directive of not levying the charges to Clients. (VI) Implementation: The revised procedure would be implemented with effect from October 1, 2007, for the transfer of securities effected from September 1, 2007. DPs are also advised to submit the pending waiver requests, if any, by November 30, 2007 for the transfers effected till August 31, 2007, by following the revised procedure mentioned above. For further information, DPs are requested to contact Ms. Shobha Shetty on Tel No. (022) 2499 4485 (email : shobhas@nsdl.co.in) / Mr. Kaushal Shah on Tel. No. (022) 2499 4214 (email : kaushals@nsdl.co.in). Annexure I (To be provided on DP's letter head) Date: To, The Vice President Participant Interface Dept.

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National Securities Depository Limited Trade World, A-wing, 4th floor Kamala Mills Compound Senapati Bapat Marg Lower Parel (W) Mumbai - 400 013. Dear Sir, Sub.: Request for waiver of settlement fees for the month of _______, ____ (year) consequent to transfer of securities with respect to SEBI directive on account closure. This is to certify that all requisite details/documents as required under the Bye Laws and Business Rules of NSDL and various guidelines/circulars issued by NSDL have been obtained by _______________ (DP name) DP ID ___________ for effecting transfer of securities on account of SEBI directive on account closure. Details Waiver claimed on account of SEBI directive on account closure for the month of ______________, _________(year) Total The detail of securities transferred is enclosed as per annexure II. We hereby declare that all the information provided herewith is true to the best of our knowledge and further confirm that ______________ (DP name) will be fully responsible in case any claims made towards waiver of settlement fees are found to be invalid. Name and Designation of Compliance Officer Signature of Compliance Officer DP Id Seal of DP Annexure II Details of transfer cases for the month of ___________, ______ (year) DP Name _____________________ Sr. No. Source Client ID Name of First Holder DP ID____________________ Source Client Details Instruction details Amount

PAN of Name of PAN of Name of PAN of DPM Execution First Second Second Third Third Instruction Date Holder Holder Holder Holder Holder No. Reason, if source a/c is not closed Amount for which waiver is sought (Rs.)

Target Client details Target DP Id Notes : Target Client Id Name of First Holder PAN of Name of Firster Second Holder Holder PAN of Name of Second Third Holder Holder PAN of Third Holder

In case the total number of instructions exceed 25 per Client account, please provide the waiver details in soft copy as well.

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Circular No. NSDL/POLICY/ 2006/0003 Date: January 30, 2006

Sub : Addendum to circular no. NSDL/POLICY/2006/0001 dated January 5, 2006 Attention of Participants is invited to our circular no. NSDL/POLICY/2006/ 0001 dated January 5, 2006. It was mentioned that the Client Master Report (CMR) submitted by the Beneficiary Owners (BO) for inter-depository transfer should be duly certified (signed and stamped) by the other depository. NSDL has received a confirmation from the other depository that its Participants can now generate CMR in crystal report format. In view of the foregoing, BOs shall submit CMR in crystal report format duly certified (signed and stamped) by the target Participant. Participant are requested to take note of the above.

Circular No. NSDL/POLICY/ 2006/0001 Date: January 5, 2006

As all Participants are aware, Securities and Exchange Board of India (SEBI) has vide its circular no. MRD/DoP/Dep/CIR-22/05 dated November 9, 2005 (copy enclosed) decided that "with effect from January 09, 2006 (Monday), no charges shall be levied by a depository on DP and consequently, by a DP on a Beneficiary Owner (BO) when a BO transfers all the securities lying in his account to another branch of the same DP or to another DP of the same depository or another depository, provided the BO Account/s at transferee DP and at transferor DP are one and the same, i.e. identical in all respects. In case the BO Account at transferor DP is a joint account, the BO Account at transferee DP should also be a joint account in the same sequence of ownership". NSDL has preferred an appeal before the Securities Appellate Tribunal. The matter is sub-judice. In the meantime, Participants are advised to follow the aforesaid SEBI circular. Further, Participants are advised to follow the following procedure in this regard : 1. The BO submits an account closure request as specified in Annexure Q, duly filled & signed by the account holder(s) alongwith duly certified (signed and stamped) Client Master Report (CMR) obtained from the target Participant with whom the BO has opened a new account or maintains an account. In case of inter-depository transfers, apart from what has been stated above, the BO should submit the CMR in a crystal format duly certified (signed and stamped) by the target Participant or if CMR in crystal report format is not available, the target details should be certified (signed and stamped) by the other depository. Further, the BO surrenders all unused delivery instruction slips (DIS) to the Participant. Participant should verify the documents submitted by the BO and if found in order, the Participant shall effect the transfer of securities. After transferring the securities, the serial number(s) pertaining to unused DIS should be permanently blocked in the back office system of the Participant and the account of the BO should be closed. In case the Participant is unable to close the account due to pending demat / remat requests, ISIN in suspended status, fractional position or due to open pledges etc., the Participant should freeze the account i.e 'suspended for debit and credit'. Participants should make a request to NSDL seeking credit for the transaction fees pertaining to account closure cases, with supporting documents as detailed above.

2. 3.

4.

[ 388 ]

Closure of accounts - SEBI Directive on abolishing account closure charges Circular No. NSDL/PI/2002/1895 Date: November 1, 2002 All Participants are hereby informed that Securities and Exchange Board of India (SEBI) vide its circular no. D&CC/FITTC/CIR-12/2002 dated October 30, 2002 has intimated to NSDL as under: " In view of the representations received on not to charge Account closure charges, the matter was discussed in the meeting of Working Group on Dematerialisation held on 18th October, 2002. It has been decided that no Account closure charges be imposed on the closure of any Beneficial Owner accounts. However, the transaction charges as applicable may continue to be charged. These instructions will come into force with effect from 1st November, 2002." Participants are advised to ensure compliance of the above instructions. Closure of accounts - Request received on plain paper Circular No. NSDL/PI/2002/2175 Date: December 18, 2002 Participants have been seeking clarification from NSDL whether an account held by a beneficiary can be closed on the basis of a request received from the Client on a plain paper instead of receiving the application for Closing an Account in Annexure Q as per the Business Rules of NSDL. In this regard, Participants are advised that requests received on a plain paper for closing a beneficiary account can be treated as a valid application provided Participants ensure the following: (1) (2) (3) Monthly Bills Circular No. NSDL/PI/2004/0413 Date : March 5, 2004 NSDL has been providing details of monthly bills to Participants in a floppy disc/DAT/through e-mail. Participants are hereby informed that henceforth (i.e. from February 2004 onwards), details of bills will be made available at intranet http://sqlassist. Bill details for a given month will be available to Participants latest by 7th of the following month. Participants will continue to receive hard copies of the bill. For obtaining bill details, Participants can log-on to intranet (http://sqlassist) with the User Id (DP Id) and Password that will be provided to the compliance officers of Participants in a sealed envelope alongwith the bill of February 2004. Compliance officers are requested to forward the same to the concerned official. The bill details at the intranet (http://sqlassist) will be available in zip format and the details can be viewed or downloaded as per the requirement of the Participant. Participants should note that bill details for a particular month will be available till the details of the following month are uploaded to the intranet. It may be mentioned that Participants using leased line connectivity with NSDL can view/download bill details throughout the day. However, those Participants who are connected to NSDL using VSAT will not be able to view/ down load bill details during 10.00 a.m. to 4.00 p.m. on week days. Also, in case the file size is more than 500 KB, then the Participants connected to NSDL using VSAT will not be able to avail of this facility and the details to those Participants will be provided separately in floppy disc/DAT. The request letter must contain all details that are specified in the Application for Closing an Account (Annexure Q). The Client must submit duly signed delivery instruction form(s) (Annexure L) for transferring the securities, if any. All the account holder(s) must sign the request.

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Fees for Rematerialisation of Securities Circular No. NSDL/POLICY/ 2009/0053 Date: July 3, 2009 Sub: Fees for Rematerialisation of Securities As all Participants are aware, NSDL had revised the charges for rematerialisation of securities with effect from November 1, 2006. In this context, Participants are advised that at the time of accepting requests for rematerialisation of securities from clients (especially for large quantities), Participants must inform their charges for rematerialisation to their clients.

[ 390 ]

NOTES

[ 391 ]

NOTES

[ 392 ]

10. Anti Money Laundering

Circular No. NSDL/POLICY/ 2011/0005 Date: January 10, 2011 Sub: SEBI's Master Circular on Anti Money Laundering and Combating Financing of Terrorism. Attention of Participants is invited to SEBI's Master Circular no. CIR/ISD/AML 3/2010 dated December 31, 2010 (copy enclosed) regarding Anti Money Laundering / Combating the Financing of Terrorism. Participants are advised to ensure compliance with the same. Sub: The Financial Action Task Force (FATF) public statement dated June 25, 2010 against FATF identified jurisdictions that have strategic anti money laundering and combating the financing of terrorism (AML/CFT) deficiencies. All Participants are hereby informed that SEBI has vide its letter no. OW/ISD/ SR/DB/GK/AML/15647/2010/3 dated August 10, 2010 advised the following: The Financial Action Task Force (FATF) in its on-going efforts to identify jurisdictions with strategic AML/CFT deficiencies has updated its two public documents issued in February 2010 and identified 28 deficient jurisdictions. In this regard the deficient jurisdictions have been divided into three categories Jurisdictions subject to a FATF call on its members and other jurisdictions to apply countermeasures to protect the international financial system from the ongoing and substantial money laundering and terrorist financing (ML/TF) risks emanating from the jurisdiction: Iran Jurisdictions with strategic AML/CFT deficiencies that have not committed to an action plan developed with the FATF to address key deficiencies as of February 2010. The FATF call on its members to consider the risks emanating from deficiencies associated with each jurisdiction: Democratic Peoples Republic of Korea, Sao Tome and Principe. In the second statement titled Improving Global AML/CFT Compliance: On-going Process the FATF has to date publicly identified 25 Jurisdictions with strategic AML/CFT deficiencies, for which an action plan has now been developed in conjunction with the FATF and a high level political commitment to work with the FATF has been given.

Circular No. NSDL/POLICY/ 2010/0095 Date: August 16, 2010

Copies of both the FATF statements are enclosed herewith for information and appropriate action. The same are also available at url: http://www.fatfgafi.org/dataoecd/17/5/45540828.pdf; http://www.fatf-gafi.org/dataoecd/ 17/4/45540819.pdf. Participants are advised to take note of the above and ensure compliance with the same. Annexure I FATF PUBLIC STATEMENT 25 June 2010 The Financial Action Task Force (FATF) is the global standard setting body for antimoney laundering and combating the financing of terrorism (AML/CFT). In order to protect the international financial system from ML/FT risks and to encourage greater compliance with the AML/CFT standards, the FATF identified jurisdictions that have strategic deficiencies and, along with the FATF-style
1

The FATF has previously issued public statements calling for counter-measures on Iran. Those statements are updated below.

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regional bodies (FSRBs), works with them to address those deficiencies that pose a risk to the international financial system. The FATF and the relevant FSRBs will continue to work with the jurisdictions below and report on their progress in addressing the identified deficiencies. 1. Jurisdictions subject to a FATF call on its members and other jurisdictions to apply counter-measures to protect the international financial system from the ongoing and substantial money laundering and terrorist financing (ML/TF) risks emanating from the jurisdiction1: Iran 2. Jurisdictions with strategic AML/CFT deficiencies that have not committed to an action plan developed with the FATF to address key deficiencies as of June 2010. The FATF calls on its members to consider the risks arising from the deficiencies associated with each jurisdiction, as described below. Democratic Peoples Republic of Korea (DPRK)* So Tom and Prncipe * Despite the FATFs efforts, this jurisdiction has not constructively engaged with the FATF or an FSRB as of June 2010 and has not committed to the international AML/CFT standards. 1. Jurisdictions subject to a FATF call on its members and other jurisdictions to apply counter-measures to protect the international financial system from the ongoing and substantial money laundering and terrorist financing (ML/TF) risks emanating from the jurisdiction: Iran The FATF welcomes the recent steps that Iran has taken to engage with the FATF, but remains concerned by Irans failure to meaningfully address the ongoing and substantial deficiencies in its anti-money laundering and combating the financing of terrorism (AML/CFT) regime. The FATF remains particularly concerned about Irans failure to address the risk of terrorist financing and the serious threat this poses to the integrity of the international financial system. The FATF urges Iran to immediately and meaningfully address its AML/CFT deficiencies, in particular by criminalising terrorist financing and effectively implementing suspicious transaction reporting (STR) requirements. The FATF reaffirms its call on members and urges all jurisdictions to advise their financial institutions to give special attention to business relationships and transactions with Iran, including Iranian companies and financial institutions. In addition to enhanced scrutiny, the FATF reaffirms its 25 February 2009 call on its members and urges all jurisdictions to apply effective countermeasures to protect their financial sectors from money laundering and financing of terrorism (ML/FT) risks emanating from Iran. FATF continues to urge jurisdictions to protect against correspondent relationships being used to bypass or evade counter-measures and risk mitigation practices, and to take into account ML/FT risks when considering requests by Iranian financial institutions to open branches and subsidiaries in their jurisdiction. If Iran fails to take concrete steps to improve its AML/CFT regime, the FATF will consider calling on its members and rging all jurisdictions to strengthen counter-measures in October 2010.

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2. Jurisdictions with strategic AML/CFT deficiencies that have not committed to an action plan developed with the FATF to address key deficiencies as of June 2010. The FATF calls on its members to consider the risks arising from the deficiencies associated with each jurisdiction, as described below. Democratic Peoples Republic of Korea (DPRK)* The Democratic Peoples Republic of Korea (DPRK) has not committed to the AML/CFT international standards, nor has it responded to the FATFs numerous requests for engagement on these issues. DPRKs lack of a comprehensive AML/CFT regime poses a risk to the international financial system. DPRK should work with the FATF to develop a viable AML/CFT regime in line with international standards. So Tom and Prncipe The FATF remains concerned by So Tom and Prncipes failure to meaningfully address the deficiencies in its AML/CFT regime, particularly relating to terrorist financing. So Tom and Prncipes lack of a comprehensive AML/CFT regime poses a risk to the international financial system. So Tom and Prncipe should work with the FATF and GIABA to address the remaining AML/CFT deficiencies. Annexure II FAIMPROVING GLOBAL AML/CFT COMPLIANCE: ON-GOING PROCESS 25 June 2010 As part of its ongoing review of compliance with the AML/CFT standards, the FATF has to date identified the following jurisdictions which have strategic AML/CFT deficiencies for which they have developed an action plan with the FATF. While the situations differ among each jurisdiction, each jurisdiction has provided a written high-level political commitment to address the identified deficiencies. FATF welcomes these commitments. A large number of jurisdictions have not yet been reviewed by the FATF. The FATF will continue to identify additional jurisdictions, on an ongoing basis, that pose a risk in the international financial system. The FATF has already begun an initial review of a number of such jurisdictions as part of this process and will present its findings later this year. The FATF and the FSRBs will continue to work with the jurisdictions noted below and to report on the progress made in addressing the identified deficiencies. The FATF calls on these jurisdictions to complete the implementation of action plans expeditiously and within the proposed timeframes. The FATF will closely monitor the implementation of these action plans and encourages its members to consider the information presented below. Angola In June 2010, Angola made a high-level political commitment to work with the FATF to address its strategic AML/CFT deficiencies and has demonstrated some progress in improving its AML/CFT regime. However, the FATF has determined that certain strategic AML/CFT deficiencies remain. Angola will work on implementing its action plan to address these deficiencies, including by: 1) adequately criminalising money laundering and terrorist financing (Recommendation 1 and Special Recommendation II); 2) ensuring a fully operational and effectively functioning Financial Intelligence Unit

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(Recommendation 26); 3) establishing and implementing an adequate legal framework for identifying, tracing and freezing terrorist assets (Special Recommendation III); 4) ratifying the UN Convention for the Suppression of the Financing of Terrorism and the UN Convention on Transnational Organised Crime. The FATF encourages Angola to address its remaining deficiencies and continue the process of implementing its action plan. Antigua and Barbuda In February 2010, Antigua and Barbuda made a high-level political commitment to work with the FATF and CFATF to address its strategic AML/CFT deficiencies. Since that time, Antigua and Barbuda has demonstrated progress in improving its AML/CFT regime, including by passing an amendment to the Prevention of Terrorism Act 2010 to establish a legal framework for identifying and freezing terrorist assets. However, the FATF has determined that certain strategic AML/CFT deficiencies remain. Antigua and Barbuda should continue to work on implementing its action plan to address these deficiencies, including by: (1) implementing an adequate legal framework for identifying and freezing terrorist assets (Special Recommendation III); (2) improving the overall supervisory framework (Recommendation 23); and (3) enhancing financial transparency (Recommendation 4). The FATF encourages Antigua and Barbuda to address its remaining deficiencies and continue the process of implementing its action plan. Azerbaijan In February 2010, Azerbaijan made a high-level political commitment to work with the FATF and MONEYVAL to address its strategic AML/CFT deficiencies. Since that time, Azerbaijan has demonstrated progress in improving its AML/ CFT regime, including by enacting AML/CFT amendments that aim to address issues relating to criminalisation of money laundering and terrorist financing, establishing procedures to freeze terrorist assets, and enhancing the functioning of the FIU. The FATF and MONEYVAL will conduct an on-site visit to confirm that the process of implementing the required reforms and actions is underway to address deficiencies previously identified by the FATF. Bolivia In February 2010, Bolivia made a high-level political commitment to work with the FATF and GAFISUD to address its strategic AML/CFT deficiencies. Since that time, Bolivia has demonstrated progress in improving its AML/CFT regime, including by enacting a new AML law on 31 March 2010 to improve its criminalisation of money laundering and to increase FIU functions. However, the FATF has determined that certain strategic deficiencies remain. Bolivia should continue to work on implementing its action plan to address these deficiencies, including by: 1) ensuring adequate criminalisation of money laundering (Recommendation 1); (2) adequately criminalising terrorist financing (Special Recommendation II); (3) establishing and implementing an adequate legal framework for identifying and freezing terrorist assets (Special Recommendation III); (4) establishing a fully operational and effective Financial Intelligence Unit (Recommendation 26). The FATF encourages Bolivia to address its remaining deficiencies and continue the process of implementing its action plan. Ecuador In June 2010, Ecuador made a high-level political commitment to work with the FATF and GAFISUD to address its strategic AML/CFT deficiencies. Ecuador has demonstrated progress in improving its AML/CFT regime, including submitting AML/CFT amendments to Congress. However, the FATF has

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determined that certain strategic AML/CFT deficiencies remain. Ecuador will work on implementing its action plan to address these deficiencies, including by: (1) adequately criminalising money laundering and terrorist financing (Recommendation 1 and Special Recommendation II); (2) establishing and implementing adequate procedures to identify and freeze terrorist assets (Special Recommendation III); (3) implementing adequate procedures for the confiscation of funds related to money laundering (Recommendation 3); (4) Reinforcing and improving coordination of financial sector supervision (Recommendation 23). The FATF encourages Ecuador to address its remaining deficiencies and continue the process of implementing its action plan. Ethiopia In June 2010, Ethiopia made a high-level political commitment to work with the FATF to address its strategic AML/CFT deficiencies. Ethiopia has demonstrated progress in improving its AML/CFT regime. However, the FATF has determined that certain strategic AML/CFT deficiencies remain. Ethiopia will work on implementing its action plan to address these deficiencies, including by: (1) adequately criminalising money laundering and terrorist financing (Recommendation 1 and Special Recommendation II); (2) establishing and implementing adequate procedures to identify and freeze terrorist assets (Special Recommendation III); 3) ensuring a fully operational and effectively functioning Financial Intelligence Unit (Recommendation 26); 4) establishing and implementing an adequate legal framework for identifying and freezing terrorist assets (Special Recommendation III); 5) raising awareness of AML/ CFT issues within the law enforcement community (Recommendation 27); and (6) implementing effective, proportionate and dissuasive sanctions in order to deal with natural or legal persons that do not comply with the national AML/CFT requirements (Recommendation 17). The FATF encourages Ethiopia to address its remaining deficiencies and continue the process of implementing its action plan. Greece In February 2010, Greece made a high-level political commitment to work with the FATF to address its strategic AML/CFT deficiencies. Since that time, Greece has demonstrated progress, including by taking measures to enhance the effectiveness of the FIU and tabling legislation that aims to address remaining issues regarding adequately criminalising terrorist financing. However, the FATF has determined that certain strategic AML/CFT deficiencies remain. Greece should continue to work on implementing its action plan to address these deficiencies, including by: (1) addressing remaining issues regarding adequately criminalising terrorist financing (Special Recommendation II); (2) improving mechanisms and procedures for freezing terrorist assets (Special Recommendation III); and (3) enhancing the effectiveness of the FIU (Recommendation 26). The FATF encourages Greece to address its remaining deficiencies and continue the process of implementing its action plan. Indonesia In February 2010, Indonesia made a high-level political commitment to work with the FATF and the APG to address its strategic AML/CFT deficiencies. Since that time, Indonesia has demonstrated progress in improving its AML/ CFT regime; however, the FATF has determined that certain strategic AML/ CFT deficiencies remain. Indonesia should continue to work on implementing its action plan to address these deficiencies, including by: (1) adequately criminalising money laundering and terrorist financing (Recommendation 1 and Special Recommendation II); (2) establishing and implementing adequate

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procedures to identify and freeze terrorist assets (Special Recommendation III); and (3) amending and implementing laws or other instruments to fully implementing the 1999 International Convention for the Suppression of Financing of Terrorism (Special Recommendation I). The FATF encourages Indonesia to address its remaining deficiencies and continue the process of implementing its action plan. Kenya In February 2010, Kenya made a high-level political commitment to work with the FATF and ESAAMLG to address its strategic AML/CFT deficiencies. Since that time, Kenya has demonstrated progress in improving its AML/CFT regime, including by bringing into force the Proceeds of Crime and AntiMoney Laundering Act on 28 June 2010. However, the FATF has determined that certain strategic AML/CFT deficiencies remain. Kenya should continue to work on implementing its action plan to address these deficiencies, including by: 1) adequately criminalising terrorist financing (Special Recommendation II); 2) ensuring a fully operational and effectively functioning Financial Intelligence Unit (Recommendation 26); 3) establishing and implementing an adequate legal framework for identifying and freezing terrorist assets (Special Recommendation III); 4) raising awareness of AML/CFT issues within the law enforcement community (Recommendation 27); and (5) implementing effective, proportionate and dissuasive sanctions in order to deal with natural or legal persons that do not comply with the national AML/CFT requirements (Recommendation 17). The FATF encourages Kenya to address its remaining deficiencies and continue the process of implementing its action plan. Morocco In February 2010, Morocco made a high-level political commitment to work with the FATF and MENAFATF to address its strategic AML/CFT deficiencies. Since that time, Morocco has demonstrated progress in improving its AML/ CFT regime, including by taking initial steps to make the FIU more operational and drafting an AML bill. However, the FATF has determined that certain strategic AML/CFT deficiencies remain. Morocco should continue to work on implementing its action plan to address these deficiencies, including by: (1) amending the penal code to extend the scope of the ML and FT offences (Recommendation 1 and Special Recommendation II); (2) amending relevant laws or regulations to address deficiencies in customer due diligence requirements (Recommendation 5); and (3) ensuring a fully operational and effectively functioning Financial Intelligence Unit (Recommendation 26). The FATF encourages Morocco to address its remaining deficiencies and continue the process of implementing its action plan. Myanmar In February 2010, Myanmar made a high-level political commitment to work with the FATF and APG to address its strategic AML/CFT deficiencies. Since that time, Myanmar has demonstrated progress in improving its AML/CFT regime; however, the FATF has determined that certain strategic AML/CFT deficiencies remain. Myanmar should continue to work on implementing its action plan to address these deficiencies, including by: (1) adequately criminalising money laundering and terrorist financing (Recommendation 1 and Special Recommendation II); (2) establishing and implementing adequate procedures to identify and freeze terrorist assets (Special Recommendation III); (3) strengthening the extradition framework in relation to terrorist financing (Recommendation 35 and Special Recommendation I); (4) ensuring a fully operational and effectively functioning Financial Intelligence Unit

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(Recommendation 26); (5) enhancing financial transparency (Recommendation 4); and (6) strengthening customer due diligence measures (Recommendations 5). The FATF encourages Myanmar to address its remaining deficiencies and continue the process of implementing its action plan. Nepal In February 2010, Nepal made a high-level political commitment to work with the FATF and APG to address its strategic AML/CFT deficiencies. Since that time, Nepal has demonstrated progress in improving its AML/CFT regime, including by broadening its AML law to criminalise a wider range of offences. However, the FATF has determined that certain strategic AML/CFT deficiencies remain. Nepal should continue to work on implementing its action plan to address these deficiencies, including by: (1) adequately criminalising money laundering and terrorist financing (Recommendation 1 and Special Recommendation II); (2) establishing and implementing adequate procedures to identify and freeze terrorist assets (Special Recommendation III); (3) implementing adequate procedures for the confiscation of funds related to money laundering (Recommendation 3); and (4) enacting and implementing appropriate mutual legal assistance legislation (Recommendation 36). The FATF encourages Nepal to address its remaining deficiencies and continue the process of implementing its action plan. Nigeria In February 2010, Nigeria made a high-level political commitment to work with the FATF and GIABA to address its strategic AML/CFT deficiencies. Since that time, Nigeria has demonstrated progress in improving its AML/CFT regime; however, the FATF has determined that certain strategic AML/CFT deficiencies remain. Nigeria should continue to work on implementing its action plan to address these deficiencies, including by: (1) adequately criminalising money laundering and terrorist financing (Recommendation 1 and Special Recommendation II); (2) implementing adequate procedures to identify and freeze terrorist assets (Special Recommendation III); (3) ensuring that relevant laws or regulations address deficiencies in customer due diligence requirements and that they apply to all financial institutions (Recommendation 5); and (4) demonstrating that AML/CFT supervision is undertaken effectively across the financial sector (Recommendation 23). The FATF encourages Nigeria to address its remaining deficiencies and continue the process of implementing its action plan. Pakistan In June 2010, Pakistan made a high-level political commitment to work with the FATF and APG to address its strategic AML/CFT deficiencies. Pakistan has demonstrated progress in improving its AML/CFT regime, including enacting a permanent AML law. However, the FATF has determined that certain strategic AML/CFT deficiencies remain. Pakistan will work on implementing its action plan to address these deficiencies, including by (1) demonstrating adequate criminalisation of money laundering and terrorist financing(Recommendation 1 and Special Recommendation II); (2) demonstrating adequate procedures to identify, freeze and confiscate terrorist assets (Special Recommendation III); (3) ensuring a fully operational and effectively functioning Financial Intelligence Unit (Recommendation 26); (4) demonstrating effective regulation of money service providers, including an appropriate sanctions regime, and increasing the range of ML/FT preventive measures for these services (Special Recommendation VI); and (5) improving and implementing effective controls for cross-border cash transactions (Special Recommendation IX). The FATF

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encourages Pakistan to address its remaining deficiencies and continue the process of implementing its action plan. Paraguay In February 2010, Paraguay made a high-level political commitment to work with the FATF and GAFISUD to address its strategic AML/CFT deficiencies. Since that time, Paraguay has demonstrated progress in improving its AML/ CFT regime, including by enacting a law that criminalises terrorist financing on 23 June 2010, which needs to be analysed by the FATF, and adopting a regulation to develop controls for cross-border cash transactions on 17 June 2010. However, the FATF has determined that certain strategic AML/CFT deficiencies remain. Paraguay should continue to work on implementing its action plan to address these deficiencies, including by: (1) ensuring adequate criminalisation of terrorist financing (Special Recommendation II); (2) establishing and implementing adequate procedures to identify, freeze and confiscate terrorist assets (Special Recommendation III); (3) improving financial transparency (Recommendation 4); (4) improving and broadening customer due diligence measures (Recommendation 5), and (5) implementing effective controls for cross-border cash transactions (Special Recommendation IX). The FATF encourages Paraguay to address its remaining deficiencies and continue the process of implementing its action plan. Qatar In February 2010, Qatar made a high-level political commitment to work with the FATF and MENAFATF to address its strategic AML/CFT deficiencies. Since that time, Qatar has demonstrated progress in improving its AML/CFT regime, including by enacting a new AML/CFT law, issuing revised AML/CFT regulations for the financial sector, and providing guidance on the suspicious transaction reporting requirements. The FATF and MENAFATF will conduct an on-site visit to confirm that the process of implementing the required reforms and actions is underway to address deficiencies previously identified by the FATF. Sri Lanka In February 2010, Sri Lanka made a high-level political commitment to work with the FATF and APG to address its strategic AML/CFT deficiencies. Since that time, Sri Lanka has demonstrated progress in improving its AML/CFT regime; however, the FATF has determined that certain strategic AML/CFT deficiencies remain. Sri Lanka should continue to work on implementing its action plan to address these deficiencies, including by: (1) adequately criminalising money laundering and terrorist financing (Recommendation 1 and Special Recommendation II); and (2) establishing and implementing adequate procedures to identify and freeze terrorist assets (Special Recommendation III). The FATF encourages Sri Lanka to address its remaining deficiencies and continue the process of implementing its action plan. Sudan In February 2010, Sudan made a high-level political commitment to work with the FATF and MENAFATF to address its strategic AML/CFT deficiencies. Since that time, Sudan has demonstrated progress in improving its AML/CFT regime, including by taking initial steps to operationalise the FIU. However, the FATF has determined that certain strategic AML/CFT deficiencies remain. Sudan should continue to work on implementing its action plan to address these deficiencies, including by: (1) implementing adequate procedures for identifying and freezing terrorist assets (Special Recommendation III); (2) ensuring a fully operational and effectively functioning Financial Intelligence

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Unit (Recommendation 26); (3) ensuring financial institutions are aware of and comply with their obligations to file suspicious transaction reports in relation to ML and FT (Recommendation 13 and Special Recommendation IV) and (4) implementing a supervisory programme for the regulators to ensure compliance with the provisions of the new law and regulations (Recommendation 23). The FATF encourages Sudan to address its remaining deficiencies and continue the process of implementing its action plan. Syria In February 2010, Syria made a high-level political commitment to work with the FATF and MENAFATF to address its strategic AML/CFT deficiencies. Since that time, Syria has demonstrated progress in improving its AML/CFT regime; however, the FATF has determined that certain strategic AML/CFT deficiencies remain. Syria should continue to work on implementing its action plan to address these deficiencies, including by: (1) adopting adequate measures to implement and enforce the 1999 International Convention for the Suppression of Financing of Terrorism (Special Recommendation I); (2) adequately criminalising terrorist financing (Special Recommendation II); (3) implementing adequate procedures for identifying and freezing terrorist assets (Special Recommendation III); (4) ensuring financial institutions are aware of and comply with their obligations to file suspicious transaction reports in relation to ML and FT (Recommendation 13 and Special Recommendation IV) and (5) adopting appropriate laws and procedures to provide mutual legal assistance (Recommendations 36-38, Special Recommendation V). The FATF encourages Syria to address its remaining deficiencies and continue the process of implementing its action plan. Thailand In February 2010, Thailand made a high-level political commitment to work with the FATF and APG to address its strategic AML/CFT deficiencies. Since that time, Thailand has demonstrated progress in improving its AML/CFT regime; however, the FATF has determined that certain strategic AML/CFT deficiencies remain. Thailand should continue to work on implementing its action plan to address these deficiencies, including by: (1) adequately criminalising terrorist financing (Special Recommendation II); (2) establishing and implementing adequate procedures to identify and freeze terrorist assets (Special Recommendation III); and (3) further strengthening AML/CFT supervision (Recommendation 23). The FATF encourages Thailand to address its remaining deficiencies and continue the process of implementing its action plan. Trinidad and Tobago In February 2010, Trinidad and Tobago made a high-level political commitment to work with the FATF and CFATF to address its strategic AML/CFT deficiencies. Since that time, Trinidad and Tobago has demonstrated progress in improving its AML/CFT regime; however, the FATF has determined that certain strategic AML/CFT deficiencies remain. Trinidad and Tobago should continue to work on implementing its action plan to address these deficiencies, including by: (1) implementing adequate procedures to identify and freeze terrorist assets without delay (Special Recommendation III); (2) implementing adequate procedures for the confiscation of funds related to money laundering (Recommendation 3); (3) ensuring a fully operational and effectively functioning FIU, including supervisory powers (Recommendation 26). The FATF encourages Trinidad and Tobago to address its remaining deficiencies and continue the process of implementing its action plan.

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Turkey In February 2010, Turkey made a high-level political commitment work with the FATF to address its strategic AML/CFT deficiencies. Since that time, Turkey has demonstrated progress in improving its AML/CFT regime, including by drafting CFT legislation. However, the FATF has determined that certain strategic AML/CFT deficiencies remain. Turkey should continue to work on implementing its action plan to address these deficiencies, including by: (1) adequately criminalising terrorist financing (Special Recommendation II); and (2) implementing an adequate legal framework for identifying and freezing terrorist assets (Special Recommendation III). The FATF encourages Turkey to address its remaining deficiencies and continue the process of implementing its action plan. Turkmenistan In June 2010, Turkmenistan made a high-level political commitment to work with the FATF and EAG to address its strategic AML/CFT deficiencies. Turkmenistan has demonstrated progress in improving its AML/CFT regime, including by adopting a law criminalising terrorist financing and enacting FIU and reporting regulations. However, the FATF has determined that certain strategic AML/CFT deficiencies remain. Turkmenistan will work on implementing its action plan to address these deficiencies, including by: (1) addressing the remaining issues with the criminalisation of money laundering and terrorist financing (Recommendation 1 and Special Recommendation II), (2) implementing adequate procedures to identify and freeze terrorist assets without delay (Special Recommendation III); (3) ensuring a fully operational and effectively functioning FIU (Recommendation 26), (4) developing collaboration between the FIU and domestic counterparts, including supervisory authorities, and (5) strengthening international cooperation. The FATF encourages Turkmenistan to address its remaining deficiencies and continue the process of implementing its action plan. Ukraine In February 2010, Ukraine made a high-level political commitment to work with the FATF and MONEYVAL to address its strategic AML/CFT deficiencies. Since that time, Ukraine has demonstrated progress in improving its AML/CFT regime, including by enacting a new AML/CFT law. However, the FATF has determined that certain strategic AML/CFT deficiencies remain. Ukraine should continue to work on implementing its action plan to address these deficiencies, including by: (1) addressing remaining issues regarding criminalisation of money laundering and terrorist financing (Recommendation 1 and Special Recommendation II); and (2) improving and implementing an adequate legal framework for identifying and freezing terrorist assets (Special Recommendation III). The FATF encourages Ukraine to address its remaining deficiencies and continue the process of implementing its action plan. Yemen In February 2010, Yemen made a high-level political commitment to work with the FATF and MENFATF to address its strategic AML/CFT deficiencies. Since that time, Yemen has demonstrated progress in improving its AML/CFT regime; however, the FATF has determined that certain strategic deficiencies remain. Yemen should continue to work on implementing its action plan to address these deficiencies, including by: (1) adequately criminalising money laundering (Recommendation 1); (2) establishing and implementing adequate procedures to identify and freeze terrorist assets (Special Recommendation III); (3) issuing substantive guidance/instructions to reporting institutions with

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respect to their ML/FT obligations (Recommendation 25); (4) developing the monitoring and supervisory capacity of the financial sector supervisory authorities and the FIU, to ensuring compliance by financial institutions with their STR obligations, especially in relation to FT (Recommendation 23); and (5) ensuring a fully operational and effectively functioning Financial Intelligence Unit (Recommendation 26). The FATF encourages Yemen to address its remaining deficiencies and continue the process of implementing its action plan. Circular No. NSDL/POLICY/ 2010/0066 Date: June 18, 2010 Sub: SEBIs Circular on Anti Money Laundering and Combating Financing of Terrorism. As all Participants are aware that SEBI has issued a Master Circular No. ISD/ AML/CIR-1/2010 dated February 12, 2010 (Ref.: NSDL Circular no. NSDL/POLICY/ 2010/0016 dated February 19, 2010) regarding Anti Money Laundering (AML) Standards/Combating Financing of Terrorism (CFT) / Obligations of Securities Market Intermediaries under Prevention of Money Laundering Act, 2002 and Rules framed thereunder. Participants are hereby informed that SEBI has vide Circular No. CIR/ISD/AML/2/2010 dated June 14, 2010 informed about the additional requirements to be fulfilled or clarifications with regard to the existing requirements. A copy of the SEBI Circular dated June 14, 2010 is enclosed for information and compliance. Circular No. NSDL/POLICY/ 2010/0031 Date: March 26, 2010 Sub: Financial Action Task Force (FATF) public statement dated February 18, 2010 concerning countries that do not or insufficiently apply the FATF Recommendations. All Participants are hereby informed that SEBI has vide its letter no. ISD/SR/ DB/GK/AML/199030/2010 dated March 10, 2010 advised the following: The Financial Action Task Force (FATF) has issued a fresh public statement dated February 18, 2010 concerning risks to the integrity of the international financial system emanating from Iran, Angola, Ecuador, Democratic Peoples Republic of Korea (DPRK), Ethiopia, Turkmenistan, Pakistan and Sao Tome and Principe. In this regard the deficient jurisdictions have been divided into three categories Jurisdictions subject to a FATF call on its members and other jurisdictions to apply countermeasures to protect the international financial system from the ongoing and substantial money laundering and terrorist financing (ML/TF) risks emanating from the jurisdiction: Iran Jurisdictions with strategic AML/CFT deficiencies that have not committed to an action plan developed with the FATF to address key deficiencies as of February 2010. The FATF calls on its members to consider the risks emanating from deficiencies associated with each jurisdiction: Angola, DPRK, Ecuador and Ethiopia. Jurisdictions previously publicly identified by the FATF as having strategic AML/CFT deficiencies which remain to be addressed as of February 2010: Pakistan, Turkmenistan and Sao Tome and Prncipe.

A copy of the FATF statement is enclosed herewith for information and appropriate action and is also available at url: http://www.fatf-gafi.org/ dataoecd/34/29/44636171.pdf. Participants are advised to take note of the above and ensure compliance with the same.

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Annexure FATF PUBLIC STATEMENT 18 February 2010 The Financial Action Task Force (FATF) is the global standard setting body for anti-money laundering and combating the financing of terrorism (AML/CFT). In order to protect the international financial system from ML/FT risks and to encourage greater compliance with the AML/CFT standards, the FATF identified jurisdictions that have strategic deficiencies and, along with the FATF-style regional bodies (FSRBs), works with them to address those deficiencies that pose a risk to the international financial system. The FATF and the relevant FSRBs will continue to work with the jurisdictions below and report on their progress in addressing the identified deficiencies. 1. Jurisdictions subject to a FATF call on its members and other jurisdictions to apply countermeasures to protect the international financial system from the ongoing and substantial money laundering and terrorist financing (ML/TF) risks emanating from the jurisdiction1: Iran 2. Jurisdictions with strategic AML/CFT deficiencies that have not committed to an action plan developed with the FATF to address key deficiencies as of February 2010. The FATF calls on its members to consider the risks arising from the deficiencies associated with each jurisdiction, as described below. Angola* Democratic Peoples Republic of Korea (DPRK)* Ecuador Ethiopia* * Despite the FATFs efforts, these jurisdictions have not constructively engaged with the FATF or an FSRB as of February 2010 and have not committed to the international AML/CFT standards. 3. Jurisdictions previously publicly identified by the FATF as having strategic AML/CFT deficiencies, which remain to be addressed as of February 20102: Pakistan Turkmenistan So Tom and Prncipe 1. Jurisdictions subject to a FATF call on its members and other jurisdictions to apply countermeasures to protect the international financial system from the ongoing and substantial money laundering and terrorist financing (ML/TF) risks emanating from the jurisdiction: Iran The FATF welcomes the recent steps that Iran has taken to engage with the FATF, but remains concerned by Irans failure to meaningfully address the ongoing and substantial deficiencies in its anti-money laundering and combating the financing of terrorism (AML/CFT) regime. The FATF remains particularly concerned about Irans failure to address the risk of terrorist financing and the serious threat this poses to the integrity of the international financial system. The FATF urges Iran to immediately and meaningfully address its AML/CFT deficiencies, in particular by criminalising terrorist financing
1 2

The FATF has previously issued public statements calling for counter-measures on Iran. Those statements are updated below. The FATF has previously issued public statements on these jurisdictions. These statements are updated below.

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and effectively implementing suspicious transaction reporting (STR) requirements. The FATF reaffirms its call on members and urges all jurisdictions to advise their financial institutions to give special attention to business relationships and transactions with Iran, including Iranian companies and financial institutions. In addition to enhanced scrutiny, the FATF reaffirms its 25 February 2009 call on its members and urges all jurisdictions to apply effective countermeasures to protect their financial sectors from money laundering and financing of terrorism (ML/FT) risks emanating from Iran. FATF continues to urge jurisdictions to protect against correspondent relationships being used to bypass or evade counter-measures and risk mitigation practices, and to take into account ML/FT risks when considering requests by Iranian financial institutions to open branches and subsidiaries in their jurisdiction. If Iran fails to take concrete steps to improve its AML/CFT regime, the FATF will consider calling on its members and urging all jurisdictions to strengthen counter-measures in June 2010. 2. Jurisdictions with strategic AML/CFT deficiencies that have not committed to an action plan developed with the FATF to address key deficiencies as of February 2010. The FATF calls on its members to consider the risks arising from the deficiencies associated with each jurisdiction, as described below. Angola* Angola has not committed to the AML/CFT international standards, nor has it responded to the FATFs request for engagement on these issues. Angolas lack of a comprehensive AML/CFT regime poses a risk to the international financial system. Angola should work with the FATF to develop a viable AML/ CFT regime in line with international standards. Democratic Peoples Republic of Korea (DPRK)* The Democratic Peoples Republic of Korea (DPRK) has not committed to the AML/CFT international standards, nor has it responded to the FATFs request for engagement on these issues. DPRKs lack of a comprehensive AML/CFT regime poses a risk to the international financial system. DPRK should work with the FATF to develop a viable AML/CFT regime in line with international standards. Ecuador FATF has identified Ecuador as having strategic AML/CFT deficiencies. Ecuador has engaged with the FATF and GAFISUD but has not delivered a clear highlevel political commitment to address these deficiencies. Ecuador should work with the FATF and GAFISUD to address these deficiencies, including by: (1) adequately criminalising money laundering and terrorist financing (Recommendation 1 and Special Recommendation II); (2) establishing and implementing adequate procedures to identify and freeze terrorist assets (Special Recommendation III); implementing adequate procedures for the confiscation of funds related to money laundering (Recommendation 3); (3) Reinforcing and improving coordination of financial sector supervision (Recommendation 23). Ethiopia* Ethiopia has not committed to the AML/CFT international standards, nor has it constructively engaged with the FATF. The FATF has identified Ethiopia as having strategic AML/CFT deficiencies that pose a risk to the international financial system. Ethiopia should work with the FATF to develop a viable AML/CFT regime in line with international standards.

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3.

Jurisdictions previously publicly identified by the FATF as having strategic AML/CFT deficiencies, which remain to be addressed as of February 2010

Pakistan The FATF welcomes Pakistans efforts to ensure that its Anti-Money Laundering Ordinance (AMLO) remains in effect and to implement a permanent AML/CFT framework through legislation. However, FATF remains concerned regarding the ML/FT risks posed by Pakistan and reaffirms its public statement of 28 February 2008 regarding these risks. In particular, the FATF expresses concern that Pakistans Anti-Money Laundering Ordinance (AMLO) will expire on 26 March 2010. The FATF strongly urges Pakistan to implement a permanent AML/CFT framework before the expiration of the AMLO and strongly encourages Pakistan to establish a comprehensive AML/CFT framework. Turkmenistan The FATF welcomes Turkmenistans continued progress in addressing its AML/ CFT deficiencies, including by taking steps towards establishing a Financial Intelligence Unit (FIU). Given that the FIU is not yet operational, the FATF reiterates its 25 February 2009 statement informing financial institutions that these deficiencies constitute an ML/FT vulnerability in the international financial system and that they should take appropriate measures to address this risk. Turkmenistan is urged to continue to take steps to implement an AML/CFT regime that meets international AML/CFT standards and to work closely with the Eurasian Group and the International Monetary Fund to achieve this. So Tom and Prncipe The FATF remains concerned by So Tom and Prncipes failure to meaningfully address the deficiencies in its AML/CFT regime, particularly relating to terrorist financing, and its recent lack of engagement with the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA). The FATF urges So Tom and Prncipe to work with GIABA to address the remaining AML/CFT deficiencies. Failing concrete progress, the FATF will consider taking action in June 2010 to protect the financial system from ML/TF risks emanating from So Tom and Prncipe. Circular No. NSDL/POLICY/ 2010/0008 Date: January 19, 2010 Sub: Amendment to PMLA Rules Attention of Participants is invited to SEBI's Master Circular No. ISD/AML/Cir1/2008 dated December 19, 2008 and Circular No. ISD/AML/CIR-1/2009 dated September 1, 2009 intimated vide NSDL Circular Nos. NSDL/POLICY/2008/ 0087 dated December 30, 2008 and NSDL/POLICY/2009/0080 dated September 5, 2009 respectively, regarding Anti Money Laundering Standards/Combating Financing of Terrorism/Obligations of Securities Market Intermediaries under Prevention of Money Laundering Act, 2002 and Rules made thereunder. The Financial Intelligence Unit - India (FIU - IND) has issued notification No.13/ 2009 dated November 12, 2009 of the Ministry of Finance amending the Prevention of Money Laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the clients of the Banking Companies, Financial Institutions and Intermediaries) Amendment Rules, 2009. The copy of said notification is enclosed for the information of Participants and necessary compliance.

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Annexure MINISTRY OF FINANCE (Department of Revenue) NOTIFICATION New Delhi, the 12th November, 2009 G.S.R. 816(E).In exercise of the powers conferred by clauses (a), (b) and (c) of sub-section (1) of Section 12 and Section 15 read with clauses (h), (i), (j) and (k) of sub-section (2) of Section 73 ofthe Prevention of Money-laundering Act, 2002 (i 5 of 2003), the Central Government, in consultation with the Reserve Bank of India, hereby makes the following rules further to amend the Prevention of Money-laundering (Maintenance of Records ofthe Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records ofthe Identity ofthe Clients ofthe Banking Companies Financial Institutions and Intermediaries) Rules, 2005, namely: 1. (1) These rules may be called the Prevention of Money-laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records ofthe Identity ofthe Clients ofthe Banking Companies. Financial Institutions and Intermediaries) Amendment Rules, 2009. They shall come into force on the date of their publication in the Official Gazette.

(2) 2.

In the Prevention of Money-laundering (Maintenance of Records ofthe Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records ofthe Identity ofthe Clients ofthe Banking Companies, Financial Institutions and Intermediaries) Rules, 2005 (hereinafter referred to as the principal rules), In rule 2, sub-rule (1), (a) after clause (c), the following clause shall be inserted, namely : (ca) non profit organisation*means any entity or organisation that is registered as a trust or a society under the Societies Registration Act, 1860 (21 of 1860) or any similar State legislation or a company registered under section 25,of the Companies Act, 1956(1 of 1956);; (b) after clause (f), the following clause shall be inserted, namely : (fa) Regulator means a person or an authority or a Government which is vested with The power to license, authorise, register, regulate or supervise the activity of banking companies, financial institutions or intermediaries, as the case may be;; (c) for clause (g), the following clause shall be substituted, namely : (g) Suspicious transaction means a transaction referred to in clause (h), including an attempted transaction, whether or not made in cash, which to a person acting in good faith (a) gives rise to a reasonable ground of suspicion that it may involve proceeds of an offence specified in the Schedule to the Act, regardless ofthe value involved; or

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(b) (c) (d) 3.

appears to be made in circumstances of unusual or unjustified complexity; or appears to have no economic rationale or bonafide purpose; or gives rise to a reasonable ground of suspicion that it may involve financing ofthe activities relating to terrorism;.

In the principal rules, in rule 3, in sub-rule (1), after clause (B), the following clause shall be inserted,namely: (BA) all transactions involving receipts by non-profit organisations of value more than rupees ten lakh, or its equivalent in foreign currency;.

4.

In the principal rules, in rule 5, for the words the Reserve Bank of India or the Securities and Exchange Board of India, or the Insurance Regulatory Development Authority, as the case may be,, where ever they occur, the words, its Regulator,, shall be substituted. In the principal rules, for rule 6, the following rule shall be substituted, namely : Retention of records of transactionsThe records referred to in rule 3 shall-be maintained for a period of ten years from the date of transactions between the client and the banking company, financial institution or intermediary, as the case may be..

5.

6.

In the principal rules, in rule 7, for the words the Reserve Bank of India or the Securities and Exchange Board of India, or the Insurance Regulatory Development Authority, as the case may be, where ever they occur, the words, its Regulator,, shall be substituted; In the principal rules, in rule 8, (a) in sub-rule (1), for the word, brackets and letters, clauses (A) and (B), the word, brackets and letters clauses (A), (B) and (BA) shall be substituted; after sub-rule (3), the following proviso shall be inserted at the end, namely :

7.

(b)

Provided that a banking company, financial institution or intermediary, as the case may be, and its employees shall keep the fact of furnishing information in respect of transactions referred to in clause (D) of subrule (1) of rule 3 strictly confidential.. 8. In the principal rules, in rule 9, (a) for sub-rules (1) and (2), the following sub-rules shall be substituted, namely : (1) Every banking company, financial institution and intermediary, as the case may be, shall, (a) at the time of commencement of an account-based relationship, identify its clients, verify their identity and obtain information on the purpose and intended nature of the business relationship, and in all other cases, verify identity while carrying out: (i) transaction of an amount equal to or exceeding rupees fifty thousand, whether conducted as a single transaction or several transactions that appear to be connected, or any international money transfer operations.

(b)

(ii)

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(1 A) Every banking company, financial institution and intermediary, as the case may be, shall identify the beneficial owner and take all reasonable steps to verify his identity. (IB) Every banking company, financial institution and intermediary, as the case may be, shall exercise ongoing due diligence with respect to the business relationship with every client and closely examine the transactions in order to ensure that they are consistent with their knowledge of the customer, his business and risk profile. (1C) No banking company, financial institution or intermediary, as the case may be. shall keep any anonymous account or account in fictitious names. (2) Where the, client is an individual, he shall for the purpose of sub-rule (1), submit to the banking company, financial institution and intermediary, as the case may be, one certified copy of an officially valid document containing details of his identity and address, one recent photograph and such other documents including in respect of the nature of business and financial status of the client as may be required by the banking company or the financial institution or the intermediary, as the case may be : Provided that photograph need not be submitted by a client falling under clause (b) of sub-rule (I).: (b) after sub-rule (6), the following sub-rule shall be inserted, namely : (6 A) Where the client is a juridical person, the banking company, financial institution and intermediary, as the case may be, shall verify that any person purporting to act on behalf of such client is so authorised and verify the identity of that person.; (c) for sub-rule (7), the following sub-rule shall be substituted, namely : (7) (i)The regulator shall issue guidelines incorporating the requirements of sub- rules (I) to (6A) above and may prescribe enhanced measures to verily the clients identity taking into consideration type of client, business relationship or nature and value of transactions. (ii) Every banking company, financial institution and intermediary as the case may be, shall formulate and implement a Client Identification Programme to determine the true identity of its clients, incorporating requirements of sub-rules (1) to (6A) and guidelines issued under clause (i) above. 9. In the principal rules, in rule 10. for the words the Reserve Bank of India or the Securities and Exchange Board of India, or the Insurance Regulatory Development Authority, as the case may be,, wherever they occur, the words, its regulator:, shall be substituted. [Notification No. 13/2009/F. No. 6/8/2009-ES] S. G P VERGHESE, Under Secy. .

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Note: The principal rules were published in Part II, Section 3, Sub-section (i) of the Gazette of India, Extraordinary videNo. G.S.R. 444(E), dated 1 st July, 2005 and subsequently amended vide No. G.S.R. 717(E), dated 13th December, 2005 and No. G.S.R. 389(E), dated 24th May. 2007. Circular No. NSDL/POLICY/ 2009/0113 Date: December 2, 2009 Sub: Financial Action Task Force (FATF) public statement dated October, 2009 regarding countries which do not or insufficiently apply the FATF Recommendations. All Participants are hereby informed that SEBI has vide its letter no. ISD/SR/ AK/GK/AML/184492/2009 dated November 23, 2009 advised the following: "The Financial Action Task Force (FATF) Plenary has issued a fresh public statement dated October 2009 reaffirming its call on members and other jurisdictions for effective counter measures concerning the risks to the integrity of the international financial system emanating from certain jurisdictions." Copy of the same is enclosed. Soft copy of the statement is also available at url: http://www.fatf-gafi.org/ document/11/0,3343,en_32250379_3226836_43898507_1_1_1_1,00.html. Participants are advised to take note of the above and ensure compliance with the same. Circular No. NSDL/POLICY/ 2009/0101 Date: October 29, 2009 Sub: Combating Financing of Terrorism (CFT) under Unlawful Activities (Prevention) Act, 1967. SEBI has issued a Circular no. ISD/AML/CIR-2/2009 dated October 23, 2009 regarding Combating Financing of Terrorism (CFT) under Unlawful Activities (Prevention) Act, 1967. A copy of the Circular is attached at Annexure 1. Participants are hereby advised to note the contents of the Circular for necessary action and compliance. Circular No. NSDL/POLICY/ 2009/0094 Date: October 15, 2009 Sub: Financial Action Task Force (FATF) public statement regarding countries which do not or insufficiently apply the FATF Recommendations. SEBI has forwarded a public statement issued by Financial Action Task Force (FATF) to protect the international financial system from the abuse of money laundering and terrorist financing emanating from certain jurisdictions and urging all jurisdictions to apply effective counter-measures. A copy of the FATF statement dated June 26, 2009 is attached at Annexure 1. The statement is also available at url: http://www.fatf-gafi.org/document/15/ 0,3343,en_32250379_32236836_43193871_1_1_1_1,00.html. FATF Statement 26 June 209 IRAN Participants are hereby advised to note the contents of the FATF statement for information, necessary action and compliance. The FATF remains concerned by Irans failure to meaningfully address the ongoing and substantial deficiencies in its anti-money laundering and combating the financing of terrorism (AML/CFT) regime. The FATF remains particularly concerned about Irans failure to address the risk of terrorist financing and the serious threat this poses to the integrity of the international financial system. The FATF urges Iran to immediately and meaningfully address

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its AML/CFT deficiencies, in particular by criminalising terrorist financing and effectively implementing suspicious transaction reporting (STR) requirements. The FATF reaffirms its call on members and urges all jurisdictions to advise their financial institutions to give special attention to business relationships and transactions with Iran, including Iranian companies and financial institutions. In addition to enhanced scrutiny, the FATF reaffirms its 25 February 2009 call on its members and urges all jurisdictions to apply effective countermeasures to protect their financial sectors from money laundering and financing of terrorism (ML/FT) risks emanating from Iran. FATF continues to urge jurisdictions to protect against correspondent relationships being used to bypass or evade counter-measures and risk mitigation practices, and to take into account ML/FT risks when considering requests by Iranian financial institutions to open branches and subsidiaries in their jurisdiction. The FATF remains prepared to engage directly in assisting Iran to address its AML/CFT deficiencies, including through the FATF Secretariat. UZBEKISTAN The FATF welcomes the significant recent steps that Uzbekistan has taken to restore and strengthen its AML/CFT regime and takes note of the action plan for further steps that it has articulated. FATF urges Uzbekistan to continue its progress towards completing its legislative framework and implementing an AML/CFT regime that meets international standards. Given that implementing regulations are not yet enacted, the FATF reiterates its statement of 16 October 2008. TURKMENISTAN The FATF welcomes Turkmenistans recent progress in adopting AML/CFT legislation. Given that deficiencies remain in Turkmenistans AML/CFT regime, FATF reiterates its 25 February 2009 statement informing financial institutions that these deficiencies constitute an ML/FT vulnerability in the international financial system and that they should take appropriate measures to address this risk. Turkmenistan is urged to continue to take steps to implement an AML/CFT regime that meets international AML/CFT standards. Turkmenistan is strongly encouraged to continue to work closely with the Eurasian Group and the International Monetary Fund to achieve this. PAKISTAN The FATF welcomes Pakistans recent accession to the International Convention for the Suppression of the Financing of Terrorism. However, the FATF remains concerned about the ML/FT risks posed by Pakistan and reaffirms its public statement of 28 February 2008 regarding these risks. The FATF welcomes the process underway in Pakistan to improve its AML/CFT regime. The FATF encourages Pakistan to continue to fully co-operate with the World Bank and the Asia Pacific Group on Money Laundering (APG) on its mutual evaluation process. SO TOM AND PRNCIPE The FATF welcomes So Tom and Prncipes continuing efforts to implement its AML law. The FATF remains concerned about the significant deficiencies in So Tom and Prncipes AML/CFT regime, particularly relating to terrorist

[ 411 ]

financing. The FATF urges So Tom and Prncipe to work with the Inter Governmental Action Group against Money Laundering in West Africa (GIABA) to address the remaining AML/CFT deficiencies. Note: The Presidency is a one-year position held by a senior official from an FATF jurisdiction. The term of the current President, Mr. Antonio Gustavo Rodrigues of Brazil, will conclude on 30 June 2009. The current Vice-President is Mr. Paul Vlaanderen of the Netherlands. He assumes the Presidency on 1 July 2009. Circular No. NSDL/POLICY/ 2009/0085 Date: September 18, 2009 Sub: Facility to download PMLA alerts from SQLASSIST intranet site As Participants are aware, alerts for the purpose of reporting to Financial Intelligence Unit (FIU) as per the provisions of Prevention of Money Laundering Act, 2002 (PMLA) are being sent to Participants on a fortnightly basis. A facility is being made available on SQLASSIST intranet site of NSDL (i.e. http:// sqlassist/) under the option PMLA ALERTS DOWNLOAD for Participants to download the alerts for the current and past five fortnights. The alerts will be made available on the SQLASSIST within five days after the end of every fortnight eg.: for the fortnight 1st to 15th day of the month, the alerts will be made available by 20th day of the month and for the fortnight from 16th to the end of the month, the alerts will be available by 5th of the subsequent month. The first such alerts will be made available on SQLASSIST for the fortnight September 16-30, 2009 by October 5, 2009. The practice of sending the alerts by email will be continued till the fortnight of October 1-15, 2009. PIN mailer containing User ID and password to access these alerts is being sent to the Principal Officer by courier. Principal Officers are requested to change the password after login with the password provided in the PIN mailer. For further information / clarification, Participants are requested to contact Mr. Sandip Patel on Tel No. (022) 2499 4413 (email : sandipp@nsdl.co.in) / Mr. Vinith Nair on Tel. No. (022) 2499 4414 (email : vinithn@nsdl.co.in). Circular No. NSDL/POLICY/ 2009/0044 Date: June 9, 2009 Sub: Financial Action Task Force (FATF) public statement regarding countries which do not or insufficiently apply the FATF Recommendations. SEBI has forwarded a public statement issued by Financial Action Task Force (FATF) which urges all jurisdictions to strengthen preventive measures to protect their financial sectors from money laundering and financing of terrorism (ML/FT) risk posed by certain countries. A copy of the FATF statement dated February 25, 2009 is attached at Annexure 1. The statement is also available at url: http://www.fatf-gafi.org/dataoecd/18/28/42242615.pdf Participants are hereby advised to note the contents of the FATF statement for necessary action and compliance. FATF Statement 25 February 2009 The FATF welcomes Irans initial engagement with the international community on money laundering. However, the FATF remains concerned by Irans failure to meaningfully address the ongoing and substantial deficiencies in its antimoney laundering and combating the financing of terrorism (AML/CFT) regime.

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The FATF remains particularly concerned about Irans failure to address the risk of terrorist financing and the serious threat this poses to the integrity of the international financial system. The FATF urges Iran to immediately and meaningfully address its AML/CFT deficiencies, in particular by criminalising terrorist financing and effectively implementing suspicious transaction reporting (STR) requirements. The FATF reaffirms its call on members and urges all jurisdictions to advise their financial institutions to give special attention to business relationships and transactions with Iran, including Iranian companies and financial institutions. In addition to enhanced scrutiny, the FATF further calls on its members and urges all jurisdictions to apply effective counter-measures to protect their financial sectors from money laundering and financing of terrorism (ML/FT) risks emanating from Iran. Jurisdictions should also protect against correspondent relationships being used to bypass or evade countermeasures and risk mitigation practices, and take into account ML/FT risks when considering requests by Iranian financial institutions to open branches and in their jurisdiction. The FATF remains prepared to engage directly in assisting Iran to address its AML/CFT deficiencies, including through the FATF Secretariat. UZBEKISTAN The FATF welcomes the process undertaken by Uzbekistan to adopt comprehensive AML/CFT measures within a specific timeframe. Nevertheless, given that concrete measures to address the identified deficiencies have not yet been implemented, the FATF reiterates its statement of 16 October 2008, calling on its members and urging all jurisdictions to strengthen preventive measures to protect their financial sectors from the ML/FT risk emanating from Uzbekistan. TURKMENISTAN Despite a prolonged dialogue with the FATF and other international institutions, Turkmenistan has not yet made progress in adopting AML legislation. Financial institutions should remain aware that the lack of an AML/CFT regime in Turkmenistan constitutes an ML/FT vulnerability in the international financial system and should take appropriate measures to address this risk. Turkmenistan is urged to adopt without further delay a comprehensive AML/CFT regime that meets international AML/CFT standards. Turkmenistan is encouraged to continue to work closely with the Eurasian Group and the International Monetary Fund to achieve this. PAKISTAN The FATF reaffirms its public statement of 28 February 2008 regarding the ML/FT risks posed by Pakistan. The FATF welcomes the process underway in Pakistan to improve its AML/CFT regime. The FATF encourages Pakistan to continue to fully co-operate with the World Bank and the Asia Pacific Group on Money Laundering (APG) on its mutual evaluation process. SO TOM AND PRNCIPE The FATF welcomes So Tom and Prncipes recent steps toward addressing identified AML deficiencies, in particular, through the adoption of an AML law in November 2008. The FATF urges So Tom and Prncipe to address the remaining AML/CFT deficiencies, particularly relating to terrorist financing.

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Notes: 1. For further information, journalists are invited to contact Helen Fisher, OECD Media Relations, (Tel: +33 1 45 24 80 97 or helen.fisher@oecd.org) or the FATF Secretariat, 2, rue Andr-Pascal, 75775 Paris Cedex 16 (tel: +33 1 45 24 90 90, fax: +33 1 44 30 61 37, email:contact@fatf-gafi.org). The FATF is an inter-governmental body whose purpose is the development and promotion of policies, both at national and international levels, to combat money laundering and terrorist financing. The FATF Secretariat is housed at the OECD. The thirty-four members of the FATF are: Argentina; Australia; Austria; Belgium; Brazil; Canada; China; Denmark; the European Commission; Finland; France; Germany; Greece; the Gulf Co-operation Council; Hong Kong, China; Iceland; Ireland; Italy; Japan; Luxembourg; Mexico; the Kingdom of the Netherlands; New Zealand; Norway; Portugal; the Russian Federation; Singapore; South Africa; Spain; Sweden; Switzerland; Turkey; the United Kingdom; and the United States. India and the Republic of Korea are observer countries. The Asia Pacific Group on Money Laundering (APG)1, the Caribbean Financial Action Task Force (CFATF) 2 , the Grupo de Accin Financiera de Sudamrica (GAFISUD)3, the Middle East and North Africa Financial Action Task Force (MENAFATF)4 and the Council of Europe Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL)5 are Associate Members. The global network that is committed to combating money laundering and terrorist financing also includes three other regional bodies: the Eastern and South African Anti Money Laundering Group (ESAAMLG)6, the Eurasian Group on Combating Money Laundering and Financing of Terrorism (EAG)7 and the Groupe Inter-gouvernemental dAction Contre le Blanchiment en Afrique (GIABA)8. The Offshore Group of Banking Supervisors (OGBS)9 is a part of this network as well.

2.

3.

4.

5.

1 2 3 4 5 6 7 8 9

www.apgml.org www.cfatf.org www.gafisud.org www.menafatf.org www.coe.int/moneyval www.esaamlg.org www.eurasiangroup.org www.giaba.org www.ogbs.net

Circular No. NSDL/POLICY/ 2009/0008 Date: January 29, 2009

Sub: SEBI's advise to Participants regarding providing additional information to FIU-IND at the time filing of STRs under Prevention of Money Laundering Act (PMLA) SEBI vide its letter no. ISD/SR/AK/AML/151330/2009 dated January 20, 2009 has informed the Depositories that FIU-IND (Financial Intelligence Unit - India) has intimated SEBI that very few Suspicious Transaction Reports (STRs) have been received by FIU-IND from the Participants so far and the grounds of suspicion in the STRs received from this sector are generally found to be deficient.

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In this regard, SEBI has directed the Depositories to advise their Participants to analyze the alerts sent by Depositories carefully and file STRs in appropriate cases. Further, in order to enable FIU-IND to analyze STRs properly, Participant may also provide following information in the grounds of suspicion: (i) (ii) (iii) (iv) (v) (vi) Details of initial alert. Information collected during analysis of alert. KYC information of the Client. Period and quantum of activities being reported. Name(s) of scrips if reported transaction relates to a particular / few scrips. Statement regarding suspicion.

Participants are advised to take note of the above and ensure compliance. Circular No. NSDL/POLICY/ 2008/0088 Date: December 30, 2008 Sub: Prevention of Money Laundering Act, 2002 - 'Revised' alerts Attention of Participants is invited to Circular no. NSDL/POLICY/2008/0071 dated October 16, 2008 regarding generation of alerts as per 'Revised' criteria under Prevention of Money Laundering Act, 2002 (PMLA). In this regard, NSDL has completed the process of generating the alerts as per the revised criteria. The criteria for 'Revised' alerts are as follows: (i) Details of debits due to off-market or IDT transfers, having value of Rs. 'z' and above, in a single transaction or series of transactions executed in an account, in an ISIN, during the fortnight. Details of credits due to off-market or IDT transfers, having value of Rs. 'z' and above, in a single transaction or series of transactions executed in an account, in an ISIN, during the fortnight. Details of debit due to off-market or IDT transfers, involving 'y' or more shares or having value of Rs. 'z' and above, whichever is smaller, in a single transaction or series of transactions executed in an account, in an ISIN, during the fortnight, which exceed 10 times the average size of the transaction. For this purpose, average is calculated over the total number of securities in all ISINs debited in an account in the past 30 days. Details of credit due to off-market or IDT transfers, involving 'y' or more shares or having value of Rs. 'z' and above, whichever is smaller, in a single transaction or series of transactions executed in an account, in an ISIN, during the fortnight, which exceed 10 times the average size of the transaction. For this purpose, average is calculated over the total number of securities in all ISINs credited in an account in the past 30 days. Details of all transactions involving 'x' or more shares in an account, in an ISIN, in a single transaction or series of transactions executed during the fortnight, in respect of the following transactions: o o o (vi) Demat, Remat and Pledges.

(ii)

(iii)

(iv)

(v)

Details of credits due to off-market or IDT transfers, for more than 'w' transactions, in a single account executed during the fortnight.

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(vii) Transactions in dormant accounts: Any debit transaction in the dormant account will be reported as alert. It may be mentioned that any account having no 'Debit' transaction in the last 6 months will be considered as a 'Dormant' account for this purpose. Please note that the alert mentioned at point no. (vi) above will now be read as follows: "Details of credits due to off-market or IDT transfers, for more than 'w' transactions, in an ISIN, in a single account executed during the fortnight." The revised alerts are effective from December 1, 2008. Further, Participants are requested to take note of the following: a) Participants will be required to ascertain whether the transactions/ alerts intimated by NSDL (on a fortnightly basis) are of a suspicious nature and submit the report directly to The Director, FIU-IND, in the prescribed format, within seven working days of establishment of suspicion. For the purpose of reporting suspicious transactions, attention of Participants is invited to formats enclosed with SEBI Circular No. ISD/ AML/CIR-1/2008 dated December 19, 2008, which were circulated to Participants along with NSDL Circular no. NSDL/POLICY/2008/0087 dated December 30, 2008. Participants are informed that 'Nil' report need not be filed with FIUIND (refer NSDL Circular No. NSDL/POLICY/2006/0035 dated August 25, 2006). Participants are advised to inform NSDL about the number of STRs filed by the Participants with FIU-IND (refer NSDL Circular No. NSDL/POLICY/ 2008/0052 dated July 26, 2008). Participants are also advised to keep FIU-IND informed about the name, address, email-id and contact details of Principal Officer. Any change therein must also be intimated to FIU-IND & NSDL.

b)

c)

d)

e)

For further information, Participants are requested to contact Mr. Amit Shinde on Tel No. (022) 2499 4486 (email: shindea@nsdl.co.in) / Mr. Vinith Nair on Tel. No. (022) 2499 4414 (email: vinithn@nsdl.co.in). Circular No. NSDL/POLICY/ 2008/0071 Date: October 16, 2008 Sub: Alerts as per 'Revised' criteria under Prevention of Money Laundering Act, 2002. Attention of Participants is invited to Circular no. NSDL/POLICY/2008/0028 dated April 23, 2008 regarding the revised criteria for generation of alerts under Prevention of Money Laundering Act, 2002 (PMLA). In this regard, both the Depositories and their representative Participants have reviewed the existing criteria with a view to further fine-tune the alerts being generated and finalized the revised parameters / criteria. The 'Revised' alerts are as follows: (i) Details of debits due to off-market or IDT transfers, having value of Rs. 'z' and above, in a single transaction or series of transactions executed in an account, in an ISIN, during the fortnight. Details of credits due to off-market or IDT transfers, having value of Rs. 'z' and above, in a single transaction or series of transactions executed in an account, in an ISIN, during the fortnight.

(ii)

[ 416 ]

(iii)

Details of debit due to off-market or IDT transfers, involving 'y' or more shares or having value of Rs. 'z' and above, whichever is smaller, in a single transaction or series of transactions executed in an account, in an ISIN, during the fortnight, which exceed 10 times the average size of the transaction. For this purpose, average is calculated over the total number of securities in all ISINs debited in an account in the past 30 days. Details of credit due to off-market or IDT transfers, involving 'y' or more shares or having value of Rs. 'z' and above, whichever is smaller, in a single transaction or series of transactions executed in an account, in an ISIN, during the fortnight, which exceed 10 times the average size of the transaction. For this purpose, average is calculated over the total number of securities in all ISINs credited in an account in the past 30 days. Details of all transactions involving 'x' or more shares in an account, in an ISIN, in a single transaction or series of transactions executed during the fortnight, in respect of the following transactions: o o o Demat, Remat and Pledges.

(iv)

(v)

(vi)

Details of credits due to off-market or IDT transfers, for more than 'w' transactions, in a single account executed during the fortnight.

(vii) Transactions in dormant accounts: Any debit transaction in the dormant account will be reported as alert. It may be mentioned that any account having no 'Debit' transaction in the last 6 months will be considered as a 'Dormant' account for this purpose. NSDL is in the process of generating alerts as per the aforesaid revised criteria and Participants will be informed regarding the same in due course. Till that time the alerts which were circulated to Participants vide our aforesaid Circular dated April 23, 2008 will continue to be sent to Participants on a fortnightly basis. Further, Participants are requested to take note of the following: (i) Participants will be required to ascertain whether the transactions/ alerts intimated by NSDL are of a suspicious nature and submit the report directly to The Director, FIU-IND, in the prescribed format, within seven working days of establishment of suspicion. For the purpose of reporting suspicious transactions, attention of Participants is invited to formats enclosed with SEBI Circular No. ISD/ CIR/RR/AML/2/06 dated March 20, 2006, which was circulated to Participants along with NSDL Circular no. NSDL/POLICY/2006/0025 dated July 17, 2006. Participants are also advised to keep FIU-IND informed about the name, address, email-id and contact details of Principal Officer. Any change therein must also be intimated to FIU-IND & NSDL.

(ii)

(iii)

For further information, Participants are requested to contact Mr. Amit Shinde on Tel No. (022) 2499 4486 (email: shindea@nsdl.co.in) / Mr. Vinith Nair on Tel. No. (022) 2499 4414 (email: vinithn@nsdl.co.in).

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Circular No. NSDL/POLICY/ 2008/0052 Date: July 26, 2008

Sub: Filing of Suspicious Transaction Report (STR) to Financial Intelligence Unit-India (FIU-IND) under Prevention of Money Laundering Act, 2002 (PMLA) guidelines. Attention of Depository Participants (DPs) is invited to NSDL Circular no. NSDL/ POLICY/2008/0028 dated April 23, 2008 regarding submission of information to Financial Intelligence Unit-India (FIU-IND) and generation of alerts as per 'Revised' criteria under Prevention of Money Laundering Act, 2002 (PMLA). As per the said circular, NSDL had advised DPs to ascertain whether the transactions/alerts intimated by NSDL are of a suspicious nature and submit the report directly to The Director, FIU-IND, in the prescribed format, within seven working days of establishment of suspicion. In the meeting held on July 7, 2008, SEBI has advised both the depositories that DPs should inform their respective depositories regarding the number of STRs filed by DPs with the FIU-IND during a month for onward submission to SEBI. In view of the aforesaid, all DPs are hereby advised to inform NSDL about the number of STRs filed by the DP with FIU-IND for the month by 7th of the following month in the below mentioned format on the email ID of the Principal Officer of NSDL (PrincipalOfficer-NSDL@nsdl.co.in). Further, DPs need not submit a 'NIL' report to NSDL. DP ID DP Name Month & Year No. of STRs

For the purpose of reporting suspicious transactions, attention of DPs is invited to formats enclosed with SEBI Circular No. ISD/CIR/RR/AML/2/06 dated March 20, 2006, which was circulated to DPs vide NSDL Circular no. NSDL/POLICY/ 2006/0025 dated July 17, 2006. Circular No. NSDL/POLICY/ 2008/0028 Date: April 23, 2008 Sub: Generation of alerts as per 'Revised' criteria under Prevention of Money Laundering Act, 2002. Attention of Depository Participants (DPs) is invited to Circular no. NSDL/ POLICY/2007/0070 dated November 12, 2007 regarding change in the criteria for generating alerts on the advise of Financial Intelligence Unit-India (FIUIND) under Prevention of Money Laundering Act, 2002 (PMLA). DPs are requested to note that the criteria for generation of alerts with respect to point nos. (iii) and (iv) of the aforesaid circular have undergone changes. The revised criteria for generation of alerts is given below: (i) Details of debits due to off-market or IDT transfers, involving 'x' or more shares or having value of Rs. 'y' and above, whichever is smaller, in an account, in an ISIN, in a single transaction or series of transactions executed during the fortnight. Details of credits due to off-market or IDT transfers, involving 'x' or more shares or having value of Rs. 'y' and above, whichever is smaller, in an account, in an ISIN, in a single transaction or series of transactions executed during the fortnight. Details of debit transactions involving 'w' or more shares or having value of Rs. 'y' and above, whichever is smaller, in a single transaction or series of transactions executed during the fortnight, in an account, in an ISIN, which exceed 10 times the average size of the transaction.

(ii)

(iii)

[ 418 ]

For this purpose, average is calculated over the total number of securities in all ISINs debited in an account in the past 30 days. (iv) Details of credit transactions involving 'w' or more shares or having value of Rs. 'y' and above, whichever is smaller, in a single transaction or series of transactions executed during the fortnight, in an account, in an ISIN, which exceed 10 times the average size of the transaction. For this purpose, average is calculated over the total number of securities in all ISINs credited in an account in the past 30 days. Details of all transactions involving 'w' or more shares in an account, in an ISIN, in a single transaction or series of transactions executed during the fortnight, in respect of the following transactions: o o o (vi) Demat ; Remat and Pledges.

(v)

Details of credits due to off-market or IDT transfers, for more than 'v' transactions, in a single account executed during the fortnight.

(vii) Transactions in dormant accounts: Any debit transaction in the dormant account will be reported as alert. It may be mentioned that any account having no 'Debit' transaction in the last 6 months will be considered as 'Dormant' account for this purpose. The revised alerts are effective from April 1, 2008, which will be sent to DPs on a fortnightly basis. DPs are also requested to take note of the following: (i) DPs will be required to ascertain whether the transactions/alerts intimated by NSDL are of a suspicious nature and submit the report directly to The Director, FIU-IND, in the prescribed format, within seven working days of establishment of suspicion. For the purpose of reporting suspicious transactions, attention of DPs is invited to formats enclosed with SEBI Circular No. ISD/CIR/RR/AML/2/ 06 dated March 20, 2006, which was circulated to DPs along with NSDL Circular no. NSDL/POLICY/2006/0025 dated July 17, 2006. DPs are also advised to keep FIU-IND informed about the name, address, email-id and contact details of Principal Officer. Any change therein must also be intimated to FIU-IND & NSDL.

(ii)

(iii)

Circular No. NSDL/POLICY/ 2008/0003 Date: January 17, 2008

Sub: SEBI's advise to Depositories and Depository Participants (DPs) on Compliance with Prevention of Money Laundering Act (PMLA) and Rules framed there-under Attention of DPs is invited to NSDL Circular No. NSDL/POLICY/2006/0013 dated May 2, 2006 wherein DPs were advised to report the details of 'Principal Officer' to Financial Intelligence Unit-India (FIU-IND) and a subsequent reminder vide NSDL Circular No. NSDL/POLICY/2006/0019 dated June 21, 2006 regarding appointment of Principal Officer. In this regard, SEBI vide its letter ISD/SR/AK/AML/113767/2008 dated January 14, 2008 has informed the depositories that compliance by DPs with the key obligations of PMLA and Rules framed there-under has not been satisfactory

[ 419 ]

and large number of entities have still not fulfilled these key requirements. Further, SEBI has advised the depositories to ensure enhanced compliance standards by their DPs and to monitor performance on a regular basis. In view of the aforesaid, all DPs are hereby directed / advised to ensure strict compliance of the below mentioned requirements: 1. 2. to appoint 'Principal Officer' under PMLA and inform his particulars to FIU-IND immediately, if not done. to frame Anti Money Laundering (AML) policy containing 'Client Identification Programme' and internal mechanism for identification and reporting of suspicious transactions and submit copy of the same to FIU-IND on an immediate basis.

DPs are also advised to keep FIU-IND & NSDL informed about any change in the name, address, email-id and contact details of 'Principal Officer'. For the purpose of reporting suspicious transactions, DPs are once again advised to refer the formats enclosed with SEBI Circular No. ISD/CIR/RR/AML/2/06 dated March 20, 2006, which was circulated to DPs along with NSDL Circular no. NSDL/POLICY/2006/0025 dated July 17, 2006. Circular No. NSDL/POLICY/ 2007/0070 Date: November 12, 2007 Sub: Submission of information to Financial Intelligence Unit-India under Prevention of Money Laundering Act, 2002 Attention of Depository Participants (DPs) is invited to Circular no. NSDL/ POLICY/2006/0025 dated July 17, 2006 regarding submission of information to Financial Intelligence Unit-India (FIU-IND) under Prevention of Money Laundering Act, 2002 (PMLA). In this regard, FIU-IND has advised both the depositories to enhance the scope / quality of alerts sent to DPs to identify suspicious transactions. Accordingly, the following criteria have now been finalised amongst the depositories for generating alerts (pertaining to Off-market transactions only): (i) Details of debits due to off-market or IDT transfers, involving x or more shares or having value of Rs. y and above, whichever is smaller, in an account, in an ISIN, in a single transaction or series of transactions executed during the fortnight. Details of credits due to off-market or IDT transfers, involving x or more shares or having value of Rs. y and above, whichever is smaller, in an account, in an ISIN, in a single transaction or series of transactions executed during the fortnight. Details of debit transactions (subject to minimum of z shares), if securities debited in a single transaction or series of transactions executed during the fortnight, in an account, in an ISIN, exceed 10 times the average size of the transaction. For this purpose, average was calculated over the total number of securities in all ISINs debited in an account in the past 30 days. Details of credit transactions (subject to minimum of z shares), if securities credited in a single transaction or series of transactions

(ii)

(iii)

(iv)

[ 420 ]

executed during the fortnight, in an account, in an ISIN, exceed 10 times the average size of the transaction. For this purpose, average was calculated over the total number of securities in all ISINs credited in an account in the past 30 days. (v) Details of all transactions involving w or more shares in an account, in an ISIN, in a single transaction or series of transactions executed during the fortnight, in respect of the following transactions: (vi) Demat ; Remat and Pledges.

Details of credits due to off-market or IDT transfers, for more than v transactions, in a single account executed during the fortnight.

(vii) Transactions in dormant accounts: Any debit transaction in the dormant account will be reported as alert. It may be mentioned that any account having no Debit transaction in the last 6 months will be considered as Dormant account for this purpose. NSDL is in the process of generating alerts as per the aforesaid modified criterion and DPs will be informed regarding the same in due course. Further, FIU-IND has also advised the depositories to do the following: 1. 2. To incorporate the Financial status and Nature of Business of client in the Account Opening Form (AOF). To incorporate Consideration and Reasons/Purpose in Delivery Instruction Slip (DIS) used for Off-market transactions.

The modified AOF & DIS are incorporated in the Circular No. NSDL/POLICY/ 2007/0069 dated November 12, 2007 which is being issued simultaneously. DPs will be required to obtain the details in the AOF and DIS respectively, from the account holders which shall be in the form of declaration. DPs will be required to ascertain whether the transactions/alerts intimated by NSDL are of a suspicious nature and submit the report directly to The Director, FIU-IND, in the prescribed format, within seven working days of establishment of suspicion. Further, DPs are advised to undertake KYC reconfirmation exercise for these accounts including Financial Status while scrutinizing the alerts. For the purpose of reporting suspicious transactions, attention of DPs is invited to formats enclosed with SEBI Circular No. ISD/CIR/RR/AML/2/06 dated March 20, 2006, which was circulated to DPs along with NSDL Circular no. NSDL/ POLICY/2006/0025 dated July 17, 2006. DPs are also advised to keep FIU-IND informed about the name, address, email-id and contact details of Principal Officer. Any change therein must also be intimated to FIU-IND & NSDL. For further information, DPs are requested to contact Mr. Amit Shinde on Tel No. (022) 2499 4486 (email : shindea@nsdl.co.in) / Mr. Vinith Nair on Tel. No. (022) 2499 4414 (email : vinithn@nsdl.co.in).

[ 421 ]

Circular No. NSDL/POLICY/ 2007/0839 Date: July 11, 2007

Sub : Amendment to the Rules framed under the Prevention of Money Laundering Act, 2002 With reference to NSDL Circular No. NSDL/POLICY/2006/0002 dated January 23, 2006, all Depository Participants (DPs) are hereby informed that the Securities and Exchange Board of India has vide its letter no. ISD/RR/AK/ AML/97765/07 dated July 2, 2007 (copy enclosed) advised NSDL to intimate the DPs regarding Amendment to the Rules framed under the Prevention of Money Laundering Act, 2002. DPs are advised to ensure compliance of the above. Annexure

OFFICER ON SPECIAL DUTY INTEGRATED SURVEILLANCE DEPARTMENT ISD/RR/AK/AML/97765/07 July 2, 2007 The Managing Director NSDL Trade World, 4th Floor, Kamla Mills Compound Senapati Bapat Marg, Lower Parel Mumbai 400 013 Dear Sir, Subject: Amendment to the Rules framed under the Prevention of Money Laundering Act, 2002.

The Prevention of Money Laundering (Maintenance of Records of the Nature and Value of Trasactions, the Procedure and Manner of Maintaining and Time for furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Rules, 2005 framed under the Prevention of Money Laundering Act. 2002 have been amended vide Gazette notification dated May 24, 2007. A copy of the notification is enclosed for reference. You may bring the contents of the said amendment to the notice of intermediaries registered through you for compliance. Yours faithfully. R Ravichandran Encl: a.a. MINISTRY OF FINANCE (Department of Revenue) NOTIFICATION New Delhi, the 24th May, 2007 G.S.R. 389(E).-In exercise of the powers conferred by sub-section (I) read with clause (h), clause (i), clause (j) and clause (k) of sub-section (2) of section 73 of the Prevention of Money-laundering Act, 2002 (15 of 2003), the Central Government, in consultation with the Reserve Bank of India, hereby makes the following rules further to amend the Prevention of Money-laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Rules, 2005, namely:-

[ 422 ]

1.

(1)

These rules may be called the Prevention of Money-laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Amendment Rules, 2007. They shall come into force on the date of their publication in the Official Gazette.

(2) 2.

In the Prevention of Money-laundering (Maintance of Records of the Nature and Value of transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Rules, 2005,(i) in rule 2, in sub-rule (I), clause (g), for sub-clause (c), the following sub-clauses shall be substituted, namely:(c) appears to have no economic rationale or bona fide purpose: or (d) (ii) gives rise to a reasonable ground of suspicion that it may involve financing of the activities relating to terrorism;;

in rule 3, in sub-rule (I), for clause (C), the following clause shall be substituted, namely,(C) all cash transactions where forged or counterfeit currency notes or bank notes have been used as genuine or where any forged or counterfeit currency notes or bank notes have been used as genuine or where any forgery of a valuable security or a document has taken place facilitating the transactions;;

(iii)

for rule 8, the following rule shall be substituted, namely:8. Furnishing of information to the Director.-(I) The Principal Officer of a banking company, a financial institution and an intermediary, as the case may be, shall furnish the information in respect of transactions referred to in clause (A) and (B) of sub-rule (I) of rule 3 every month to the Director by the 15th day of the succeeding month. The Principal Officer of a banking company, a financial institution and an intermediary, as the case may be, shall furnish the information promptly in writing or by fax or by electronic mail to the Director in respect of transactions referred to in clause (C) of sub-rule (I) of rule 3 not later than seven working days from the date of occurrence of such transaction. The Principal Officer of a banking company, a financial instituion and an intermediary, as the case my be, shall furnish the information promptly in writing or by fax or by electronic mail to the Director in respect of transactions referred to in clause (D) of sub-rule (1) of rule 3 not later than seven working days on being satisfied that the transaction is suspicious.;

(2)

(3)

(iv)

in rule 9,(a) (b) in sub-rule (3), (4) and (5), for the words three certified copies, the words one certified copy shall be substituted; in sub-rule (6), for the words three copies, the words one certified copy shall be substituted. [Notification No. 4/2007-E.S./F. No. 6/13/2005-E.S.] MUKUL SINGHAL, Jt. Secy.

[ 423 ]

Note:The principal rules were published in Part-II, Section 3, Sub-section (i) of the Gazette of India, Extraordinary vide notification Number G.S.R. 444(E), dated the 1st July, 2005 and subsequently amended vide notification number G.S.R.717(E),dated the 13th December, 2005. Circular No. NSDL/POLICY/ 2006/0035 Date: August 25, 2006 Sub : Submission of report to Financial Intelligence Unit-India under the Prevention of Money Laundering Act, 2002 Attention of Participants is invited to our Circular No. NSDL/POLICY/2006/ 0025 dated July 17, 2006 regarding submission of information to Financial Intelligence Unit-India (FIU-IND) under the Prevention of Money Laundering Act, 2002. In this regard, all Participants are informed that FIU-IND has intimated to NSDL vide its letter no. F.No.17-1/2006-FIU dated August 14, 2006 that 'Nil' report need not be filed with FIU-IND. All other provisions of the aforesaid circular remain unchanged. Circular No. NSDL/POLICY/ 2006/0025 Date: July 17, 2006 CONFIDENTIAL Sub : Submission of information to Financial Intelligence Unit-India under Prevention of Money Laundering Act, 2002 This circular is sent to the Compliance Officer in hard copy form.

[ 424 ]

NOTES

[ 425 ]

NOTES

[ 426 ]

11. Connectivity / Reconciliation

Regulation 47 Bye Law 6.3.5 Every participant shall reconcile his records with every depository in which it is a participant, on a daily basis The Depository shall obtain, on a daily basis, the Client details from all Participants. The details shall be obtained in respect of the changes in the accounts of the Clients from the processing undertaken at the end of the previous working day. The Client details shall include the Client name, address and also the security wise details of the balance of the Client. It shall be the responsibility of each Participant to promptly check and reconcile with its own records the details of such advices, statements and reports and to promptly notify the Depository of any error or omission contained in such advices, statements and reports within the time specified by the Depository. Every Participant shall reconcile his records with those of the Depository on a daily basis. The Participant shall intimate the Depository, all security balances held by the Participant with the Depository on a daily basis at the end of the day and the said balances will be reconciled with its balance held by the Depository. If there is failure of the reconciliation as specified in Bye Law 10.1.1 and Bye Law 10.1.2 above, the Depository may initiate necessary action including suspension of a Participant or suspension of transactions in a particular security till the process of reconciliation has been completed. The Participant shall reconcile its own records with those of NSDL on a daily basis and in such manner as may be specified in the Business Rules. The Participant shall effect internal reconciliation of its accounts on a daily basis through the DPM (DP) or the DPM (CC) as the case may be. The Participant shall reconcile the total of balances held in different accounts in the DPM (DP) or the DPM (CC), as the case may be, with its balance held in the DM on a daily basis. The Participant shall, at the end of each day, electronically provide to the Depository the details of the changes made in the accounts of the Client from the last EOD processing.

Bye Law 6.3.7

Bye Law 6.3.10 Bye Law 10.1.1

Bye Law 10.1.3

Clause 12 of NSDLDP Agreement Rule 15.1.1 Rule 15.1.2

Rule 15.1.3

Readiness for Dial-up connectivity Circular No. NSDL/PMC/ Email-182/2006 Date: Nov 11, 2006 Sub : Dial up connectivity (PPP) register to be maintained NSDL has issued guidelines in the past about the procedure to be followed in case of Dial up connectivity. Dial up or PPP is the fallback option available in case of failure of the primary connectivity for VSAT as well as Leased line users. During inspection it was observed that though PPP testing is carried out regularly, record of the same is not available with the BPs. All Business Partners are advised to maintain a register (either online or offline) in the following format to record the Dial up (PPP) activity carried out. NSDL inspecting officer can ask for verification of this register.

[ 427 ]

Format: Date of dialup Reason for dialup and whether successful or not Type of dialup: sync. (dial through router) / async.(PPP) Officer carrying out dialup NSDL officer

Please note that both routine testing as well as emergency connectivity should be logged in the above register. The system in charge of the Business Partner should check this register at regular intervals (say every month) and initiate action if required. Necessary comments may be made, upon review by the systems in charge in the same register along with signature. Circular No. NSDL/PI/2002/1736 Date : October 9, 2002 As per SEBI Regulations, it is mandatory to maintain continuous electronic means of communication between the Depository and its Participants. For this purpose the primary mode of connectivity between the Participant's DPM system and NSDL is either through VSAT or leased line. Participants are also required to maintain dial-up telephone line as a fall back to the primary mode of connectivity. However, there have been instances where Participant's primary mode of connectivity had failed and Participants were unable to establish dial-up connectivity. In order to ensure readiness of Participants to meet such eventualities, NSDL on a random basis, has been advising Participants to connect their DPM setup through dial-up mode. The procedure for connecting their DPM setup through dial-up mode is provided to Participants alongwith the CD for Systems Administrator Training. However, it has been observed that many Participants have failed to connect their DPM system through dial-up link. Participants are therefore advised to train their staff so as to ensure that connectivity to NSDL is established using telephone dial-up facility. The aforesaid procedure for configuration of various types of modems is also posted on NSDL Intranet Server (http://sqlassist), under the heading "Online Connectivity Documents". WAN to WAN Connectivity Circular No. NSDL/PI/2001/1849 Date: December 18, 2001 WAN TO WAN is a browser-based application, which will enable the branches of the Participant to directly interact with its DPM server through Participant's own Wide Area Network (WAN) and provide upto date information and depository services to its clients. Participants who wish to avail WAN to WAN connectivity facility, are advised to note the following: 1. Participants will need permission from the Department of Telecommunication (DOT) for the purpose of its WAN connectivity with that of NSDL. Participants will have to follow the policy guidelines of CUG to CUG issued by DOT, from time to time. Participants may have to upgrade their DPM server and provide for additional hardware to support this function. NSDL will provide the sizing guidelines in this regard on one to one basis depending on the volume envisaged by Participant and present size of operation.

2. 3.

[ 428 ]

4.

Participants will have to adhere to the security requirements as prescribed by NSDL. It may be noted that the security requirements may vary from case to case depending upon the usage of the inter connectivity and the same will be provided separately to the Participants. Participants will have to ensure that access to DPM system from branch offices are appropriately authorised. Participants will be required to configure its own WAN router as per the specifications of NSDL and Participants will also be required to install a firewall prescribed by NSDL. Participants will have to apply service pack 6 (SP6) on Windows NT operating system of its DPM server before installing WAN TO WAN software.The fees payable for availing of this facility is Rs. 40,000/per annum per DPM setup. The fees shall be payable to NSDL every year, in advance.

5. 6.

7.

Participants may contact Mr. Jignesh Gandhi or Mr. Milind Mungale on Tel. No. (022) 460 8037 / 497 6347, in case any further clarification is required.

[ 429 ]

NOTES

[ 430 ]

12. Record Keeping

Section 2 (I) Regulation 49 (1) Record includes the records maintained in the form of Books or stored in a computer or in such other form as may be determined by regulations. Every participant shall maintain the following records and Documents, namely:a) b) c) d) Regulation 49 (4) Regulation 49 (5) Regulation 50 records of all the transactions entered into with a depository and with a beneficial owner; details of securities dematerialised, rematerialised on behalf of beneficial owners with whom it has entered into an agreement; records of instructions received from beneficial owners and statements of account provided to beneficial owners; and records of approval, notice, entry and cancellation of pledge or hypothecation, as the case may be.

Every participant shall intimate the Board the place where the records and documents are maintained. Subject to the provisions of any other law, the participant shall preserve records and documents for a minimum period of five years. Where records are kept electronically by the participant, it shall ensure that the integrity of the data processing systems is maintained at all times and take all precautions necessary to ensure that the records are not lost, destroyed or tampered with and in the event of loss or destruction, ensure that sufficient back up of records is available at all times at a different place. If a participant enters into an agreement with more than one depository, it shall maintain the records specified in regulation 49 separately in respect of each depository. Every Participant shall maintain the following records and documents, namely: a) b) c) d) records of all the transactions entered into with a Depository and with a Client; details of securities dematerialised, rematerialised on behalf of Clients with whom it has entered into an agreement; records of instructions received from Clients and statements of account provided to Clients; and, records of approval, notice, entry and cancellation of pledge or hypothecation, as the case may be.

Regulation 51

Bye Law 10.2.7

Bye Law 10.2.8 Bye Law 10.2.9 Rule 16.1.1

Every Participant shall intimate the Depository, the place where the records and documents are maintained. Subject to the provisions of any other law, the Participant shall preserve records and documents for a minimum period of five years. Every Participant of the Depository shall maintain the following records relating to its business for a period of five years :i. ii. Delivery/Receipt Instructions given by its Clients. Forms submitted by the Clients to the Participant for : a) b) Opening of accounts with the Participant; Closing of accounts with the Participant;

[ 431 ]

c) d) iii. iv. v.

Freezing of accounts with the Participant; Defreezing of accounts with the Participant.

Copies of correspondence from the Clients on the basis of which Clients details were updated in the DPM; Record of all actions taken on the exception reports, generated by the system; A register showing details of grievances received from the Clients and their present status. The following details may be specified in this regard:a) b) c) d) e) name of the Client; reference number of the Client; date; particulars of complaints; actions taken by the Participant;

vi. vii.

if the matter is referred to arbitration, then the particulars including the present status thereof. instructions received from the Clearing Member to transfer balances from the Pool account to the Delivery account of the Clearing Member in order to enable it to meet its obligations to the Clearing Corporation;

viii. instructions from the clearing member authorising the transfer of securities from the pool account of the clearing member to the accounts of its clients ix. x. xi. xii. Rule 16.1.2 The forms received in respect of pledge of securities; The forms received in respect of transmission of securities The forms received in respect of securities lending. Record of serial numbers of the instruction forms for debit or pledge of securities in a Client account, issued to its Clients.

The following records pertaining to dematerialisation and rematerialisation of securities shall be kept by the Participants until the process of dematerialisation or rematerialisation is completed :i. ii. iii. Dematerialisation request form (DRF and DRF-GS) filled by the Client; Certificate details of securities sent for dematerialisation; Proof of deliveries of DRF and securities to the Issuer or its Registrar and Transfer Agent and proof of delivery of DRF-GS and Government Securities to the Depository; Objection memo and certificate details of the rejected securities against the DRN; Rematerialisation Request Form (RRF and RRF-GS) submitted by the Client Proof of delivery of RRF to the Issuer or its Registrar & Transfer Agent and proof of delivery of RRF-GS to the Depository.

iv. v. vi. Rule 16.1.3

The Participant shall intimate to the Depository, the place where the above records are kept and available for audit/inspection

[ 432 ]

Rule 16.1.4

The above requirements relating to maintenance of records shall apply not only to the records of the Participant's principal office but also any branch office and to any nominee company owned or controlled by the Participant for the purpose of conducting the business of the Participant relating to the operations of the Depository. The records specified in Rules 16.1 and 16.2 above may be maintained either in physical or in electronic form. Where the records are kept by the Participant or the Issuer or its Registrar & Transfer Agent in electronic form, it shall do so with the prior approval of the Depository and shall ensure that the integrity of the data processing systems is maintained at all times and take all precautions necessary to ensure that the records are not lost, destroyed or tampered with and ensure that sufficient backup of records is available at all times at a different place. However, the prior approval of the Depository is not required if the Participant has been permitted to receive instructions from the Client in an electronic form in the manner specified in the first proviso to Rule 4.5.1.

Rule 16.4.1

SEBI circular on maintenance of records and documents Circular No. NSDL/POLICY/ 2009/0121 Date: December 12, 2009 Sub: Preservation of records Attention of Participants is invited to Regulation 49 of SEBI (Depositories and Participants) Regulations, 1996, Bye Laws 10.2.7, 10.2.9, Chapter 16 of the Business Rules of NSDL and Circular no. NSDL/PI/2005/1476 dated August 12, 2005 that require Participants to preserve records and documents for a minimum period of five years. Further, all Participants are hereby informed regarding the SEBI Circular no. MRD/DoP/DEP/Cir-20/2009 dated December 9, 2009 (copy enclosed) about preservation of records. Participants are advised to take note of the above and ensure compliance with SEBI's instructions. DEPUTY GENERAL MANAGER Market Regulation Department - Division of Policy E-mail: harinib@sebi.gov.in MRD/DoP/DEP/Cir-20/2009 December 9, 2009 1. 2. The Managing Director, NSDL and The Executive Director, CDSL

Dear Sir, Sub: Preservation of records 1. 2. This circular is issued in supersession of SEBI circular no. SEBI/MRD/DEP/Cir-16/2005 dated August 4, 2005 and SEBI/MRD/DEP/Cir-24/05 dated December 22, 2005. In terms of regulations 38 and 49 of the SEBI (Depositories and Participants) Regulations, 1996 (hereinafter referred to as D&P Regulations, 1996), Depositories and Depository Participants are required to preserve the records and documents for a minimum period of 5 years. In case such documents are maintained in electronic form, provisions of Information Technology Act, 2000 in this regard shall be complied with.

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3.

Further, it has been noticed that enforcement agencies like CBI, Police, Crime Branch etc. have been collecting copies of the various records/documents during the course of their investigation. The originals of such documents maintained either in physical or in electronic form or in both would be required by such enforcement agencies during trial of the case also. In view of the above, it is clarified that if a copy is taken by such enforcement agency either from physical or electronic record then the respective original is to be maintained till the trial or investigation proceedings have concluded. The Depositories are advised to:a) b) c) make amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision immediately, as may be applicable/necessary ; bring the provisions of this circular to the notice of the DPs of the Depositories and also to disseminate the same on the website; and communicate to SEBI the status of the implementation of the provisions of this circular in Monthly Development Report.

4.

5.

6.

This circular is being issued in exercise of the powers conferred by Section 11(1) of Securities and Exchange Board of India Act, 1992 to protect the interest of investors in securities and to promote the development of, and to regulate, the securities market.

Yours faithfully, HARINI BALAJI Circular No. NSDL/PI/2005/1476 Date: August 12, 2005 Attention of Participants is invited to Regulation 49 of SEBI (Depositories and Participants) Regulations, 1996, Bye Laws 10.2.7, 10.2.9 & Chapter 16 of the Business Rules of NSDL that require Participants to preserve records and documents for a minimum period of five years. SEBI vide its circular no. SEBI/ MRD/DEP/Cir- 16/2005 dated August 4, 2005 (copy enclosed) has advised the Participants that if copies of various documents / records are taken by CBI, Police or any other enforcement agency during the course of any investigation, Participants will be required to preserve the original records and documents, both in electronic and physical form as the case may be, till the completion of the trial. Participants are advised to ensure compliance of the above. Annexure GENERAL MANAGER Market Regulation Department Division of Policy SEBI/MRD/DEP/Cir- 16/2005 August 4, 2005 1. 2. The Managing Director, NSDL and The Executive Director, CDSL

Dear Sir, Sub: Maintenance of books of accounts and other documents 1. In terms of regulations 38 and 49 of the SEBI (Depositories and Participants) Regulations, 1996 (hereinafter referred to as D&P Regulations, 1996), Depositories and Depository Participants are required to preserve the records and documents for a minimum period of 5 years.

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2.

It is noticed that enforcement agencies like CBI, Police, Crime Branch etc. have been collecting copies of the various records/documents during the course of their investigation. These original documents both in physical form and electronic form would be required by such enforcement agencies during trial of the case also. In view of the above, not withstanding anything contained in D&P Regulations, 1996, you are advised to preserve the originals of the documents, both in electronic and physical form, copies of which have been taken by CBI, Police or any other enforcement agency during the course of any investigation till the trial is completed. The Depositories are advised to:a) b) c) make amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision immediately, as may be applicable/necessary ; bring the provisions of this circular to the notice of the DPs of the Depositories and also to disseminate the same on the website; and communicate to SEBI the status of the implementation of the provisions of this circular in Sec. III Item No. E of the Monthly Development Report for the month of September 2005.

3.

4.

5.

This circular is being issued in exercise of the powers conferred by Section 11(1) of Securities and Exchange Board of India Act, 1992 to protect the interest of investors in securities and to promote the development of, and to regulate, the securities market.

Yours faithfully, V S SUNDARESAN

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NOTES

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13. Systems
a. General Regulation 45 Clause 13 of NSDLDP Agreement Every participant shall maintain continuous electronic means of communication with each depository in which it is a participant The Participant shall install at its computer center, client server, hardware configuration with system database, communication and application software as prescribed by NSDL. a) Unless otherwise supplied directly by NSDL, all hardware and software in accordance with prescribed configuration shall be procured by the Participant from NSDL empanelled brands only. The above hardware and software set-up shall be dedicated for NSDL specific application module and even if there is spare processing/data storage capacity, the same shall not be used for any other application including the Participant's backoffice system. The above hardware may be connected by the Participant to their internal LAN for data transfer purpose. The above hardware shall not be connected by the Participant to their interoffice WAN without the prior written permission of NSDL. NSDL reserves the right to deny such permission if in its opinion granting such permission involves violation of conditions relating to the operations of NSDL's WAN as stipulated by Department of Telecommunications or any other reasons as may be deemed fit by NSDL. The Participant shall carry out modification, upgradation, replacement and deletion for the above mentioned configuration from time to time as may be prescribed by NSDL.

b)

c) d)

e)

Rule 4.1.1.

The User shall carry out transactions relating to the Depository only through the approved User Hardware System located at approved locations of the office of the User. No other workstation, computer system or hardware may be connected to the User Hardware System without the prior approval of the Depository. A User shall have a non-exclusive permission to use the DPM as provided by the Depository in the ordinary course of its business as such User. A User shall not use or permit any other person to :i. ii. iii. iv. v. use the software provided by the Depository for any purposeother than the purpose as approved and specified by theDepository; use the software provided by the Depository on any equipment other than the User Hardware System; copy, alter, modify or make available to any other person, the software provided by the Depository; use the software in any manner other than the manner as may be specified by the Depository; attempt directly/indirectly to decompile, disassemble or reverse engineer the same.

Rule 4.1.3 Rule 4.1.5

Rule 9.2.1

The Participant and the Participant which is a Clearing Corporation shall install the hardware and software which shall be in conformity with the configurations specified by the Depository from time to time. The Depository shall provide an application software called the Depository Participant Module [DPM (DP)] to the Participant and an application software

Rule 9.2.2

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called the Depository Participant Clearing Corporation Module [DPM(CC)] to the Participant which is a Clearing Corporation, and any upgradations or modifications to such software on payment of such fees as may be determined by the Depository. Hardware Software Bandwidth Requirements for New DPM System Circular No. NSDL/POLICY/ 2010/0108 Date: September 29, 2010 Sub: Hardware / Software / Bandwidth Requirements for New DPM System All Participants are hereby informed that based on the feedback received from Participants during the mock run Phase I of the new DPM System, the following must be ensured: 1. New DPM Application software (version 2.0) should be installed on the DPM server. CD for the same will be provided to Participants by 2nd week of October 2010. 2. 3. Back office system should be fully tested and ready in all respects to interface with the new DPM system. Minimum configuration of DPM Server / Client Machines (desktops) / Bandwidth as specified below. For better performance, Participants may opt for the recommended configuration. Configuration OS Processor Minimum NSDL Recommendation

Sr. Description No. 1 Desktop

Windows 2000 + Windows XP + Service Pack 4 Service Pack 2 Pentium IV Pentium IV or higher CPU with 3 GHz or Higher 2 GB IE6 (SP3) or IE7 (SP 2) Four times of existing database size 64 kbps on MPLS connectivity 128 kbps on MPLS connectivity 256 kbps on MPLS connectivity

Memory Internet Explorer 2 Server (Refer Note Nos. 2 & 3) Bandwidth Free Disk Space required for migration Bandwidth (Batch size upto 5,000 instructions)

512 MB IE6 (SP1) Three times of existing database size 64 kbps

Bandwidth (Batch 64 kbps size from 5,001 upto 10,000 instructions) Bandwidth (Batch size from 10,001 upto 30,000 instructions) Notes: 1. 128 kbps on MPLS connectivity

For larger instructions batch sizes (i.e. more than 30,000 instructions), bandwidth upgradation needs to be carried out in consultation with NSDL Help Desk. External storage disk can be used for data migration. Refer Annexure for DPM server sizing guidelines.

2. 3.

Participants are advised to ensure that they are ready in all respects as mentioned above by October 20, 2010.

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Annexure Minimum Server Sizing Requirement For New DPM System Sr. No. 1 Server Type "Entry Level Server (without Hardware RAID) Processor Memory Type* Minimum NSDL Recommendation Single 1 GB 2 GB or Higher No. of Client Accounts < 1,00,000 No. of No. of CM Transactions Accounts per day 50 15,000 No. of Concurrent Users <5

2 3

Entry Level Server Dual (with Hardware RAID) High End Server Quad

2 GB 8 GB

4 GB or Higher 8 GB or Higher

1,00,000 to 100 5,00,000 5,00,000 to 1,000 10,00,000

22,500 1,00,000

10 20

* Processor (Pentium IV/Xeon 3 GHz or Higher) Direct connectivity of DPM System with the Back Office System of the Participant Circular No. NSDL/POLICY/ 2010/0072 Date: June 30, 2010 Sub: Daily Price file to include NAVs for Mutual Fund Units As all Participants are aware, a facility is provided to Participants to download the daily price file and NAV file for mutual fund units (security type 20) from the intranet site of NSDL (i.e. http://sqlassist/) [Ref. : Circular no. NSDL/ POLICY/2009/0068 dated August 1, 2009 and NSDL/POLICY/2009/0117 dated December 5, 2009]. From June 30, 2010 onwards, the daily price file itself will contain NAVs for mutual fund units (security type 20). This will facilitate the Participants to use a single file (i.e. daily price file) instead of referring to two separate files (i.e. daily price file and NAV file). There is no change in the file format for the daily price file. For ease of reference, the file format of price file is enclosed as an Annexure. The NAV file for mutual fund units will also continue to be made available separately on the SQLassist till July 31, 2010. Circular No. NSDL/POLICY/ 2010/0056 Date: May 21, 2010 Sub: Capturing mobile numbers with first digit as 6 or 7. As all Participants are aware, Participants were advised to capture the ten digit mobile numbers given by their clients starting with 8 or 9 as the first digit. (Ref.: Circular No. NSDL/POLICY/2008/0059 dated September 1, 2008 & Circular No.: NSDL/POLICY/2010/0010 dated January 28, 2010). Considering that mobile companies have also started allotting mobile numbers with either 6 or 7 as the first digit, Participants are hereby informed that they can now capture in the DPM system ten digit mobile numbers starting with 6 or 7 also as the first digit. Accordingly, necessary changes made in point no. (I) (3) (d) and (11.5) of the Master Circular No. NSDL/POLICY/2009/0029 dated April 16, 2009 for account opening are highlighted and are enclosed at Annexure. Annexure (I) (1) (3) Guidelines in respect of account opening in case of individuals (NonBody Corporates) Individuals, Karta of HUF, Partners in case of Partnership firm, Guardian in case of minor account Mode of capturing the details in the DPM System (a) The Participant should enter the details of the Client as mentioned in the Account Opening Form, in the DPM System after verifying with the POI and Proof of Address. It may be mentioned that Participants can avail the facility of Bulk Verify and Release with

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respect to opening of Client accounts in the DPM System (NSDL/ PI/2007/0019 dated April 4, 2007). (b) (c) The Participant should capture the Clients signature(s) as given in the Account Opening Form in the DPM System. For ease of data entry, the Standing Instruction indicator in the DPM System would be in an enabled status with respect to all types of Client accounts except for accounts with sub-type DR at the time of opening depository accounts. For those Clients who have not opted for Standing Instructions, the Participant should disable the Standing Instruction indicator in the DPM System. For ease of data entry, the SMS flag of the account holder will automatically get enabled in the DPM System after the Participant captures the mobile number (Participants are advised to strictly capture the ten digit mobile number with the first digit as 6 / 7 / 8 / 9) of the respective account holders at the time of opening of depository accounts. If the Client submits the mobile number but does not wish to opt for the SMS Alert facility, the Participant should capture the mobile number in the DPM System and disable the SMS flag either from the front end of the DPM System or through back office file import (NSDL/POLICY/2008/ 0059 dated September 1, 2008 & NSDL/POLICY/2010/0010 dated January 28, 2010). The Participant should save the details and enter the Client account number (Client ID) generated by DPM System in the Account Opening Form. The Participant should print the Client Master Report and give it to the Client alongwith a copy of the Agreement. Such information should be provided only after the account is in Active status in the DPM System. (NSDL/PI/98/583 dated November 18, 1998).

(d)

(e)

(f)

(11) Procedure for change in demographic details (11.5) Change in SMS flag and / or mobile numbers: (i) (ii) (iii) Participant must obtain a written request from the Client for change in mobile number and/or SMS flag. For joint holdings, the written request must be signed by the holder whose mobile number and / or SMS flag is being changed. Participants are advised to strictly capture the ten digit mobile number with the first digit as 6 / 7 / 8 / 9 and/or update the SMS flag, as requested by the client. For ease of data entry, the SMS flag gets enabled automatically upon capture / modification of mobile numbers in DPM System. Thus, Participants must take due care at the time of modifying mobile numbers in the DPM System, particularly for Clients who have not opted for SMS alert facility. If the Client submits the mobile number but does not wish to opt for the SMS Alert facility,

(iv)

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the Participant should capture the mobile numbers in the DPM System and disable the SMS flag from front end of DPM System or through back office. Circular No. NSDL/POLICY/ 2009/0118 Date: December 7, 2009 All Participants are hereby informed that the following Market Type Codes have been added in the CC Calendar at the request of Indian Clearing Corporation Limited (ICCL) pertaining to settlement for Indian Corporate Debt Market (ICDM): CC ID IN001133 IN001133 IN001133 Market Type Code 03 04 05 Description ICDM T+0 ICDM T+1 ICDM T+2

Participants are requested to note the aforesaid code relating to change in the static data for back-office batch interface with the DPM System. Circular No. Sub: NAV file of Mutual Fund ISINs NSDL/POLICY/ Further to our Circular nos. NSDL/POLICY/2009/0107 dated November 14, 2009/0117 2009 and NSDL/POLICY/2009/0068 dated August 1, 2009, all Participants are Date: December 5, 2009 hereby informed that in view of addition of security type code '20' Mutual Fund Units (TRASE), a separate file of daily NAV of Mutual Fund ISINs (starting from November 30, 2009 till date and of subsequent dates) alongwith the daily price file will be made available on intranet site of NSDL (i.e. http:// sqlassist/) for downloading on a daily basis. The daily price file will be continued to be made available by 7.00 p.m. on the same day whereas the daily NAV file will be made available by 11.00 a.m. on the next day on intranet site of NSDL. All fields in the daily NAV file will be delimited by (# |) characters. The file format is enclosed as Annexure A. Participants are requested to take note of the above so as to make necessary arrangements in their back offices. Circular No. NSDL/POLICY/ 2009/0107 Date: November 14, 2009 All Participants are hereby informed that the following Security Type Code has been added in the DPM System: Security Type Code 20 Description Mutual Fund Units (TRASE*)

* Transaction processing, record keeping and settlement for mutual funds. Participants are requested to note the aforesaid code relating to change in the static data for back-office batch interface with the DPM System. Circular No. Sub: Up-gradation of SQL Server NSDL/POLICY/ As all Participants are aware, Microsoft has stopped mainstream support for 2009/0104 SQL Server 2000 SP4 and SQL Server 2005 SP1. Further, NSDL is also in the Date: November 9, 2009 process of re-engineering the DPM & DM application and planning to conduct a mock test so that the Participants are familiar with the same. This new DPM application requires SQL Server 2005. In view of the above, all Participants are advised to procure SQL Server 2008 which has a provision to use SQL Server 2005 by November 30, 2009. Those

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Participants who have SQL Server 2005 or SQL Server 2008 may ignore this circular. Circular No. All Participants are hereby informed that the following Security Type Codes NSDL/POLICY/ have been added in the DPM System: 2009/0103 Security Type Code Description Date: November 6, 2009 18 Rights Entitlement 19 Indian Depository Receipts

Participants are requested to note the aforesaid code relating to change in the static data for back-office batch interface with the DPM System. Circular No. NSDL/POLICY/ 2009/0071 Date: August 21, 2009 Direct connectivity of DPM System with the Back Office System of the Participant As all Participants are aware, for uploading of instructions / data on a batch mode basis, instructions / data are extracted from the back-office system and manually transferred through external hardware such as compact disk (CD), pen drive, floppy etc, for onward upload into the DPM System. To facilitate ease of operations and for eliminating the manual efforts involved in transferring the instructions / data from the Back Office System for onward upload into the DPM System, Participants can, if they so desire, establish a direct connectivity between the DPM System and their Back Office System. DPM System and Back Office System may be located at the same place or at different locations (inter or intra city in India). Similarly, facility is also available for Participants to establish direct connectivity between the DPM system and Client machine if both are located at different locations (inter or intra city in India). In this regard, Participants will be required to obtain prior approval of NSDL. For more information and documents to be submitted in this regard, Participants may contact the following officials: Name of the Person Mr. Sankalp Parlia Mr. Sanjay Mirchandani Mr. Manoj Mhatre Mr. Joshi Antony Mr. Umesh Suvarna Master Circular on back office file formats Circular No. NSDL/POLICY/ 2008/0054 Date: August 9, 2008 Sub : Master Circular on back office file formats for interface with DPM System As all Depository Participants (DPs) are aware, NSDL has been augmenting and integrating various features in the DPM System. In this regard, back office file formats relating to interface with the DPM system concerning various software version releases have been provided to DPs vide various circulars. All the file formats issued till Version 8.2 have now been consolidated into a single one through a 'Master Circular'. An index is enclosed as Annexure I Contact Tel. No. (022) 2499 4451 (022) 2499 4454 (022) 2499 4452 (022) 2499 4448 (022) 2499 4459 Email address sankalpp@nsdl.co.in sanjaym@nsdl.co.in manojmh@nsdl.co.in joshia@nsdl.co.in umeshs@nsdl.co.in

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which highlights various types of back office file formats that are required to interface with the DPM System for the purpose of import/exports of data into/from the DPM system. DPs are requested to note that the softcopy of updated back office file formats would be available for download on Intranet site of NSDL (http://sqlassist/back office file formats updated till Version 8.2) with effect from August 18, 2008. The 'Master Circular' would facilitate DPs to design/configure back office interface with the DPM System. For any information/clarifications, DPs are requested to contact Mr. Nilesh Pandit, Mr. Rakesh Mehta or Mr. Sharat Karnad on telephone numbers (022) 2499 4601 to 4610. Annexure I Particulars 1 Master Exports A B C D E 2 3 Business Partner Master Export Security ISIN Master Export Clearing Corporation Calendar Export Auto Corporate Action Export Corporate Action Master Export

Branch Master Import Client Master Exports and Imports A B C D E F Client Master Export Client Signature Export Client Master Creation Import Bulk Verify/Release Import - Client Verify Release Import CVR Import Client Master Modification Import Bulk Verify/Release Import - Client Master Modification

4 5 6 7 8 9

DPM Transactions Imports Statement of Holding and Statement of Transaction Exports Change Orders for the Day Export (COD) Power of Attorney Static Data Codes SPEED-e file formats

DPs are requested to note that back office file formats would be available for download on Intranet site of NSDL (http://sqlassist/back office file formats updated till Version 8.2).

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Multi Protocol Label Switching (MPLS) Circular No. NSDL/POLICY/ 2009/0089 Date: September 29, 2009 Sub: Auto fallback facility for MPLS users. All Participants are hereby informed that those Participants who have established the Multi Protocol Label Switching (MPLS) connectivity with NSDL can avail of the ISDN auto fall back facility provided by the MPLS Service Provider. Benefits: 1. 2. No charges for availing auto fallback facility. If the primary MPLS connectivity fails, the ISDN would automatically dial-out to the ISDN port in some other Point of Presence (POP) of the MPLS service provider. The tariff applicable will be that of the local call charges and as per the scheme opted by the Participant for the ISDN line. While PPP based manual dial-up connectivity to NSDL datacenter still remains available to Participant as a fallback option and in case of router failure this would be the only option. Automatic ISDN dialout based fallback option does not require manual intervention and would help restore connections quickly. ISDN line is subscribed by the Participant, preferably from the service provider other than the MPLS service provider. This is to ensure that both ISDN and MPLS are not rendered unusable if any failure is experienced at service provider's equipment. ISDN BRI port on the router. Those Participants who are using WAN link Ethernet and Cisco router are required to have 12.4 IOS (operating System) or SP IOS to establish ISDN auto fallback. Those Participants using Serial WAN link can use the existing IOS of Cisco Router. Participants having MPLS as primary connectivity and also has ISDN line and Router BRI port may confirm adherence to the above requirements by sending an email to form-b@nsdl.co.in . Participants who have not yet subscribed for the ISDN line are required to subscribe for an ISDN line and upgrade / replace their router, if it does not have the ISDN BRI port and appropriate IOS version. Once the Participant is ready, confirm to NSDL about adherence to requirement by sending an email to form-b@nsdl.co.in On receiving the confirmation, NSDL will inform the MPLS service provider and also send the configuration changes required for Participants router thereby making their set-up ready to use this facility.

Pre-requisites: 1.

2. 3.

Procedure to avail the facility: 1.

2.

3.

For VSAT users, the present modality of fallback line remains unchanged. VSAT users will have to continue to use the dial-up fallback connection through ISDN or PPP. In case of any further information/ clarification is required, Participants may contact Mr.Manoj Mhatre or Mr. Dhananjay Kolpe on 022-24994452 or 02224994458.

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Circular No. NSDL/POLICY/ 2008/0086 Date: December 29, 2008

Sub: Early surrender charges for surrender of VSAT As all Participants are aware, there is a charge for early surrender of VSAT which is payable to National Stock Exchange of India Limited (NSE). In this context, NSE has agreed not to levy early surrender charges to those Participants who migrate to Multi Protocol Label Switching (MPLS) network provided the annual VSAT charges for the full financial year, as currently applicable, are paid. Sub: Multi Protocol Label Switching (MPLS) - Connectivity All Participants were informed vide Circular no. NSDL/POLICY/2008/0061 dated September 6, 2008 about MPLS. The service providers selected for NSDL MPLS connectivity are TATA COMMUNICATIONS and TULIP TELECOM Ltd. Participants have a choice to avail services from either of the service providers. The Participants also have an option of selecting both the service providers to maintain redundancy. Further, the Participants have an option of Wireline or Wireless connectivity for the last mile (subject to feasibility). The Tariff for different bandwidth (64kbps to 2Mbps) is given in Annexure I. Besides offsetting the disadvantages of the existing setups, MPLS connectivity combines certain distinct benefits of both present leased line and VSAT networks. In addition, it also offers certain unique features which are not available in existing set-up. A set of such distinct advantages offered by MPLS connectivity are mentioned below: 1) Just as VSAT network, MPLS connectivity charge is distance independent and will be uniform across the country. Thus, it overcomes limitation of present leased line connectivity where Intra-city (Mumbai & by the virtue of Hierarchical network in Delhi) charges and Intercity charges are different. Under MPLS network, the Participants will have a much better uptime as NSDL is entering into service level agreement (SLA) for 99.5% uptime with the service providers. Unlike VSAT network and present leased line network, MPLS network offers the option to upgrade the bandwidth for a temporary period of a few days with two weeks advance notice and then revert back to original bandwidth. Under this arrangement, Participants pay for higher bandwidth only for this interim period of a few days. This facility can be very useful if Participants are considering a large scale account opening or such bandwidth intensive activity. Just as existing leased line network, the Participants connecting through MPLS network will continue to have uninterrupted access to business partner email facility, direct access to SPEED-e, IDeAS, and PAN verification, NSDL hosted internet facilities which are not available for VSAT connected Participants. MPLS connectivity offers a more robust seamless diversion of traffic to NSDL Disaster Recovery site (DRS) in the event of disaster as compared to present Leased line and VSAT traffic diversion where there is some dependency on NSDL primary production site. In case of MPLS primary connectivity failure, provision is available to dial out using ISDN line to the service providers POP in the same city with local call charges. This fallback is much simpler to activate as compared to the PPP based dial-up connectivity to NSDL datacenter

Circular No. NSDL/POLICY/ 2008/0067 Date: October 10, 2008

2)

3)

4)

5)

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where certain technical expertise is necessary to setup configuration. VSAT users however will only have PPP option. Migration to IP VSAT requires Broker-Participants to procure Layer 3 switch (for dual use viz trading and depository service) and commit lock-in for a period of four years or forgo whole/part of the Rs. One lac deposit. The incremental cost to use IP VSAT for depository function (Approx. Rs. 60,000) is almost the same for entry level MPLS connectivity (Rs. 65,000). Migration to MPLS connectivity is a better option for Participants considering the benefits mentioned above. Since MPLS connectivity provides for a seamless diversion of traffic to NSDL DRS by the service providers, NSDL will need to maintain present diversion infrastructure only for remainder IP VSAT users. IP VSAT users will now also be levied certain annual charge by NSDL for the maintenance of this infrastructure. The charge will be finalised after clarity of number of VSAT users emerges. Since NSE has already informed that switchover to IP VSAT will be concluded by end of October 2008, those VSAT users who are desirous to opt for MPLS connectivity must send written confirmation to NSDL helpdesk latest by 25th October 2008 so that NSDL can arrange for their migration on a priority basis. The Rollout of MPLS network will begin from first week of November 2008. The feasibility survey by MPLS service provider will be done for VSAT users who have already given their confirmation for MPLS. Participants are requested to extend necessary co-operation to the service providers in this regard. The present IP VSAT user Participants may note that in case they plan to continue with IP VSAT for dual use, then they must procure and install Layer3 switch (as mentioned in NSDL circular NSDL/Policy/2008/0050 dated July 10, 2008) and inform NSDL of the same by filing a revised Form B by 25th October, 2008. For any queries / clarifications, please feel free to contact Mr. Umesh Suvarna (Asst. Vice President) on 2499 4459 or Mr. Manoj Mhatre (Sr. Manager) on 2499 4452. ANNEXURE -I MPLS TARIFF No 1 2 3 4 5 6 Bandwidth 64 kbps 128 kbps 256 kbps 512 kbps 1 mbps 2 mbps Annual Charges Rs. Rs. Rs. Rs. Rs. Rs. 65,000/75,000/85,000/1,15,000/1,65,000/2,50,000/-

One Time Installation Cost :- Rs 11,000/All above charges inclusive of Taxes

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Circular No. NSDL/POLICY/ 2008/0061 Date: September 6, 2008

Sub: Migration to Multi Protocol Label Switching (MPLS) NSDL, vide its Circular no NSDL/POLICY/2008/0050 dated July 10, 2008 had informed all Depository Participants (DPs) about NSE initiated migration of its current X.25 VSAT network to an IP based VSAT network. Considering the possible network security threats in IP network, NSE has decided to implement stringent network controls. DPs who plan to use VSAT for both trading as well as depository operation were advised to procure CISCO layer 3 switch (Models : 3560 and 3750) to ensure segregation of DPM and trading network. NSDL has as a measure to enable DPs to protect already made investment, decided to allow the use of layer 3 switches from manufacturers other than CISCO on case to case basis on specific representation from DP. DPs intending to use layer3 switch of other manufacturers are required to write to NSDL giving detailed technical specifications and obtain necessary permission. At present DPs are allowed to establish primary connectivity with NSDL either through Point to Point Lease Line or NSE provided VSAT. While many DPs have opted for Point to Point Leased Line, the cost of connectivity differs from DP to DP, due to the distance factor. Intercity circuits (outside Mumbai) and Intracity circuits (local circuits) are being charged differently. In order to bring in uniform cost structure across country and to ensure high availability of Network connectivity to NSDL primary and DRS site, NSDL is in process of migrating its present Leased Line network to Multi Protocol Label Switching (MPLS) technology. Under this implementation DPs will bear same cost for connectivity irrespective of being located in Mumbai or other city. After a detailed evaluation, it is observed that MPLS option is cost effective, reliable and provides more redundancy. The migration process for the Leased Line users is expected to start from first week of November 2008. The exact schedule will be communicated after the detailed roll-out plan is finalised. Considering that MPLS network cost is comparable to that of VSAT and affords dedicated bandwidth to DP unlike VSAT, NSDL is also extending this option to present VSAT connected DPs. If VSAT connected DP exercise MPLS option than this will also be included in this roll out plan starting November 2008. Advantages of MPLS technology: Continuous availability of both Primary and Disaster recovery sites. Centralized manageability, single point of contact for service issues. Bandwidth on demand for last mile which is fully scalable. Uniform charges across country 24 hour email facility Network Uptime 99.5% In built redundancy in network connectivity. Highest redundancy levels to ensure no single point of failure. End-to-end assured network security. No need to procure additional Layer 3 switch if DP intends to surrender VSAT and migrate to MPLS based network. Temporary upgrade of Bandwidth with 15 days notice is possible. Direct connectivity option to NSDL's SPEED-e, STeADY and PAN verification infrastructure NSDL is in the process of finalising two service providers for MPLS network thus providing DPs a choice. Further DP's can also choose the connectivity medium as Wired or Wireless connectivity. The charges for 64kbps MPLS VPN will be approximately Rs.65,000/- per year (inclusive of Taxes). There would be one time installation charge of approximately Rs 15,000/-. Thus overall charge structure for various mode of connectivity compares as follows.

[ 447 ]

Mode of Connectivity Existing VSAT(X.25 network) New VSAT (IP network) Point to Point 64kbps Leaseline.

Deposit charges Rs.2,00,000/Rs.1,00,000/___

One time Rs.17,750/___ ___

Annual charges Rs.1,50,000/for all cities Rs.1,00,000/for all cities ** Rs.75,000/- Minimum for Mumbai & Delhi hierarchical network user For other cities circuits charge is Rs.36,500/- + MTNL actual charge which is higher than 75,000/- P.A . Rs.65,000/- for all cities

MPLS 64kbps

Nil

Rs.15,000/-

** New VSAT charge structure for broker members is as per NSE website. Clarifications for charges payable by DP is awaited from NSE. Considering the benefits, NSDL intends to migrate mandatory all point to point lease line users to MPLS network. There will be no additional capital investment required from the DPs. The DP's will have an option for higher bandwidth such as 2 mbps. Such DPs will have to pay additional annual charge for higher bandwidth. Based on the bandwidth choice indicated by the DP, NSDL will work out the charge structure with the service providers and communicate the same to DP's. While NSDL will continue to provide an option to connect through NSE VSAT network to DP's, it may be noted that on IP based new VSAT network of NSE demands more stringent security controls. DPs will have to segregate network through acquisition of layer3 switch (approximate cost ranges from Rs1.5Lac to Rs 2.0Lac) at its end. While NSDL helpdesk will endeavour to provide technical support for DPs DPM system problem, due to stringent security related restrictions some of the remote support techniques may have to undergo changes and flexibility available at present may not be feasible under new VSAT network. Such restriction will however not apply to MPLS network DP's who have connected to NSDL using VSAT and who wish to now shift to MPLS connectivity are requested to send their confirmation to NSDL helpdesk latest by September 15, 2008. Such DP's then will not be required to invest in layer3 switch. For any queries / clarifications, please feel free to contact Mr. Umesh Suvarna (Asst. Vice President) on 2499 4459 or Mr. Manoj Mhatre (Manager) on 2499 4452. Circular No. NSDL/POLICY/ 2008/0050 Date: July 10, 2008 Sub: Migration from X.25 protocol to TCP/IP All Depository Participants (DPs) are hereby informed that NSE vide its Circular no NSE/MEMB/10833 dated June 13, 2008 has intimated its members about enhancing its current X.25 trading network to an IP based trading network.

[ 448 ]

NSE's current Trading System uses the X.25 protocol over its terrestrial and satellite based Wide Area Network (WAN). The new IP based satellite network is now being implemented. NSE will replace the Indoor unit (IDUs) located at member locations in a phased manner. As against the earlier Indoor unit which had two ports and DPs could use Port 1 for NSE trading purposes and Port 2 for NSDL purposes, the new Indoor unit will have only one Ethernet Port. As a measure of good practice to segregate trading and depository traffic, NSDL & NSE have jointly worked out a design which requires common members who wishes to use VSAT for both depository and trading activity to install Layer3(L3) switch. However, DPs who are using VSAT only for depository operation need not install L3 switch. Hence, DPs who wish to continue using the same VSAT for their Trading and Depository data traffic will be required to procure L3 switch. DPs who plan to use VSAT for both trading as well as depository operation may procure any of the CISCO Layer 3 switch (Models : 3560 and 3750) for this purpose. NSDL will provide details of DP end configuration in due course. DPs are required to note the following : 1. Schedule for the migration of VSAT IDU will be undertaken as per the NSE plan for the migration. This will be informed to the DPs as soon as the plan is communicated by NSE. DPs who plan to use VSAT for both trading and depository are required to have the L3 switch available at the time of migration. Unless the L3 switch is ready and configured, NSDL connectivity cannot be established. Configuration of L3 switch and changes in the router configuration has to be carried out by DP in the presence of their vendor engineer or ask the vendor to do it on their behalf. Any mistake / error in doing so will lead to longer duration dis-connection of the connectivity between DPs set-up and NSDL central system. Cost of the VSAT services will be as per the revised costing decided and communicated by NSE, from time to time.

2.

3.

4.

DPs are required to inform NSDL about the date for procurement of L3 Switch and submit Form B. For any clarifications / assistance in this regard, DPs may contact Mr. Manoj Mhatre or Mr.Dhananjay Kolpe on Tel. nos. 24994452 and 24994458. Circular No. NSDL/POLICY/ 2008/0043 Date: June 9, 2008 Sub : Migration from Parallel Port Dongle to USB Dongle NSDL DPM Setup uses Dongle for secure storage of encryption keys used for secure data transmission between NSDL DM System and DPM System. All Depository Participants are hereby informed that NSDL has planned to replace the current Parallel Port Dongle used in DPM Setup with USB Dongle. NSDL intends to migrate DPM Setup from Parallel Port dongle to USB Dongle in a phased manner in coming weeks. All DPM Setups will be migrated to USB Dongle by the end of August 2008. The USB Dongle and the CD containing Software & Installation Manual would be provided by NSDL. Installation of USB Dongle should be undertaken only after obtaining appropriate technical guidance and clearance from NSDL

[ 449 ]

Helpdesk. Subsequent to the installation of USB Dongle, Depository Participants are advised to return back the Parallel Port Dongle to NSDL. For maintaining secure connectivity with NSDL, all the Depository Participants are requested to kindly make note of the following points: 1. For security reasons, it is advisable to connect the USB Dongles on to the USB ports available on the rear side of DPM Server. In case of nonavailability of USB ports on the rear side of Server, the USB Dongles should be connected to the front side of Server. In case of loss or faulty Dongle, the Depository Participant will not be able to establish application level connectivity with the NSDL DM System. In such an event, the Depository Participants will have to immediately contact NSDL Helpdesk and request for alternate mode of connection.

2.

EOD timing for Participants Circular No. NSDL/POLICY/ 2011/0001 Date: January 1, 2011 Sub: EOD timing for Participants extended till 9.30 pm on weekdays As Participants are aware, End of the Day (EOD) for Participants commences at 8.30 pm on weekdays (Monday to Friday) and 4.30 pm on Saturdays. Participants can verify/release instructions with the current execution date until such time. All Participants are hereby informed that with effect from Monday, January 3, 2011, the EOD process at the eDPM / Local DPM System will commence at 9.30 pm instead of 8.30 pm on weekdays. The GISMO (GISMO can be accessed at C:\ProgramFiles\NSDL\GISMO\GISMO.exe) will display "My business end time 9.30 pm" on weekdays. Further, the EOD at DM will commence at 10.00 pm on weekdays. Participants are requested to note that EOD for Saturday will be remain unchanged i.e. GISMO will display "My business end time 4.30 pm" and EOD at DM will commence at 5.00 pm. In case the GISMO does not display the aforesaid message i.e. "My business end time 9.30 pm" by 6.00 pm on January 3, 2011, Participants are requested to contact helpdesk Circular No. NSDL/POLICY/ 2008/0068 Date: October 10, 2008 Sub: EOD timing for Participants - 8.30 pm on weekdays As all Participants are aware, End of the Day (EOD) for Participants commences at 8.00 pm on weekdays (Monday to Friday) and 4.30 pm on Saturdays. Participants can verify/release instructions with the current execution date until such time. All Participants are hereby informed that with effect from Monday October 13, 2008, the EOD process at the DPM System will commence at 8.30 pm instead of 8.00 pm on weekdays. The DPM System will display "My business end time 8.30 pm" on weekdays. Further, the EOD at DM will commence at 9.00 pm on weekdays. Participants are requested to note that EOD for Saturday will be remain unchanged i.e. DPM System will display "My business end time 4.30 pm" and EOD at DM will commence at 5.00 pm. In case the DPM system does not display the aforesaid message i.e. "My

[ 450 ]

business end time 8.30 pm" by 6.00 pm on October 13, 2008, Participants are requested to contact helpdesk. Circular No. NSDL/POLICY/ 2008/0038 Date: May 30, 2008 Sub: EOD timing for DPs - 8.00 pm on weekdays and 4.30 pm on Saturdays As all Depository Participants (DPs) are aware, End of the Day (EOD) for DPs commences at 7.30 pm on weekdays (Monday to Friday) and 4.00 pm on Saturdays. DPs can verify/release instructions with the current execution date until such time. In light of the increased transaction volumes, DPs are hereby informed that with effect from Monday June 2, 2008, the EOD process at the DPM System will commence at 8.00 pm instead of 7.30 pm on weekdays and at 4.30 pm instead of 4.00 pm on Saturdays. The DPM System will display "My business end time 8.00 pm" and "My business end time 4.30 pm" on weekdays and Saturdays respectively. Further, the EOD at DM will commence at 8.30 pm on weekdays and 5.00 pm on Saturdays. In case the DPM system does not display the aforesaid message i.e. "My business end time 8.00 pm" by 6.00 pm on June 2, 2008, DPs are requested to contact helpdesk. Version Releases and Features Circular No. NSDL/POLICY/ 2010/0116 Date: October 28, 2010 Sub: Release of DPM System Version 13.3 Attention of Participants is invited to NSDL Circular No. NSDL/PI/2010/1702 dated August 6, 2010 regarding change of security type code from 13 to 20 in respect of the following ISINs of UTI Asset Management Company Limited : Sr No 1 2 3 4 ISIN Description UTI-Master share Scheme UTI-Master Plus Scheme UTI-Equity Fund UTI-Top 100 Fund ISIN INF189A01038 INF189A01061 INF189A01053 INF189A01046

A few Participants have represented to NSDL that some of their Clients are holding certificates of the aforesaid mutual fund units in physical form and wish to dematerialise them. In such cases, Participants are requested to initiate dematerialisation request in the aforesaid ISINs through Demat module. Further, in case Statement of Accounts for the aforesaid mutual fund units are submitted by Clients then Participants must initiate conversion request through Conversion of Units represented by SOA module. The mode of uploading batch files through DPM server i.e., DPM Transaction Import will remain same as currently applicable. The uploaded instructions can be viewed from the front end application through the aforesaid modules as applicable. The aforesaid feature would be released in DPM System Version 13.3, scheduled on November 3, 2010. DPM System Version 13.3 will be made available for download on NSDL intranet site (https://sqlassist). Participants are requested to apply this release latest by Wednesday, November 10, 2010. For any information/clarifications, Participants are requested to contact NSDL Help Desk at (022) 2499 4601 to 4610 or email at helpdesk@nsdl.co.in

[ 451 ]

Circular No. NSDL/POLICY/ 2010/0081 Date: July 16, 2010

Sub: Release of DPM System Version 13.0 - Back-office batch interface with the DPM System for conversion of Mutual Fund Units enabled Attention of Participants is invited to NSDL Circular No. NSDL/POLICY/2010/ 0069 dated June 25, 2010 regarding release of DPM System Version 13.0 wherein facility to convert Mutual Fund units [represented by Statement of Account (SoA)] into dematerialized form through DPM System was provided. DPM System Version Release 13.0 enabled Participants to initiate conversion requests through the front end application of DPM System with effect from July 3, 2010. Participants were also requested to make necessary changes to their back office by July 11, 2010 as per the file formats enclosed in the aforesaid circular. All Participants are hereby informed that back-office batch interface with the DPM System for uploading conversion requests in respect of mutual fund units (security type code 20) will be enabled with effect from Saturday July 17, 2010.

Circular No. NSDL/POLICY/ 2010/0077 Date: July 2, 2010

Sub: Release of DPM System Version 13.0 Redemption of Mutual Fund units through new module All Participants are hereby informed that DPM System Version 13.0 will be released on July 3, 2010. This will enable Participants to capture instructions for redemption of Mutual Fund (MF) units (security type code 20) using new module in the DPM System. For back-office file formats batch interface with the DPM System, the existing file formats (available at NSDL SQLASSIST) will be applicable. The mode of uploading batch files through DPM server i.e., through DPM Transaction Import will also be the same as currently applicable. Further, uploaded instructions can be viewed from the new module of the DPM System. The existing Rematerialization / Repurchase module of the DPM System will continue to facilitate execution of instructions for ISINs other than those of MF units (security type code 20). Participants are requested to take note that as this module will also be available in new DPM System, file formats in respect of the new DPM System for redemption of MF units are enclosed at Annexure A.

Circular No. NSDL/POLICY/ 2010/0069 Date: June 25, 2010

Sub: Release of DPM System Version 13.0 - Conversion of Mutual Fund units represented by Statement of Account through DPM System. Attention of Participants is invited to NSDL Circular No. NSDL/POLICY/2010/ 0024 dated March 9, 2010 regarding conversion of existing Mutual Fund units represented by Statement of Account (SoA) into dematerialised form through Asset Management Company / Registrar and Transfer Agent. All Participants are hereby informed that Version 13.0 of the DPM System is scheduled for release on July 3, 2010 which will enable Participants to initiate request for conversion of Mutual Fund units represented by SoA into dematerialized form through DPM System. Participants will be able to initiate conversion request through the front end application of DPM System from July 3, 2010. Further, back-office batch interface with the DPM System will be enabled by fourth week of July 2010. File formats in respect of the backoffice batch interface with the DPM System are enclosed at Annexure A. Further, the rejection codes and descriptions are enclosed at Annexure B.

[ 452 ]

Participants are requested to note that the enclosed file formats will also be applicable for new DPM System. In brief, Participants can use the same file formats for uploading aforesaid instructions in the existing as well as new DPM System. However, Participants may note that in the existing DPM system for back office interface with the DPM System, there is a minor change with respect to Transaction Statement Export and Change Order of the Day Export, which have been highlighted (in red). Participants are advised to make necessary changes to their back office as per the enclosed file formats by Saturday July 11, 2010. DPM System upgrade Version 13.0 will be provided in the SQLASSIST intranet site of NSDL (http://sqlassist) on Friday July 2, 2010 and the same should be downloaded from the SQLASSIST intranet site and installed in the DPM server by Saturday, July 3, 2010. Participants may note that with respect to release of Version 12.1 (refer Circular No. NSDL/POLICY/2010/0068 dated June 24, 2010), no separate compact disk or utility will be provided for version upgradation as the feature is already inbuilt in the DPM System, which will be enabled by NSDL on June 26, 2010.DPM System (Annexure A) DPM Transaction Import Header Record Description Batch Number Record Type Branch Code DP Id DP Role Total number of Detail Records Sender Date Sender User Id Filler Demat(901) Description Record Type (*2) Line Number Transaction Type Transaction Flag Filler Client Id ISIN Data Type Integer Integer Integer Character Character Integer Character Size 8 2 6 3 1 14 8 12 End 8 10 16 19 20 34 42 54 Status M M M M M O M M List given below It should be A for all orders Not in Use Detail Record (02) Remarks Batch Number (*1) Integer Data Type Integer Integer Character Character Integer Integer Date Character Character Size 8 2 6 8 2 6 8 8 2 End 8 10 16 24 26 32 40 48 50 Status M M M M M M M O O Not in use Not in use Header Record (01) Default 000000 Remarks

[ 453 ]

Quantity Filler

Decimal Character

18 83 35

72 155 190

M O O

15+3 without decimal point Not in Use Remarks

Internal Reference Character Number/Remarks (*3) Sender Reference Number 1 (*4) Sender Reference Number 2 (*5) Folio Number Character Character Character

50 50 20

240 290 310

O O Mandatory only when MF indicator is M. Space otherwise. M or space. M for MF ISIN Space for other ISINs Mandatory only when MF indicator is M. Space otherwise O Not in use.

Mutual Fund Indicator Number of SOA

Character

311

Character

314

Filler

Character

36

350

*1 : First digit of the batch number should be zero. e.g. If the batch number is 9000147 then it should appear as 09000147 *2 : First digit of the Line Number should be zero. e.g. If the Line Number is 90014 then it should appear as 090014 *3 : Spaces should be followed after values are entered e.g. If the value in the Internal Reference Number is Conversion of units then it should be appear as Conversion of units<<16 spaces>> *4 : Spaces should be followed after values are entered e.g. If the value in the Sender Reference Number 1 is Conversion of units then it should be appear as Conversion of units<<31 spaces>> *5 : Spaces should be followed after values are entered e.g. If the value in the Sender Reference Number 2 is Conversion of units then it should be appear as Conversion of units<<31 spaces>> Data Type Integer Integer Character Size 8 2 6 18 End 8 10 16 34 Status M M M O Trailer Record (99) Default 000000 15+3 without decimal point 15+3 without decimal point Not in Use 15+3 without decimal point 15+3 without decimal point Remarks

Description Batch Number Record Type Branch Code

DEMAT/Conversion Decimal of Units Instruction Total Qty REMAT Filler DFP Instruction Total Qty RFP Instruction Total Qty Decimal Character Decimal Decimal

18 15 18 18

52 67 85 103

O O O O

[ 454 ]

Delivery Out Instruction Total Qty Inter Settlement Instruction Total Qty Pledge Instruction Total Qty Hypothecation Instruction Total Qty Pledge Invocation Instruction Total Qty Pledge Closure Instruction Total Qty Irreversible Delivery Out Total Qty Pool-Pool Account Transfer Total Qty Inter Depository Delivery Qty Inter Depository Receipt Qty CM pool Delivery Qty CM pool Receipt Qty Qty (For future use) Repurchase Instruction Total Qty Freeze Instruction Total Qty Unfreeze Instruction Total Qty Pledge Confirmation Hypothecation Invocation Confirmation Pledge Closure Confirmation Filler Grand Total of Qty

Decimal

18

121

15+3 without decimal point 15+3 without decimal point 15+3 without decimal point 15+3 without decimal point 15+3 without decimal point 15+3 without decimal point 15+3 without decimal point 15+3 without decimal point 15+3 without decimal point 15+3 without decimal point 15+3 without decimal point 15+3 without decimal point 15+3 without decimal point 15+3 without decimal point 15+3 without decimal point 15+3 without decimal point 15+3 without decimal point 15+3 without decimal point 15+3 without decimal point Not in Use 15+3 without decimal point

Decimal

18

139

Decimal Decimal

18 18

157 175

O O

Decimal

18

193

Decimal

18

211

Decimal

18

229

Decimal

18

247

Decimal Decimal Decimal Decimal Decimal Decimal

18 18 18 18 18 18

265 283 301 319 337 355

O O O O O O

Decimal

18

373

Decimal

18

391

Decimal Decimal

18 18

409 427

O O

Decimal Character Decimal

18 30 18

445 475 493

O O M

[ 455 ]

Transaction Statement Export File Format Record Type Header Detail Record Identifier 01 02 Record length 150 224 Remarks One (First) record per file Second record onwards, multiple per file.

Record Format Header Record Description Record Type DP Id Statement From Date Date Statement To Date Statement Preparation Date Statement Preparation Time Total number of Detail Records Data Type Size Integer Date Date Date Time Integer 2 8 8 8 6 9 Character 8 End 2 10 18 26 34 40 49 Status Remarks M M M M M M M Header Record (01) DPs own DP ID It is a Business It is a Business Date System Date System Time Total Number of Records in the exported file. Maximum can be 99,99,99,999 records From Client ID. If not provided as input parameter, it will be all Zeros To Client ID. If not provided as input parameter, it will be all Zeros Not in use

Client ID From

Integer

57

Client ID To

Integer

65

Filler Detail Record Description Record Type Line Number Branch Code Beneficiary Account Number Beneficiary Category Booking Date ISIN Beneficiary Account Type

Character 85 Data Type Size Integer Integer Integer Integer Date Integer 2 9 8 2 8 2

150

End Status Remarks 2 11 17 25 27 35 47 49 50 M M M M M M M M M List given below C - Credit, D Debit List given below Detail Record (02)

Character 6

Character 12

Debit/Credit Indicator Character 1

[ 456 ]

Positions Booked

Decimal

15

65

12+3 Format without decimal point List given below List given below Applicable for Clearing Member (CM) Applicable for CM (List given below)/ Freeze/Unfreeze Reason Code Applicable for CM L-Lock, B-Block, F-Free Position 00 in case of Free (List given below) Mandatory Counter DP Id for Pledge/ SLB transactions; Mandatory Other Depository Id for Inter Depository transactions In case of account transfer (DFP/RFP), the beneficiary account number will be exported for non CM clients only.

Booking Narration Code Booking Type

Integer Integer

3 2

68 70 78

M M O

Clearing Corporation Id Character 8

Market Type

Integer

80

Settlement Number Block/Lock Flag Block/Lock Code Lock-in Release Date Counter DP Id/Other Depository ID

Character 7 Character 1 Integer Date 2 8

87 88 90 98

O M O O

Character 8

106 O

Counter Beneficiary Id Integer

114 O

DPM Transaction Reference Number DM Transaction Reference Number

Integer Integer

9 9

123 M 132 O RFP reference number/Freeze order number for Unfreeze Order (Booking Narration Code 232) Freeze/Unfreeze Description in case of Freeze/Unfreeze Orders Transaction recorded date and time in YYYYMMDDhhmmss Format

Internal Reference Number/Remarks

Character 20

152 O

Transaction Creation Date & Time

Character 14

166 M

[ 457 ]

Counter CM-BP Id

Character 8

174 O

Only in case of CM, BP Id of CM will be exported for DFP/ RFPs and for cm pool to cm pool instr For DEMAT/ Conversion of Units & REMAT For DEMAT/ Conversion of Units & REMAT For DEMAT/ Conversion of Units & REMAT For DEMAT/ Conversion of Units & REMAT Applicable only for Inter Depository Applicable only for Inter Depository

Rejection Reason1

Integer

178 O

Rejection Reason2

Integer

182 O

Rejection Reason3

Integer

186 O

Rejection Reason4

Integer

190 O

Other Client Code Other Settlement Details Filler

Character 16 Integer 13

206 M 219 M 228 O

Character 9

Booking Narration Code Description 11 DEMAT Initial Booking 12 Credit for DEMAT 13 DEMAT Rejection Booking 14 DEMAT Rejection Booking due to ACA 21 REMAT Initial Booking 22 Debit for REMAT 23 REMAT Rejection Booking 24 REMAT Rejection Booking due to ACA 31 Debit for Delivery to Client 32 Credit for Receipt from Client 33 Debit for Delivery to Client 34 Credit for Receipt from Client 41 Inter Transfer Initial Delivery Booking 42 Debit for Delivery to Client 43 Inter Transfer Rejection Delivery Booking 44 Credit for Receipt from Client 51 Delivery Out Initial Booking 52 Debit for Delivery for Settlement Number 53 Delivery Out Rejection Booking 54 Delivery Out Initial Booking 55 Delivery Out Acknowledgement Booking 56 Delivery Out Rejection Booking 57 Delivery Out Cancellation Booking

[ 458 ]

61 62 71 72 73 74 75 76 80 81 82 83 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 101 102 103 111 112 113 114 121 122 123 124 125 131 151 152 153 154 155 156

Receipt In Initial Booking Credit for Receipt for Settlement Number Inter Settlement Transfer Source Inter Settlement Transfer Target Inter Settlement Initial Booking Inter Settlement Acceptance Booking Inter Settlement Rejection Booking Inter Settlement Final Booking Credit for CA - DO Credit for CA - Freeze Credit for CA Debit for CA Credit for IPO Credit for CA - CM Dedit for CA - CM Credit for CA-Pledge Debit for CA-Pledge Debit for CA - DO Pledgor Initial Pledgor Reject/Closure Pledgor Invocation Pledgee Invocation Pledgor Reject/Closure due to ACA Debit for CA - Lend Credit for CA - Lend Lend Confirmation - Rejection due to ACA Lend Ack - Rejection due to ACA Release of Locked In Positions Release of Locked In Pledge Positions Release of Locked In REMAT Positions Pool to Pool Transfer Initial Delivery Booking Debit for Delivery to Client Pool to Pool Transfer Rejection Delivery Booking Credit for Receipt from Client NSDL Transfer Initial Delivery NSDL Confirmation Delivery NSDL Transfer Rejection Delivery NSDL Confirmation Receipt NSDL Transfer Delivery Booking Internal Suspense Reversal Lend Initial Lend Ack. - Acceptance Lend Ack. - Rejection Lend Confirmation - Int Lend Confirmation - Acceptance Lend Confirmation - Rejection

[ 459 ]

157 161 162 163 164 165 171 172 173 174 175 181 182 183 184 185 191 192 193 194 195 201 202 203 204 211 212 213 214 223 224 231 232 233 251 252 253 254 Booking Type 11 12 13 14 15

Lend Initiation SLB Confirmation - Initial SLB Confirmation - Acceptance SLB Confirmation - Rejection SLB Confirmation Borrow Confirmation SLB Closure - Initial SLB Closure - Acceptance SLB Closure - Rejection SLB Closure Lend/Borrow Recall Confirmation Int-CM Confirmation - Initial Int-CM Confirmation - Acceptance Int-CM Confirmation - Rejection Int-CM Confirmation Borrow Confirmation Int-CM Closure - Initial Int-CM Closure - Acceptance Int-CM Closure - Rejection Int-CM Closure Borrow Recall Confirmation Inter Depository Transfer Initial Delivery Booking Debit for Delivery to Client Inter Depository Transfer Rejection Delivery Booking Credit for Receipt from Client CM Pool Transfer Initial Delivery Booking Debit for Delivery to Client CM Pool Transfer Rejection Delivery Booking Credit for Receipt from Client DDO Initial Booking DDO Rejection/Cancellation Booking Freeze Booking Unfreeze Booking Credit for Freeze due to ACA Conversion of units represented by SOA - Initial Booking Credit for Conversion of units represented by SOA Conversion of units represented by SOA - Rejection Booking Conversion of units represented by SOA - Rejection Booking due to ACA Description Free Block Lock-In Released Block Released Lock-In

[ 460 ]

Changed orders for the day (COD) Export Header Record Description Record Type DP Id Export Type Statement Business Date Data Type Size Integer Char Date 2 1 8 8 6 8 6 8 6 9 Character 8 End Status Remarks 2 10 11 19 27 33 41 47 55 61 70 M M M M O O O O M M M Not in use I Incremental F Full Business date Mandatory if Export Type is I Mandatory if Export Type is I Mandatory if Export Type is I Mandatory if Export Type is I System Date System Time Header Record (01)

Last Export Date From Date Last Export Time From Time Last Export Date To Last Export Time To Date Time

Statement Preparation Date Date Statement Preparation Time Time Total number of Detail Integer Records Filler

Character 59

129 O

Detail Record (900 to 911; 913; 914, 915; 920 to 924; 927,930,931) Description Record Type Line Number Branch Code Transaction Type Transaction No. Data Type Size Integer Integer Integer Integer 2 9 3 9 End Status Remarks 2 11 17 20 29 M M M M M Transaction number of DPM. For Lock-in Release (923), it will be lock-in release code. For CA (921/ 922), it will be DM Request ID Not Applicable for 923 Login id of user Not Applicable for 920, 921, 922,923 Not Applicable for 920, 921, 922,923 System date time Detail Record (02)

Character 6

Order Status from Order Status to Status change user Cancellation Status from

Integer Integer Integer

2 2 2 2

31 33 41 43 45 59

M M M M M M

Character 8

Cancellation Status to Integer Status change date time

Date time 14

[ 461 ]

Original Order Reference Number Unique Id for 914,915

Integer

66

Used for pledge closure, pledge invocation, closure confirmation and invocation confirmation. Also used for SLB Lend and Borrow

Client Id ISIN Quantity

Integer Decimal

8 15

74 86

M M 12+3 without decimal point (for manual and automatic Delivery Out, quantity executed, i.e. sent to DM and for DFP/ RFP (904/905), quantity executed.) Not Applicable for 920,924 Not Applicable for 920,924 For SLB Transactions it is execution date Mandatory for 922 Mandatory for 922 Execution date for account transfer/DO /Corporate Action/ inter settlement, Closure Date for Pledging and Hypothecation (Pledgor, Pledgee) and SLB Not in Use Applicable in case of DFP/RFP/Pledge/ SLB. Related DP Id for NSDL transfer instruction For SLB Intermediary DP ID Applicable in case of DFP/RFP/Intra transfer/Pledge/ DEMAT/ REMAT/ For SLB Intermediary ClntId. Mandatory for 922

Character 12

101 M

Lock-in Reason Code Lock-in Release Date (YYYYMMDD)

Integer Date

2 8

103 O 111 O

Market Type Settlement Number Execution Date/ Closure Date (YYYYMMDD)

Integer Date

2 8

113 O 120 O 128 O

Character 7

Other Branch code Other DP Id/Related DP Id

Character 6 Character 8

134 O 142 O

Other Client Id/No. of certificates

Integer

150 O

Beneficiary Account Category

Integer

152 O

[ 462 ]

Other CM BP Id

Character 8

160 O

Only for DFP/RFP subject to other a/c is of CM Applicable in case of Inter Settlement transfer Applicable in case of Inter Settlement transfer User Remarks. Mandatory for pledge/SLB instruction Applicable only for DFP/RFP (904/905) and manual/ automatic delivery out Applicable Only for DEMAT / Conversion of Units / REMAT / pledge instructions Applicable Only for DEMAT / Conversion of Units / REMAT / pledge instructions Applicable Only for DEMAT / Conversion of Units / REMAT / pledge instructions

Other Market Type

Integer

162 O

Other Settlement Number Internal Reference Number/Remarks Agreement No.

Character 7

169 O

Character 20 Character 20

189 O 209 O

Quantity Ordered (as stated in the order, may not be executed) Rejection Reason Code 1

Integer

15

224 O

Integer

228 O

Rejection Reason Code 2

Integer

232 O

Rejection Reason Code 3

Integer

236 O

Rejection Reason Code 4

Integer

240 O

Applicable Only for DEMAT / Conversion of Units / REMAT / pledge instructions

Closure Type Execution Date for 908,909,910,911 Mutual Fund Indicator

Character 1 Date 8

241 O 249 M 250 O

Mandatory for 911 (YYYYMMDD) M or space. M for MF ISIN Space for other ISINs. Mandatory only when MF indicator is M. Space otherwise. Mandatory only when MF indicator is M. Space otherwise Not In Use

Character 1

Folio Number

Character 20

270 O

Number of SOA

Character 3

273

Filler

Character 189

462 O

[ 463 ]

Annexure B Rejection reason code and description: Conversion of Mutual Fund Units represented by Statement of Account into dematerialized form Code Code Description 1 Signature mismatch 2 Signature of the 1st/2nd/3rd holder(s) not present 3 Rejected due to ACA 4 Unit statement already dematted 5 Incorrect Holder(s) name / Pattern 6 Unit statement details mismatch 7 CRF sent to incorrect registrar 8 Unit Statement(s) not received within 30 days 9 Court injunction pending 10 Conv. of units request initiated under wrong ISIN 11 Units recd not available for Conversion of units 12 Mismatch between Unit qty received and CRF qty 13 RTA Unit stmt recd instead of AMC Unit stmt 14 Transposition Form not submitted 15 Transmission Form/Death Certificate not submitted 16 Investor request for rejection and a/c closure 17 Units under lien/Stop Transfer 18 Changes in DP ID/Client ID on CRF not authorized 19 Mismatch of DP ID/ Client ID on CRF 20 CRF not signed/ stamped by DP 21 Miscellaneous 22 Requested units are already redeemed 23 Unit statement not enclosed with CRF Circular No. NSDL/POLICY/ 2010/0068 Date: June 24, 2010 Sub: Release of DPM System Version 12.1 - Redemption of Mutual Fund units through DPM System. All Participants are hereby informed that Version 12.1 of the DPM System is scheduled for release on Saturday, June 26, 2010 enhancing the Redemption / Repurchase module to facilitate Participants to initiate instructions for redemption of Mutual Fund Units (security type 20) held in dematerialised form. Participants are requested to be guided by Rule 11.3 of the NSDL Business Rules. For back-office batch interface with the DPM System, Participants are requested to refer to the existing file formats available at NSDL SQLASSIST. Circular No. NSDL/POLICY/ 2010/0036 Date: April 8, 2010 Sub: Additional features -Release of DPM System Version 12.0 In continuation of our Circular No. NSDL/POLICY/2010/0032 dated March 27, 2010, Participants are hereby informed that in addition to the features mentioned in the aforesaid circular, the following features are also included in the DPM System Version 12.0. : (I) Change of name in Corporate Accounts more sub-types included: Facility to carry out change of name in corporate accounts for Client types [viz., Body-Corporate, Bank, Financial Institution (FI), Foreign Institutional Investors (FII), Mutual Fund (MF), Trust] was provided in DPM System Version 9.0 (refer Circular No. NSDL/POLICY/2008/0085 dated December 16, 2008 for list of Client Types and Sub-types). In this regard, following additional Sub-Types have been included in the list with respect to Client Type Body Corporate, as given below:

[ 464 ]

Type Body Corporate

Sub-Type Foreign Venture Capital Domestic-DR Limited Liability Partnership Limited Liability Partnership-DR

(2)

Incorporation of agreement number in Pledge Master Report: Based on the feedback received from Participants, agreement number has been incorporated in the pledge master report. For any information/clarifications, Participants are requested to contact NSDL Help Desk at (022) 2499 4601 to 4610 or email at helpdesk@nsdl.co.in Circular No. NSDL/POLICY/ 2010/0032 Date: March 27, 2010 Sub: Release of DPM System Version 12.0 All Participants are hereby informed that DPM System Version 12.0 is scheduled for release on Saturday, April 3, 2010. Salient features of DPM System Version 12.0 are provided in Annexure A. Compact Discs (CD) containing DPM System Version 12.0 and instructions regarding upgradation will be sent to Participants by courier separately. Participants will receive the CDs tentatively by March 31, 2010. CD containing DPM System Version 12.0 should be installed in the DPM server only on Saturday, April 3, 2010. For any information/clarifications, Participants are requested to contact NSDL Help Desk at (022) 2499 4601 to 4610 or email at helpdesk@nsdl.co.in Annexure A Facility to print Transaction Statement / Statement of Holding by including / excluding specified Clients IDs : Facility to print Transaction Statement / Statement of Holding by including / excluding specified Clients IDs is being provided from the front end application of the DPM system. In this regard, Participants are requested to follow the below given procedure: (i) Install the DPM System Version 12.0 CD in DPM server. Upon successful installation, a folder named SOT/SOH would be created in C drive of the DPM server. (ii) Create group names and corresponding Client IDs in a notepad. The notepad containing the group names and the Client IDs should be separated using tilt (~). The header details of the notepad should contain the DP ID and number of records that are being uploaded. File format in this regard, is enclosed at Annexure B. Sample notepad is exhibited below for your reference:

1.

[ 465 ]

(iii) Save the notepad in the SOT/SOH folder. The name of the notepad should be Clntlist.txt .Double click on the Upload_List.bat. Upon doing so, Client details will get uploaded in the DPM server. (iv) Group details that have got successfully uploaded in the DPM server can be viewed under the field Group as exhibited below. At the time of printing Transaction Statement / Statement of Holding (SOH), you will have the ability to include / exclude specified group (containing corresponding Client IDs). For this purpose, select the group name(s) from the field Group and required option in Select Group. Further, other selection criterias viz., Clients having Transactions, Order by Pin Code etc., as exhibited below can be used while printing the Transaction Statement / SOH.

(v)

As subsequent records uploaded may overwrite the existing details, the existing notepad may be used to append / delete the records, in case fresh records are required to be created or existing records are to be deleted. Alternatively, prepare a notepad that retains the existing records (that you wish to retain) and add / delete the records of your choice in the same notepad. Thereafter, follow the procedure mentioned in point no. (1) (iii).

2.

Facility to navigate delivery-out instructions: Facility to navigate instructions in the delivery-out screen is being provided in the front end application of the DPM System. Upon making a search on any of the available fields/radio buttons viz., status of the instructions, execution date, CC ID, ISIN etc., the screen would display a grid containing the output i.e., instruction details with respect to the provided input parameters. Upon clicking a specific instruction or on clicking OK button, a navigator would be displayed to facilitate navigation of instructions as exhibited below:

[ 466 ]

3.

Display of ISINs of Mutual Fund (activated under security type code 20) in the transaction statement: Post version release, the transaction statement will display the transactions / holdings of ISINs in the following order: (i) (ii) Transactions and balances of non mutual fund based ISINs viz., equity, commodity, debentures, certificate of deposits etc. Transactions and balances of mutual fund based ISINs (activated under security type code 20).

(iii) Holdings of non mutual fund based ISINs (example given above) where no transactions have been executed. (iv) Holdings of mutual fund based ISINs (activated under security type code 20) where no transactions have been executed. 4. *.out and *.prn files to also display the date and time for DPM transaction import: Currently, upon uploading the batches into DPM server through DPM transaction import, .out file (response file) and .prn file [(details of rejected records (if any)], are generated. The file names of .out and .prn file are same as uploaded in the DPM server. Post version release, date and time will also be displayed along with the file name on .out and .prn files for files uploaded through DPM transaction import. The display format would be filename_yyyymmddhhmmss. Example; if the batch file (generated from the back office and uploaded in the DPM Server) is named as batch1.txt, the .out file and .prn file generated will be named as batch1_20100303215320.out and batch1_20100303215320.prn respectively. The date and time displayed on the file will facilitate in distinguishing the batches uploaded at various intervals and avoid overwriting of the previous .out and .prn file in case the name of the batch file uploaded is identical. Impact on Back office : Yes. 5. Facility to validate PAN structure of Body-Corporate and Trust Accounts: Facility to validate PAN structure for Client Types viz., Body-Corporate and Trust accounts is being provided. Following validations will be carried out at the time of opening Body Corporate / Trust accounts or modifying the demographic details in these accounts: Length of PAN should be of 10 characters. First five and the tenth character of PAN should be capital letter (between A to Z). Fourth character should be a capital letter C in case of BodyCorporate account and T in case of Trust account. Sixth to Ninth characters should be numeric (between 0 and 9). (i) Operating DPM System through front end application : (a) At the time of opening new accounts for Client types viz., Body-Corporate / Trust in the Client Maintenance Module, a warning message will be displayed if PAN captured in these accounts are having invalid PAN

[ 467 ]

structure. Similar warning message will also be displayed while modifying PAN in the existing Body-Corporate / Trust account or modifying demographic details / any other details in these accounts such as bank account name, number etc., and such accounts have invalid PAN structure. (b) Warning messages will be displayed at both stages i.e., Capture as well as Verify & Release in the Client Creation and Client Modification Screen if the account has an invalid PAN structure. (c) Participants may either modify PAN or override the warning and continue to capture / verify & release the instruction. (ii) Back office Interface with the DPM Server: a) PAN structure validation will be implemented in following Back Office interfaces : (i) (ii) (iii) b) Client Master Creation Import Client Modification Import PAN and PAN Flag modification Import

In case of invalid PAN structure, a warning message will be generated in the error file (i.e. .prn file) for every invalid PAN structure in Client account. However, no record will be rejected for this reason. Participant may update the invalid PAN or cancel these records through front end application of the DPM System before releasing the instructions in the DPM System. Warning message will also be displayed while verifying and releasing instructions from front end application of DPM System. There will be no such warning message generated for bulk Verify & Release of Client Creation / modification or PAN modification requests.

c)

6.

Enhancement of Overdue Delivery Out Report : Overdue Delivery-Out (DO) Report provided in Version Release 10 (refer Circular No. NSDL/POLICY/2009/0090 dated October 1, 2009) is being further enhanced. Features enhanced in the report are given below: (i) The report would be generated if the Auto DO or the manual DO instructions for specified ISIN(s), settlement number(s) and market type(s) are in status Overdue at DM. The pending DO quantity would be displayed after considering Irreversible DO and manual DO instructions that are in status Accepted by NSDL.

(ii)

(iii) In addition to the existing criteria, ISIN would also be input criteria for generating the report. (iv) Securities position lying in the pool account in other settlement number(s) would also be displayed in the report.

[ 468 ]

Screen shot of the report is displayed below:

7)

Alert in respect of account where PAN flag(s) is not enabled: At the time of activating Client accounts through front end application of DPM System or batch upload, if the PAN flag(s) of the account holder(s) is not enabled, the DPM System would display / generate warning message in the form of alert. Alert would be flashed in the screen in case Client accounts are activated from the front end application of DPM System. Further, .prn file would be generated in case Client accounts are activated through batch upload.

Circular No. NSDL/POLICY/ 2009/0090 Date: October 1, 2009

Sub: Release of DPM System Version 10.0 All Participants are hereby informed that DPM System Version 10.0 is scheduled for release. Salient features of DPM System Version 10.0 are provided at Annexure A. Utility named DPM System Version 10.0 will be provided in the SQLASSIST intranet site of NSDL (http://sqlassist). Utility containing DPM System Version 10.0 should be downloaded from the SQLASSIST intranet site and installed in the DPM server by Saturday, October 3, 2009. For any information/clarifications, Participants are requested to contact NSDL Help Desk at (022) 2499 4601 to 4610 or email at helpdesk@nsdl.co.in Annexure A 1) Conversion of balances under Delivery Out account of Clearing Member upon execution of Auto Corporate Action (ACA) : The functionality of conversion of balances in Clearing Member (CM) Delivery Out (DO) account upon execution of ACA is enhanced. On the execution date of the ACA, balances under old ISIN in the DO account of the CM will be debited and credited in appropriate ratio under the new ISIN. DO instruction in new ISIN will also be generated. This conversion will now be effected on the execution date of ACA. As per existing functionality, overdue DO and Future dated DO will be cancelled by the system automatically on the day of ACA execution. Details of ACA can be viewed from the front end application of the DPM System under Inquiries screen by selecting the option - Corporate Action / Auto Corporate Action Allotment. For back office interface with the DPM System, ACA details will be available for export at option Exports - ACA Export under the GISMO system. File formats in this respect were provided in NSDL Circular No. NSDL/ POLICY/2009/0083 dated September 14, 2009.

[ 469 ]

2)

Addition of new sub-type named Limited Liability Partnership and Limited Liability Partnership-DR: New sub-type named Limited Liability Partnership and Limited Liability Partnership-DR has been added to the Client Type: Body Corporate under the Client Maintenance Module. In this regard, a separate detailed circular is being issued with respect to procedure to be followed and documents to be obtained at the time of opening the depository account under the aforesaid category. Impact on back-office file formats: Yes, as given below: Type Code 5 Sub Type Code 29 30 Type Body Corporate Sub Type Limited Liability Partnership Limited Liability Partnership-DR

Field Name Beneficiary Type/Subtype

3)

4)

Incorporation of execution date for Standing Instruction (SI) modification : Facility to modify SI indicator on the basis of execution date is being introduced in the DPM System. In view of this, it will be mandatory to provide the execution date at the time of modifying SI indicator from the front end application or at the back office to interface with the DPM System. Execution date for modifying the SI indicator may be the current or future date. Impact on back-office file formats: Yes, as given below: File format with record type 06 (enclosed at Annexure B) with respect to Client Modification Import will facilitate to carry out change of SI indicator with an execution date (current or future date) wherein Participants will be required to mention the execution date. For carrying out change of SI indicator through the existing file format with record type 04, execution date will not be required to be provided as execution date by default will be the current date. Overdue Delivery Out Report: A report named Overdue Delivery Out Report is being provided at the front end application of the DPM System at Reports - Settlement which shall reflect DO instructions that are in the overdue status. Report for overdue DO instructions will be available till the status of the DO instructions are Overdue at DM. Participants can view Overdue Delivery Out Report by providing the Client ID range of the CM, Pay-in date, CC ID, Market Type and Settlement Number to ascertain the requested quantity and the available quantity in respect of the DO instructions. To ascertain the overdue status report of single CM, the input criteria should be CC ID / Client ID (from- to), market type and settlement number. Impact on back-office file formats: No.

Circular No. NSDL/POLICY/ 2009/0083 Date: September 14, 2009

Sub: Release of DPM System Version 10.0 All Participants are hereby informed that DPM System Version 10.0 is scheduled for release in the month of October 2009. DPM System Version 10.0 will feature the functionality of converting balances under the Delivery-Out account of the Clearing Members Pool Account pursuant to Automatic Corporate Actions. The changes in the back-office module for Version 10.0 and the file formats in respect of the back-office batch interface with the DPM System are enclosed. Participants are advised to make necessary changes to their back office as highlighted in the enclosed file format by September 25, 2009.

[ 470 ]

Circular No. NSDL/POLICY/ 2009/0081 Date: September 5, 2009

Sub: Release of DPM System Version 9.7 All Participants are hereby informed that DPM System Version 9.7 is scheduled for release on Saturday, September 12, 2009. Salient features of DPM System Version 9.7 are provided in Annexure A. Compact Discs (CD) containing DPM System Version 9.7 and instructions regarding upgradation will be sent to Participants by courier separately. Participants will receive the CDs tentatively by September 10, 2009. CD containing DPM System Version 9.7 should be installed in the DPM server only on September 12, 2009. For any information/clarifications, Participants are requested to contact NSDL Help Desk at(022) 2499 4601 to 4610 or email at helpdesk@nsdl.co.in Annexure A 1) Upload facility for Corporate name change : Facility to carry out change of name in the corporate account on a batch mode basis (i.e, back office interface with the DPM System) is being provided. File formats and features of the facility in this respect were provided in NSDL Circular No. NSDL/POLICY/2009/0048 dated June 17, 2009. 2) Statement of Holding (SOH) Export from archival database : SOH export can be extracted from the archival database by specifying the Client ID range and date. Only Full Export of the SOH can be extracted from the archival database. 3) PAN structure validation for HUF accounts : Facility to validate PAN structure of the HUF is being provided. Following validations will be carried out at the time of opening HUF accounts or modifying the demographic details in the HUF accounts: a) Length of PAN should be of 10 characters. First five and the tenth character of PAN should be capital letter (between A to Z). Fourth character should be a capital letter H. Sixth to ninth characters should be numeric (between 0 and 9). Operating DPM System through front end application : i) While opening an HUF account through the Client Maintenance Module, a warning message will be displayed if captured PAN of HUF is having invalid PAN structure. Similar warning message will also be displayed while modifying PAN in an existing HUF account or modifying demographic details / any other details in an HUF account such as bank account name, number etc., and such an account has an invalid PAN structure. Warning messages will be displayed at both stages i.e., Capture as well as Verify & Release in the Client Creation and Client Modification Screen if the account has an invalid PAN structure. PAN structure validation will be implemented for HUF accounts also in following Back Office interfaces: a) b) c) (ii) Client Master Creation Import Client Modification Import PAN and PAN Flag modification Import

ii)

b)

Back office Interface with the DPM System (i)

In case of invalid PAN structure, a warning message will be generated in the error file (i.e. PRN file) for every invalid

[ 471 ]

PAN structure in Client account. However, no record will be rejected for this reason. (iii) Participant may update the invalid PAN or cancel these records through front end application of the DPM System before releasing the instructions in the DPM System. Warning will also be displayed while verifying and releasing instructions from front end application of DPM System. There will be no such warning for bulk verify & release of client creation / modification or PAN modification requests.

4)

Facilty to search ISIN based on security type : Facility is being provided to make search ISIN(s) on the following security types in the DPM System modules viz., Demat, Remat, Settlement and Pledge: a) b) c) d) Equity (will be default option) Commodity Others - Commercial Paper, Certificate of Deposit, Debentures etc. (other than equity and commodity ISINs) All (will display all type of ISINs)

5)

Report on Past dated Statement of Holding (SOH) A facility to generate past dated SOH report is being provided in the DPM system for a specified past date. It will be mandatory to enter the date for which SOH report is required to be generated. It is recommended that Client ID(s) may also be entered alongwith the date for generating the SOH report.

6)

Enhancement with respect to No Nomination Opted flag a) At the time of opening Client account with certain Type and subtype (list given below), it will be mandatory to capture the nominee details (if Client has opted for the nomination facility) or enable No Nomination Opted flag (if Client has not opted for the nomination facility). If either of the above options are not enabled by the Participant, then an error message will be displayed as Either provide Nominee / Guardian details or select the No Nomination Opted Flag on the front end application of the DPM System (upon capturing and verify & releasing the record) or in the PRN file in case of batch upload. List of client Type and sub-type where it is mandatory to capture nominee details: Type Resident Sub-type Ordinary Margin Account Promoter NRI NRI - Repatriable NRI NonRepatriable DR NRI-Repatriable-Promoter NRI NonRepatriable -Promoter Foreign National DR FN FN-Promoter

[ 472 ]

b)

At the time of carrying out Client modifications, if nomination details are removed, it will be mandatory for Participants to select No Nomination Opted flag (after obtaining proper request from Clients) or vice versa Otherwise, the aforesaid message [mentioned in point no. 6 (a) above] will be displayed on the front end application of the DPM System or in the PRN file in case of batch upload. Client modification File Formats were issued vide Circular No. NSDL/POLICY/2009/0042 dated June 1, 2009.

Circular No. NSDL/POLICY/ 2009/0048 Date: June 17, 2009

Sub: Release of DPM System Version release 9.7 As all Participants are aware, a facility to carry out change of name for corporate accounts through front end application of the DPM System was provided in Version Release 9.0 (refer Circular No. NSDL/POLICY/2008/0085 dated December 16, 2008). Further to the above, DPM System Version 9.7 will be released in July 2009 incorporating an upload facility for corporate name change. File format (with record type 03) with respect to Client Modification Import for carrying out change of name is enclosed at Annexure A. It is recommended that the new file format with record type 03 may be used only if Participants wish to carry out change of name in the corporate account through upload of data from the back office system. Modification to other Client details may be carried out using the existing file format with record type 02. Interested Participants are requested to be ready with the new back office file formats by June 30, 2009. No change is involved for Participants who wish to use the front end application of the DPM System for carrying out change of name in corporate accounts. For any information/clarifications, Participants are requested to contact NSDL Help Desk at (022) 2499 4601 to 4610 or email at helpdesk@nsdl.co.in

Circular No. NSDL/POLICY/ 2009/0042 Date: June 1, 2009

Sub: Release of DPM System Version 9.5 All Participants are hereby informed that DPM System Version 9.5 is scheduled for release in the second week of June 2009. Features of the DPM System Version 9.5 are given below: (i) Signing and encryption of DPM instruction import file generated from the back office application of the Participant for onward upload into the DPM System (explained at Annexure I). PAN related message in Transaction Statement (generated from the DPM System) only for suspended accounts (explained at Annexure II). Incorporation of 'No Nomination Opted' flag in the DPM system to identify Client accounts who have not opted for nomination facility (explained at Annexure III).

(ii) (iii)

For any information/clarifications, Participants are requested to contact NSDL Help Desk at (022) 2499 4601 to 4610 or email at helpdesk@nsdl.co.in Circular No. NSDL/POLICY/ 2009/0015 Date: February 27, 2009 Sub: Release of DPM System Version 9.3 and its features All Participants are hereby informed that Compact Discs (CDs) containing DPM System Version 9.3 and instructions regarding upgradation are being sent to Participants by courier. Salient features of DPM System Version 9.3 are as follows: 1) Overdue Account Transfer Report: 'Overdue Account Transfer Report' provided under module 'Reports' 'Settlement' will facilitate Participants to enter the Client ID range, CC ID, market type and settlement number to ascertain the requested quantity and the available quantity in the Client account in respect of

[ 473 ]

an account transfer instruction. This report will reflect only those Client to CM Pool account transfer instructions that are in overdue status. Report for a settlement number and market type will be available till the status of the instructions is 'Overdue at DM'. Impact on back-office file formats: No. 2) Disabling of second / third holder fields for Minor accounts: As accounts opened in the name of the minor cannot have joint holdings, a validation check disabling the second / third holder fields in case of minor accounts where "Guardian" field is selected is provided in this version release. As Participants are aware, an utility was provided to extract an output of probable data entry errors made during specified time period to identify minor accounts with joint holdings (Ref. : Point no. 8 of Circular No. NSDL/POLICY/2006/0057 dated November 24, 2006). Since the above facility is now released, there will be no need to run the utility in respect of minor accounts with joint holdings. However, Participants may use this utility one-time to find out all such accounts opened till the version release. Impact on back-office file formats: No. 3) Alert in respect of Companies whose Registrar and Transfer Agents (R & T Agents) have stopped providing services: At the time of capturing and verify/releasing dematerialisation requests manually and through back office upload, an alert message on the screen and error file (".prn") will be displayed with respect to those companies whose R & T Agents have informed that they have stopped providing services to these companies. A list of such companies with their ISINs in an excel format will be made available on the SQLASSIST Intranet site (https:\\sqlassist) within three days of every fortnight i.e. for the fortnight 1st to 15th day of the month, the file will be made available by 18th day of the month and for the fortnight from 16th to the end of the month, the file will be available by 3rd of the subsequent month. Further, the file name on the excel sheet will carry the date on which the file was made available on the SQLASSIST site for easy identification of the latest file. Process to be followed by Participants in this regard is as follows: a) Participants will have to download the excel file containing the list of companies from the SQLASSIST site and copy the same into the DPM Server. Utility named "ISINListImport.exe" will be available in the DPM server in the directory "C:\ISINLst\exe". Participants need to execute this utility by double clicking on it. On executing this utility, a message will appear that will prompt the User to select the Excel file (copied in the DPM server). Participants must take due care to select the file copied in the DPM server as per step 3 (b) above for the latest fortnight [and not to inadvertently select the earlier copied file(s)]. On selecting the file, the utility will load the list of companies provided in the file into the DPM database.

b)

c)

d)

Impact on back-office file formats: No. 4) Addition of new sub-type named Foreign Venture Capital: New sub-type named 'Foreign Venture Capital' has been added to the Client Type: 'Body Corporate' under the Client Maintenance Module.

[ 474 ]

Impact on back-office file formats: Yes, as given below: Field Name Beneficiary Type/Subtype 5) File to identify Client Accounts without Nomination: An utility will be provided to generate a file in text format containing Client accounts (Types: 'Resident', 'NRI' and 'Foreign National') without nomination (refer Circular Nos. NSDL/POLICY/2009/0002 & 0004 dated January 3 and 9, 2009 respectively regarding declaration of nomination details by Clients). The User manual for loading the utility will be sent alongwith the version release CD. Impact on back-office file formats: No. 6) Functionality of partial settlement of pay-in related instructions executed from Client to Clearing Member Pool Account: The feature of partial settlement of pay-in related instructions executed from Client to Clearing Member Pool Account is incorporated in this version and will be activated shortly. (refer NSDL Circular No. NSDL/POLICY/ 2009/0005 dated January 12, 2009 regarding release of DPM system Version 9.3). As this feature will be released shortly, Participants are requested to be ready with their back office changes compatible with the file formats enclosed in the aforesaid circular at the earliest. The functionality and the date of activation of this feature will be informed shortly. For further information / clarification, Participants are requested to contact Mr. Narayan Venkat Tel : Tel : (022) 2499 4479 (email : narayanv@nsdl.co.in) / Mr. Rakesh Mehta Tel : (022) 2499 4480 (email : rakeshm@nsdl.co.in). Circular No. NSDL/POLICY/ 2008/0085 Date: December 16, 2008 Sub: Release of Version 9.0 and its features All Participants are hereby informed that Version 9.0 of the DPM System is scheduled for release on December 20, 2008. Compact Discs (CDs) containing Version 9.0 of the DPM System and instructions regarding upgradation will be sent to Participants by courier separately. Salient features of the Version 9.0 of the DPM System are mentioned as follows: (I) Change of name in Corporate Accounts: a) DPM System will facilitate change of name in Corporate accounts for Client types viz., Body-Corporate, Bank, Financial Institution (FI), Foreign Institutional Investors (FII), Mutual Fund (MF), Trust and various sub-types as given in the enclosed Annexure I. Documents required to be collected by Participants at the time of change of name of Corporates are given in the enclosed Annexure II. The change of name for a Corporate account can be carried out in the DPM System through Client Modification Module - Primary and Address Details Modification. While carrying out the modifications, the name of any existing account holder of an account can neither be deleted nor any new name can be added. Participants can only make changes to the name(s) of existing account holder(s) of the account. Type Code Sub Type Code 5 27 Type Body Corporate Sub Type Foreign Venture Capital

b)

c)

d)

[ 475 ]

e)

When the instruction is captured and verify/released, the DPM System will flash : (i) an alert message on the screen as to whether the Participant wishes to make changes to the PAN, email ID, mobile number etc. of the account holder. Participants may ignore such message if there are no changes to be carried out with respect to the aforesaid details. (ii) a warning message on the screen to re-capture the signatures of the authorized signatories. Participants may ignore such message if Participants have already re-captured the signatures of the authorized signatories or there is no change to the authorized signatories.

f)

An option to generate Client Name Audit Report has been added to the existing Client Audit Report in the DPM System that will display the old as well as new name of the Corporate.

Note : 1. In case of amalgamation / scheme of arrangement, Participants are requested to close the existing account and open new account by the following the prevailing process, as at present. Name change to the Corporate account can be carried out only through the front end application of the DPM System. The pledge details in the DPM system of the Participant of the pledgee will reflect the old name of the Corporate, if the Corporate is the pledgor. Subsequent to name change, the Transaction Statement (SOT) report will reflect the new name of the Corporate for the SOT generated for the past dates as well. The Statement of Holding (SOH) report will also reflect the new name of the Corporate. Hence, it is for the Corporate to decide whether it wants to open a new account or continue with the existing account with the new name. Extraction of ISIN wise SOT from the archival database of the DPM System : A provision for giving ISIN as an input parameter for generating Transaction Statement (SOT) from the archival database of the DPM System has been added in addition to the existing input criteria. III) Additional input criteria for generating Client Audit Report: An additional field viz., date range has been incorporated in the Client Audit Report. This shall facilitate Participants to generate the report pertaining to the modifications carried out in a demat account for the specified date range. Annexure I Sr.No. 1 2 3 4 5 6 FI FI FI FI FI FI Type Sub-Type Govt. sponsored FI SFC Others Govt. sponsored FI - Promoter SFC-Promoter Others-Promoter

2. 3.

4.

II)

[ 476 ]

7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46

FII FII FII Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Body Corporate Mutual Fund Mutual Fund Bank Bank Bank Bank Bank Bank Bank Bank Trust

Mauritius Based Others DR Domestic OCB-Repatriable Govt.Companies Central Government State Government Co-operative Body NBFC Non-NBFC Broker Group Company Foreign Bodies Others OCB-NonRepatriable OCB-DR Foreign Bodies - DR Margin Account Domestic-Promoter Govt.Companies - Promoter Central Government - Promoter State Government - Promoter NBFC-Promoter Non-NBFC-Promoter Group Company - Promoter Foreign Body-Promoter Others-Promoter Co-operative Body - Promoter DR MF Foreign Bank Co-operative Bank Nationalised Bank Others Others-Promoter Nationalised Bank - Promoter Foreign Bank - Promoter Co-operative Bank - Promoter

Annexure II (i) In case the entity is registered under the Companies Act, 1956, the following documents should be obtained from the Client: Letter requesting for change of name signed by the authorized signatories. Certified true copy of fresh certificate of incorporation consequent upon change of name issued by the Registrar of Companies.

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 (ii)

Certified true copy of Board Resolution for change of name.

In case of other corporate entities, the following documents should be obtained from the Client: Letter requesting for change of name signed by the authorized signatories. Certified true copy of Board Resolution for change of name. Certificate of registration issued by SEBI / relevant Statutory Authorities, as applicable.

Further, in case of change in authorized signatories, obtain a fresh board resolution mentioning authorised signatories who shall operate the demat account alongwith the specimen signature & photograph and follow the procedure given in our circular no. NSDL/POLICY/2007/0077 dated December 19, 2007. Circular No. NSDL/POLICY/ 2008/0059 Date: September 1, 2008 Sub : Release of Version 8.7 and its features All Depository Participants (DPs) are hereby informed that Version 8.7 of the DPM System is scheduled for release on September 6, 2008. Compact Discs (CDs) containing Version 8.7 of the DPM System and instructions regarding upgradation will be sent to DPs by courier separately. The features of Version 8.7 are given below: 1) Standing Instruction (SI) Indicator in enabled status for Client Category - Individual, Type - Resident and Sub-Type - Ordinary : SI indicator in the DPM system would be in an enabled status with respect to Client Category : Individual, Type : Resident and Sub-type : Ordinary at the time of opening demat accounts. For those Clients who have not opted for SIs, the DP should disable the SI indicator in the DPM System. Impact on back office file formats: With respect to back office file formats, the input file structure will remain the same and DPs will continue to assign the value for SI indicator as 'Y' or 'N' 2) SMS flag indicator to be automatically enabled after the mobile numbers of the account holders are captured / modified in the DPM System : The SMS flag of the account holder will automatically get enabled in the DPM system after the DP captures the mobile number (DPs are advised to strictly capture the ten digit mobile number with the first digit as "9") of the respective account holders at the time of opening of demat accounts or modifying mobile numbers of the existing account holders. If the Client submits the mobile number but does not wish to opt for the SMS Alert facility, the DP should capture the mobile number in the DPM system and disable the SMS flag from the front end of the DPM System or through back office file import. The SMS flag of the respective account holder(s) will automatically get enabled upon modifying the mobile numbers in the DPM System. Hence, DPs are requested to take

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due care at the time of modifying the mobile numbers in the DPM system, particularly for Clients who have not opted for the SMS Alert facility. Impact on Back Office : With respect to back office file formats, the input file structure will remain the same and DPs will continue assigning the value for SMS indicator as 'Y' or 'N'. (3) Exception Reports : There are text reports being provided in Version 8.7, which will generate the following information. (i) Details of Clients whose SI indicators are not enabled in the DPM System for Client Category : Individual, Type : Resident and Subtype : Ordinary. Details of Clients whose mobile numbers have been captured in the DPM System but SMS flag is not enabled. The above exceptional reports are generated for Client accounts which are in statii "Active" / "Suspended for Debit and Credit" / "Suspended for Debit" / "Registered" / "On hold by NSDL". (4) Minor Nominee attaining Majority Report : A new report will be provided in the DPM system, which will facilitate DPs to view the report of all minor nominees who have become major (18 years). The report can be extracted from the DPM System by providing the date and Client ID range. This report will provide for the details of the Client, Client's nominee and the Guardian of the nominee, if applicable. (5) Execution of multiple account level freeze requests in the DPM System : DPM System would facilitate to process multiple account level freeze requests viz., "Suspended for Debit and Credit" and "Suspended for Debit". The request can be initiated by the below three sources: (a) (b) (c) Requests initiated by the DP through DPM system. Request initiated by the Client on SPEED-e (However, Clients cannot initiate multiple account level freeze on SPEED-e). Request initiated by NSDL from the DM system. Salient features of multiple account level freezes are as follows: (i) The highest level of freeze will be effective at a given point of time. Example; if two freeze requests viz. "Suspended for Debit and Credit" and "Suspended for Debit" are initiated by any of the above sources, then in such cases, "Suspended for Debit and Credit" would be in effect first and the subsequent freeze ("Suspended for Debit") which is pending for execution would be effective after the former freeze ("Suspended for Debit and Credit") is unfrozen. In case of freeze requests of same level, the freeze requests that is received first at DM System (NSDL) would be processed

(ii)

(ii)

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irrespective of the source and another freeze of same level received subsequently at DM System will remain pending for execution. There will be no priority set if the freeze requests are of same level i.e. "Suspended for Debit" or "Suspended for Debit and Credit" received from the three above sources. (iii) Upon executing an unfreeze request with respect to active freeze instruction, which is in effect (the unfreeze instruction will be closed/settled on the execution date), the subsequent freeze request of same level, irrespective of the source, will become effective. DPs will be able to view all the freezes executed (including pending for execution) in the DPM system. The status in the DPM System for effective freeze instruction including pending for execution would be displayed as 'Frozen'. Further, the Client Master Report would display the various multiple account level freezes executed in the Client account viz., freeze order number, freeze level and freeze description. DPs are requested to note that Clients cannot initiate multiple account level freezes of same level from SPEED-e. However, if the Client account is already frozen in the DPM system, then Client can initiate freeze instruction through SPEED-e of same level or vice versa and subsequent freeze instruction will be remain pending for execution.

(iv)

(v)

Impact on Back office The status of all the freeze requests would be reflected as "Frozen" in "Changed Orders for the Day" export. DPs are advised to update their back office programs to accept multiple account level requests. In case of multiple freeze requests, subsequent freeze needs to be applied to the account in the back office, in case the first freeze request is removed. Back office software needs to be enhanced to handle such cases. (6) Removal of Maturity Check for Commodity ISIN : DPs are requested to note that maturity check on ICIN (Commodity Identifier) will be removed. DPM System will allow the following transactions for ICINs where maturity date has expired: (i) (ii) (7) Capture and verify/release Remat instruction. Capture and verify/release Account Transfer Instruction (DFP and RFP) between a CM (Source) and a Client (Target).

Inclusion of Dormant Account Audit in Client Audit report As all DPs are aware any Client account having no 'Debit' transaction in the last six months are considered as 'Dormant' account (Refer Circular No. NSDL/POLICY/2008/0021 dated April 4, 2008). In case the Client account becomes a dormant account or non-dormant, the same will be reflected in the Client Audit Report. Upon the Client account becoming

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'Dormant' to 'Non-Dormant' or 'Non-Dormant' to 'Dormant', the Client Audit Report will reflect the status as "Dormant Flag". Circular No. NSDL/POLICY/ 2008/0007 Date: February 5, 2008 Sub: Release of DPM System Version 8.0 and its features All Depository Participants (DPs) are hereby informed that Version 8.0 of the DPM System is scheduled for release in the second week of February 2008. The changes in the back-office module for Version 8.0 and the File Formats in respect of the back-office batch interface with the DPM System are enclosed. In this regard, DPs are advised to incorporate the changes in their back-office for compatibility with Version 8.0. Compact Discs (CDs) containing Version 8.0 of the DPM System and instructions regarding upgradation will be sent to DPs by courier separately. Features of Version 8.0 The features of this version release are as follows: I. II. III. IV. PAN structure validation in the Client Maintenance Module. PAN Verification Utility. Enhancement in Maker and Checker facility in DPM modules. Power of Attorney (POA) Module related developments. a. b. c. d. Audit report for Individual POA Holder, Authorised Signatory and Corporate POA. Export of mapping of client account to POA. View Signature screen to include "Minimum no. of Authorised Signatories required for signing". View Account holderwise POA mapping details in POA Signature Details screen.

Detailed Description of Features: I. PAN structure validation in the Client Maintenance Module Introduction: As DPs are aware, PAN is mandatory in Client Maintenance Module in the DPM system at the time of Client creation and Client details modification. PAN is validated for alpha numeric composition and length (exact 10 characters) of PAN. After the version release 8.0, PAN of account holders would also be subjected to structure validation. In case structure validation fails, a warning message would be displayed to the DP user enabling the user to initiate corrective action. However, DP can override the warning and continue its operation. The warning would not restrict DP from capturing the PAN which fails structural validation. DPs may note that this feature is designed only to enable DPs to identify errors while capturing PAN. DPs will need to devise appropriate procedures around this feature to confirm with requirement of PAN compliance. In the Version 8.0, a utility will also be provided to extract report containing list of all existing PANs, which fail structural validation test, for active and frozen Client accounts in DPM system.

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Detailed Description: General 1. The structure of PAN would be validated as follows: o o o 2. 1-5 characters should be Capital letters 6-9 characters should be Numbers 10th character should be a Capital letter

This validation would be implemented in online Client creation and Client details modification screens of DPM System. In the DPM Back Office interfaces, this validation would be implemented in Client Master Creation, Client details modification import and PAN /PAN flag modification import utility (i.e. PAN import Utility). This validation would be applicable to all Client types except intermediary.

3.

Guidelines: Front End Screens of DPM System 1. While creating a new Client account in Client maintenance, a warning message would be displayed if PAN captured for any account holder is having invalid PAN structure. Further, while modifying PAN in the existing Client account or modifying any other details in the existing Client account which is having invalid PAN structure, a warning message would be displayed. 2. These warning messages would be displayed at both stages i.e., capture as well as Verify & Release in Client creation and Client modification process. This warning message would only indicate the account holder(s) for which PAN structure is invalid. (e.g. PAN Structure of First Holder is invalid). DP may either modify PAN or override the warning and continue capturing / modifying the Client details.

3.

4.

Back office Interfaces 1. PAN structure validation would be implemented in following Back Office interfaces a. b. c. 2. Client Master Creation import Client details modification import PAN and PAN Flag modification import utility

The aforesaid import utilities are provided for bulk capturing of Client accounts, modifying the Client details and updating PAN and PAN flag in existing Client accounts respectively. DP can then release these newly created Client accounts and PAN modification requests either through front end application or using respective bulk Verify & Release utilities provided in DPM System. If input file of aforesaid utilities contains Client account holders with invalid PAN structure, a warning message would be generated in error

3.

[ 482 ]

file (i.e. PRN file) for every invalid PAN structure in Client account. However, no record would be rejected for this reason. 4. DP would be required to update the invalid PANs or cancel these records through front end application of DPM system before releasing the respective information to NSDL. It may be noted that warning would be displayed while verifying and releasing instructions from front end only. There would be no such warnings for bulk Verify & Release of Client creation/modification or PAN modification requests. There is no change in file formats of all the aforesaid utilities viz. Client creation/modification or PAN modification. The new warning code added is given in Annexure I. Though PAN structure validations are incorporated in DPM back office interface also, DPs are advised to create similar PAN structure validation in their back office so as to eliminate the errors, if any, in its own back office system. Report Generation Utility The report generation utility would provide the list of all account holders in the Client account having invalid PAN structure as of date and time of execution. 1. The utility would extract the details in TEXT format with fields separated using <TAB> character. The file format of this report is given in Annexure I. It may be noted that only PANs with invalid structures would be reflected in this report i.e. if there is a Client account with joint holders where PAN of first holder has valid structure but PAN of second holder has invalid structure, then this report would list only second holder PAN in Client account. PAN Verification Utility Feature Description: NSDL, vide its circular no. NSDL/POLICY/2006/0007 dated March 3, 2006 advised DPs to obtain PAN card of the demat account holder(s) and compare the name appearing in the Client account with the name appearing on the website of the Income Tax Department (ITD) i.e. http:/ /incometaxindiaefiling.gov.in/challan/enterpanforchallan.jsp before activating the Client account or modifying PAN of existing account holders. Further, NSDL vide its circular NSDL/POLICY/2007/0048 dated August 14, 2007 had informed DPs that ITD has authorized NSDL to provide an internet based service to eligible entities for verification of PAN details. The PAN details made available through this facility are as per the ITD database. Further, the internet based service of NSDL for verifying PAN details is explained in aforesaid circular dated August 14, 2007. This facility provides for a batch file upload in a prescribed format for bulk validation of PAN and provides a response file for the same indicating if the PAN is valid or not.

5.

6.

2.

II.

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In the Version 8.0, a utility will be provided for PAN verification which DPs can use to generate file containing PAN details in the format that is compliant to aforesaid batch file upload facility. This utility can be used for the newly captured Client accounts as well as for Client accounts in which PAN modification requests are captured in DPM System. DP may release the newly created Client accounts or PAN modification requests to NSDL, based on the PAN flag value in response file, Further, it may be mentioned that, PAN details will be extracted only when the PAN is modified in the DPM System. Detailed Description: 1. This utility would generate four different files as follows: File Name PANR[n].txt (for information on 'n' please refer point 6 in notes below) File Contents This file would contain PAN details in the format compliant to aforesaid facility. It would contain PAN of a. Account holders in Client accounts which are in "Registered" status. b. Account holder for which PAN modification request is in "Captured" status. 2. PANDTLR [n].txt (for information on 'n' please refer point 6 in notes below) This file would contain other details of Client for which PAN is extracted in PANR[n].txt file, such as Client ID, holder indicator, holder name PAN, creation/ modification flag and current status of Client account. This file should be used to map the response received from aforesaid verification facility as per circular NSDL/POLICY/2007/0048 dated August 14, 2007 with account details in the file, in order to identify the Client account and its holders for which PAN is invalid. 3. PANM[n].txt (for information on 'n' please refer point 6 in notes below) This file would contain PAN details in the format compliant to aforesaid facility. It would contain PAN of a. Client Accounts in "Active / Suspended for Debit / Suspended for Debit & Credit / On hold By NSDL" status. b. Account holder for which PAN modification request is in "Closed/Settled" status. This file would contain other details of Client for which PAN is extracted in PANM[n].txt file, such as Client ID, holder indicator, holder name PAN, creation/ modification flag and current status of Client account. This file should be used to map the response received from aforesaid verification facility as per circular NSDL/POLICY/2007/0048 dated August 14, 2007 with account details in the file, in order to identify the Client account and its holders for which PAN is invalid.

Sr. No 1.

4.

PANDTLM [n].txt (for information on 'n' please refer point 6 in notes below)

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2.

PAN verification utility would extract details of only those account holders which were registered or modified after last export date and time. i.e. a. PANR[n].txt and PANDTLR[n].txt files would show PAN details of only those Client accounts that are registered or for which PAN modification request is captured in DPM System after last export date and time. PANM[n].txt and PANDTLM[n].txt files would show PAN details of only those Client accounts that are activated or frozen or for which PAN modification request is successfully processed in DPM System (i.e. closed/settled) after last export date and time. These aforesaid two files would show the PAN only if PAN is modified.

b.

c. 3.

DP can upload PANR[n].txt and PANM[n].txt files individually to NSDL's Tax Information Network (TIN) site for bulk verification of PAN as per the procedure mentioned in the circular NSDL/POLICY/2007/0048 dated August 14, 2007 provided the DPs have subscribed for this facility as per the aforesaid circular. DP would be provided a response file from NSDL TIN site for each uploaded file. DP can then merge the response files of PANR[n].txt and PANM[n].txt files received from NSDL TIN site and the respective Client detail files (i.e. PANDTLR[n].txt and PANDTLM[n].txt) and compare them to identify Clients accounts with valid and invalid PAN. If PAN is available in ITD database, DP can activate the Client account or release the PAN modification request to NSDL provided the name appearing in the Client account matches with the name appearing on the ITD website The aforesaid batch file upload on ITD website for PAN verification facility accepts maximum 200 PAN detail records in single batch file. Thus, if the number of PAN records to be extracted post last export date and time are more than 200 then the multiple files would be generated containing 200 records in each file. A running sequence number would be given starting from "1" for every batch file generated by this utility at that point in time. If there are no PAN details captured or modified after last export date and time, then the files to be uploaded on NSDL site i.e. PANR[n].txt and PANM[n].txt would be generated containing only trailer record with "Number of Detail Records" as "0"and the other Client detail files i.e. PANDTLR[nn].txt and PANDTLM[nn].txt would be generated containing only header information. It may be noted that at first execution of this utility, the PAN details would be extracted from the date and time at which this utility was installed on DPM server. The file format of these files is given in Annexure II. Enhancement in Maker Checker Facility in various DPM modules Introduction: NSDL has issued guidelines to DPs for segregation of duty viz. MakerChecker while executing instructions i.e. the person who captures the

4.

5.

6.

7.

8.

9. III.

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instruction (Maker) and the one who releases instruction to NSDL (Checker) should be two different persons. This is required with the intention that person releasing the instruction to NSDL can re-verify the data entered by Maker against the instruction slip and rectifies the mistakes, if any. In case of mismatch, Checker can correct the details, save the instruction and then release to NSDL. Maker Checker concept is applicable for Client Maintenance Module also. In the current DPM system, DP is required to implement the controls of Maker and Checker administratively by ensuring both rights are not allocated to the same user. In the Version 8.0, Maker Checker policy would be enforced in DPM System by the system itself. After Version 8.0, the application would restrict the administrator to allocate both Maker and Checker rights to the same function in same group i.e. a group cannot be created having both "Capture and Save" and "Verify & Release" rights allocated to same function in same group. A report generation utility will also be provided to extract list of all User IDs having both Maker and Checker rights. Salient Features of Maker-Checker: 1. The restriction of allocating Maker and Checker rights to same user would be built at group level i.e. a group can be defined to have a Maker rights for one-function and Checker rights for another. However, both Maker and Checker right for same function would not be allowed in same group. The same has been illustrated by an example. e.g. Group "A" can be created with "Capture and Save" rights for "Account Transfer" instruction and "Verify & Release" rights for "Inter Depository Transfer" instruction. But, a group can not be created having both the rights (i.e. "Capture and Save" and "Verify & Release") allocated to "Account Transfer" or "Inter Depository Transfer" instruction in same group. 2. Checker user would be given both modify as well as Verify & Release rights i.e. user would be allowed to Verify & Release and modify the instruction details though Checker user is not allowed to create new instruction. However, Back Office interface will continue to function as in the existing system. While creating new User ID, the main group ID and the alternate group ID should be selected such that Maker Checker policy is not violated. If it is done, then an error message would be given. Application would not allow creating such User IDs. The same has been illustrated by example. e.g. Group "A" is created with "Capture and Save" right for "Account Transfer instruction" and Group "B" is created with "Verify & Release" rights for same instruction. If DP allocates these groups as main and alternate groups while creating new User ID or modifying group details of existing User ID, then the application would reject the request giving an error message. 5. Similarly, if both main and alternate groups are allocated to the User ID and subsequently administrator allocates rights in any of this groups such that it violates the Maker-Checker policy, then the functional rights

3. 4.

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given in alternate group would be overridden by the rights given in main group. Same is illustrated by example below. Case 1: If User ID "Test1" is created with main group id as "Group A" and alternate group id as "Group B" such that both groups are created for Maker activity and subsequently if administrator changes the functional rights of Group B to checker activities, then User ID "Test1" would to allowed to carry out only Maker activities. Case 2: If User ID "Test2" is created with main group id as "Group A" and alternate group id as "Group B" such that both groups created for Checker activity and subsequently if administrator changes the functional rights of Group A to Maker activities, then User ID "Test2" would be allowed to carry out only Maker activities after the allocation of these new functional rights. Feature Description: Detailed Description: Functional rights defined in DPM System for each function are as follows: Query Capture and Save Status Change Verify & Release Cancellation Execute : DPM user can query on the specified function : DPM user can capture and save details of specified function : DPM user can change status of the specified function : DPM user can Verify & Release the specified function : DPM user can cancel the specified function : DPM user can execute the specified function

In the new system, the above rights would be segregated as follows: Sr. No 1 2 3 4 5 6 Function Right Query Capture and Save Status Change Verify & Release Cancellation Execute Maker Checker

Following restrictions would be applicable while creating new user group: 1. 2. Query rights will be available to both Maker and Checker users. "Capture and Save" Rights (Creation Rights) would be available only to Maker user i.e. if DP chooses "Capture and Save" rights for any of the function, "Verify & Release" right for same function will not be allowed. "Status Change" rights would be given only to maker user and "Verify & Release" of this function would be given to Checker user i.e. if DP chooses "Status Change" rights for any of the function, "Verify & Release" right for the same function would not be allowed. "Verify & Release" rights would be given only to Checker user i.e. if DP chooses this right for any of the function, "Capture and Save" and "Status Change" rights for same function would not be allowed. "Update" rights would be included in this right by default.

3.

4.

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5.

"Cancellation" rights would be available to both Maker and Checker users i.e. DP would be allowed to allocate this right along with both "Capture and Save"/ "Status Change" and "Verify & Release" rights. Similarly, "Execute" rights would be available to both Maker and Checker users i.e. DP would be allowed to allocate this right along with both "Capture and Save"/ "Status Change" and "Verify & Release" rights.

6.

Report Generation Utility The Report Generation Utility would provide the list of all User IDs having both Maker and Checker rights. The utility would extract the details in TEXT format with fields separated using <TAB> character. The file format of this report is given in Annexure III. Impact on Existing Groups and Users: 1. The function rights of existing groups would remain unchanged. However, where both Maker-Checker rights have been given, on removing any one right from a function, Administrator would not be allowed to give the removed rights again. An alert message would be displayed to the Administrator while removing such functional right. For existing user where both Maker as well as Checker rights have been allocated, a warning message would be given for every login to DPM System. Administrator would be required to re-allocate proper groups to this User ID. Report containing the list of such User IDs would be provided to the administrator It may be noted that from May 01, 2008 onwards, all the User IDs which are not compliant to User ID policy & having both Maker & Checker rights would be revoked and disallowed to login to DPMAS & GISMO application. IV. Power of Attorney module related developments a. Audit report for Individual POA Holder, Authorised Signatory and Corporate POA These reports would provide the audit trail of all the modifications done for Individual POA Holder, Authorised Signatory and Corporate POA. This report would provide the name of field which is modified, its old and newly modified value, User ID that has carried out the changes and date and time at which the modification was carried out. Both reports can be generated based on POA ID range such that all the modifications done till date for the specified POA IDs would be reflected in the report. 1. The audit report of Individual POA Holder and Authorised Signatory would provide the details of modification done in short name, signature type, certificate details and status. The audit report of Corporate POA would provide the details of modification done in short name, no of Authorised Signatories required for signing and addition deletion of Authorised Signatories. It may be noted that both of these reports would be accessible to existing as well as new users by default.

2.

2.

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b.

Export of mapping of client account to POA Detailed Description: Participants were informed vide Circular No. NSDL/POLICY/2007/ 0054 dated September 22, 2007 about export utility for mapping information of account holder to Individual POA Holder / Corporate POA / POA group. This export utility is provided in this version release.

c.

View Signature screen to include "Minimum no. of Authorised Signatories required for signing" In Version no 7.0, a new screen was added for viewing the signature details of Client and POA associated to each account holder. This screen has been enhanced in Version 8.0 to show the "Minimum no of Authorised Signatories required for Signing" in case of Corporate POA attached to the account holder.

d.

View holderwise POA mapping details in POA Signature Details screen The current signature screen shows the POA details for single holder at a time. However, in case search is made for a Client ID having POA attached to account holders other than first holder, the screen shows pop up message as "Mapping does not exists" as the first holder is selected by default in this screen. Since this message can mislead the user, this screen has been modified to show POA mapping flags in separate table so that DP can check POA details of other holders in case such pop-up is received. In case of any clarifications, DPs may Contact Mr. Yogesh Parve / Mr. Harsh Kotak, Tel: 022-24994490/4487, Email: yogeshp@nsdl.co.in / harshk@nsdl.co.in for operational issues and Helpdesk for back office file formats or systems related issues. Annexure I

1.

Warning code added in Client Master Creation and PAN import utilities Error Code WAR00001 Description PAN Structure is Invalid

Sr. No 1 2.

File Format of Report Generation Utility a. File Name: The nomenclature of file generated by this utility is as follows: InvalidPAN_MonDDYYYYHH.MM[AM/PM].txt Where MonDDYYYYHH.MMAM is date and time at which this report was generated. This file would be generated in the same directory from where the report generation utility is executed. b. Report File Format: Report file would be generated in TEXT format containing header information and the detail records. File header would give total no of records extracted in the report file and the file generated date and time. Sample Record:

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File Generation Date and Time : File generation date and time [dd/Mon/ YYYY hh:mm:ss] Total no of records : [total no of detail records extracted in file]

Detail records would include following fields separated using <TAB> character. Sr. No 1. 2. 3. 4. 5. 6. Field Name DP_ID ClientId 1st_Hldr_PAN Data Type Character Integer Character Max Size 8 8 30 30 30 30 Description DP Id of DP executing the utility Client id having invalid PAN First Holder's PAN Second Holder's PAN Third Holder's PAN Current status of client account

2nd_Hldr_PAN Character 3rd_Hldr_PAN Status Character Character

Sample Record: DP_ID ClientId 1st_Hldr_PAN 2nd_Hldr_PAN 3rd_Hldr_PAN Status ----------------- ----------------- -------12CDEFGHIJ ABCDEFGHIJ Active

----------- ---------- --------------IN399992 10000004

Annexure II File Format of PAN Verification Utility: 1. File Name: The nomenclature of file generated by this utility is as follows: PAN[flag1][flag2][n].txt Where flag1 is "DTL" in case of file generated for giving client details and blank if file is generated for NSDL site. flag2 is "R" in case of file generated for "Registered" client accounts and "M" in case of file generated for client accounts in other statii. n : running serial no in case multiple files are generated Following folders would be created in the same directory from where the PAN verification utility is executed. a. "Results_Register_YYYYDDMMHHMMSS": This folder would contain the files generated for "Registered" client accounts and client modification requests Captured in DPMAS i.e. File names given in point no 1 and 2 in table 1.0. "Results_YYYYDDMMHHMMSS": This folder would contain the files generated for client accounts in other statii i.e. File names given in point no 3 and 4 in table 1.0.

b.

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2.

File Format of Enquiry file at NSDL Website (i.e. PANR1.txt / PANM1.txt): a. Input File Format for Data Type Size Mandatory (M/O) M M M Mandatory (M/O) M M M M Remark Running serial number for each line in the file "FT" by default "EXTIN" by default Remark Running serial number for each line in the file "FD" by default

FILE DETAILS Sr. Fields no. 1 2 3 Line Sequence Number PAN

Number 6 2 10 Size

File Section Type Char Char Data Type

FILE TRAILER Sr. Fields no. 1 2 3 4 Line Sequence Number File Type

Number 6 2 5

File Section Type Char Char

Number of Detail Number 6 Records b.

Response File Format of Enquiry file at NSDL Website Participants are requested to refer Circular No. NSDL/POLICY/ 2007/0048 dated August 14, 2007.

3.

File Format of Client Details file (i.e. PANDTLR1.txt / PANDTLM1.txt): Report file would be generated in TEXT format containing header information and the detail records. File header would give total no of records extracted in the report file, last export date & time and file generated date & time. Sample Record: File Generation Date and Time : File generation date and time [dd/Mon/YYYY hh:mm:ss]

Total no of Records PAN Details extracted from

: [total no of detail records extracted in file] : Last Export Date and Time [dd/Mon/YYYY hh:mm:ss]

Detail records would include following fields separated using <TAB> character. Sr. Field Name No 1. 2. ClientId Holder_Type Data Type Integer Character Max Size 8 15 Description Client id Holder Indicator for which PAN is extracted. Valid Values are "First Holder", "Second Holder", "Third Holder" Name of corresponding holder PAN of corresponding holder

3. 4.

Holder Name PAN

Character Character

135 30

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5.

Creation(N)/ Character Modification(M) flag

30

"N" : If PAN is registered for first time "M" : If PAN is modified (It may be noted that this flag can be reflected as "M" even in file of "Registered" client accounts if it is modified in Registered client status.) Current status of client account

6.

Status

Character

30

Sample Record: ClientId Holder_Type Holder_Name IT_PAN Creation(N)/ Status Modification(M) ---------- -------------- ----------------- ------------ ------------------ -------10000004 First Holder Harshada ABCDE1219J N Active Chavan Annexure III File Format of Report File generated for User ids violating Maker-Checker Policy. Report file would be generated in TEXT format containing the detail records. Detail records would include following fields separated using <TAB> character. Sr. No 1. 2. 3. 4. 5. 6. 7. 8. Field Name User id User Name User Designation User Department Access Rights Group Name Alternate Group Name Alternate Group Effective From Date Alternate Group Effective To Date Data Type Character Character Character Character Character Character Character Date and time Date and time Integer Character Datetime Max Size 8 50 15 10 1 50 50 23 Format YYYY-MM-DD hh:mm:ss.000 Format YYYY-MM-DD hh:mm:ss.000 Default Values L- Local & G- Global Name of User Description

9.

23

10. Authorization level 11. User Status 12. Last Login Date and Time 13. User Creation Date and Time

2 12 23 Format YYYY-MM-DD hh:mm:ss.000 Format YYYY-MM-DD hh:mm:ss.000

Datetime

23

[ 492 ]

Circular No. NSDL/POLICY/ 2007/0061 Date: October 5, 2007

Sub: Release of Version 7.0 and its features All Depository Participants (DPs) are hereby informed that Version 7.0 of the DPM Application Software (DPMAS) will be released on October 5, 2007. The Power of Attorney (POA) module informed to DPs vide Circular No. NSDL/ POLICY/2007/0054 dated September 22, 2007 will be released in version 7.0 of DPMAS. The software would be released in phases to all DPs. Software release schedule would be communicated to the DPs by PMC. Additional features of Version 7.0 The features of this version release are as follows: A. B. C. POA Registration System Security Enhancements Transaction Statement (SOT) for closed accounts

The details about these versions are given below: A. POA Registration: POA features, informed to the DPs vide our aforesaid circular, would also include the following 1. POA Holder(s)/Authorized Signatory (ies) Master list report and Corporate POA reports are provided under Master List reports. These reports provide the list of POA holder/authorized signatory as well as the list of corporate POAs registered in the system. Additions / Modification through Interactive screens on DPMAS a. Interactive Screens have been provided in Client Maintenance Module to capture and modify; i. ii. iii. b. POA Holder / Authorized Signatory Corporate POA Mapping POA to beneficiary account at a holder level

2.

The screens for client creation in client maintenance module have been modified to enable attaching the POA details to the client account. Additional functional rights have been added in system security module. DPs are advised to give the functional rights to the users for conducting different operations of the POA module. Additional menu button to view signatures of POA has been added, in the common menu buttons, to view signature of the authorized signatory/POA Holder, on various screens of DPMAS where a DP executes a transaction. This screen will also show account holders signatures. Authorized signatories not associated with any POA ID: This report enables DP to monitor whether there is any

c.

d.

3.

Exception reports are also provided as follows : a.

[ 493 ]

authorised signatory, which has been created in DPMAS but not associated with any POA ID. b. POA ID not associated with any clients: This report enables DP to monitor whether there is any POA ID, which has been created in DPMAS but not associated with any client account. c. POA IDs without authorised signatories: This report enables DP to monitor any corporate POA IDs, which does not have any active authorized signatory associated with the POA ID i.e., when all the authorised signatories, which are associated with the POA ID, are either in closed status or detached from POA ID. d. Expiry details of digital signature certificate: This report provides the expiry details of the digital signature certificates used by the POA ID. e. Client account holders to which blank POAs are attached: This report provides the details of the account holders, which are mapped, to POAs whose POA IDs does not have any active associated authorized signatory or POA ID is deactivated or POA Holder is deactivated. Operating Instructions a. As provided with all other instruction submission features, facility of maker & checker is provided for POA registration also. Though a user can be assigned functional rights for both maker (capture) as well as checker (Verify Release), as a matter of good practice DPs are advised to allocate maker and checker rights to different users. DP has to ensure that the minimum number of authorized signatories required for authorizing an instruction should be less than or equal to the number of authorized signatories registered for that POA. DP should monitor the status of POA or the authorized signatory to ensure that POA IDs are active in the system while executing transaction in DPMAS from the facility to view the POA signatures provided on various screens of DPMAS. DPs are advised to maintain POAs by detaching all deactivated POA IDs and POA Holders from client accounts as well as detaching closed authorised signatory from POA IDs. For any clarification with respect to POA Registration, DPs are requested to get in touch with Mr. Harsh Kotak / Mr. Yogesh Parve on 022-24994487/24994490 or email id-harshk@nsdl.co.in / yogeshp@nsdl.co.in B. System Security Enhancements: The current DPMAS provides facility for User ID creation and maintainence, change of password (voluntary) and access control to different functions defined in DPMAS. The system is now being enhanced

b.

c.

d.

[ 494 ]

to enable DPs to define policies for userid and password. Facility is also included to define multiple administrators. This version features system enforced policies for User ID and password complexity, expiry, history etc. to help DP to implement good practices concerning user authentication. In order to achieve this, DPs are advised to design and implement adequate procedures in line with the enhanced system security module of DPMAS. The system is also enhanced to maintain the session information for every user logged on to DPMAS. It would allow DP to configure multiple administrator ids in DPMAS. The Module would also provide new reports giving master information of User IDs, User Groups, changes to the same and user session information. The enhanced secuirty policy for User ID and password would be installed with default parameters which can be modified by DPs to best suit their organisational security requirements. The following logical access controls would be enforced on all User IDs created by administrators in DPMAS. 1. User ID Policy: Rules for creating User ID :. a. b. The length of User ID should be within the range of minimum and maximum values defined in security configuration details. User ID can comprise only alphabets (A-Z) (case insensitive), only numerals(0-9) or combination of both. Special characters, ie any characters other than those mentioned above, would not be allowed. The existing User IDs which are not compliant to aforesaid criteria would remain active in the system even after the new software version is applied on DPMAS. However, an alert message Your user id is not adhering to the standards. Please contact your administrator to revoke this id and assign new one would be displayed to these users after every login in DPMAS. System administrator of DPs are advised to revoke such ids and allot new ids to these users at the earliest. An exception report in text file format would be provided as a part of this version release to identify such invalid ids. Upon executing ExceptionReport.bat file in C:\Exeception_Report_Invalid_Userid directory on C drive, the report would be generated in the same folder. Compliance officer will monitor this exception report Inactive users which are not logged on to either DPMAS or GISMO applications since specific number of days (as per the configuration parameter given below) would be automatically blocked in DPMAS at next Beginning Of Day (BOD). Only administrator can then activate such User-Ids.

c.

d.

Configurable Parameters : The table given below lists various configuration parameters applicable to User IDs. These parameters can be set by DP to suit its organizational needs. However, the parameter would be bound by the minimum fixed threshold values supplied along with installation of the software. For example, fixed threshold value for Minimum length of User ID would

[ 495 ]

be set to 3. Whereas DP would be able to define their own minumum length for User IDs, it cannot be less than 3 characters. Sr No 1 Parameter Description Measured Threshold Rules for Name in terms of Value setting new value by DP Minimum Length Minimum Length of User ID Number of Characters 3 New value should be greater than or equal to Threshold Value New value should be less than or equal to Threshold Value

Maximum Length

Maximum Length of User ID

Number of Characters

2.

Password Policy Rules for defining Passwords : a. b. The length of the password should be within the range of minimum and maximum values defined in the security configuration details. The password should mandatorily contain any of the following two character sets. i. ii. iii. c. Alphabets [A-Z] (case insensitive) Numerals [0-9] Special Characters

The password should contain the minimum X number of characters from a character set where X is defined as minimum number of characters for the respective character set in Security Configuration Details. For example, if 2 alphabets have been configured as minimum characters for the character set Alphabets then the password should contain alteast 2 alphabets. DPMAS would allow only specific special characters in password. Special characters for this purpose would be configurable in Security Configuration Details against the parameter - Special Char Allowed . The password would expire after specific number of days of last password change date. Upon expiry, user would be forced to change the password. The number of days for password expiry would be configurable in Security Configuration Details against the parameter Lifetime of Password . Warning messages for password expiry will be displayed before specific number of days from the date of password expiry. These warnings would be displayed every time the user logs in using that User ID. The number of days can be configured against parameter Reminder Time Period. The User ID would be locked on specific number of consecutive

d.

e.

f.

g.

[ 496 ]

unsuccessful login attempts. The number of unsuccesful attempts allowed would be defined in Security Configuration Details against parameter No. of unsuccessful attempts. Only administrator would be allowed to unlock the User ID. h. The history of previous passwords of each User ID would be maintained in DPMAS. The number of passwords which would be recorded in DPMAS would be configurable in Security Configuration Details against parameter Password Change History. Neither the user, nor the administrator can use these passwords as the new password. The user would not be allowed to change the password twice in the same day. However administrators can reset the password to enable uninterrupted functioning of UserID. The system would force the user to change the password at first time log-in under following scenarios i. When a new User ID is created, the default password would be set same as User ID. User would be forced to change the password on first log in. On activation of a suspended, blocked as well as locked User-id by administrator, system would force the user to change password on first login after reactivation. User may use the old password to identify himself/herself before changing the password. Administrator overrides the password of the user-id.

i.

j.

ii

iii

DPs are advised to ensure that owner of the User ID changes the password immediately under all the aforesaid scenarios. Default Values of Configurable Parameters and allowable values The table given below lists various configuration parameters applicable to password. These parameters can be set by DPs to suit their organizational needs. However, the parameter would be bound by the fixed threshold values supplied along with installation of the software. For example, fixed threshold value for Minimum length of password would be set to 8. Where as DP would be able to define minumum length for password, it cannot be less than 8. Sr No 1 Parameter Description Measured Threshold Rules for Name in terms of Value set setting new by NSDL value by DP Minimum Length Minimum length of password Number of characters 8 New value should be greater than or equal to Threshold Value New value should be less than or equal to Threshold Value

Maximum Length

Maximum length of password

Number of Characters

16

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No. of Alphabets

Minimum number of alphabets required in password

Number of alphabets

New value should be greater than or equal to Threshold value. Applicable if alphabets are chosen for the password. New value should be greater than or equal to Threshold value. Applicable if numerals are chosen for the password. New value should be greater than or equal to Threshold value. Applicable if special characters are chosen for the password. New value should be less than or equal to Threshold value

No of Numerals

Minimum number of numerals required in password

Number of Numerals

No of Special Chars

Minimum Number of number of Characters special characters required in password

No of unsuccessful attempts

Number of unsuccessful login attempts with wrong password after which the User ID is blocked. Number of days from last login, after which the password would be marked expired

Number of attempts

Life Time of Password

Number of days

60 days

New value should be less than or equal to Threshold value

[ 498 ]

Reminder Time Period

Number of Number of days before days password expiry, from when the warning message is displayed If User ID is Number of not used for days number of days mentioned as block period, the User IDs would be blocked in DPMAS Number of Number of passwords passwords remembered by system such that new password cannot be one of these passwords List of special characters which would be allowed in password

10

New value should be greater than or equal to Threshold value

Block Period

60 days

New value should be less than or equal to Threshold Value

10

Password Change History

New value should be greater than or equal to Threshold value

11

Special Char Allowed

List of !@#$%^&* New value special ()_-+ = | \ should be any characters {}[]: character ;<>,.?/ within the character set defined in threshold value

3.

Multiple Administrator ids. After this version release DPMAS would permit DP to define multiple administrator User IDs. a. The existing Admin User ID would remain as is and would act as Super administrator id. The functional rights of this User ID would be retained as it is. In addition, more administrator User IDs can be created by Admin User ID. The following table lists major differences in functional rights of Admin user and new administrator User Ids

b.

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Functional Rights Admin User GISMO Functions Message Control Panel Communication Back-Office Allowed Allowed Transaction Import and Bulk Verify/ Release not allowed. Rest of import and exports would be allowed. Allowed Registration and Maintainence of both Administrator and Functional User IDs would be allowed Allowed Allowed Disallowed

New Administrator

Allowed Allowed All import and export functions would be Disallowed

Shut Down System Security

Allowed Registration and maintainence of only functional users ids would be allowed Allowed Allowed Disallowed

Administrative Tools Inquiries Instruction Capturing and Verify/Release Reports

Only System Security Only System related reports would Security related be available reports would be available Yes Yes

Setting User-id/ Password policy c.

The password polices would be applicable to both Admin user as well as new administrator ids. However following rules for Admin user would differ from other User IDs, i. ii. iii. Admin User ID would not be locked on unsuccessful login attempts due to incorrect passwords There would not be any restriction on number of times the password can be changed for Admin User ID in a day. Password change of Admin User ID would not be enforced after version release.

d. 4.

User ID policies would be applicable to only new administrator. Super Administrator would be exempted from this policy.

Session Information: After this version release, Session information such as login-id used, log-on timestamp, log-off timestamp and the terminal name would be recorded in DPMAS. DPMAS would record the logoff timestamp only if user logs off gracefully from the session. The system would also maintain the information regarding the unsuccessful login attempts such as log-

[ 500 ]

in id, log-in timestamp and terminal name. The information of both successful and unsuccesful log-in attempts would be provided to Administrators in the form of report. 5. Reports: The application would provide the following reports to the administrators. These reports would not be available to functional users. 1. User Profile Report: This report would provide the details of all User IDs registered in DPMAS along with their activation, suspension, deactivation dates and its current status. Report can be generated based on a. User ID range b. Status of User ID c. Date range of user creation d. Combination of any of above parameters. Group Access Rights Report : This report would provide the details of groups registered in DPMAS along with the access rights and its current status. Report can be generated based on the group id range. Audit Report : This report would provide three options to generate the report giving audit details of changes in user profile and user group a. Audit Report of User Profile: This report would provide the details of changes in group, alternate group allocation-deallocation and status of User ID. DP can generate the report based on i. User ID range ii. Date range of modification iii. Combination of both. Audit Report of User Group: This report would provide the details of changes in name and status of user group registered in DPMAS. DP can generate the report based on i. Group Id range ii. Date range of modification iii. Combination of both. Audit Report of Functional Rights: This report would provide the details of changes in Functional rights of user group registered in DPMAS. DP can generate the report based on i. Group Id range ii. Date range of modification iii. Combination of both.

2.

3.

b.

c.

4.

Session information report: This report would provide the login details of various User IDs. DP can generate this report based on a. User ID range b. Application Name (NSDL-DPM and GISMO) c. Login date range d. Combination of all above. It would also provide an option to generate report for failed login attempts only.

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Important Note: Depository Participants are requested to note the following points: 1. After version release, all User IDs would be forced to change the password. It is therefore suggested that the user involved in instruction capturing and verify/releasing logs-in immediately after this release is applied on server. The last log-on timestamp of all the existing User IDs would be set to current date and time during this version release. This logon timestamp would be reflected in User Profile Report as User Last Login Date. For any clarification with respect to system security module, DPs are requested to get in touch with helpdesk. C. Transaction Statement (SOT) for closed accounts NSDL has vide circular NSDL/POLICY/2006/0014 dated May 11, 2006 has advised DPs to provide the Statement of Transaction (SOT) to client, which has requested for closure of the account, for the period from the beginning of the quarter in which the account is closed till the date of closure. In this regard, in the version 7.0 of DPMAS, a new check box has been provided with respect to SOT in the input screen of the report to extract SOT of only closed client accounts. DPs are advised to provide the date range to extract the SOTs for the closed accounts. For any clarification with respect to SOT for closed accounts, DPs are requested to get in touch with Mr. Harsh Kotak on 022-24994487 or email id - harshk@nsdl.co.in. PAN Import Utility to upload PAN details Circular No. NSDL/POLICY/ 2006/0029 Date: July 21, 2006 Sub : PAN Import Utility on DPM System to upload PAN details of the Beneficial Owner(s) Attention of Participants is invited to our circular no. NSDL/POLICY/2006/ 0007 dated March 3, 2006 wherein Participants were informed about the SEBI directive on Permanent Account Number (PAN) and subsequent circular no. NSDL/POLICY/2006/0018 dated June 9, 2006 regarding utility to extract details from DPM Application Software (DPMAS) server in respect of PAN details of Beneficial Owners. NSDL will be providing a PAN import utility that would enable the Participants to update PAN and PAN Flag pertaining to Clients [Beneficial Owner(s)] in the DPMAS, in bulk. Present bulk verify release facility for Client modification would be used to Verify Release such records. The file format for PAN import utility is enclosed (Annexure I). Upon importing the file using the utility, one/two/three output file(s) may be generated. The details of the utility are described hereunder. (I) Features of the PAN import Utility PAN import utility would enable the Participants to update 'PAN and/or PAN flag' for the account holder(s) of a beneficiary account. Salient features of the utility : 1) Holder indicator is mandatory. Permitted values are indicated in the file format.

2.

[ 502 ]

2)

PAN and/or PAN flag can be updated for one or more holders of an account in a single record. Fields of PAN / PAN flag for a holder should be kept blank if data for that holder is not required to be updated. For such fields, existing values in DPMAS would be retained as is. Account holders whose PAN is to be updated must have PAN flag as 'Y', which implies that only valid PAN, after due verification, are being imported through the utility. The input file should not contain records in respect of those Clients whose Client modification is/are pending in DPMAS. In case of modification through the utility whose PAN flag is already 'Y' in DPMAS, entire record will be rejected. Such modifications can be carried out manually directly through DPMAS. Each file can have a maximum of 5000 records and Participants should not upload more than three files in a day. However, in order to expedite the process, Participants would be allowed to upload more than three files on Saturdays and bank holidays. For this purpose, Participants are advised to get in touch with NSDL helpdesk. Participants should ensure that time critical instructions are executed well before starting the upload of PAN details. The functional user availing the rights for Client Modification import, shall by default get the rights to import PAN details through PAN import utility. Participants who do not have back-office may prepare required data in excel format as per the prescribed template (format enclosed as Annexure II). NSDL will provide a utility to convert this excel worksheet into an importable file which can then be imported using PAN import utility. Detailed procedure to use this utility would be provided along with the release.

3)

4) 5)

6)

7)

8)

(II)

Features of OUTPUT files Upon successfully importing of a file through PAN import utility, the following output files may be generated: (1) Report File : On successful upload of PAN details, report file giving the Client details of those clients whose PAN details have been successfully captured shall be generated (format provided in Annexure III). Error File : Records rejected for the reason of not fulfilling the pre-requisites listed above shall be reported in this file (format provided in Annexure IV). Response File : This file will contain the Client information required for bulk, verify and release. Response file should be used as input to the bulk verify release executable for client modification of DPMAS (format provided in Annexure V) Participants who are availing the facility of bulk verify & release for Client Modifications by default shall get the rights to carry

(2)

(3)

[ 503 ]

out bulk verify and release for modifications imported through PAN import utility. However, Participants who do not currently have the facility of bulk verify and release but wish to avail the facility, may request NSDL to enable this facility for this limited function through their Compliance Officer with a declaration that adequate maker/checker control has been exercised for updation of PAN & PAN flag. (III) Process Participants are expected to follow the process as given below 1. 2. 3. 4. Import PAN and PAN flag in the required format, through PAN import utility Check the error file for rejections. Participants may update such rejected PAN and PAN flags, if required, through a separate file. Confirm details provided in report file with those submitted in import file. If verification is successful, i.e. all the imported values match the intended modification values, use response file to carry out bulk verify and release of modifications imported through PAN import utility. Further, Participants are requested to verify the updated PAN details via Client Master Report or incremental Client Master Export.

(IV) Scheduled date for Release of PAN utility : The utility is scheduled to be released to Participants in the second week of August 2006. The scheduled date for release will be sent to the Participants by NSDL Help Desk (PMC Department). Participants are advised to strictly follow the guidelines issued by NSDL vide various circular on PAN and ensure that the PAN details are captured in the DPMAS only after they are duly verified with the Income Tax Department website. Report on bounced / undelivered email addresses for registration for IDeAS facility through DIRECT Circular No. NSDL/POLICY/ 2010/0089 Date: August 4, 2010 Sub: Report on bounced / undelivered email addresses for registration for IDeAS facility through DIRECT As all Participants are aware, DIRECT (Direct Ideas REgistration of Client accounT) facilitates registration of depository accounts activated under the individual category for IDeAS facility directly at NSDL. For this purpose, registration details are sent at the email address of the Client that is captured by the Participant in the DPM System. Some of these emails do not reach the intended recipient and are returned undelivered / bounced. One of the reasons for bouncing / non-delivery of email is that Client may not have provided the correct email address or it is not properly captured by the Participant. In this regard, a report is being made available at intranet site of NSDL (i.e. http:/ /sqlassist/) with effect from August 4, 2010 for emails that have bounced / returned undelivered. Login process to access the report are as follows: (i) (ii) Login to intranet site of NSDL i.e., https://sqlassist Enter the existing Maker User ID viz., DP ID & Password.

[ 504 ]

(iii) (iv) (v) (vi)

Click on the link named Report for Bounced Emails IDeAS registration thru DIRECT. Provide the date range. At a given point, datewise report of past 30 days will be made available. Click on the weblink displaying the report date. The report would be provided in an excel format which would be zipped. After unzipping it, extract the report to the desired folder.

(vii) The file name would display the DP ID and the date of the report. (viii) The report would contain details of the demat account viz., DP ID, Client ID and email address (considered for IDeAS registration) which has bounced / returned undelivered. For further information / clarification, Participants are requested to contact Mr. Sandeep Kumar Tel : (022) 2499 4361 (email : sandeepk@nsdl.co.in) / Mr. Rahul Gupta Tel : (022) 2499 4372 (email : rahulg@nsdl.co.in) / Mr. Narayan Venkat Tel : (022) 2499 4479 (email : narayanv@nsdl.co.in). Software utilities for making queries in DPM system Circular No. NSDL/POLICY/ 2006/0057 Date: November 24, 2006 Sub : Software utilities for making queries in DPM system This is in continuation with NSDL circular no. NSDL/POLICY/2006/0042 dated September 23, 2006 and circular no. NSDL/POLICY/2006/0047 dated October 16, 2006 wherein utilities (consisting of various queries) were provided to Depository Participants (DPs). The circular further stated that the incremental utility would be released to the DPs later. This remaining utility (consisting of incremental queries) is being issued on November 24, 2006 by NSDL Helpdesk (PMC Department) along with the operating procedure for running the utility. This utility will give an output of probable data entry errors made during specified time period. DPs are advised to run the 'incremental' utility at periodic intervals but not later than a monthly basis. The output of the queries will be only for the specified time period provided by DPs at the time of running the utility. The output generated will have the list of clients which are in the status 'Active', 'Suspended for debit' or 'Suspended for debit and credit'. DPs are advised to preserve the printout of the output of the queries and necessary remarks with respect to action taken by them. DPs are also advised to make suitable remarks with respect to the date on which change was made in the system and the name and initials of the person who has made such changes. Internal Auditors of the DPs are advised to verify the action initiated by the DPs and make suitable comments in the quarterly internal audit reports submitted by them including the periodicity of running the utility. Internal auditors may also request DPs to run the query while conducting the audit and satisfy themselves with respect to the output as well as the action taken by the DPs. 'The logic for the queries in the utilities will remain the same as stated in the above mentioned circulars .The list of queries (incremental) and the ouput thereof is given below :

[ 505 ]

1.

Incorrect Pin codes in Client Address details: The output will provide the list of client accounts opened during the specified time period where incorrect pincode in client address was entered. In addition, the output will also provide all such client accounts where incorrect pincode was entered in client address while making changes in the client master details during the specified time period.

2.

Incorrect Pin codes in bank address details: The output will provide the list of client accounts opened during the specified time period where incorrect pincode in bank address was entered. In addition, the output will also provide all such client accounts where incorrect pincode was entered in bank address while making changes in the client master details during the specified time period.

3.

Client accounts with standing instruction (SI) disabled : The output provides list of all such client accounts opened during the specified time period where SI is disabled (not ticked in DPM). In addition the output will also provide all such client accounts where SI has been disabled while making changes in the client master details during the specified time period. Further, the outputs have been bifurcated as under: a) b) Client accounts opened in 'resident' category with standing instruction disabled. Client accounts opened in 'non-resident' category with standing instruction disabled.

4.

List of Client accounts which are opened in the name of "And Sons": The output will provide the list of client accounts opened during the specified time period where the client account have been opened in the name of "And Sons".

5.

List of Client accounts opened for more than three Holders : The output will provide the list of client accounts opened for more than three Holders during the specified time period.

6.

List of Client accounts opened for more than three Holders and SI enabled: The output will provide the list of client accounts opened for more than three Holders with SI enabled during the specified time period. In addition, the output will also provide all such client accounts where SI was enabled while making changes in the client master details during the specified time period.

7.

Bank address details not entered as per NSDL requirements: The output will provide the list of client accounts opened during the specified time period for which fourth row in bank address line was left blank. In addition, the output will also provide all such client accounts where fourth row in bank address line was left blank while making changes in the client master details during the specified time period.

8.

List of client accounts where the first holder is a Minor and the account is opened with a Joint holder : The output will provide the list of client accounts opened during the specified time period where the first holder is a Minor and the account is opened with a Joint holder. In addition, the output will also provide all such client accounts with joint holding where the option 'guardian'

[ 506 ]

instaed of nominee has been chosen while making changes in the client master details during the specified time period. 9. List of 'HUF' accounts opened under a different type-subtype: The output will provide the list of client accounts opened during the specified time period with suffix 'HUF' in the name of the account holder, but the account has been opened in any sub-type other than 'HUF' in DPM. 10. List of demat accounts opened in the 'corporate' category in joint holder: The output will provide the list of client accounts opened in corporate category in joint holder during the specified time period. 11. List of corporate Accounts opened which are probably not corporate accounts: The output will provide the list of client accounts opened during the specified time period where the word 'limited' or its variants are not found in the First Holder Name. Circular No. NSDL/POLICY/ 2006/0047 Date: October 16, 2006 Sub : Software utilities for making queries in DPM system This is in continuation with NSDL circular no. NSDL/POLICY/2006/0042 dated September 23, 2006 wherein three utilities were provided to Depository Participants (DPs). The circular further stated that other utilities will be released to the DPs later. These remaining nine utilities are being issued on October 17, 2006 by NSDL Helpdesk (PMC Department). These utilities (consisting of queries) will give an output of probable data entry errors made in the past. The utilities to run the queries and generate the output on incremental basis will be released to DPs later. DPs are advised to run 'full' utility for the first time and then run the 'incremental' utility at periodic intervals, say each month. The operating procedure for running the utility will be sent by NSDL Helpdesk (PMC Department). The output generated will have the list of Clients which are in the status 'Active', 'Suspended for debit' or 'Suspended for debit and credit'. DPs are advised to preserve the printout of the output of the queries and necessary remarks with respect to action taken by them. DPs are also advised to make suitable remarks with respect to the date on which change was made in the system and the name and initials of the person who has made such changes. Internal Auditors of the DPs are advised to verify the action initiated by the DPs and make suitable comments in the quarterly internal audit reports submitted by them. Internal auditors may also request DPs to run the query while conducting the audit and satisfy themselves with respect to the output as well as the action taken by the DPs. A list of utilities, their usefulness and the manner in which these utilities should be used is given below: 1. Client accounts with standing instruction (SI) disabled : Standing instruction is a facility which ensures the credit of securities through account transfer instructions (including inter depository transfer instructions) in the Client's accounts without specifically giving a receipt instruction to the DP. It is found that in some cases, the SI is found to be disabled. This query will give a list of all such accounts where SI is disabled (not ticked in DPM). Further, the query has been bifurcated into two sub-queries for ease of the DPs. The details are given below.

[ 507 ]

a)

Client accounts opened in 'resident' category with standing instruction disabled : Generally, it is found that the SI is enabled in DPM. The output of the query will give the list of all such Clients which have been opened in 'resident' category where SI is disabled. After getting the output, DPs should verify the same from account opening forms/Clients and make necessary corrections in the DPM system, if necessary, after requisite documentation.

b)

Client accounts opened in 'non-resident' category with standing instruction disabled: It has been observed that in some cases, DPs disable SI indicator for NRI Client accounts. The output of the query will give the list of all such Clients which have been opened in 'non-resident' category where SI is disabled. After getting the output, DPs should verify the same from account opening forms/Clients and make necessary corrections in the DPM system, if necessary, after requisite documentation.

2.

List of Client accounts which are opened in the name of "And Sons": As all DPs are aware, a demat account cannot be opened in the name of proprietorship firm / partnership firms. E.g. a demat account cannot be opened in the name of XYZ & Sons. The output of the query will give the list of all Client accounts, other than Clearing Member accounts, where the word "SONS" appears in the First Holder's Name. However, this list will also give the names of Clients like 'Mother'sons' Sumi Ltd' where word 'sons' appear. Further, a demat account holding 'commodities' is permitted to be opened in the names of proprietorship firm / partnership firms. The names of such Clients would also appear in the output. Therefore, after getting the output, DPs should verify the same from account opening forms and initiate necessary action with respect to closure of account, wherever applicable.

3.

List of Client accounts opened for more than three Holders : NSDL, vide its circular no. NSDL/PI/99/231 dated April 08, 1999 issued clarification with respect to the manner in which the demat account for more than three holders need to be opened. The output of this query will give list of all such demat accounts where the account has been opened for more than three holders. DPs should verify the same from account opening forms and ascertain whether the account opened is indeed for more than three holders.

4.

List of Client accounts opened for more than three Holders and SI enabled: NSDL, vide its circular no. NSDL/PI/99/231 dated April 08, 1999 advised DPs that in case of such accounts, SI should not be enabled. The output of this query will give list of all such demat accounts where the account has been opened for more than three holders with SI enabled. DPs should verify the same from account opening forms in order to verify whether the account opened is indeed for more than three holders and initiate necessary action with respect to disabling the SI.

5.

Bank address details not entered as per NSDL requirements : NSDL, vide, its circular no. NSDL/PI/2000/2295 dated December 20, 2000 advised DPs to enter the bank details in the manner specified in the circular. The circular stated that the city name should be entered

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in the row 4 of the bank address details. However, it is observed that in many cases DPs do not capture the city name in fourth row and leave the same blank. The query will list all such Client accounts for which fourth row in bank address line is left blank. DPs should ensure that the city name is captured in the fourth row by deleting the same if it has been entered in any other row. 6. List of Client accounts where the first Holder is a Minor and the account is opened with a Joint Holder : As all DPs are aware, a demat account for a minor needs to be opened as a single holder and to be operated by guardian. However, many instances are observed where an account of minor is opened alongwith the joint holder. While generating the output, a query will run where DP has selected an option of 'guardian' and is a joint holder account. However, is some cases, it is observed that if the nominee is minor, DPs select 'guardian' and enter minor's date of birth in the relevant column giving the wrong picture that it is a minor with joint holding account. Therefore, DPs should verify the account opening forms before taking an action. 7. List of 'HUF' accounts opened under a different type-subtype : The output of this query will give all such accounts with suffix 'HUF' in the name of the account holder, but the account has been opened in any sub-type other than 'HUF' in DPM. The list will also give the names of Clients like 'HUFfrish Cyril Pinto' where word 'HUF' appears. In such cases, based on the output and after verification of account opening forms, DPs should initiate to close the accounts and open the accounts under correct sub-type without any suffix after the name of the Karta. 8. List of demat accounts opened in the 'corporate' category in joint holder: Generally, a account in the category of 'corporate' is found to be opened as a single holder though demat accounts are permitted to be opened in joint holder capacity. The output of this query will give the list of all such Clients where accounts which are opened in corporate category in joint holder. DPs are advised to verify the same from account opening forms as it has been observed that sometimes, the corporate accounts are opened where the names of authorized signatories are erroneously entered as the joint holders instead of entering the names in 'signatories' panel in DPM. In such cases, based on the output and after verification of account opening forms, DPs should initiate the closure of such accounts where the names of 'authorized signatories' have been entered as joint holders and open the accounts in name of the Corporate. 9. List of corporate Accounts opened which are probably not corporate accounts : It is observed that in most of the cases, an account opened in 'corporate' category will have a word 'Limited' (and its various variants like 'Ltd.', 'L. T. D.' etc.) in the name. However, sometimes, it is observed that an account opened in the corporate category are opened without having a word 'limited' or its variants. The output of this query will give list of all such 'corporate' Client accounts where the word 'limited' or its variants are not found in the First Holder Name. Therefore, the output generated needs to be verified with the account opening forms and necessary action, if any to be initiated with respect to closure of this account and opening the account in correct category.

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Circular No. NSDL/POLICY/2006/ 0042 Date: September 23, 2006

Sub : Software utilities for making queries in DPM system As all Depository Participants (DPs) are aware, NSDL officials visit DPs' offices twice a year. During these visits, NSDL officers provide to the DP a list of data entry errors which can be rectified by DPs. As these visits are conducted twice a year, it is felt that DPs should be enabled to monitor such errors through relevant software utility (consisting of various queries) and rectify the same, wherever necessary. For this purpose, based on experience gained during visits at DPs' offices, NSDL has compiled a list of such utilities. One such utility (consisting of three queries) will be released to the DPs for usage on September 23, 2006 by NSDL Helpdesk (PMC Department). Other utilities (consisting of some more queries) will be released to the DPs later. The utility being released alongwith this circular will give an output of probable data entry errors of the past. It is also proposed to provide utilities to run queries and generate output on incremental basis. DPs are advised to run 'full' utility for the first time and then run the 'incremental' utility at periodic intervals, say each month. The operating procedure for running the utility is enclosed as Annexure I. The output generated will have the list of Clients which are in the status 'Active', 'Suspended for debit' or 'Suspended for debit and credit'. DPs are advised to preserve the printout of the output of the queries and necessary remarks with respect to action taken by them. DPs are also advised to make suitable remarks with respect to the date on which change was made in the system and the name and initials of the person who made such changes. Internal Auditors of the DPs are advised to verify the action initiated by the DPs and make suitable comments in the quarterly internal audit reports submitted by them. Internal auditors may also request DPs to run the query while conducting the audit and satisfy themselves with respect to the output as well as the action taken by the DPs. A list of utilities being provided with this circular, their usefulness and the manner in which these utilities should be used is given below: 1. Hindu Undivided Family (HUF) demat accounts with joint holdings: As DPs are aware, a demat account for holding shares of HUF can be opened only in the name of Karta and it cannot be a joint account. (Circular no. NSDL/PI/2002/1346 dated August 12, 2002). Accordingly, DPM system restricts entry of joint holder names in HUF category of accounts from October 13, 2001. However, it has been observed that in the demat accounts opened prior to that date, a few HUF accounts were opened in joint names. These accounts are still in active status. This query will give a list of all such HUF accounts opened with joint holdings. DPs are advised to close these accounts and open new accounts as stated in the above-mentioned circular. This utility needs to be run only once and based on such report, action should be taken by DPs. 2. Incorrect Pin codes in Client Address details: The output of this query will identify incorrect pin codes. For this purpose, all pin codes which are less than 100000 and/or greater than 880000 will be listed. Further, the output will not generate the names of Clients where category is 'Non Resident Indian (NRI)/Foreign National'. After getting the output, DPs should verify correct pincodes from account opening forms/Clients and make necessary corrections in the DPM system.

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3.

Incorrect Pin codes in bank address details: The output of this query will identify incorrect pin codes in bank details. For this purpose, all the pin codes which are less than 100000 and/or greater than 880000 will be listed. Further, the output will not generate the names of Clients where category is 'NRI/Foreign National'. After getting the output, DPs should verify correct pincodes from account opening forms/Clients and make necessary corrections in the DPM system. Annexure I

Operating Procedure for running the utility Please follow the procedure given below to install the utility on the DPM server. 1. 2. 3. 4. Zipped File "DP_Reports_For_DPs" is to be placed on the C drive of the server Unzip the file On Unzipping the file DP_Reports folder will be created in C drive of the server Inside DP_Reports folder two folders will be present Batch_Files Reports To create the above mentioned reports at any time, Double_Click.bat file should be double clicked. Both the above reports would appear in the Reports folder The naming convention of the files are as given below: "query_name(fixed)_date(variable).txt e.g: Bank_Addr_Invld_Pincode_Aug1020062.19PM.txt Clnt_Addr_Invld_Pincode_Aug1020062.19PM.txt HUF_Acct_with_sec_thrd_hldr_Aug1020062.19PM.txt .

5. 6. 7.

Caution to be exercised while executing freeze in Client accounts using Freeze Utilities Circular No. NSDL/POLICY/ 2006/0062 Date: December 20, 2006 Sub : Caution to be exercised by DPs at the time of executing freeze in Client accounts using Freeze Utilities As all Depository Participants (DPs) are aware, in case the demat account holder(s) fail(s) to submit the PAN details to the DPs by December 31, 2006 or there are discrepancies in the PAN details that are not resolved by December 31, 2006 such accounts should be Suspended for Debit until PAN details are verified and updated at the DPM Application Software (DPMAS). DPs are requested to refer NSDL Circular No.NSDL/POLICY/2006/ 0043 dated September 27, 2006 and various other circulars issued, in this regard. Attention of DPs is also invited to Circular No. NSDL/POLICY/2006/0051 dated October 19, 2006 wherein general features to operate the freeze utilities were informed to the DPs. NSDL Help Desk (PMC Department) will shortly release the freeze utilities as well the operational manual containing instructions to operate the freeze utilities. Details of Freeze generated by the two Utilities - Bulk Account Freeze and File Converter: (a) Freeze level will be for Suspended for Debit

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(b) (c) (d) (e)

Freeze reason will be Request by Statutory Authority Freeze description will be PAN Pending-SEBI Cir User remark field will be Through Freeze Import Execution date of the freeze will be January 1, 2007.

The guidelines for executing freeze instructions is broadly divided into three parts viz. system, operational and general guidelines & obligations. DPs are advised to strictly follow the guidelines as given below : (I) 1) System Guidelines : The response file generated by the two utilities i.e. Bulk Freeze and File Converter will carry the batch id in sequence to the last batch id uploaded in respect to the instructions/client modification/ client closure etc, in the DPMAS. In view of this, DPs should ensure that the batches generated from the back-office are uploaded in the DPMAS before using these utilities otherwise the batch file(s) generated out of the utilities will be rejected by the DPMAS transaction import utility on account of Duplicate Batch Id. Further, DPs should also update the batch id utilized by these utilities in the back-office so as to generate the batch ids in sequence thereafter. Upon DPs giving confirmation to generate freeze for Bulk Account Freeze and File Converter utilities, multiple files will be generated with a maximum of 50,000 Client accounts (if the freeze executable accounts are equal or more than 50,000 Client accounts) in each file. These multiple files are the response files in case of Bulk Account Freeze for the purpose of bulk verify & release and batch files in case of File Converter to import into transaction import utility. Criteria for identifying freeze executable accounts is given in our earlier Circular no. NSDL/POLICY/2006/0051 dated October 19, 2006. DPs are advised to keep track of these files that are generated and ensure that the generated files are uploaded in the DPMAS. DPs should stop the Receive Service of the DPMAS at the time of executing freeze instructions. Ensure that minimum free disk space of 500 MB on c drive as well as 500 MB or 10% of database size on database drive whichever is higher is available on the DPMAS server before generating the freeze request. DPs should ensure that they stay connected on December 30, 2006 (Saturday) and January 1, 2007 (Monday) failing which, DPs may receive a delayed BOD as of January 2, 2007 on their DPMAS and any failure in pay-in will be the responsibility of the DPs. The status in the Systems Operations profile should show Business Ended as on December 30, 2006 and Regular Operations as on January 1, 2007. It is once again advised that, DPs have to be connected to NSDL for two days as mentioned. During the process of executing freeze instructions, DPs should ensure that no other process such as execution of settlement instructions, creation, modification, closure of Client accounts and other DPM related activities etc are executed in the DPMAS. Operational Guidlelines : Client accounts in statii On Hold, Intransit and Closed will not be frozen by the freeze utilities. DPs should execute freeze instructions

2)

3) 4)

5)

6)

(II) 1)

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for Clients accounts with statii On Hold, Intransit as and when they are activated in the DPMAS and do not comply with Circular No. NSDL/POLICY/2006/0007 dated March 3, 2006. 2) If the Client account is already frozen (Suspended for Debit) through DPMAS or SPEED-e, the utilities will still allow the DP to initiate the freeze instructions for such accounts but such instructions will fail in the BOD of January 1, 2007. If DPs wish to freeze Client accounts for a large number say 10,000 or more, DPs are advised to : (a) Ensure that all the time critical instructions with the same execution date and future execution date (next day) are executed in the DPMAS on the same day well before 7.30 p.m.; Inform Help Desk before releasing the freeze instructions and on completion as well. Execute freeze instructions after regular operations end i.e. after 7.30 pm.

3)

(b) (c) 4)

On receipt of the freeze utilities from the helpdesk, DPs should start identifying the Client accounts that are not in compliance with PAN requirements and start releasing the future dated freeze instructions for such accounts well before the stipulated deadline, (December 30, 2006), in order to avoid last moment message congestions in the DPMAS. Client accounts that are already frozen (Suspended for Debit) through DPMAS or SPEED-e) as on December 31, 2006, DPs should ensure that such frozen accounts are in compliance with Circular No. NSDL/ POLICY/2006/0007 dated March 3, 2006. If such Client accounts gets unfreezed and do not comply with PAN requirements, DPs are advised to freeze the accounts until the Client submits the PAN card and the DP duly verifies the same as mentioned in various NSDL circulars on PAN. DPs having back office are also advised to ensure readiness in its back office to process large COD exports / incremental client master export files arising out of these exercise. Two set of large COD export file may be expected : (i) (ii) due to future dated freeze order (before December 31, 2006); due to actual account freeze (on January 1, 2007). DPs should note that in case of joint holdings, an account will be frozen, if the PAN details are missing for one or more holders of an account. Client accounts that do not comply with Circular No. NSDL/POLICY/ 2006/0007 dated March 3, 2006 and not frozen by DPs as on January 1, 2007, will be treated as violation to SEBI directive. While the utilities will enable the DPs to identify Client accounts without the PAN flag Y and accounts having no PANs at all, DPs should note that failure to set an appropriate flag or failure to update the Client account with appropriate details will render DPs liable to claims by Clients. DPs are advised to only unfreeze the Client accounts, upon the Client(s) submitting the PAN card details and DPs verifying the

5)

6)

(III)

General Guidelines and Obligations: 1)

2)

3)

4)

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PAN details as per the laid down procedure in circular no. NSDL/ POLICY/2006/0007 dated March 3, 2006. In this regard, on compliance with PAN requirements, it may be possible that Clients may submit settlement related instruction alongwith unfreeze instruction. In such a situation, DPs should first unfreeze the Client account and ensure that the status of the unfreeze instruction is Closed,Settled prior to executing the settlement related instructions for such Client account. 5) DP can cancel future dated freeze instructions executed before December 31, 2006 for those clients who complete PAN requirement as before that date (December 31, 2006). Utilities for cancellation will also be provided along with freeze utilities. A special schedule will be drawn up to facilitate setting up freeze in a staggered manner for DPs requiring to freeze more than 50,000 accounts and the same will be communicated to DPs by PMC department.

6)

DPM Software - Modification only with prior permission of NSDL Circular No. NSDL/PI/187 Date : September 13, 1997 It has come to our notice that a few Business Partners have attempted changes on their DPM systems without intimation and/or prior permission of NSDL. In course of doing so, on several occasions, DPM system became in-operational and they had to obtain necessary help from NSDL help-desk. NSDL help-desk solved the problem either by remote log-in or by visiting their site. In view of the same, it is advised that the Participant should consult NSDL help-desk prior to undertaking any change on DPM system, as mentioned below. Explicit permission must be obtained from NSDL help-desk. Subsequently, a revised Form B should be submitted indicating the change implemented. The circular will apply to all the changes listed below : 1) 2) DPM Hardware replacement/upgrade/change/removal Re-installation of WINDOWS NT system software on server, Windows-95 system software on client, SQL Server RDBMS, DPM database, NSDL's application software on server/client and Anti Virus software. Upgrade/replacement of NSDL permitted version of WINDOWS NT system software, SQL Server RDBMS and Anti Virus Software. (including the upgrades suggested by NSDL for which software and procedure for upgrade are provided by NSDL) Change in settings of Windows-NT OS and SQL Server RDBMS (including settings for security, database mirroring/replication, table sizes etc.) Installing any additional software and utilities on client/server (e.g. Microsoft office/Exchange, Lotus Notes etc.). Creating shortcuts or relocating/duplicating NSDL supplied software files in other directories/path (e.g. Copying EXE into Briefcase). Inter-connection of DPM system to internal LAN, or additional node/ server or any other hardware device not specified by NSDL

3)

4) 5) 6) 7)

(Please note that inter-connection of DPM system to any other WAN is prohibited by DOT).

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In regard to point nos. 4,5,6 and 7, NSDL reserves right to deny permission if the request is in violation of general guideline issued by NSDL, software licensing or any other statutory policy/guideline or the proposed change is likely to create performance problem in the opinion of NSDL. Any change being carried out, after obtaining the permission from NSDL helpdesk should be done in accordance with procedure stipulated by NSDL. The first time upgrade/replacement of DPM application software with new release may be carried out in accordance with the prescribed procedure as per the current practice without additional permission from NSDL. If changes undertaken at your end are in violation of this circular and results in a problem, then the Participant may be charged as follows : a) b) c) Rs.1000/- per man hour of NSDL time used on rectifying the problem, subject to a minimum of Rs.2000/Travel charges, if any, at actuals. Lodging and Boarding charges, if any, at actuals.

The charges will be without prejudice to any other action, NSDL may initiate considering the seriousness of the violation. As NSDL has supplied SQL Server and application software, NSDL help-desk will be responsible for support of SQL Server and application software. However in respect of problems related to Windows NT/Windows 95, additional support from your hardware vendor may be required. Additional Software permitted on DPM System Circular No. NSDL/PI/2002/1519 Date : September 7, 2002 As Participants are aware, NSDL is sending circulars/price files via e-mail in a compressed form. NSDL has provided two licenses of CEDS 10 utility to the Participants for their use on the DPM Server and on the Client machine, for the purpose of reading the circulars/price files sent by NSDL. In this regard, some Participants have requested NSDL for an additional license of CEDS 10 utility for the purpose of reading circulars/price files received by them on their internet e-mail Ids. In this context, Participants may note that they may use one additional license of CEDS 10 utility, only for the purpose of reading the circulars/price files received from NSDL on their internet e-mail Ids. Any use of the CEDS 10 utility for purposes other than what is stated above will amount to violation of the terms of license and may invite action. Circular No. NSDL/PI/2002/0405 Date : March 8, 2002 A list of additional software permitted to be installed on the DPM System is enclosed. Participants must ensure that no other additional software is installed on the DPM System. List of additional software permitted to be installed on the DPM System 1. 2. 3. 4. 5. 6. 7. 8. 3 Com NIC diagnostic Direct X Drivers Acrob Reader V 2.1 Adaptec UDF Reader Adobe acrobat reader Adobe Page Maker Adobe Pagemill 3.0 Adobe Photo Deluxe 2.0 Adobe Photo Deluxe Business Edition 1.1

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9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38.

Adobe Type Manager ATI Match 64 Display Driver Caere Scan Manager Compaq Diagnostic for Windows Compaq Insight Management Agents Compaq Integration Maintenance Utility Compaq Net Agents Compaq Server Utility DCOM for Windows 95 (allowed with Operating System - Windows 95) Direct Drivers Direct X Drivers HP Laserjet Pro Uni Installer HP Library & Tape Tools Version 2.7 IBM Registration Logitech ScanMan Color 2000 Matrax Powerdesk 4.10.0070 System Policy Editor Matrox Power Desk 4.18.026 Microsoft Internet Information Server Microsoft Outlook Express MS Active Server Pages (only on server) MS Windows 95 starts here update edition (allowed with Operating System -Windows 95) PC Care V 1.01 PC Doctors for Windows Photo Finish RPADLL Photofinish S3 Refresh S3 Video Colour Control Umax Vistascan Shuttle USB Supplement OSR2 USB Update to OSR2

DPM System - General operating instructions Circular No. NSDL/PI/003 Date: December 28, 1997 All the Participants are hereby informed that for the purpose of depository operations, they should strictly adhere to the schedules and the general operating instructions as laid down in Annexure 'A'. In case of any clarification or further information, the Participant may contact our 'Help Desk' at NSDL on 4976341, 4976348, 4975243, 4945177, 4937026, 4937031, 4972970 Extn 4630 - 4636. Annexure 'A' General Operating Instructions for all Business Partners* Backup BPs should ensure that adequate number of DATs (atleast 10 per week) are available for taking Backups.

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The systems person must take backup daily, 30 minutes after confirming the `Business Ended' message in system operation profile. BPs should maintain a Remote Backup. BPs should send in Backup DATs when asked by NSDL. This will help NSDL to confirm the correctness of Backup procedure carried out by the Participants and also check integrity of the data backed up. Backup should be taken every day, even if there are no business transactions. In case of BPs working on Saturdays & Sundays, backup should be taken on separate DATs reserved for Saturdays & Sundays. Do not recycle the tapes in the same week. Do not select the Replace option while taking hourly Transaction Log backup (except when the tape is used for the first time or when it is recycled) Ensure that you should have Windows NT Setup Boot Diskettes. Prepare the Emergency Repair disk after Windows NT installation. Ensure that you should have \Windows NT35 Directory Backup with Registry. Keep the Router on until 30 minutes past receipt of 'Business Ended Message'. The router can be switched off then, just before taking backup. Do not change any of the Router configuration unless specifically instructed by the NSDL Networking Group. Keep the IDU/MODEM on until 30 minutes past receipt of 'Business Ended Message' . The router can be switched off then, just before taking backup. Should have UPS to protect Server + Router + Modem + IDU. The UPS should have atleast 30 Minutes backup. In case of power failure, ensure that system is gracefully shutdown (through File/Shutdown" option of Windows NT menu) before UPS trips. Before starting operations please ensure that the UPS battery is fully charged. Train adequate staff for operating the DPM software and administering the system for minimum 2 shift operations. BPs should ensure that the system administrator is trained by NSDL on use of Application Software as well as other application related system administration procedures, like taking backup, starting and shutting communication and interface process etc. BPs shall ensure that trained WIN NT and MS SQL staff is available for administrating the DPM system. This is applicable for DBA functions also.

Windows NT

Router

Modem/IDU

UPS Protection

Training / Staffing

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The system administrator should posses skills on Windows NT and SQL Server. Required skills on Windows NT and SQL Server are listed below Familiarity with Windows NT and Windows 95 environment Basic concept of domains and IP addressing Creating user accounts Implementing security on files and resources Interpreting event log and taking backup of event log Preventive measures against system breakdown Backup and restoring data Basic RDBMS concepts Familiarity with SQL server tools like SQL enterprise manager, isql/w Monitoring SQL activity using performance monitor Backup and Restore of SSQL databases using enterprise manager Interpreting SQL server error log

Kindly note that the BPs can avail the training facilities provided by Authorized Training Centers of Microsoft. It is mandatory for the BPs to arrange for systems administrator to remain available during the crucial time of Business Operation on production environment during power on and power off of system on call (round the clock) while not present at the BP site

Power On / Off While powering down the server ensure that on all client terminals have quit out of the DPM application .Then on the server select 'File/ Shutdown' and select option 'Shutdown'. Only when the message is displayed "It is now safe to turn of the computer", server should be powered Off. Do not allow the operations staff to start operating the DPM software unless the systems Administrator ensures that all the communication processes are started.

Help Desk Calls All Help Desk calls should be directed on Number- 4945177, in case this number is busy you should call up on 4972950- 59 Ext. 407/408.

Operational Schedule The BPs should ensure that the communication process be shut off at 9.30 a.m. every day from Monday to Friday. If there are any changes, they will be communicated separately. Participants and Registrars should start the communication process only after 3.30 p.m. daily. (6:00 p.m. on settlement day, which is generally Wednesday)

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Thus communication process should be compulsorily shut off between 9.30 a.m. to 3.30 p.m. ( 9:30 a.m. to 6:00 p.m. on settlement day, which is generally Wednesday) From 9:30 am to 3.30 p.m. (6:00 p.m. on settlement day, which is generally Wednesday) BPs can function in Capture Mode. BPs will not be able to "Verify and Release" after the scheduled time of EOD ie. 6.00 PM (8:00 PM on settlement day, which is generally Wednesday) onwards. From this time onwards the BPs will be working in Capture mode. The BPs will start working in "Verify and Release" mode after getting the next BOD message. The BP can again start the communication process after the backup is over. However "Verify and Release" will not be possible if the BOD for the next day is not sent by NSDL. If the Communication process is on at the BP's server and BOD is received, the DPs can "Verify and Release", but only upto 9.30 a.m. next day (provided next day is not Saturday or Sunday). Even if there are no business transactions, the BP's server should be kept on every day, starting from 3.30 p.m. (6.00 p.m. on settlement day, which is generally Wednesday), until 30 minutes past receipt of `Business Ended' message. EOD time can be extended in case of bulk master data entry being carried out at NSDL. In this case the BPs will be required to arrange for adequate staff to take the Backup and shut the system. Transaction "Verify and Release" operations between 3.30 p.m. to 6.30 p.m. on Monday, Tuesday, Thursday, Friday and 6.00 p.m. to 8.00 p.m. on Wednesday Registrars and Participants connected to Depository through Leased lines will be allowed Transaction "Verify and Release" operations between 9.30 a.m. to 6.30 p.m. on Monday, Tuesday, Thursday, Friday and 9.30 to 8.00 p.m. on Wednesday

Summary

Note : It should be noted that in case settlement is not carried out on a Wednesday (non working day), it is generally carried out on the following working day. This implies that operation time on this day can be modified, which will be communicated to the all BPs. EOD/BOD Depository will certainly broadcast BOD message to all participants and Registrars before 9.30 a.m. of the working day. Depository will endeavor to broadcast the same preferably by midnight of the previous working day. It should be noted that BOD message broadcast at Friday midnight/ Saturday early morning will be for BOD of Monday or the first working day of coming week. Thus all the transaction "Verified and Released" on Saturday and Sunday will be booked for Monday.

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Security It is mandatory for the system administrator, at BP, to assign specific roles to the operators. Each operator should have different Login Name and Password on Windows NT, SQL Server and Application. All users should not be given System Administrator privilege. On booting the server a message is flashed on the screen "Do you want to boot from the Last Known Good Menu, Press Spacebar to do so". Do not select this option. Using this option is very Dangerous as it is quite possible that the registry entries maintained by Windows NT may be lost. This may also lead to reinstallation of Windows NT, as a result of which all the data on the server cannot be recovered. General Do not experiment with the installed system configuration. Check System Operation Profile everyday at 3.30 and check that the Current Business Date is updated. In case of discrepancy contact Help Desk. Report any error to help-desk immediately. Check whether all processes are running in Administrative tools/ Performance Monitor. The system on which the DPM software is loaded should not be put to any other use i.e. no other application software should be installed Do not delete or load any file on the system unless specifically directed by NSDL IT staff. Do not change Date/Time or any other configuration, unless specifically directed by NSDL IT staff Do not connect DPM system's clients machines to any other WAN Do not change the System Administrator password without a formal communication to NSDL. Do not access SQL database externally unless specifically directed by NSDL Systems staff.

Server Booting

DPM system - Guidelines for monitoring hard-disk space Circular No. NSDL/PI/98/372 Date :August 13,1998 All Participants are advised to follow and strictly adhere to the guidelines for monitoring hard disk space given in the enclosed annexure to ensure proper functioning of DPM Application Software and smooth conduct of your business operations. Guidelines for monitoring hard disk space The System Administrator of the Participant should carry out the activities mentioned below on the DPM Server regularly : The free space available on the DPM Server should be monitored regularly and it should be ensured that at any given point of time sufficient free space (around 400 MB) is available on the DPM Server. In order to achieve this, the following unwanted files residing on the server must be deleted:

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Sr. No (i)

Name of files Files generated after successful installation/ upgradation of DPM Application Software. The names of these files are mentioned in the installation/ upgradation manual System-generated transaction log (Transnsdlxxxxxxxx.dat) residing at c:\mssql\ backup directory Temporary files (*.tmp) residing on the server Back office related files residing on the Server

What to check before deleting Ensure that the software is running smoothly for a week. The clientdisk directory should not be deleted. Ensure that all the files are backed up on two DATs (local and remote backup DAT) Nothing

When to delete A week after installation / upgradation of the DPM Application Software

(ii)

At the end of every week, all files which are more than three days old

(iii) (iv)

At the end of every week

A copy, if required, At the end of every is stored in the day. back-office

The following must also be ensured : o Ensure that your "Recycle Bin" is empty. o Ensure that no software other than Windows NT 4.0, DPM Application software, MS SQL 6.5 is installed on the server.

In case there is no sufficient space on the hard disk even after removing the unwanted files, the Participant must upgrade its hard disk in consultation with NSDL. DPM system - Monitoring hard-disk failure Circular No. NSDL/PI/2002/1262 Date: July 29, 2002 Participants may note that there have been instances where the DPM server of Participants stopped functioning on account of Registry corruption in the Windows NT server Operating System (OS). In order to rectify the problem, Windows NT server OS was required to be re-installed, which takes a long time. This results in disruption of the operations of the Participants for a long time. In this context, Participants may note that Windows NT / Windows 2000 server OS allows creation of Emergency Repair Disk (ERD) with which majority of Registry corruption incidences in the OS can be rectified without a need to re-install the OS and DPM System can start functioning in a short time. Further, there have been instances where DPM server of Participants stopped functioning due to failure of RAID controller card. In such an event, Participants are required to source an identical RAID controller card and also apply the latest RAID controller configuration backup. In case the latest RAID controller configuration backup is not available, then the RAID implementation of the DPM server needs to be re-configured afresh with the result that all the information stored on the disk including the database is lost. In such an event, the database has to be recreated from the last available backup. In view of the aforesaid, Participants are advised as follows: (1) Create fresh copy of ERD of DPM server atleast on a fortnightly basis as well as immediately after any changes are effected to Hardware/ Software configuration of the server.

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(2)

Take backup of RAID controller configuration of DPM sever atleast on a monthly basis as well as immediately after disk/RAID controller repairs/ upgrade.

It may also be mentioned that RAID controller configuration backup can be taken only through RAID monitoring utility, which is available at no extra charge. Participants are therefore advised to source the utility from their vendor if not already installed on their DPM server. Further, Participants are advised to maintain a record of the backup of ERD and RAID configuration, in their Backup Register. Participants may contact NSDL Help Desk in case of difficulty in creating ERD and in taking backup of RAID configuration. Circular No. NSDL/PI/2001/678 Date : May 18, 2001 NSDL has mandated use of RAID (Redundant Array of Inexpensive Disk) hard disk for housing of DPM database on DPM Server. RAID implementation provides for redundancy and thus first failure of disk does not lead to loss of data but just the redundancy. However, it is important to become aware of this first failure so that Participants can call hardware engineer and get the problem fixed. If the problem is not fixed promptly and the second hard disk fails, then this will result in loss of data. Windows NT Operating System does not detect the first hard disk failure. However, the failure of the disk can be easily discovered through visual inspection of the activity lights on the hard disk. Each disk has a separate activity light, which flickers with a level of activity and bears either green or amber/red colour as explained below: If disk drive is functioning normally, its activity light will flicker in green colour. All activity lights flickering in green colour indicate that disks subsystem is functioning normally. The activity light of a disk drive will turn amber or red in colour if the drive is in-operational. The activity lights of other normal disks will continue to flicker in green. Thus finding one of the activity light in red/amber colour indicate that a drive has developed a problem. Participants are advised that their system staff visually inspect the condition of activity lights of DPM Server disk sub-system once in a day and confirm that all drives are operating normally. In case they notice one of the activity light flickering in red/amber colour then they must report the problem to NSDL help desk and seek guidance. Participants are advised not to attempt resolution of this hardware problem through their vendor until it is cleared by informing NSDL help desk. Participants are further advised to maintain safe copy of RAID configuration backup and also Emergency Repair Disk (ERD) to deal with Operating System related problem. Participants should also ensure that log file replication is ON and ensure that all required backups are taken in accordance with the procedures prescribed by NSDL. DPM system - Monitoring messages & Releasing instructions Circular No. NSDL/PI/2002/1004 Date: June 22, 2002 It has been observed that Participants do not execute (verify/release) the instructions if Beginning of Day (BOD) message is not received by the DPM System. Participants may note that instructions such as account transfers, inter-settlement transfers, CM Pool to CM Pool transfers, Delivery Outs, Deferred Delivery Orders and Inter Depository transfers can be captured and verified/released even if BOD has not been received by the DPM System.

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Thus, the instructions which are verified/released before the receipt of BOD will be transmitted to NSDL immediately and such instructions will be processed, provided all the services are running successfully at the Participant's end. However, Participants are advised to remain in contact with NSDL Help Desk and also ensure that all instructions have been transmitted to NSDL. Further, the status of such instructions may appear as "In Transit to NSDL" in the DPM System and once the BOD is received, the status will change to "Overdue" / "Accepted by NSDL" / "Closed Settled", as the case may be. Further, NSDL Help Desk has been receiving calls about instructions remaining in status "In transit to NSDL". In this context, Participants are advised that the "Message Control Panel" under GISMO allows the Participants to view the status of incoming and out-going messages. The outgoing messages can be viewed in the "Transmit" queue. Participants should monitor the status of the messages, especially the messages which are in status "To be Transmitted" or " In Transmission ", at regular intervals. In order to find the latest status, Participant should query repeatedly since message control panel does not refresh automatically. The messages in the transmit queue undergoes the following status changes which are highlighted with the following colours: Status To be Transmitted In Transmission Reason Message is waiting in queue to be transmitted to NSDL. Message has been picked by comms service for delivering to NSDL but waiting for acknowledgment from NSDL. The message has received acknowledgment from NSDL. When there is a message format mismatch between the DPM and NSDL systems. In such case an error number will be indicated in the status field. In case of network failure when the messages have been sent to NSDL via Magnetic media instead of online link Colour Red Yellow

Transmitted Others

White Blue

Transmitted by DAT

Grey

Participants are also advised to note the following: 1) The status of the messages will change from "To be Transmitted" to "In Transmission" and finally to "Transmitted", provided NSDL Interface Transmit, NSDL Interface Receive and Comms services are running without any application errors. In case the messages remain in status "To be Transmitted" or "In Transmission" for a long time or in status "Others", Participant should inform NSDL Help Desk immediately. Participants must ensure through GISMO panel that Communications to NSDL, NSDL Interface Transmit, NSDL Interface Receive, Ping to NSDL and Ping to router are functioning successfully. However, if Communications to NSDL, NSDL Interface Transmit and NSDL Interface Receive stops or Ping to NSDL and Ping to router fails, Participant must report the same to NSDL Help Desk immediately.

2)

3)

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DPM System - Reporting problem to NSDL Helpdesk Circular No. NSDL/POLICY/ 2009/0122 Date: December 15, 2009 Sub: Query resolution confirmation email for Token Number issued to Participants As all Participants are aware, token number is issued to the Participants for the purpose of subsequent follow up, speedy resolution and escalation of system related problems reported by them at the NSDL Help-Desk. In this context, Participants are informed that subsequent to resolution of every problem registered specific to the token number in NSDL system, an email will be sent to the MS-Exchange email ID of every Participant. Attention of the Participants is invited to the circular no. NSDL/ PI/98/353 dated August 6, 1998 regarding Operating Instructions for the day-to-day depository operations. In this regard, it is advised that all problems especially relating to hardware/software/communications and status of instructions entered in the DPM system should be promptly reported at the NSDL HelpDesk. Kindly ensure to obtain a token number for the problem reported and quote the same for subsequent follow-up with NSDL. The HelpDesk telephone numbers are : 4945177, 4976341, 4975243, 4972964-70 (Extn. 4037 and 4038).

Circular No. NSDL/PI/98/517 Date : October 12, 1998

DPM System - Upgrading DPM hardware- Prior permission of NSDL Circular No. NSDL/PI/99/106 Date : February 18, 1999 All Participants are hereby advised that any upgradation of the DPM Hardware should be undertaken only after obtaining prior permission from NSDL. Participants are advised to ensure the following before proceeding with any upgradation : (i) Inform NSDL atleast a week in advance about the details of the proposed upgradation of hardware. (ii) Time schedule for upgradation shall be fixed in consultation with NSDL. (iii) All requisite steps as may be specified by NSDL for this purposes shall be carried out. (iv) Revised Form 'B' must be submitted to NSDL. Participants are cautioned that any unilateral upgradation of the DPM hardware may result in the failure of the system, seriously jeopardising their day-today depository operations causing losses to their clients. DPM System - Security administration Circular No. NSDL/PI/2002/1862 Date : October 26, 2002 Further to our Circular No. NSDL/PI/2000/820 dated May 31, 2000 regarding guidelines related to Password management, all Participants are hereby advised to observe the following guidelines for Router password management: Length of the Password should be atleast 8 characters. Password should be changed every 60 days. Participants are advised to implement the aforesaid with immediate effect and follow specific guidelines mentioned in the aforesaid circular for Password management. Circular No. NSDL/PI/2000/820 Date : May 31, 2000 As all Participants are aware, the application software supplied by NSDL to its Participants provides a facility to secure the application using password. Participants are advised to create "ADMIN User" who will act as the System Administrator for NSDL DPM Application while installing the Application. This ADMIN User in turn will create various Users who will have the access to various parts of DPM Application. These Users can perform various functions in DPM Application depending upon the rights given to them by ADMIN User. The details on how to create function groups and the structure of access rights are provided in the User's Manual supplied by NSDL. It is recommended to have only one employee in the organization with ADMIN level access to the DPM Application. However, his/her Password may be kept in sealed envelope with the Data Security Officer or any other designated officer so that in the

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absence of ADMIN User, his/her duties can be performed by referring to the password so preserved. A record of the events of taking the password from the envelope should be maintained to keep an audit trail. Whenever the password is used in this process, it is advised that the password is changed and the new password is preserved. A similar practice may be implemented for preserving passwords of other devices like NT, Server, Desktop and Router. General Guidelines on Password management: Length of the Password can be Minimum 6 Characters. It is recommended that the length of password should be 8 characters. Password can have alpha, numeric or special characters in any order. It is recommended that the first character is an alphabet. Password should not be related to or resemble the name of the user or kith and kin of the user. Password should not be a dictionary word or name of the location/city/ town/building/organisation in which the machine is located. Password may be changed every 60 days. ADMIN User is requested to change the status of a User to 'Suspended' if the User goes on leave for more than two days to avoid misuse of the User Id by other Users.The status can be made active once the User resumes the duty. It is recommended that the status of a User be changed to 'Closed' if the User leaves the organization.

Participants are advised to implement these guidelines with immediate effect. DPM setup after upgradation - Checklist for Compliance Circular No. NSDL/PI/2004/0648 Date : April 10,2004 NSDL, vide its circulars, has been prescribing certain procedures that are to be followed by Participants after they carry out any significant change in the hardware / software used for depository purposes such as: 1) 2) 3) 4) 5) upgradation of the server used for DPM activities replacement of server server migration reconfiguration of the server reloading of server Operating System and related software

It has been observed that some Participants are not complying with these requirements and as a result face problems in their routine depository related operations. For the benefit of the Participants, a checklist of activities to be performed after any of the abovementioned activities are carried out, has been compiled, as follows: Sr. No. 1 Description Separate HDD for Operating System and database to reside on RAID configured drive Configuration of server to ensure Robocopy feature is enabled for copying the transaction logs on the Client machine Circular No. NSDL/PI/2002/1174 Date July 18, 2002

NSDL/PI/2002/0656

April 19, 2002

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Sr. No. 3 4 5 6

Description Installation of Latest Anti-virus software Installation of RAID Monitoring utility ERD and RAID configuration backup Installation of WinZip / ZipITfast or compatible zipping software Submission of Revised Form B

Circular No. NSDL/PI/2002/1684 NSDL/PI/2002/1262 NSDL/PI/2002/1262 NSDL/PI/2002/2060

Date October 3, 2002 July 29, 2002 July 29, 2002 Nove., 28, 2002 Dec. 2, 2002

NSDL/PI/2002/2068

Besides, Participants are advised to ensure that: 1) 2) 3) 4) 5) the number of SQL Server licenses are reconfigured as per the details provided by NSDL; modem is configured and tested for RAS and PPP connectivity so that it can be used as a fallback means of connectivity; service packs for Windows server are duly installed; MS Exchange utility is installed and configured to send and receive emails from NSDL; and NETBUEI protocol on server is installed to communicate with client machines during PPP connectivity.

Participants are advised to ensure compliance of the above. NSDL email server Circular No. NSDL/PI/2004/0690 Date : April 19,2004 As all Participants are aware, NSDL is providing an e-mail based communication for its Participants. Using this facility, Participants can receive / send e-mails through Microsoft Exchange Client software installed on NSDL DPM server and a Client machine. At present, Participants can use this facility between 6 p.m. and 9 a.m. NSDL is upgrading its e-mail server which will be accessible using Microsoft Outlook Express. Pursuant to the upgradation, Participants who are connected to NSDL through leased line will be able to access this facility for 24 hours. However, there will be no change in the timings for Participants who are connected to NSDL through VSAT. All Participants are hereby advised to perform the following activities: a) install and configure Microsoft Outlook Express (which is installable as part of Internet Explorer version 5.5 or 6.0) on NSDL DPM server and a Client machine as per the instructions given in the "Installation and Configuration Manual for Outlook Express" provided at NSDL Intranet http//sqlassist. send a test mail to NSDL Help Desk from the NSDL DPM server as well as the Client machine indicating the successful installation of Microsoft Outlook Express.

b)

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c)

uninstall the existing Microsoft Exchange Client software from their NSDL DPM server and Client machine.

Participants are advised to complete the above activities on or before April 30, 2004. Any failure in complying with the above will result in Participants not able to receive / send e-mail based communications. Phasing out of CISCO Router 2500 series Circular No. NSDL/PI/2005/1364 Date: July 27, 2005 Attention of all Participants is invited to Circular no NSDL/PI/2004/1421 dated August 9, 2004 wherein Participants were informed about phasing out of CISCO 2500 series router, as CISCO has discontinued supply of spare parts for the said series. It is observed that a number of Participants are still working on CISCO 2500 series router. NSDL would like to reiterate that any fault /mechanical failure in the router would disrupt the depository activities of the Participants, as timely replacement may not be available. As Participants are carrying out time critical depository operations and to ensure smooth business operations, Participants are hereby advised to replace CISCO 2500 series router with models as specified in Circular no NSDL/PI/ 2004/1968 dated October 29, 2004. Circular No. NSDL/PI/2004/1421 Date: August 9,2004 All Participants are hereby informed that CISCO has declared end of service life for its 2500 series router, which is one of the models empanelled by NSDL. Vendors who have stocked spare parts for CISCO 2500 series router may be in a position to offer the service / replacement for faulty parts till stocks last, but CISCO has informed that they will not supply new spare parts. Considering the above factors and the requirement of maintaining continuous electronic connectivity with NSDL, Participants are advised to phase out this model of router by acquiring one of the current empanelled routers. Further, upgradation of router should be undertaken only after obtaining a detailed technical guidance and clearance from NSDL Help Desk. Subsequent to the migration, Participants should submit revised form-B to NSDL. b. Backup DPM System - Importance of taking backup Regulation 50 Where records are kept electronically by the participant, it shall ensure that the integrity of the data processing systems is maintained at all times and take all precautions necessary to ensure that the records are not lost, destroyed or tampered with and in the event of loss or destruction, ensure that sufficient back up of records is available at all times at a different place

Creation of Automated System Recovery backup in Windows 2003 Server Circular No. NSDL/POLICY/2008/ 0069 Date: October 10, 2008 Sub : Creation of Automated System Recovery backup in Windows 2003 Server At present it is mandatory for Business Partners of NSDL (which have windows 2000 server as their DPM server OS) to take backup of Emergency Repair Disk (ERD) as per the prescribed procedure. NSDL has advised Business Partners to upgrade from Windows 2000 server to Windows 2003 server as Microsoft has withdrawn support on Windows 2000 Server. Microsoft Windows 2003 Server Operating System allows creation of Automated System Recovery (ASR) backup instead of Emergency Repair Disk (ERD)

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available for Windows NT / Windows 2000 Operating Systems. The Automated System Recovery backs up the System State data, system services, and all disk configuration information needed to boot the operating system. ASR backup also creates a floppy disk, which contains information about the backup, the disk configurations (including basic and dynamic volumes).It may be noted that ASR backup does not include data files. The ASR Wizard after creating the ASR floppy disk creates the ASR backup file on the hard disk of the Server which is around 800 MB or higher in size. Please make sure this backup file is created on disk drive other than C Drive of Server where more than 5 GB free space is available. After creation the ASR backup file has to be copied to hard disk of any client machine. The procedure for taking the ASR backup is attached as Annexure-I. In view of the aforesaid, Participants having Windows 2003 Server is advised as follows: 1. Create fresh copy of ASR backup of DPM server atleast on a bi-monthly basis as well as immediately after any changes are effected to Hardware/ Software configuration of the server. Participants are advised to maintain a record of the backup of ASR in their Backup Register The details of ASR backup would be verified during the System Inspections.

2. 3.

Participants may contact Sanjay Mirchandani on Tel No. (022) 2499 4454, Sankalp Parlia on Tel No. (022) 2499 4451 or Vikas Gorule on Tel No. (022) 2499 4455 in case of any query regarding ASR backup or in case of difficulty in creating ASR Backup. Backup on holidays & Penalty Circular No. NSDL/PI/2002/0474 Date: March 21,2002 Attention of the Participants is invited to Rule 18.1.1 (ii) of the Business Rules of NSDL, regarding levy of penalty of Rs. 5000/- for not taking daily backup and/or deviation in the procedure for taking backup. In this context, it has been observed that some Participants are not taking backup on a daily basis, especially on holidays. It should be noted that on a holiday, if the DPM server is kept on with communication service running, then the Participant should take a backup. Any failure in this regard will attract the aforementioned penalty. NSDL requires all business partners (all depository participants, share registrars, companies doing share registry work) to take the back-up of their data regularly and to store this back-up at a site other than the site where the hardware etc. having connectivity with NSDL is located. In order to ensure that the business partners are indeed taking the backup regularly, NSDL calls for the back-up DATs from its business partners from time to time. It has been observed that while some business partners are taking the backup regularly and in accordance with the procedure, many are not. It has also been found that in some cases the response to our demand for the back-up DATs is slow and is forthcoming only on repeated reminders. NSDL would like to reiterate to its business partners that they will not only jeopardise their own ability to continue business in the event of a disaster but will create

Circular No. NSDL/PI/98/016 Date : January 6,1998

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difficulties for the whole system if proper back-ups are not taken. It is therefore necessary for the business partners to maintain a minimum acceptable standard. The question of failure to take a back-up was considered by the Executive Committee of NSDL in its last meeting. Considering the gravity of the matter, the Committee decided that on the first occasion when a business partner is found to have not taken the back-up daily or that the back-up taken by the business partner is taken without following the proper procedure, the partner will be warned and on subsequent occasions of default, a penalty be levied. This may be followed by further disciplinary action if repeated defaults are noticed. NSDL would prefer not to be required to take this measure. Considering the fact that quite some time has lapsed since some of the business partners have undergone training, it has been decided to hold a special half day training programme focusing exclusively on the correct back-up procedure and related practices. This training would be offered free for one person from each business partner. If any additional demand is received from the business partners, the training would be offered again on the basis of a charge. We would request you to send your nominations to NSDL in case you wish to avail of this opportunity. The exact date of training will be communicated to you separately. We intend to start implementing the decision of the Executive Committee after the special training is over. We would request our business partners to bring this circular to the notice of their senior management. The compliance officers of business partners should review the present practice of taking back-ups within their respective organisations. FAQs for backup Circular No. NSDL/PI/98/215 Date : June 5, 1998 NSDL has been receiving number of queries at the Help-Desk regarding backups. Many such queries are repetitive in nature. In this context, NSDL has compiled a document of Frequently Asked Questions (FAQs) on backups and the solutions for the same, which is enclosed. This will help the Participants in resolving problems quickly and will save on cost and time spent in making telephone calls to the Help-Desk. It is envisaged that Participants would attempt the solutions recommended in the document before communicating to Help-Desk for resolving the problems. Participants are once again advised to strictly follow the back-up procedures stipulated by NSDL. This is essential as it ensures safety of your data and in a situation of crisis you can recover only if you take correct backup. Your business recovery plan would be severely jeopardised if you do not take a correct backup. Frequently Asked Questions & Solutions thereof on Backups NSDL Help Desk has reviewed the problems reported for Backup procedure over the last few months and has identified a set of questions that are frequently asked by Participants. This document on 'Frequently Asked Questions' (FAQ) and solutions thereof is prepared for quick reference of Participants. Q1. Why to take backup on daily basis? If the system breaks down, with latest available backup of database and transaction log, the database of the Participant can be rebuilt. The backup is

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the only media by which the Participant's database can be reconstructed. Q2. From where to take backup? It is advised to take a backup from GISMO application which is on the NSDL DPM server. Q3. What should be the sequence of taking the backup? The sequence of taking backup using GISMO should be as follows: I. II. III. IV. V. NSDLDPM -Transaction log (opm_transnsdl) NSDLDPM - Database MASTER - Database MSDB - Database Backup to tape

Q4. How to take backup? A summary of various steps to be performed while taking database and transaction log backup is given below. Participants are advised to refer to the Backup Procedure Manual for the detailed steps to be performed. A. Device name terminology: Names of the database devices which are to be backed up by the Participant, are as mentioned below : 1. 2. 3. 4. B. opm_transnsdl : For transaction log device backup for User DataBase opm_dbnsdl : For User DataBase (NSDLDPM /NSDLSHR / NSDLCC) opm_dbmast : For Master DataBase opm_dbms : For MSDB DataBase

Backup Procedure: Backup is first to be taken on hard disk and then on DATs as explained below: Log-in to GISMO panel on the server with User-Id "Backup". Take transaction log device backup by selecting "Backup" icon, then go to "NSDLDPM" and click on "Transaction" Take database backup of NSDLDPM by selecting "Backup" icon, then go to "NSDLDPM" and click on "Database" Take backup of Master database by selecting "Backup" icon, then go to "MASTER" and click on "Database" Take backup of MSDB database by selecting "Backup" icon, then go to "MSDB" and click on "Database"

Step 1 : Backup on Hard disk: 1. 2. 3. 4. 5.

With this, the user completes taking backup on the Hard-disk. Step 2 : Backup on DAT : Database Backup 1. 2. 3. 4. 5. Insert the relevant database DAT (i.e. odd or even) into the DAT drive. Go to GISMO panel Select "Backup" icon, then click on "Backup to tape" Select all the files "opm_dbnsdl" for user Database, "opm_dbmast" for Master Database and "opm_dbms" for MSDB Database Click on Backup. This will initiate the backup procedure.

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6.

In case the system flashes a message "The tape is full. The tape has been rewound. Insert the next tape for this backup", the backup may be continued on the next tape. However, it must be ensured that the label of the DAT should indicate that the backup of that day is taken on two separate DATs. After the system flashes the message "Operation was successfully completed", as the backup is completed, remove the DAT. Repeat the above procedure for remote site DAT. Insert the relevant transaction DAT (i.e. odd or even) into the DAT drive. Go to GISMO panel Select "Backup" icon, then click on "Backup to tape" Select the file "opm_transnsdl" for taking backup of transaction log devise backup Also select all the system-generated automatic transaction log files generated after the last database backup. The filenames of these are "Transnsdldpm980324150000.dat" having the date and time stamp. Click on Backup. This will initiate the backup procedure. In case the system flashes a message "The tape is full. The tape has been rewound. Insert the next tape for this backup.", the backup may be continued on the next tape. However, it must be ensured that the label of the DAT should indicate that the backup of that day is taken on two separate DATs. After the system flashes the message "Operation was sucessfully completed", as the backup is completed, remove the DAT. Repeat the above procedure for remote site DAT.

7. 8. 1. 2. 3. 4. 5.

Transaction log Backup (Device & Automatic)

6. 7.

8. 9.

Q5. When to take backup? Backup should be taken daily after the EOD is complete. Further, it should be ensured that the backup is never taken when the "Systems Operation Profile" shows status "EOD IN PROCESS". In case of an emergency, when the Participant cannot stay till the EOD is complete, then it is advised that the Participant should take backup and switch off the server. Q6. What if the server is on throughout the night? If the Participant keeps the server on throughout the night, then it should be ensured that the three services (receive, transmit and communications) which are automatically stopped during the backup are started again immediately after taking backup (i.e. backup of Day 1). While taking the backup on the next day (backup of Day 2), the backup of the transaction log files generated after taking backup of Day 1 should also be taken. Please refer to answer to question 12 for further clarifications. Q7. What is meant by database backup & transaction log backup? Database backup means the backup of master, msdb & nsdldpm databases. Transaction log backup means the backup of transaction log device file (opm_transnsdl) and the automatic (system-generated) transaction log files as of that day.

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Q8. What is meant by device transaction & automatic transaction? Devise transaction means the transaction log device backup taken by the Participant. Automatic transaction log means the backup which the system takes by itself. It is stored in "c:\mssql\backup" directory on the server. The format of the filename is Transnsdldpmyymmddhhmmss.dat". Here 'yy' stands for year, 'mm' stands for the month, 'dd' stands for date & 'hhmmss' stands for the time, e.g. transnsdldpm 980312140200.dat indicates a transaction log file which was generated by the system on 12th March, 1998 at 2.02 pm.

Q9. What is to be done if automatic transaction is not generated? The BOD message triggers generation of automatic transaction log files, hence check if you have received the BOD as of that day. Secondly, check whether all the three services (receive, transmit and communications) are started. If the problem still persists contact NSDL Helpdesk. Q10. How many DAT's are required for backup and for how much time should it be retained? At any point of time, a minimum of nine DATs are required which are to be used as follows : 1st Set : (For Local Storage) i. ii. iii. iv. i. ii. iii. iv. Odd date's transaction log backup Odd date's database backup Even date's transaction log backup Even date's database backup Odd date's transaction log backup Odd date's database backup Even date's transaction log backup Even date's database backup

2nd Set : (For Remote Storage)

In addition, one DAT will be required for full harddisk backup for special events such as Upgrade of NSDL software, etc. Once a DAT is full it has to be retained for a period of 90 days, following which it can be reused. Q11. What if the DAT drive stops working ? If the DAT drive is giving error during backup, then the participant should immediately inform NSDL help-desk and call the hardware vendor. The backup must be taken on the client machine, as an interim arrangement, until the problem is resolved. This can be achieved by using Network Neighbourhood on client or on server. Once the DAT drive problem is fixed, the Participant must first take backup of missing days from clientmachine onto the DAT & must continue the sequence onwards. Q12. What database and transaction log form a correct set ? NSDL verifies the backups taken by the Participants at regular intervals to ensure that the Participants follow the correct backup procedure. As a part of backup verification, the procedure described below is followed : Restore the database as of the specified date

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Restore all the transaction logs generated after that backup, sequentially (in the order of date & time stamp), on the database.

So, while sending backup DATs to NSDL for verification, kindly ensure that the database backup as of date mentioned in NSDL letter and the transaction log backup as of the next day is sent. In case a Participant keeps the server on throughout the night, then it should be ensured that the transaction DAT contains backup of all the system generated transaction log files, generated after the database backup of the date specified in NSDL letter, in addition to next day's transaction log backup. In case the backup is split across two DATs, both the DATs should be sent to NSDL. The same is explained in the diagram below : Where t1, t2, ...t9 -> automatic (system generated) transaction log files generated for Day 1 (i.e. on 12/03/98) T1, T2, ...T8 -> automatic (system generated) transaction log files generated for Day 2 (i.e. on 13/03/98) TD1 -> transaction log device backup taken on Day 1 (i.e. on 12/03/098) TD2 -> transaction log device backup taken on Day 2 (i.e. on 13/03/098) D1 -> Database backup taken on Day 1 (i.e. on 12/03/98) D2 -> Database backup taken on Day 2 (i.e. on 13/03/98) It is assumed in the above diagram that on both the days the backup was taken before the EOD and the server was kept on, hence the system generated hourly transaction log files (t8, t9 & T8 ) after the backup. While taking backup on 13/03/98, it should be ensured to take backup of all files generated after database backup of 12/03/98 (i.e. t8, t9, T1, T2,...T7, TD2) If NSDL asks for database backup of 12/03/98 and transaction log backup of 13/03/98 for verification, then while sending DATs to NSDL ensure that all the files from D1 to TD2 are sent. It may be noted that if the backup is taken after EOD, the files t8, t9, T8 (as shown above) will not be generated at all. DPM System - Backups Circular No. Sub: Alternative back-up devices for taking back-up NSDL/POLICY/ In continuation of Circular No. NSDL/POLICY/2009/0075 dated August 28, 2009/0119 2009 regarding facility to take back-up in other alternative back-up devices Date: December 7, 2009 (other than DAT), all Participants are hereby informed that Participants are no longer required to take prior approval from NSDL if they wish to take back-up on any of the specified back-up devices as mentioned in aforesaid circular. Participants will be required to submit revised Form B as provided at NSDL Circular No.: NSDL/POLICY/2009/0075 August 28, 2009 if they wish to take back-up on such devices. Participant may please note that at the time of disaster / emergency / inspection, whenever the local or remote back-up is called for, Participants must have capability to provide the back-up data in any one of the following media: (i) (ii) (iii) USB (Universal Serial Bus) disk DVD (Digital Versatile Disk) DAT (Digital Audio Tape)

Please note that USB disk is required to be handled with more care during transportation. It is advised to use a hard case to store and transport USB disk. In case of any further information / clarification is required, Participants are

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requested to contact Mr. Sanjay Mirchandani / Mr. Sankalp Parlia / Mr. Ganesh Pawar / Mr. Rahul Mehta / Mr. Vikas Gorule at (022) 2499 4454 / 4451 / 4447 / 4456 / 4455. Circular No. NSDL/POLICY/ 2009/0075 Date: August 28, 2009 Sub: Alternative back-up devices for taking back-up Attention of Participants is invited to NSDL Circular No. NSDL/PMC/Email-44/ 05 dated March 11, 2005 regarding facility to take back-up in other alternative back-up devices (other than DAT). In this regard, a few suggested alternative back-up devices on which Participants may take the back-up, subject to the database size, transaction volumes etc., are as follows: (i) (ii) (iii) (iv) USB (Universal Serial Bus) disk DVD (Digital Versatile Disk) writer DLT (Digital Linear Tape) LTO (Linear Tape Open)

Participants will be required to take prior approval from NSDL by submitting revised Form B indicating any of the above devices or any other device of their choice if they wish to take back-up on such devices other than DAT. If the existing back-up operations remain unchanged, Participants need not submit the revised Form B. The revised mode of submitting Form B is provided at NSDL Circular No. NSDL/POLICY/2009/0070 dated August 17, 2009. In case of any further information / clarification is required, Participants are requested to contact Mr.Sanjay Mirchandani / Mr.Sankalp Parlia / Mr.Ganesh Pawar / Mr.Rahul Mehta / Mr.Vikas Gorule at (022) 2499 4454 / 4451 / 4447 / 4456 / 4455. Circular No. NSDL/POLICY/ 2009/0072 Date: August 27, 2009 Reduction in retention period of back-up tapes from existing 60 days to 30 days for backup taken on Saturdays As all Participants are aware, it is important to take backups of the DPM system on a daily basis. NSDL has been advising Participants about the importance of taking regular backups for ensuring safety of their data and continuity of its operations. Taking of regular backup as per the stipulated procedure will help Participants to recover the database in a situation of crisis, which otherwise would severely jeopardize the business recovery plan. Participants are required to maintain the back-up taken on weekdays for the period of 15 days and on Saturdays for a period of 60 days. NSDL has received suggestions from Participants for reduction in the period for which backup tapes are to be preserved. Considering these suggestions, the following amendment is made in the Backup Policy. Backup taken for Saturdays (Friday, if Saturday is a holiday) shall be preserved for a period of 30 days instead of 60 days. However, the current policy to preserve the backup for weekdays for 15 days remains unchanged. There is no change in other aspects of backup policy. All Participants are requested to take note of the above. Circular No. NSDL/POLICY/ 2009/0062 Date: July 21, 2009 Sub: Daily Backups of database for NSDL DPM system As all Participants are aware, it is important to take backups of the DPM system on a daily basis. Taking regular backups as per the stipulated procedure will help Participants recover the database in a situation of crisis, which otherwise could severely jeopardize business recovery plan and recreation of the database of the DPM system. In the event of DPM system crash, NSDL may assist the Participant in recreating the database to the extent feasible. In case the previous day's proper backup is available, then recreation of the DPM system would be done without any charge. However, if the proper backup is more than a day old, then the Participant will be charged Rs. 10,000 plus Rs. 2,000 per man hour of NSDL time spent in recreating the database.

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Circular No. NSDL/PI/2003/0355 Date: March 3,2003

Attention of Participants is invited to our Circular No. NSDL/PI/98/215 dated June 5, 1998 regarding FAQs on backup, whereby Participants were advised to take two copies of backup of database as well as transaction logs, one to be retained locally where DPM is located and the other to be kept in a remote location, distant from the DPM system. This was prescribed so as to meet exigencies arising out of certain calamities viz.; earthquake, fire accident, etc., whereby the DPM system can be made operational using the backup. The remote site backup can be very handy if the main site backup is not accessible/lost/not retrievable. In order to ensure business continuity of the depository operations, Participants are advised as follows: Keep the backups at a place distant from the place of operations; Maintain backup of all important documents viz.; Account opening forms, DP-Client agreements, signature cards etc. at a distant place from the place of operations, so that in case of any exigencies, the work is not hampered. Alternatively, Participants may consider keeping all such documents in electronic form at a distant place; and Keep the backup DATs as well as the aforesaid physical documents in a fireproof cabinet.

In case Participants need any assistance in this regard, they may contact NSDL Help Desk. Circular No. NSDL /PMC/ Email -24/02 Date : May 13, 2002 Sub : Back up Policy - Certain amendments NSDL has circulated backup policy in the CD for Integrated Software version 2.91 and 3.0 upgrade and vide circular No.NSDL/PMC/Email-18/02 dated 05th April 2002. NSDL has received suggestions from the Business Partners for reduction in the period for which backup tapes are to be preserved. DPs who are working in three shifts every day have also expressed difficulty in sending backup DAT to the remote site out of office at night. Keeping these suggestions in view, the following amendments are made in the Backup Policy. The Backup DAT should be preserved for the period of 15 Days instead of the present 60 days. However the backup taken on Saturday (Friday if Saturday is a holiday) shall be preserved for a period of 60 days. DPs must retain backup taken for version upgrade ( both pre & post) The Backup Dat meant to be sent to remote site may be sent to remote site on the next working Day, as early as possible but not later than 1.00 p.m. next day. There is no change in other aspects of backup policy This circular comes into force with immediate effect The importance of taking proper back-ups on every single day as per the procedure prescribed by NSDL has been time and again brought to the notice of the Participants. In order to ensure that the Participants are indeed taking the backup regularly, NSDL calls for the back-up DATs from its Participants from time to time. It has been observed that while many Participants are taking the back-up of their data regularly and in accordance with the procedure, some of them still do not take proper back-ups. It is observed that the major reason for taking improper backups is when the back-up is not taken by the regular person. The Compliance Officers of all Participants are requested to take note of the same and ensure to put adequate systems in place to avoid such occurrences. In the event of a difficulty such as hard disc crash etc., NSDL assists the Participants in recreating its database. It has been decided by the Executive Committee of NSDL that in such an eventuality, in case the previous day's proper back-up is available, then recreation of the DPM system would be

Circular No. NSDL/PI/99/697 Date: August 31,1999

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done without any charge. However, if the proper back-up is more than a day old, then the Participant may be charged Rs. 1000/- per man hour of NSDL time spent in recreating the database, subject to a minimum of Rs. 2000/-. The charges will be without prejudice to any other action, NSDL may initiate considering the seriousness of the problem. c. Anti-virus Circular No.: NSDL/PI/2002/1684 Date: October 3,2002 Participants are aware that they are required to install Anti-Virus software on server as well as on all the client machines of NSDL DPM setup. Also, in order to protect the DPM setup against new viruses, Participants are advised to ensure that latest version of Anti-Virus software is installed on the DPM setup. For this purpose, Participants should upgrade the Anti-Virus software, atleast once a week, for which, Participants may undertake Annual Subscription Contract (ASC) from the authorised dealer of the Anti-Virus software. In order to keep Participants informed about the latest version of Anti-Virus software, NSDL has posted this information on NSDL Intranet Server (http:// sqlassist), for the below mentioned Anti-Virus softwares, generally used by Participants: 1. Norton Anti-Virus 2. McAfee Anti-Virus 3. CA Innoculate Anti-Virus 4. Trendmicro Anti-Virus 5. F-Prot Anti-Virus 6. Quick-Heal Anti-Virus Participants should compare the below mentioned parameters of the AntiVirus software installed on their DPM setup with that posted on NSDL Intranet server and carryout the upgrade, if required: 1. Virus Definition files and version 2. Release date of the Virus definition file 3. Scan engine name and version 4. Release date of the scan engine Participant can find out the details of Anti-Virus installed and its version by right clicking on the Anti-Virus icon appearing on the task bar and then selecting the option "About". Details of aforesaid Anti-Virus softwares as of September 30, 2002 for abovementioned parameters and the URL's from where the latest version of Anti-Virus software can be downloaded are enclosed as Annexure. Participants are advised to ensure compliance of the above. Anti-Virus definition file & Scan engine Details: Definition of terms used Virus Definition Files: Virus definition files contain up-to-date virus signatures and other information that anti-virus products use to protect your computer against the thousands of computer viruses in circulation. Virus definition files are regularly updated to provide protection against the hundreds of new viruses that appear each month. To ensure that your Anti-Virus software can protect your system or network against the latest virus threats download and install the latest virus definition file.

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Scan Engine: A virus scan engine is the program that does the actual work of scanning and detecting viruses while signature files are the 'fingerprints' used by the scanning engines to identify viruses. New scan engine versions are released for a number of reasons. About 6 to 8 new viruses are found everyday around the world. The old engine may not detect new types of viruses. New versions of scanning engine usually also enhance scanning performance and detection rates. Some vendors provide updates for both the scanning engine and signature file in a single file while others will provide them in separate files Update scanning engine if newer scanning engine exists. Details of latest version of Anti-Virus software Previous update Antivirus Norton Antivirus McAfee Antivirus Definition File Ver.9/20/02 rev.7 Ver.4224 20 Sept 02 Scan Engine Ver. 4.1.0.15 Ver. 4160 28 Nov 01 InoculateIT 6.0 Vet Engine Signature Ver 10.53.4118 20 Sept 02 Ver. 6.150 27 March 02 File :-Macro.def 06 Sept 02 Document/Office /Micro/Virus Latest update Definition File Ver.9/27/02 rev.4 Ver.4225 25 Sept 02 InoculateIT 6.0 e Signature Ver 23.57.49 27 Sept 02 Pattern 353 24 Sept 02 File- Sign .def 22 Sept 2002 Application/ script Viruses & Trojans Scan engine Ver. 4.1.0.15 Ver. 4160 28 Nov 01 InoculateIT 6.0 Vet Engine Signature Ver 10.53.4129 27 Sept 02 Ver. 6.150 27 March 02 File :-Macro.def 22 Sept 02 Document/ Office/Micro/ Virus

CA Antivirus InoculateIT 6.0 e Signature Ver 23.57.44 20 Sept 02 Trendmicro Antivirus F-Prot Antivirus Pattern 351 17 Sept 02 File- Sign .def 14 Sept 2002 Application/ script Viruses & Trojans File-weekly.def 28 Aug 2002

Quick-Heal Antivirus

Engine upgrade Definition File 27 April 02

File-weekly.def Engine upgrade 07 Sept 2002 Definition File 25 Sept 02

Details of URL's from where the latest version of Anti-Virus Definition and Scan engine can be downloaded: Norton Antivirus: http://securityresponse.symantec.com/avcenter/download/ pages/US-N95.html McAfee Antivirus: http://www.mcafeeb2b.com/naicommon/download/dats/ find.asp CA Antivirus: http://support.ca.com/Download/virussig.html Trendmicro Antivirus: http://www.trendmicro.com/download/ F-Prot Antivirus: http://www.f-prot.com/download/index.html Quick-Heal Antivirus: http://www.quickheal.com/default.htm

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FAQs on Anti-virus Circular No. NSDL/PI/2002/1865 Date: October 28,2002 Frequently asked questions on Anti Virus Update requirements Q. A. What is Anti Virus Update? Anti Virus Update is the process for updating the Virus Definition Files which contain up-to-date Virus signatures and other information that the Anti Virus Software uses to protect computer systems against known computer Virus in circulation. What is Anti Virus Upgrade? Anti Virus Upgrade is the process for upgrading the ability of the Virus Scan Engines to detect newly introduced Virus. With its inbuilt logic and Virus Definition Files, the Virus Scan Engine scans and detects computer Virus hidden in any known form. However, new Virus may use methods that cannot be detected by old Virus Scan Engines. Hence, Anti Virus Software companies provide upgrades whereby, the ability of the Virus Scan Engines is further refined. Where can I get information on the latest versions of Virus Definition Files and Virus Scan Engines? Anti Virus Software developers provide this information on their web sites. You are allowed to download the Virus Scan Engine and Virus Definition Files from these web sites. The permission for downloading the Virus Scan Engine depends on the licensing policy of the software vendor.NSDL also provides information on its Intranet, http://sqlassist, about the latest Version of Virus Scan Enginesand Virus Definition Files for the following Anti Virus Products: 1. 2. 3. 4. 5. 6. Q. A. Norton Anti Virus McAfee Anti Virus CA innoculate Anti Virus Trendmicro Anti Virus F-Prot Anti Virus Quick Heal Anti Virus

Q. A.

Q. A.

What Anti Virus software does NSDL recommended? NSDL does not recommend any specific Anti Virus Software. The Anti Virus Software listed above are some of the popular Anti Virus Softwares in use. What is the size of Virus Definition Files? Size of Virus Definition Files may vary from 1.6 MB to 3.4 MB, depending on the Anti Virus Software product. However,for the ease of the user, some Anti Virus Software developers provide these files in small manageable chunks, which can be individually copied on floppies and transferred to other computer systems that are not connected to Internet or LAN. How frequently are the Virus Definition Files and the Virus Scan Engines updated? Virus Definition Files: Most of the Anti Virus Software developers provide updates to Virus Definition Files every week. The updates may be release

Q. A.

Q. A.

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overnight if new Virus of serious nature is identified. NSDL recommends the practice of weekly update for all the systems connected in the DPM LAN. Virus Scan Engines: Most Anti Virus Software Developers provide upgrades to Virus Scan Engines once a month or once in two months. However, the Anti Virus Software developers may release upgrades more frequently if the new type of Virus of serious nature with wide spread is discovered. Q. A. Can I connect the DPM system to Internet for the download? NSDL does not allow the DPM system (the Server as well as the clients) to be connected to Internet. You may download the files on a separate system connected to the Internet and then copy the files to the DPM System, for applying the latest Virus Definition Files or Virus Scan Engines. How do I copy Virus Definition Files that are very large, if the Anti Virus Software Site does not provide manageable smaller-sized files? NSDL recommends the use of floppies or DATs to transfer the downloaded Virus Definition Files from the Internet-connected system to the DPM System. However, if it is not possible to copy the downloaded files into floppies or DATs, you may disconnect the computer (on which you have downloaded latest updates) from your office LAN and temporarily connect the same to the DPM LAN. You may then copy the Virus Definition Files to the DPM system. Please ensure that the said computer is disconnected from your DPM LAN as soon as you have copied the latest Virus Definition Files. What is the requirement of NSDL for Anti Virus Software upgrade and Virus Definition Files update? Virus Definition Files should be updated every week. Virus Scan Engines should be upgraded as soon as the new Virus Scan Engine is released. Information pertaining to the latest version can be accessed at http:// sqlassist. Will we be treated as defaulters, if we do not have the latest version of Virus Scan Engine or Virus Definition Files? NSDL inspection team will check the version of the Virus Scan Engine or Virus Definition Files at periodic intervals. In case, you do not have the latest version of Virus Scan Engine or Virus Definition Files, you will be treated as a defaulter. Further, a penalty may be levied for not upgrading the Anti Virus Software on server and/or client machine as per the provisions in Chapter 18 of the Business Rules of NSDL. Does NSDL provide the latest Virus Definition Files or Virus Scan Engines to its Business Partners? No. NSDL does not provide Anti Virus Software to Business Partners. However, NSDL provides information of prevailing latest versions. Is Annual Subscription Contract (ASC) a must for the users of Anti Virus Software? ASC gives you the right to the latest versions of Virus Definition Files and Virus Scan Engines. Many Anti Virus Software Developers may provide

Q. A.

Q. A.

Q. A.

Q. A. Q. A.

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Virus Definition Files free of cost to the users. In case of Virus Scan Engines, some of the vendors require the ASC to be signed in order to have legal access to the upgrades. Q. A. What should we do if the Internet gets disconnected multiple times while downloading the files? This is where the ASC arrangement may help you. You may approach the local channel partner with whom you have signed the ASC, for the latest Virus Definition Files and Virus Scan Engines.

d. Capacity Planning Disablement of User IDs that are not complying to System Security Policy Circular No. NSDL/POLICY/ 2008/0029 Date: April 26, 2008 Sub: Disablement of User IDs that are not complying to System Security Policy Attention of Depository Participants (DPs) is invited to NSDL Circular No. NSDL/ POLICY/2008/0007 dated February 5, 2008 regarding Version 8.0 of DPM system. In the Version 8.0, System Security Policy was enhanced to enforce segregation of duty i.e. maker and checker functions cannot be assigned to the same user. Further, vide circular no. NSDL/POLICY/2008/0021 dated April 4, 2008 regarding Version 8.2, DPs were also informed that User IDs not adhering to the aforesaid system security policy would be disabled by May 1, 2008. During these version releases, NSDL has taken care that existing User IDs and functional rights assigned to these User IDs based on segregation of duty are not modified or disabled in the DPM system so that: 1. 2. 3. DPs may continue with their operations after the DPM system upgrade DPs may develop and implement appropriate policies for their internal operations DPs may configure the system security as per their needs while maintaining existing User IDs with minimum impact on the existing operations.

DPs may use the report-containing list of Invalid User IDs that do not comply with the Security Policy or hold both Maker & Checker rights to take corrective action by April 30, 2008. DPs may note that after May 1, 2008, all the User IDs not adhering to the system security policy would be disabled in the DPM system. DPM Systems - Capacity planning and operational guidelines for performance optimization Circular No. NSDL/PI/99/065 Date :January 29,1999 All Participants are advised to follow and strictly adhere to the operating guidelines to ensure proper functioning of DPM Application Software and smooth conduct of their business operations. Operational Guidelines for the NSDL DPM system NSDL has carried out a Benchmark with Single Processor and Dual Processor. It was observed that performance of the system is best with up to 8 on-line users under single CPU configuration of 266 MHz and 128MB RAM. By adding one more processor, the system should be able to support up to 15 on-line users, provided the guidelines below are adhered to.

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Single Processor 8 Online Users are allowed with single processor. General guidelines, if adhered will provide better response to the on line users of the system. Dual Processor 15 Online Users are allowed with Dual Processor. General guidelines, if adhered will provide better response to the on line users of the system. In order to recognize dual processor, the Depository Participant is required to re-install Window's NT. The DP has to give prior intimation to NSDL regarding the upgrade. In addition, SQL must be tuned to make proper use of Dual processor. General Guidelines 1. Back-office batch interface (Exports & Imports) : These should be run preferably after the end of day (EOD), when the interface & communication services are switched off and all users are logged off. While taking exports no print reports should be taken & viceversa. The time taken for export will be much faster if done daily, as compared to taken over a long period of time. It is preferable not to take back-dated exports as far as possible. All import files be kept on the server instead of on the client machine as the NT file system is different from Windows 95 file system. The DPs should have 128 MB RAM. While importing transactions, on-line data entry should not be carried out. Carry out regular Hard Disk housekeeping (NSDL Circular No : NSDL/ PI/98/372 dated August 13, 1998) and keep sufficient space on the primary drive (C drive) where the software is installed. For viewing details of a single client, use the "Client Maintenance>Statement of Holdings/Transactions" option instead of the report option. The response will be much faster. Schedule printing to periods with low on-line activity Avoid printing when an export is in progress Provide a specific range of clients and dates instead of openended ranges Avoid doing a print or print-preview if anyone else is already doing so i.e., print preview or print should be carried out only from one of the machine. Preferably, allow print or print-preview only from a restricted set of machines

2.

Statement of Holdings/Transactions Reports:

3.

On-line transactions and queries Always provide specific values for client-ids, ISINs, settlement dates, instruction ids., etc. to enable fast processing. Avoid open-ended ranges. Avoid queries on "Status" field for Account Transfer.

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DPM Capacity Enhancement - server configuration Circular No. NSDL/ NSDL/POLICY/ 2008/0044 Date: June 16, 2008 Sub: DPM Capacity Enhancement - server configuration NSDL had revised the sizing guidelines aligning it with present technology and computer processing power available after taking into consideration various factors critical for the Participants' operations such as number of client accounts, clearing member accounts, transactions per day and client machines connected to the Server vide our circular NSDL/POLICY/2006/0011 dated March 24, 2006. Subsequently, memory related sizing guidelines for DPM system with Windows 2003 Server OS were informed vide our circular NSDL/POLICY/ 2008/0033 dated May 20, 2008. As per current sizing guidelines, Depository Participants (DPs) are required to install a new DPM server when they reach the maximum number i.e. 5 lac Client Accounts in a single set-up. Some DPs have represented to NSDL seeking permission to accommodate more than 5 lac Client Accounts in the same DPM system. In this regard, to facilitate DPs to have more than 5 lac Client Accounts in the same DPM system NSDL has revised the sizing guidelines as given below: S. Server Type No 1 2 Desktop as Server Entry Level Server (without Hardware RAID) Entry level server (with Hardware RAID) High End Server High End Server High End Server CPU* RAM Number Number Number (MB) of Client of Client of CM Machines Account Account 3 3 75,000 75,000 50 50 No. of Peak no. of Transactions/ transactions day in 1 Hour 15,000 15,000 3,000 3,000

Single 512 Single 512

Single 512

1,00,000 50

22,500

4,500

4 5 6

Single 1024 15 Dual Four 2048 25 2048 25

1,50,000 200 5,00,000 1000 7,50,000 1000

40,000 1,00,000 1,25,000

8,000 20,000 25,000

* CPU (P-IV 3.0 GHz or above) DPs are advised to regularly monitor the performance of the DPM system and on reaching near the volume limits should initiate necessary upgradation process. DPs are once again informed that any system upgradation (installation) should be carried out in consultation with the NSDL Help Desk. On completion of the upgrade, DPs are requested to submit the revised Form-B to NSDL. Circular No. NSDL/ POLICY/2006/0011 Date : March 24, 2006 Sub : DPM Capacity Enhancement - server configuration NSDL has revised the sizing guidelines accommodating present technology and computer processing power available after taking into consideration various factors critical for the Participants' operations such as number of client accounts, clearing member accounts, transactions per day and client machines connected to the Server.

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Participants are free to choose the brand of the servers / desktop, provided it is Microsoft certified and adheres to the configuration guidelines given by NSDL. To find out if the server / desktop that you intend to choose, is Microsoft certified, you may visit "http://www.microsoft.com/whdc/hcl/search.mspx" website. Participants are advised to regularly monitor the performance of the DPM system and on reaching near the volume limits prescribed in the annexure, initiate necessary upgradation process. Participants are once again informed that any system upgradation (installation) should be carried out in consultation with the NSDL Help Desk. On completion of the upgrade, Participants are requested to submit the revised Form-B to NSDL. Annexure Recommended Server Configuration The recommended server configuration is dependent on the volume of business of the Participant. CPU (P-IV 3.0 GHz or above) Server Type CPU RAM Number Number Number Number (MB) of Client of Client of CM of TransaMachines Accounts Accounts ction / day* 3 3 75000 75000 50 50 15000 15000

Desktop as Server

Single 512

Entry Level Server Single 512 (without Hardware RAID) Entry level server (with Hardware RAID) High End Server High End Server Single 512

100000

50

22500

Single 1024 15 Dual 2048 25

150000 500000

200 1000

40000 100000

*Note : Number of transaction submitted should not be more than 20% of total transactions per day in an hour or 50% of total transactions per day in 3 hours. # If the volume exceeds any of the above limits then it is recommended that an additional Windows 2000 Server be installed for the excess volume. Recommended configuration for replacement of the DPM Server for the abovementioned categories is as follows: Description Hardware Software MS Windows 2000 Server (License to be procured by the participants)

High End Server Dual CPU Intel PIV / Xeon, with CPU Speed of 3.0 GHz or higher

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Description

Hardware Minimum 1 GB RAM

Software Anti-Virus Software for MS Windows 2000 Server (License to be procured by Participants) DPM Application Software (Provided by NSDL) MS SQL 2000 Server Licence (to be procured by the Participants) WinZip (licensed)/ Zipit Fast software ## Server Management software *

2MB L2 Cache

PCI architecture with min. 5 I/O slots

14" Colour monitor / Keyboard/ Mouse Ethernet Card PCI based SCSI RAID Controller to support RAID-1 to RAID-5 implementation of SCSI Hard Disks (RAID Controller ) 1 parallel port , 4 USB ports & 2 fast serial ports# 4mm, 20/40 GB Digital Audio Tape (DAT) drive (HP/Exabyte/Sony) operating with 90m, 120m & 150m DAT cartridges and interfacing with SCSI Controller (Used for Back-up purpose) CD ROM drive(min 52x) to interface with SCSI or IDE Controller Operating System Harddisk : 1x146 GB Non Hot Swap/ Hot Swap SCSI HDD or 80 GB IDE/ SATA HDD for Bootable Partition & interface to the Standard SCSI/IDE/ SATA Controller (Generally, On-board Controller)Note: RAID implementation for operating system is optional. Database Harddisk : 2x146 GB Non Hot Swap/ Hot Swap SCSI HDDs for RAID-1 or 3x146 GB Non Hot swap SCSI HDDs for RAID-5 implementation & interface to the above RAID controller.

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Description

Hardware

Software MS Windows 2000 Server (License to be procured by the participants) Anti-Virus Software for MS Windows 2000 Server (License to be procured by Participants) DPM Application Software (Provided by NSDL) MS SQL 2000 Server Licence (to be procured by the Participants) WinZip (licensed)/ Zipit Fast software ## Server Management software *

Entry Level Single CPU , Intel PIV/ Xeon, Server (with with CPU Speed of 3.0 GHz Hardware RAID) or higher Minimum 1 GB RAM

256/512KB/1MB/2 MB L2 Cache

PCI architecture with min. 5 I/O slots

14" Colour monitor / Keyboard/ Mouse Ethernet Card PCI based SCSI RAID Controller to support RAID-1 to RAID-5 implementation of SCSI Hard Disks (RAID Controller ) 1 parallel port , 3 USB ports & 2 fast serial ports # 4mm, 20/40 GB Digital Audio Tape (DAT) drive (HP/Exabyte/ Sony) operating with 90m, 120m & 150m DAT cartridges and interfacing with SCSI Controller (Used for Back-up purpose) CD ROM drive(min 52x) to interface with SCSI or IDE Controller Operating System Harddisk : 1x146 GB Non Hot Swap/ Hot Swap SCSI HDD 0r 80 GB IDE / SATA HDD for Bootable Partition & interface to the Standard SCSI/ IDE/SATA Controller (Generally, On-board Controller) Note: RAID implementation for operating system is optional. Database Harddisk : 2x146 GB Non Hot Swap/ Hot Swap SCSI

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Description

Hardware HDDs for RAID-1 implementation & interface to the above RAID controller.

Software

Entry Level Intel PIV with 3.0 GHz or Server (without Higher CPU Hardware RAID) for Low End DP/SR Minimum 512 MB DDR RAM

MS Windows 2000 Server (License to be procured by the participants) Anti-Virus Software for MS Windows 2000 Server (License to be procured by Participants) DPM Application Software (Provided by NSDL) MS SQL 2000 Server Licence (to be procured by the Participants) WinZip (licensed)/ Zipit Fast software ##

256/512KB/1MB/2 MB L2 Cache

PCI Architecture with min 3 I/O Slots

2*146 GB ( SCSI) or 2*80 GB (IDE/ SATA) Hard Disk Drive to be installed in RAID 1 with Software RAID. 14" Colour monitor / Keyboard/ Mouse Ethernet Card CD ROM drive(min 52x) to interface with SCSI or IDE Controller Internal SCSI card to support DAT drive 20/40 GB Internal / External DAT Drive (from the existing SERVER) or 750 MB Zip Drive . DVD Writer option may also be considered. (Devices used for back-up purpose). 1 parallel port , 3 USB ports & 2 fast serial ports # Desktop as Intel PIV/ Celeron with 3.0 GHz Server for Low or Higher CPU End DP/SR

Server Management software *

MS Windows 2000 Server (License to be procured by the participants)

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Description

Hardware Minimum 512 MB System RAM

Software Anti-Virus Software for MS Windows 2000 Server (License to be procured by Participants) DPM Application Software (Provided by NSDL) MS SQL 2000 Server Licence (to be procured by the Participants) WinZip (licensed)/ Zipit Fast software ##

Minimum 128 KB Cache (Celeron CPU), 512KB Cache (PIV CPU) PCI Architecture with min 3 I/O Slots

2*146 GB ( SCSI) or 2*80 GB (IDE/ SATA) Hard Disk Drive to be installed in RAID 1 with Software RAID 14" Colour monitor / Keyboard/ Mouse Ethernet Card CD ROM drive(min 52x) to interface with SCSI or IDE Controller DVD Writer or 750 MB Zip Drive (Devices used for Back-up purpose) 1 parallel port , 4 USB ports & 2 fast serial ports #

Server Management software *

# The Number of USB ports required would depend on the devices that are required to be connected to the server / client ## The software Winzip (licensed copy) / Zipit Fast software is required to be installed on Windows 2000 Server and on the Client PCs of NSDL setup configured for email communication with NSDL using the Outlook Express since the contents of the mails sent to the Participants are in zipped (compressed) format. * Server Management Software is supplied along with the MNC brand servers. For National Brand Servers, Participants are required to consult their server vendors. Participants using the "Desktop as Server" are also required to consult their vendor about the tools for monitoring the hardware health of the equipment. It is mandatory for all participant to install "Server Management Software" . Participants may consult NSDL if specific brand of server / Desktop as server does not have their own Server Management Software. DPM System - Recommended hardware configuration Circular No. NSDL/PI/2002/1911 Date : November 6, 2002 Participants may be aware that NSDL has permitted the use of IBM, Compaq, HP, Digital, Acer and DELL make desktop computers with Microsoft Windows 98 and Windows 2000 - Professional Operating System (OS) for DPM Client workstations.

[ 547 ]

Participants are hereby informed the aforesaid list is now expanded to include Wipro, HCL, PCS and CMS make desktop computers, which are compatible with Microsoft Windows 98 and/or Windows 2000 - Professional OS. Participants are requested to confirm the compatibility of specific models of these makes with Microsoft OS by visiting Microsoft web site http://microsoft.com/hwdq/ hcl/search.asp prior to procuring the hardware. Further, the minimum configuration of the desktop computers installed as a part of the DPM setup, should be as under: Circular No. NSDL/PI/2000/705 Date : May 12, 2000 CPU - Intel Pentium (P II/P III/P IV/Celeron) 333 MHz. Or higher with 128KB L2 cache Memory - 64 MB RAM HDD - 20GB HDD NIC (Network Interface Card) - 10 MB Ethernet card

Further to our Circular No. NSDL/PI/2000/032 dated January 12, 2000, as a part of NSDL's continuous evaluation and fine tuning of the performance of the DPM system, the recommendations about the configuration of the DPM Server to be used by the Participants for their depository operations for different client / CM accounts and transactions have been revised. Owing to some improvements achieved in the recent past, the revised figures for different configuration are given in the enclosed Annexure. These recommendations are arrived at after taking into consideration various factors viz; no. of client accounts, no. of CM accounts, no. of transactions per day, no. of client machines connected to the Server, etc. Participants are advised to regularly monitor the performance of the DPM system. In case the volumes are nearing the limits prescribed in the Annexure, then the Participants should take steps to plan and implement the upgradation of system well before such limits are reached. Participants are once again informed that any system upgradation (installation) should be carried out in consultation with the NSDL Help Desk. Sr. No CPU RAM (MB) Accounts 64 128 256 512 No. of Client Accounts 30,000 50,000 1,00,000 2,50,000 No. of CM No. of Transactions per day 6,000 10,000 20,000 40,000 No. of Win 95 Client Machines Upto 4 5-8 9 - 12 13 - 16

1 2 3 #4

Single Single Dual Dual

100 200 400 600

# If the volume exceeds any of the above limits then it is recommended that an additional NT Server be installed for the excess volume. The following "pre-requisites" are necessary for achieving normal performance: 1. New account opening/account modification is limited to 1,500 per day for server with 256-512 MB memory and 500 per day for server with 64128 MB memory. For configuration of Dual CPU and 512 MB RAM, Participant must be having leased line connectivity with NSDL (minimum 64 KBPS) In case of Single CPU Servers, minimum speed required is 200 MHz.

2. 3.

[ 548 ]

4. 5. 6. 7. 8. 9. 10. 11. Circular No. NSDL/PI/2000/032 Date: January 12,2000

In case of Dual CPU Servers, minimum speed required is 400 MHz with high-end disks and multiple disk controllers. It is assumed that on an average client has positions in 8 ISINs. It is assumed that on an average Clearing Member settles 50 ISINs per settlement. Maximum account transfers are limited to 20,000 per day. Routine Housekeeping , Reorg and Archival has to be performed. Operational guidelines notified by NSDL must be abided by the Participant. Sufficient hard disk capacity should be available on the NTServer (Refer operational guidelines). Participant must abide by the Archival policy as may be notified by NSDL from time to time.

As a part of NSDL's continuous evaluation and fine tuning of the performance of the DPM system, the recommendations about the configuration of the DPM Server to be used by the Participants for their depository operations for different client / CM accounts and transactions have been laid down and revised from time to time. Owing to some improvements achieved in the recent past, the revised figures for different configuration are given in the enclosed Annexure. These recommendations are arrived at after taking into consideration various factors viz; no. of client accounts, no. of CM accounts, no. of transactions per day, no. of client machines connected to the Server, etc. Participants are advised to regularly monitor the performance of the DPM system. In case the volumes are nearing the limits prescribed in the Annexure, then the Participants should take steps to plan and implement the upgradation of system well before such limits are reached. Participants are once again informed that any system upgradation (installation) should be carried out in consultation with the NSDL Help Desk. Recommended Hardware Configuration The recommended configuration is dependent on the volume of business of the Participant. Sr. No 1 2 #3 CPU RAM No. of Client Accounts 30,000 60,000 1,50,000 No. of CM Accounts 100 200 500 No. of Transactions per Day 6,000 12,000 20,000

Single Dual Dual

64 MB 256 MB 512 MB

# If the volume exceeds any of the above limits then it is recommended that an additional NT Server be installed for the excess volume. Following "prerequisites" are assumed for achieving normal performance: Business Partner confirms to the operational usage guidelines circulated by NSDL. Sufficient hard disk capacity is available on the NT Server (Refer operational guidelines). Routine housekeeping and Reorg is performed.

[ 549 ]

If Memory is 64 MB then Number of Win 95 client machines is assumed to be less than five. If the number of Win 95 client machine exceeds five then the minimum memory required is 128 MB or more (Depending on number of additional clients). Single CPU machines speed should be minimum 200 MHz or more. Dual CPU machines speed should be minimum 400 MHz or more and have high-end disks with multiple disk controllers. On an average client has positions in 8 securities. On an average CM settles 50 ISINs per settlement.

New account opening/account modification is limited to 1,000 per day for server with 512 MB memory and 500 per day for server with 64-256 MB memory. Low End DPM System - Recommended hardware configuration Circular No. NSDL/PI/2003/0295 Date : February 21, 2003 NSDL has been exploring the possibility of DPM operations being conducted on Desktop class hardware for Participants having low level of activity. Based on the analysis, if Participants have the following level of activity, it can be permitted to operate on low-end Desktop class hardware with Windows 2000 server OS instead of Server class hardware: Max. number of client accounts without CM accounts - 7500 Max. number of Transactions per day - 2000 Database size not exceeding - 600 MB Maximum number of work-stations - 3 Participants who wish to opt for Desktop class hardware must ensure that the minimum configuration of the same should be as under: Intel PIV with 500 MHz. or higher CPU 512 MB System RAM 2 * 20 GB (7200 RPM) IDE HDD to be installed in RAID I configuration using software RAID PCI Ethernet Card Internal SCSI card to support DAT drive 12 / 24 GB Internal / External DAT Drive (from the existing Server) OR 700 MB Zip drive

Participants will have to upgrade their Desktop class hardware to server class hardware if the level of activities go beyond the aforesaid limits. In case Participants wish to replace their existing Server class hardware with Desktop class hardware, they may contact NSDL help desk. DPM Systems - Recommended hardware configuration after implementing archival system Circular No. NSDL/PI/2000/2171 Date : November 28, 2000 All Participants are hereby informed that NSDL has enhanced the capacity of DPM system to service more number of client accounts. The capacity enhancement to service 3.5 lakh client accounts from the earlier limit of 2.5 lakh accounts is possible only after implementing an archival system and archiving of more than 3 months old "Closed, Settled" instructions and closed accounts information. Details of the DPM server hardware configuration and the number of accounts it can service is enclosed herewith as Annexure - I.

[ 550 ]

Sr. No

CPU

RAM (MB)

No. of Client Accounts 30,000 75,000 1,50,000 3,50,000

No. of No. of CM TransacAccounts tions per day 100 200 400 1000 6,000 10,000 22,500 50,000

No. of Win 95 Client Machines Upto 4 5-8 9 - 12 13 - 16

1 2 3 #4

Single Single Dual Dual

64 128 256 512

# If the volume exceeds any of the above limits then it is recommended that an additional NT Server be installed for the excess volume. Following "prerequisites" are assumed for achieving normal performance: 1. 2. 3. 4. 5. 6. 7. 8. Participant conforms to the operational usage guidelines circulated by NSDL. Batch reports (statement of holding and statement of transactions) must not be carried out during the day. Sufficient hard disk capacity is available on the NT Server (refer operational guidelines). Routine Housekeeping, Re-org and Archival are performed. Single/Dual CPU speed should be minimum 400 MHz. In addition, Dual CPU machines must have high-end disks with multiple disk controllers. On an average client has positions in 8 securities. On an average CM settles 50 ISINs per settlement. New account opening/account modification is limited to 1,500 per day for server with 256-512 MB memory and 500 per day for server with 64128 MB memory. Maximum account transfer instructions are limited to 20,000 per day. For configuration of Dual CPU and 512 MB RAM, Participant must be on leased line (minimum 64 KBPS)

9. 10.

Participant must Archive more than 3 months old "Closed, Settled" transactions and closed accounts information in order to scale up to 3,50,000 client accounts. Upgradation of DPM Server operating system (OS) software from Windows 2000 server OS to Windows 2003 Server OS Circular No. NSDL/POLICY/ 2008/0033 Date : May 20, 2008 Sub : Upgradation of DPM Server operating system (OS) software from Windows 2000 server OS to Windows 2003 Server OS At present, NSDL's DPM Server software works on Microsoft's Windows 2000 Server OS. Windows 2000 Server OS was launched in 2000-2001. Subsequently, Microsoft has withdrawn support for the same sometime in 2004-2005. NSDL had informed Depository Participants (DPs) regarding upgradation of DPM Server software to higher version of OS i.e.Windows 2003 server OS during the DP Conferences held in October 2007 and April 2008. The DPM software version 8.2 is qualified to work with Windows 2003 Server OS - Standard Edition (Service Pack 1). DPs may note that Microsoft provides a free upgrade to next version if the license is covered under Software Assurance Program. However, if the license is not covered under this provision, DP is required to procure the Windows

[ 551 ]

2003 Server OS - Standard Edition (Service Pack 1) license as per the present norms of Microsoft. It is understood that Microsoft policy allows the use of Windows 2000 Server OS, if you have Windows 2003 Server OS license. DPs are required to reconfirm with their vendors. This is required till NSDL migrates the DPM setup of the DPs from Windows 2000 Server to Windows 2003 Server OS. NSDL plans to migrate all DPM setups to Windows 2003 Server OS by end of August 2008. Microsoft has indicated that minimum memory requirement for Windows 2003 Server OS is 512 MB and minimum processor speed required is 1 GHz. Accordingly, memory related sizing guidelines for DPM system with Windows 2003 Server OS is as follows: Server Type CPU RAM Number Number Number Number (MB) of Client of Client of CM of TransaMachines Accounts Accounts ction / day 3 3 75,000 75,000 50 50 15,000 15,000

Desktop as Server

Single 512

Entry Level Server Single 512 (without Hardware RAID) Entry level server (with Hardware RAID) High End Server High End Server Single 512

1,00,000 50

22,500

Single 1024 15 Dual 2048 25

1,50,000 200 5,00,000 1,000

40,000 1,00,000

DPs are required to ensure that their DPM system meets above stated requirements by June 2008. DPs must file revised Form B with NSDL for the upgrade carried out. NSDL will not qualify future software releases after August 2008 on Windows 2000 Server OS and hence does not guarantee the working of the DPM software on the same thereafter. Migration activity will involve formatting of the C Drive & installation of Windows 2003 Standard Server OS software. Those DPs who have already procured the Windows 2003 Server OS licenses and have their DPM system meeting the required specifications may contact the Helpdesk of NSDL for scheduling the upgrade. The upgrade to Windows 2003 Server OS must be done only in consultation with Helpdesk. The detailed upgrade procedure & schedule will be intimated by NSDL Helpdesk shortly. Change in Operating System for DPM Server to Windows 2000 and changes in Server Configurations Circular No. NSDL/PI/2002/2068 Date : December 2, 2002 Participants were advised, vide our Circulars No. NSDL/PI/2001/ 1179 and NSDL/PI/2002/1174 dated July 30, 2001 and July 18, 2002 respectively, to acquire Windows 2000 server Operating System (OS) and to upgrade the server hardware in accordance with the configuration specifications provided therein, to suit their volume of operations. All Participants are hereby informed that NSDL's DPM Application Software is now qualified to work with Windows 2000 server OS. For upgrading the DPM System to Windows 2000 server OS, Participants are hereby advised to comply with the following: (1) Upgradation to Windows 2000 server OS should be undertaken for all servers, viz; main DPM server, onsite backup server, off-site backup server (if installed) and the server for housing Archival database (if a separate server is in use) within a span of two weeks.

[ 552 ]

(2)

The hardware configuration for all servers for which upgradation is being undertaken, are in line with configuration guideline provided in aforesaid circulars. Main DPM server must feature a separate Hard Disk Drive (HDD) for OS. HDD for OS need not have RAID implementation. For OS, it is not a must to use HDD featuring SCSI (Small Computer System Interface). Participants may use HDD featuring IDE (Integrated Drive Electronics) interface if supported by the server model in/to be use/used. The reloading of current Windows NT OS onto a separate disk should be undertaken only after obtaining clearance from NSDL Help Desk.

(3)

Participants should note that version 3.4 of the DPM Application Software will be the last version supported on Windows NT OS. All subsequent releases of DPM Application Software will be qualified to work only with Windows 2000 server OS, till further notice. Participants who choose to continue working with Windows NT OS in the interim, must install Service Pack 6A. In case Participants require any further clarifications in this regard, they can contact on (022) 2497 5208. Further, all upgradation of hardware / Windows 2000 server OS must be intimated to NSDL through revised form-B. NSDL Help Desk will provide technical guidance and schedule migration to Windows 2000 server OS. The migration to Windows 2000 server OS, viz; main DPM server, onsite backup server, off-site backup server (if installed) and the server for housing Archival database (if a separate server is in use), should be done only after technical clearance from NSDL Help Desk. Circular No. NSDL/PI/2002/1174 Date: July 18, 2002 Further to our Circular No. NSDL/PI/2001/1179 dated July 30, 2001 regarding upgrading the Operating System (OS) of the DPM server to Windows 2000 server OS, all Participants are hereby informed that NSDL will complete qualification of current DPM Application Software to work with Windows 2000 server OS by end of August 2002. Participants may also note that version 3.4 of the DPM Application Software will be the last version supported on Windows NT 4.0 OS. Participants who are yet to procure Windows 2000 server OS may note that Microsoft has extended Version Upgrade scheme (VUP) till July 2002, which offers concession in upgrade price. Participants may therefore acquire the Windows 2000 server OS before the close of the VUP, else Participants will have to procure Windows 2000 server OS at the full prevailing price. Further, Participants are advised to note that Service Pack (SP) 6A patch is required to be applied to the Windows NT 4.0 OS. SP 6A is being sent to Participants alongwith the DPM Application Software Version 3.2 (integrated) CD, which should be applied immediately. Attention of Participants is invited to our aforesaid circular regarding the requirement of minimum hardware configuration of DPM for Windows 2000 server OS. Participants whose DPM server does not meet the configuration requirements of Windows 2000 server OS are advised to upgrade their hardware of DPM server at the earliest, as sourcing of the same for old models of hardware may be difficult at a later date. Attention of Participants is also invited to our Circular No. NSDL/PI/2001/ 1695 dated November 6, 2001, advising Participants to have separate hard disk on the DPM server, i.e. non-RAID disk for DPM server OS and RAID disk for DPM Database. Participants are advised to ensure the same while upgrading the DPM server.

[ 553 ]

Further, all upgradation of hardware / Windows 2000 server OS should be undertaken after submission of revised form-B to NSDL and obtaining a detailed technical guidance and clearance from NSDL Help Desk. Circular No. NSDL/PI/2001/1695 Date : November 6, 2001 In continuation of our Circular No. NSDL/PI/2001/1179 dated July 30, 2001 regarding hardware requirement for upgrading the Operating System (OS) of DPM Server to Windows 2000, all Participants are requested to note that current DPM Server processing speed is suitable for upgrading to Windows 2000 OS. However, the memory of the server need to be upgraded as per the guidelines of the aforesaid circular. Participants planning to upgrade the server processing speed or replace the existing server, may note that the minimum CPU speed shall be 800 mhz as mentioned in the aforesaid circular. Also, please adhere to the memory and hard disk guidelines as mentioned in the aforesaid circular. It may also be noted that as per the new guidelines, the server need not be multiple CPU upgradable (Dual or Four CPU). You may choose to procure non upgradable single CPU server, so long as your operations are within the sizing guidelines stipulated by NSDL for single CPU server. It is also not mandatory to install Hotswap bays for hard disks, but does need a separate hard disk (not configured in RAID) for the OS installation. Circular No. NSDL/PI/2001/1179 Date : July 30, 2001 All Participants are aware that NSDL's DPM Server software works on Microsoft's Windows NT version 4.0 Operating System (OS). Microsoft's standard practice is to support product for a period of five years from the time it is launched. As Windows NT was launched in 1997-1998, Microsoft may withdraw support for the same sometime in 2002-2003. NSDL is therefore planning to upgrade its DPM system to work with Windows 2000 Server OS sometime in 2002. Microsoft has informed to NSDL that they have revised their pricing policy with effect from October 1, 2001. As per the revised price structure, Microsoft will abolish its existing pricing policy of charging 50% of the full price of the software for upgrades and the users will have to pay the full price of the software, even for version upgrade (VU). Participants are advised to take a note of Microsoft's pricing policy and may consider availing upgrade to Windows 2000 Server OS before October 1, 2001 after making an arrangement to continue to use current Windows NT 4.0 OS, till NSDL upgrades its DPM system to work with Windows 2000 Server OS. Microsoft has indicated that minimum memory requirement for Windows 2000 Server OS is 256MB and minimum processor speed required is 133MHz. Accordingly, memory related sizing guideline for DPM system under Windows 2000 Server OS stands revised as follows: CPU RAM (MB) Number of Client Machines 4 8 12 16 Number of Client Accounts 30000 75000 150000 350000 Number of CM Accounts 100 200 400 1000 Number of Transactions/ day 6000 10000 22500 50000

Single Single Dual Dual

256 512 512 1024

As the upgradation of the server may be difficult later, Participants may consider undertaking the required upgradation now and submit a revised FORM-B immediately after the DPM Server is upgraded.

[ 554 ]

In case the upgradation of your DPM Server is not possible, then the present DPM sever will have to be replaced before migrating to Windows 2000 Server OS. NSDL will give atleast 3 months advance notice for migration to Windows 2000 Server OS. Recommended minimum configuration for replacement of the DPM Server is as follows; Intel PIII / Xeon with CPU speed of 800 Mhz or higher single OR 700 MHz or higher respectively with 256KB L2 Cache (No. of processors should atleast be same as the present server.) Minimum 256MB, 60 nano sec ECC RAM or SDRAM on 1 SIMM/DIMM. Please refer to abovementioned sizing guideline table for memory configuration. PCI architecture with min.5 I/O slots PCI Based VGA Controller With Minimum 1 MB VRAM OR AGP Based VGA Controller With Minimum 2 MB VRAM 14" SVGA Colour monitor PCI based Ethernet Card PCI based SCSI RAID Controller to support RAID-1 to RAID-5 implementation of SCSI Hard Disks (RAID Controller ) 1 parallel port & 2 fast serial ports. 4mm, 20/40 GB Digital Audio Tape (DAT) drive (HP/Exabyte/Sony) operating with 90m, 120m & 150m DAT cartridges and interfacing with SCSI Controller CD ROM drive(min 12x) to interface with SCSI or IDE Controller 1x18 GB Non Hot Swap SCSI HDD for Bootable Partition & interface to the Standard SCSI (Generally on-board SCSI Controller) 2x18 GB Non-Hot Swap SCSI HDDs for RAID-1 or 3x18 GB Non-Hot swap SCSI HDDs for RAID-5 implementation & interface to the above RAID controller. (New system must feature same usable disk capacity for database partition and OS partition after RAID implementation.) 104 Keys Keyboard PS/2 Mouse

Further, as per the proposed pricing policy of Microsoft, after upgrading to Windows 2000 Server OS, Participants can avail patches, updates and upgrades for a period of 2 years through Software Assurance (SA) program upon upfront payment of around 58 % of the product price. As per revised pricing policy proposed by Microsoft, SA will be renewable on an annual basis after initial period of 2 years as per the then prevailing rate. In case Participants do not subscribe to SA then upgrade can be availed only at full (100%) price of the product then. In view of this, Participants need to make their own decision about subscribing to SA.

[ 555 ]

NOTES

[ 556 ]

14. Renewal of Registration

Section 2 (1) (g) Regulation 21 Participant means a person registered as such under sub-section (1A) of section 12 of the Securities and Exchange Board of India Act, 1992. The certificate of registration issued under regulation 20, or renewed under regulation 22 shall be valid for a period of five years from the date of its issue or renewal, as the case may be. Three months before the expiry of the period of validity of a certificate of registration, the participant shall, if it so desires, make an application for renewal in Form E through the depository in which it is a participant. The application for renewal under sub-regulation (1) shall accompany the fee specified for issue of certificate of registration and shall be dealt with in the same manner as if it were a fresh application for grant of Certificate of registration. The Board may renew a certificate of registration granted to a participant subject to the conditions of certificate of registration specified in regulation 22.

Regulation 22(1)

Regulation 22 (2)

Regulation 23

Submitting Documents Or information to SEBI Circular No. NSDL/PI/2005/0397 Date: March 4, 2005 As Participants may be aware, when an application for renewal of certificate of registration is being considered by SEBI,Participants are required to promptly notify SEBI regarding any change in the information submitted by the Participants to SEBI.In this context, Participants are hereby informed that SEBI has issued a warning to one of the Participants for not providing proper and timely information. Participants are hereby advised to exercise due care while submitting information / documents to SEBI. Participants are further advised to follow the guidelines issued by SEBI vide their circular SEBI/MIRSD/DR-2/SRP/Cir-2/2005 dated January 4, 2005 (copy enclosed) regarding renewal of Certificate of Registration as a Participant. Annexure I DEPUTY GENERAL MANAGER Market Intermediaries Regulation & Supervision Department

SEBI/MIRSD/DR-2/SRP/Cir - 2/ 2005 January 4, 2005 To 1. 2. NSDL/CDSL All Registered i. ii. iii. Depository Participants Merchant Bankers Registrars to an Issue and Share Transfer Agents

[ 557 ]

iv. v. vi. vii.

Debenture Trustees Bankers to an Issue Underwriters Credit Rating Agencies

Dear Sir / Madam, Sub: Renewal of Certificate of Registration Section 12 of the SEBI Act, 1992 requires that any intermediary in the capital market shall function as such only under a Certificate of Registration issued by SEBI. The SEBI Regulations pertaining to certain intermediaries require that the Certificate shall be valid for a specified period and shall be required to be renewed thereafter. These Regulations requires an intermediary to make an application for renewal three months before the expiry of the validity of the certificate of registration. However, it is noticed that at times application for renewal is not made in time. It is also possible that an application for renewal made by an intermediary is not disposed off by the expiry of the registration. As a result, the intermediary and its clients are not quite clear if the intermediary can continue to act as intermediary after expiry of registration. This circular intends to clarify these matters: 1. If the application for renewal is not received at SEBI by the expiry date of the certificate of registration, the intermediary shall: a. b. c. cease to be an intermediary on the date of such expiry, stop carrying on the activities of the intermediary from the date of such expiry, and transfer, wherever relevant, the accounts / business of existing clients to another registered intermediary before the date of such expiry.

If the intermediary fails to comply with all of the above, it will be considered as a violation of section 12 and may attract action under the relevant provisions of SEBI Act, 1992, and/or the Regulations framed there under. No application for renewal can be made after the date of expiry of registration. After the expiry of registration, the erstwhile intermediary can apply for registration, which will be considered as a fresh application for registration made under the relevant Regulations. 2. If the application for renewal is received at SEBI less than 3 months before the expiry of registration and SEBI has not advised otherwise by the date of expiry of registration, the intermediary shall stop undertaking any fresh business / clients from the date of expiry of the registration. SEBI may initiate any action that may be deemed appropriate for late submission of application under the provisions of the SEBI Act, 1992 and the regulations framed there under.

[ 558 ]

It is clarified that in the above cases, the application for renewal shall mean the application complete in all respects. Incomplete application will be treated as no application. 3. If renewal is not granted by SEBI for whatever reason, the intermediary shall: a. cease to be an intermediary on the date of expiry of registration or the date of receipt of communication of refusal to grant renewal, stop carrying on the activities of the intermediary from the date as at (a) above, and transfer, wherever required, the accounts / business of existing clients to another registered intermediary within such period as may be specified.

b. c.

If the intermediary fails to comply with all of the above, it will be considered as violating section 12 and shall be liable for action under the relevant provisions of SEBI Act, 1992, and/or the provisions of Rules and Regulations framed there under. 4. If an intermediary wishes to surrender the registration voluntarily before the expiry of the registration, it shall transfer, wherever relevant, their existing business / client accounts to another SEBI registered intermediary, before they make request to SEBI for accepting the surrender the certificate of registration. The intermediary may, if he so desires, make a representation for dispensing with the procedure, along with the application, for surrender in terms of the first proviso to regulation 16(1) of the SEBI ( Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty ) Regulations, 2002 in the prescribed format (enclosed with the Circular). In all cases of transfer of business or client accounts to another registered intermediary as above, the clients shall not be subjected to any additional cost.

5.

6.

Yours faithfully,

S. R. Prasad Encl : As above

[ 559 ]

Letter of Representation for Depository Participants To, Securities and Exchange Board of India Mittal Court, 'B' Wing, Nariman Point Mumbai 400 021 Dear Sir, Sub: Surrender of Certificate of Registration as Depository Participant, 1. 2. 3. of M/s. , Registration No.

We hereby surrender our certificate of registration as Depository Participant. We enclose the original certificate of registration (or indemnity in case the certificate is lost or stolen) for cancellation. We hereby confirm that: a. b. c. d. no complaint /disciplinary proceeding is pending against us; no investigation / inquiry by SEBI is pending against us with respect to our activities as a Depository Participant; as on date of application, we have paid all fees; we shall continue to be liable for all liabilities/obligations (including monetary penalties, if any) for violations, if any, of the provisions of the SEBI Act and the SEBI (Depository Participant) Rules and Regulations, 1996 that have taken place before our surrender of certificate of registration; we have no pending assignments/mandates as a Depository Participant; all our client accounts have been transferred to another registered with Registration Depository Participant i.e No. ; we have issued a public notice in a widely circulated national and a vernacular daily dated informing surrender of our registration as Depository Participant.(Please enclose a clipping of the said public notice.)

e. f.

g.

*4.

We hereby request SEBI to dispense with the procedure laid down in Regulation 16(1) of the SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 while processing our request for surrender of certificate of registration.

Thanking you, Yours faithfully,

Name: (Whole time/Managing Director/Principal Officer) * Please strike off, if not applicable.

[ 560 ]

NOTES

[ 561 ]

NOTES

[ 562 ]

15. Mutual Fund

Circular No. NSDL/POLICY/ 2010/0140 Date: December 30, 2010 Sub: Amendments to Business Rules - Redemption or Repurchase and Annexure HA As Participants are aware, mutual fund units held in demat accounts can be redeemed by Clients through two modes i.e., through their Participants or Stock Brokers. To redeem the mutual fund units through Participants, Clients are required to submit Repurchase / Redemption Form (RF) to Participants. The current procedure requires the Participants to execute electronic redemption request in the eDPM System and forward the physical copy of the RF to the Issuer / Registrar and Transfer Agent (RTA). In this regard, the redemption process has been simplified as follows: (i) As per SEBI's advice, Participants need not forward the physical copy of the RF to the Issuer / RTA. After due verification, the RF submitted by Clients will be retained by the Participants. Participants are required to only execute electronic redemption request in the eDPM System. The RF has been re-designed to make it simpler for Clients and Participants to fill and process the RF respectively.

(ii)

Accordingly, Rule 11.3.3, Rule 11.3.5 and Annexure HA (i.e., Repurchase / Redemption form) to Business Rules have been amended, Rule 11.3.7 to Business Rules has been deleted and Rule 11.3.8 to Business Rules has been amended and re-numbered as 11.3.7. The amended Business Rules in track change mode and Annexure HA are enclosed. Annexure HA REPURCHASE / REDEMPTION FORM Participant's Name, Address & DP ID (Pre-printed) Serial No (Pre Printed) Date: _______________

I/We offer the below mentioned securities for repurchase/ redemption and declare that my/our account be debited by the number of securities to the extent of my/our repurchase/ redemption request and make the payment as per the bank account details available in the depository system. I/We hereby declare that the below mentioned person(s) are the beneficial owners of the securities mentioned. Client ID Sole/First Holder Name Second Holder Name Third Holder Name Type of Security MF Units/Others (please specify)

[ 563 ]

ISIN

Mutual Fund / Issuer Name

Quantity
(No. of Securities to be Repurchased / Redeemed)

in figure

in words (Integers)

in words (Fractions)

RRN (Repurchase / Redemption Request Number) (To be filled in by Participant)

Note : In case the space is found to be insufficient, a duly signed annexure containing the aforesaid details in the same format may be attached. Holder(s) Sole/First Holder Second Holder Third Holder ========================================================== Acknowledgement Serial No (pre-printed) We hereby acknowledge the receipt of following securities for repurchase / redemption request from Mr/Ms/M/s _______________________________ having DP ID ___________and Client ID ______________ ISIN Mutual Fund / Issuer Name Quantity Signature(s)

Name of the Official :

Participant's Stamp & Date

Signature :

Annexure 11.3 REDEMPTION OR REPURCHASE 11.3.1 In case the Issuer gives an option to the Client for repurchase or redemption of securities held in dematerialised form, the Client on exercising his option, shall submit to the Participant the Redemption or Repurchase Request Form (RF) in the format given in Annexure HA. The Participant shall ensure that the Client submits a separate RF for each security and for each account maintained by the Client with the Participant.

11.3.2

[ 564 ]

11.3.3

The Participant shall ensure that the RF submitted by his Client is completely filled and duly signed. The Participant shall verify the details mentioned in the RF with the details of Client's account and ensure that the RF is in order. The Participant shall verify the signatures on each RF with the signatures on the records held with it. The Participant shall ensure that the Client has sufficient free holdings in his account before executing the instructions in the DPM (DP). The Participant shall execute the instructions for Repurchase or Redemption of securities in the DPM (DP). The Issuer or its Registrar and Transfer Agent shall verify the request in the DPM (SHR), and if in order, confirm the request for Redemption or Repurchase in the DPM (SHR) and pay the proceeds directly to the Client.

11.3.4 11.3.5

11.3.6 11.3.7

Circular No. NSDL/POLICY/ 2010/0137 Date: December 24, 2010

Sub: Procedure - Transactions in Mutual Fund schemes through the Stock Exchange infrastructure (I) Background : Attention of Participants is invited to SEBI Circular No. CIR/IMD/DF/ 17/2010 dated November 9, 2010 regarding facilitating transactions in Mutual Fund schemes through the Stock Exchange infrastructure (informed to Participants vide Circular No. NSDL/POLICY/2010/0120 dated November 27, 2010). Current procedure : (a) Subscription On subscription of Mutual Fund (MF) units by Client through Stock Exchange, Asset Management Company (AMC) / Registrar & Transfer Agent (RTA) credits the depository account of the Client directly through credit corporate action. Redemption: For redemption purpose, in addition to the Client placing an order through Stock Exchange, the Client submits instruction through a delivery instruction slip (DIS) to its Participant to transfer the units to a designated Pool account of the Clearing Corporation (CC) of the Stock Exchange. The redemption proceeds will be sent by AMC/ RTA through appropriate payment mode such as direct credit, NEFT or cheque as decided by AMC from time to time, as per the bank account details of the Client available in the depository system.

(II)

(b)

(III)

Revised procedure : In light of the aforesaid SEBI circular, the procedure for subscription and redemption of MF units transacted through Stock Exchanges has undergone change, as per the details given below: (a) Subscription (i) (ii) Clients can subscribe to the MF units through their Stock Brokers as per the existing process. The MF units will be credited by AMC / RTA into the Beneficiary Owner (BO) account of the AMC through credit

[ 565 ]

corporate action. Subsequently, the AMC would transfer MF units from its BO account to its AMC/MF Clearing Member (CM) Pool account on or before 2.30 p.m. on the next day of the order date (i.e. by T+1 day) under market type "Normal Subscription" and "Mutual Fund - Subscription" in respect of NSCCL and BOISL respectively. AMC has to execute delivery out instructions from its CM Pool account or avail Auto DO facility of NSCCL / BOISL to deliver the MF units for Pay-in. (iii) Upon execution of Pay-in of securities as per the settlement schedule declared by NSCCL / BOISL, the CM Pool Account of the AMC will be debited through the usual settlement process. NSCCL and BOISL will credit the MF units into the respective subscriber CM's Pool accounts by Pay-out through usual settlement process. The CM would transfer the MF units to the subscriber's beneficiary account.

(iv)

(v)

(IV) Redemption: For redemption purpose, in addition to the Client placing order through its Stock Broker, the Client will have to submit DIS to its Participant to transfer the MF units to the designated CM Pool account of NSCCL / BOISL as per the existing process. The designated CM Pool account of NSCCL and BOISL are given below for the information of Participants:

Sr. No. 1

Stock Exchange Name National Stock Exchange of India Limited

CC Name

CM BP ID

Market Type

Pay-in Deadline 4.30 pm on Trade Day (Order Day)

National Securities Clearing Corporation Ltd. BOI Shareholding Ltd.

IN565576

Normal Redemption Liquid Redemption MFSS T+2 Mutual Fund - Redemption

Bombay Stock Exchange Limited

IN640016

Circular No. NSDL/POLICY/ 2010/0135 Date: December 22, 2010

All Participants are hereby informed that the following Market Type Code has been added in the CC Calendar at the request of National Securities Clearing Corporation Limited (NSCCL) pertaining to settlement of mutual funds units: CC ID IN001002 Market Type Code 31 Description MFSS T+2

Participants are requested to note the aforesaid code relating to change in the static data for back-office batch interface with the eDPM System / Local DPM System.

[ 566 ]

Circular No. NSDL/POLICY/ 2010/0129 Date: December 11, 2010

Sub: Procedure for opening Pool Account of Mutual Fund (MF) Participants are aware of the scheme envisaged by SEBI vide Circular No. CIR/IMD/DF/17/2010 dated November 9, 2010 (copy enclosed) regarding facilitating transactions in Mutual Fund schemes through the Stock Exchange infrastructure. As per the operating guidelines issued by the Stock Exchanges, MF will be required to open a Pool Account with any Participant of NSDL. The procedure for opening of MF Pool Account will remain the same as opening of Pool Account of a Clearing Member (CM) except that copy of SEBI certificate as a CM will not be required and e-mail from Clearing Corporation/Stock Exchange intimating the CM ID will be acceptable. The detailed procedure is given below: (a) The MF should fill up the Account Opening Form as per the format given in Annexure K of the Business Rules of NSDL and submit the same to the Participant alongwith the agreement (as per Annexure B in the Bye Laws) duly executed on a stamp paper of appropriate value. The schedule of fees to be charged by the Participant to the MF should form a part of the agreement. Following documents are required for opening a MF Pool account: (i) (ii) (iii) (iv) (c) (d) (e) A copy of the letter/e-mail from the Clearing Corporation/Stock Exchange intimating allotment of the CC-CM-ID to the MF. Board Resolution for authorised signatories. Memorandum of Association and the Articles of Association. Specimen copy of the cheque for capturing the 9-digit MICR code.

(b)

Participant should verify the completeness of the account opening form and verify the copies submitted with the original documents. If the documents are in order, the Participant should accept them and give an acknowledgement duly signed and stamped to the MF. The Participant should forward the following documents to NSDL for allotment of CM BP ID (i) (ii) Copy of Account opening form, Copy of the letter/e-mail from the Clearing Corporation/Stock Exchange intimating allotment of the CC-CM-ID. These documents (except the e-mail) should be verified with the original documents and stamped "Verified with Original" alongwith the stamp of the Participant, signature of Compliance Officer, name and designation.

(f) (g) (h)

NSDL will allot the CM-BP-ID and intimate to the Participant electronically. The Participant should capture the signature(s) of the authorised signatories as given in the Account Opening Form in the DPM System. The Participant should enter the Client account number generated from the DPM System in the Account Opening Form. (i) The Participant should print the Client Master Report and give it to the MF alongwith a copy of the Agreement.

For further information / clarification, Participants are requested to contact Ms. Aditi Rane Tel: (022) 2499 4364 (email: aditir@nsdl.co.in) / Mr. Rahul Gupta Tel: (022) 2499 4372 (email: rahulg@nsdl.co.in).

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CIRCULAR CIR/IMD/DF/17/2010 All Mutual Funds/ Asset Management Companies (AMCs)/ Recognised Stock Exchanges/ Depositories / Registrar to an Issue and Share Transfer Agents Sir / Madam, Sub: Facilitating transactions in Mutual Fund schemes through the Stock Exchange infrastructure 1. SEBI vide circular SEBI /IMD / CIR No.11/183204/ 2009 dated November 13, 2009 has permitted units of mutual fund schemes to be transacted through registered stock brokers of recognized stock exchanges. In order to provide more avenues for purchasing and redeeming Mutual Fund units, in addition to the existing facilities of purchasing and redeeming directly with the Mutual Funds and Stock Brokers, it has been decided : 2.1 that units of mutual funds schemes may be permitted to be transacted through clearing members of the registered Stock Exchanges. 2.2 to permit Depository participants of registered Depositories to process only redemption request of units held in demat form. 3. The following has been decided with respect to investors having demat account and purchasing and redeeming mutual funds units through stock brokers and clearing members: 3.1 Investors shall receive redemption amount (if units are redeemed) and units (if units are purchased) through broker/clearing member's pool account. Mutual Funds(MF)/ Asset management Companies(AMC) would pay proceeds to the broker/clearing member (in case of redemption) and broker/clearing member in turn to the respective investor and similarly units shall be credited by MF/AMC into broker/clearing member's pool account (in case of purchase) and broker/clearing member in turn to the respective investor. 3.2 Payment of redemption proceeds to the broker/clearing members by MF/AMC shall discharge MF/AMC of its obligation of payment to individual investor. Similarly, in case of purchase of units, crediting units into broker/clearing member pool account shall discharge MF/AMC of its obligation to allot units to individual investor. 4. The following may be noted in this regard: 4.1 Clearing members and Depository participants will be eligible to be considered as official points of acceptance as per SEBI Circular No. SEBI/IMD/CIR No.11/78450/06 dated October 11, 2006 and conditions stipulated in SEBI Circular dated November 13, 2009 for stock brokers Viz. AMFI /NISM certification, code of conduct prescribed by SEBI for Intermediaries of Mutual Fund, shall be applicable for such Clearing members and Depository participants as well. 4.2 Stock exchanges and Depositories shall provide investor grievance handling mechanism to the extent they relate to disputes between their respective regulated entity and their client and shall also monitor the compliance of code of conduct specified in the SEBI Circulars MFD/CIR/ 20/23230/02 dated November 28, 2002 and SEBI/IMD/08/174648/2009 dated August 27, 2009 regarding empanelment and code of conduct for intermediaries of Mutual Funds. November 9, 2010

2.

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5.

The respective stock exchanges and Depositories would provide detailed operating guidelines to facilitate the above and ensure that timelines prescribed under SEBI (Mutual Fund) Regulations, 1996 shall be adhered to with regard to allotment of units and receipt of redemption proceeds at the investor's level. This circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with the provisions of Regulation 77 of SEBI (Mutual Funds) Regulations, 1996, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. Yours faithfully RUCHI CHOJER DEPUTY GENERAL MANAGER Tel no. 022-26449310 Email-ruchic@sebi.gov.in

6.

Circular No. NSDL/POLICY/ 2010/0127 Date: December 10, 2010

All Participants are hereby informed that the following Market Type Codes have been added in the CC Calendar at the request of National Securities Clearing Corporation Limited (NSCCL) pertaining to settlement of mutual funds units: CC ID N001002 Market Type Code 28 29 30 Description Normal Subscription Liquid Redemption Normal Redemption

Participants are requested to note the aforesaid codes relating to change in the static data for back-office batch interface with the DPM System Circular No. NSDL/POLICY/ 2010/0126 Date: December 10, 2010 All Participants are hereby informed that the following Market Type Codes have been added in the CC Calendar at the request of BOI Shareholding Limited (BOISL) pertaining to settlement of mutual funds units: CC ID IN001019 Market Type Code 21 22 Description Mutual Fund - Subscription Mutual Fund - Redemption

Participants are requested to note the aforesaid codes relating to change in the static data for back-office batch interface with the DPM System. Circular No. NSDL/POLICY/ 2010/0120 Date: November 27, 2010 Sub: SEBI circular facilitating transactions in Mutual Fund schemes through the Stock Exchange infrastructure Attention of Participants is invited to SEBI Circular no. CIR/IMD/DF/17/2010 dated November 9, 2010 regarding facilitating transactions in Mutual Fund schemes through the Stock Exchange infrastructure. A copy of the SEBI circular is enclosed for information. Securities and Exchange Board of India

[ 569 ]

CIRCULAR CIR/IMD/DF/17/2010 All Mutual Funds/ Asset Management Companies (AMCs)/ Recognised Stock Exchanges/ Depositories / Registrar to an Issue and Share Transfer Agents Sir / Madam, Sub: Facilitating transactions in Mutual Fund schemes through the Stock Exchange infrastructure 1. SEBI vide circular SEBI /IMD / CIR No.11/183204/ 2009 dated November 13, 2009 has permitted units of mutual fund schemes to be transacted through registered stock brokers of recognized stock exchanges. In order to provide more avenues for purchasing and redeeming Mutual Fund units, in addition to the existing facilities of purchasing and redeeming directly with the Mutual Funds and Stock Brokers, it has been decided : 2.1 that units of mutual funds schemes may be permitted to be transacted through clearing members of the registered Stock Exchanges. 2.2 to permit Depository participants of registered Depositories to process only redemption request of units held in demat form. 3. The following has been decided with respect to investors having demat account and purchasing and redeeming mutual funds units through stock brokers and clearing members: 3.1 Investors shall receive redemption amount (if units are redeemed) and units (if units are purchased) through broker/clearing members pool account. Mutual Funds(MF)/ Asset management Companies(AMC) would pay proceeds to the broker/clearing member (in case of redemption) and broker/clearing member in turn to the respective investor and similarly units shall be credited by MF/AMC into broker/clearing members pool account (in case of purchase) and broker/clearing member in turn to the respective investor. 3.2 Payment of redemption proceeds to the broker/clearing members by MF/AMC shall discharge MF/AMC of its obligation of payment to individual investor. Similarly, in case of purchase of units, crediting units into broker/clearing member pool account shall discharge MF/AMC of its obligation to allot units to individual investor. 4. The following may be noted in this regard: 4.1 Clearing members and Depository participants will be eligible to be considered as official points of acceptance as per SEBI Circular No. SEBI/IMD/CIR No.11/78450/06 dated October 11, 2006 and conditions stipulated in SEBI Circular dated November 13, 2009 for stock brokers Viz. AMFI /NISM certification, code of conduct prescribed by SEBI for Intermediaries of Mutual Fund, shall be applicable for such Clearing members and Depository participants as well. 4.2 Stock exchanges and Depositories shall provide investor grievance handling mechanism to the extent they relate to disputes between their respective regulated entity and their client and shall also monitor the compliance of code of conduct specified in the SEBI Circulars MFD/CIR/ 20/23230/02 dated November 28, 2002 and SEBI/IMD/08/174648/2009 dated August 27, 2009 regarding empanelment and code of conduct for intermediaries of Mutual Funds. 5. The respective stock exchanges and Depositories would provide detailed operating guidelines to facilitate the above and ensure that timelines prescribed under SEBI (Mutual Fund) Regulations, 1996 shall be adhered to with regard to allotment of units and receipt of redemption proceeds at the investors level. November 9, 2010

2.

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6.

This circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with the provisions of Regulation 77 of SEBI (Mutual Funds) Regulations, 1996, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. Yours faithfully RUCHI CHOJER DEPUTY GENERAL MANAGER Tel no. 022-26449310 Email-ruchic@sebi.gov.in

Circular No. NSDL/POLICY/ 2010/0109 Date: September 30, 2010

Sub: Transferability of Mutual Fund Units Attention of Participants is invited to SEBI Circular No. CIR/IMD/DF/10/2010 dated August 18, 2010 (copy enclosed) regarding Transferability of Mutual Fund Units. In pursuance of the aforesaid SEBI Circular, all Participants are hereby informed that the depository system will facilitate transferability of mutual fund units (security type code 20) from one depository account to another depository account with effect from October 1, 2010. Participants are requested to take note of the above.

Circular No. NSDL/POLICY/ 2010/0104 Date: September 8, 2010

Sub: Discontinuation of conversion of Mutual Fund Units represented by SoA into dematerialised form through AMC / RTA. Attention of Participants is invited to NSDL Circular No. NSDL/POLICY/2010/ 0024 dated March 9, 2010 regarding procedure for conversion of Mutual Fund units represented by Statement of Account (SoA) into dematerialised form through Asset Management Company (AMC) / Registrar and Transfer Agent (RTA). Pursuant to amendment of Business Rules, Participants were informed regarding procedure for conversion of Mutual Fund Units represented by SoA into dematerialised form through Participants vide NSDL Circular No. NSDL/ POLICY/2010/0075 dated July 1, 2010 and the same was enabled for ISINs (security type code 20) in the release of DPM System Version 13.0. All Participants are hereby informed that the existing procedure for conversion of Mutual Fund units represented by SoA into dematerialised form through AMC / RTA for ISINs (security type code 20) will be discontinued with effect from September 10, 2010. Thereafter, conversion requests can be submitted only through Participants. Participants are requested to take note of the above and inform their clients accordingly.

Circular No. NSDL/POLICY/ 2010/0082 Date: July 20, 2010

Sub: Reference circulars - Facility for holding Mutual Fund Units in dematerialised form As all Participants are aware, NSDL has enabled holding of Mutual Fund Units (represented by Statement of Account) in dematerialised form for its demat account holders. Various circulars issued in this regard are given below for the information of Participants for easy reference:

[ 571 ]

Sr. Subject No. 1 New security type code 20 for Mutual Fund Units (TRASE) added in DPM System. Subscription and redemption of Mutual Fund Units in dematerialised form through Stock Exchange platform. Footnote in the Transaction Statements provided to Clients regarding holding of Mutual Fund Units in dematerialised form. SMS Alerts for credits / debits of Mutual Fund Units in demat accounts. Conversion of existing Mutual Fund units represented by Statement of Account into dematerialised form - through Asset Management Company / Registrar and Transfer Agent. Display of ISINs of Mutual Fund (activated under security type code 20) in the Transaction Statement. No fee to be levied on Participants in respect of transactions in mutual fund units held in the depository system till September 30, 2010. Display of value of mutual fund holdings on IDeAS facility based on NAV. Release of DPM System Version 13.0 - Conversion of Mutual Fund units represented by Statement of Account through DPM System. Daily Price file to include NAVs for Mutual Fund Units. Amendments to Business Rules Conversion of Mutual Fund Units Represented By Statement of Account into dematerialised form through a Participant.

Policy Circular Circular Date Ref. No. NSDL/POLICY/ 2009/0107 NSDL/POLICY/ 2009/0116 November 14, 2009 December 5, 2009

NSDL/POLICY/ 2010/0002

January 4, 2010

NSDL/POLICY/ 2010/0003 NSDL/POLICY/ 2010/0024

January 6, 2010 March 9, 2010

NSDL/POLICY/ 2010/0032

March 27, 2010

NSDL/POLICY/ 2010/0034

March 30, 2010

NSDL/POLICY/ 2010/0070 NSDL/POLICY/ 2010/0069

June 25, 2010

June 25, 2010

10 11

NSDL/POLICY/ 2010/0072 NSDL/POLICY/ 2010/0075

June 30, 2010 July 1, 2010

[ 572 ]

12

Release of DPM System Version 13.0 Redemption of Mutual Fund Units through new module in the DPM System. Updated list of Mutual Funds which have joined NSDL and the list of ISINs. Back-office batch interface with the DPM System for conversion of Mutual Fund Units enabled

NSDL/POLICY/ 2010/0077

July 2, 2010

13

NSDL/POLICY/ 2010/0079 NSDL/POLICY/ 2010/0081

July 7, 2010

14

July 16, 2010

Circular No. NSDL/POLICY/ 2010/0081 Date: July 16, 2010

Sub: Release of DPM System Version 13.0 - Back-office batch interface with the DPM System for conversion of Mutual Fund Units enabled Attention of Participants is invited to NSDL Circular No. NSDL/POLICY/2010/ 0069 dated June 25, 2010 regarding release of DPM System Version 13.0 wherein facility to convert Mutual Fund units [represented by Statement of Account (SoA)] into dematerialized form through DPM System was provided. DPM System Version Release 13.0 enabled Participants to initiate conversion requests through the front end application of DPM System with effect from July 3, 2010. Participants were also requested to make necessary changes to their back office by July 11, 2010 as per the file formats enclosed in the aforesaid circular. All Participants are hereby informed that back-office batch interface with the DPM System for uploading conversion requests in respect of mutual fund units (security type code 20) will be enabled with effect from Saturday July 17, 2010.

Circular No. NSDL/POLICY/ 2010/0079 Date: July 7, 2010

Sub: Conversion of existing Mutual Fund units represented by Statement of Account into dematerialised form through Participants Attention of Participants is invited to NSDL Circular No.: NSDL/POLICY/2009/ 0116 dated December 5, 2009 enabling holding of mutual fund units in dematerialised form pursuant to SEBI circular No. SEBI/IMD/CIR No.11/183204/ 2009 dated November 13, 2009 for transacting in Mutual Funds Schemes through Stock Exchange Infrastructure and NSDL Circular Nos.: NSDL/POLICY/2010/ 0024 dated March 9, 2010 and NSDL/POLICY/2010/0075 dated July 1, 2010 informing the procedure for conversion of existing Mutual Fund units represented by Statement of Account (SoA) into dematerialised form through Asset Management Company (AMC)/ Registrar and Transfer Agent (RTA)/ Depository Participant. The updated list of Mutual Funds which have joined NSDL is given in AnnexureA and the list of ISINs is enclosed in Annexure-B.

Circular No. NSDL/POLICY/ 2010/0075 Date: July 1, 2010

Sub: Amendments to Business Rules All Participants are hereby informed that NSDL has decided to provide a facility for investors to submit request for conversion of their mutual fund units represented by Statement of Account into dematerialised form through Participants. In this context, Participants are advised to note that Rules 11.7.1 to 11.7.11 and Annexure B (as enclosed) have been inserted in the Business Rules of NSDL. The new Rules are given below:

[ 573 ]

11.7

CONVERSION OF MUTUAL FUND UNITS REPRESENTED BY STATEMENT OF ACCOUNT INTO DEMATERIALISED FORM THROUGH A PARTICIPANT 11.7.1 Every Client desirous of converting mutual fund units represented by Statement of Account into dematerialised form through a Participant shall submit to the Participant the Conversion Request Form alongwith the Statement of Account evidencing the holding of mutual fund units. The specimen of Conversion Request Form is given in Annexure B. The Client submitting the Conversion Request Form shall declare to the Participant that the units sought to be held in dematerialised form are in the name of the client itself and are not already dematerialised and no certificates are issued against these units. The Client shall submit separate Conversion Request Form for its each folio number with the Issuer and/or its Registrar and Transfer Agent and for each of its account with the Participant. The Client shall submit a separate Conversion Request Form for locked in and free units under the same ISIN. The Participant shall first ensure that the mutual fund units submitted by its Client for conversion belong to the list of securities admitted by the Depository as eligible to be held in dematerialised form. The Participant shall ensure that the Conversion Request Form submitted by its Client is completely filled and duly signed. The Participant shall verify the name and the pattern of holding of the Clients account with the name and the pattern of holdings as mentioned on the Statement of Account and Conversion Request Form. Further, the Participant shall verify all other details and verify the number of pages of Statement of Account mentioned on the Conversion Request Form with the Statement of Account submitted by the Client. The Participant shall intimate the Conversion Request to the Depository. After writing the Conversion Request Number on the Conversion Request Form and retaining a copy of the form, forward the Conversion Request Form alongwith the Statement of Account to the Issuer or its Registrar and Transfer Agent. The Conversion Request Form shall be forwarded by the Participant to the Issuer or its Registrar and Transfer Agent within seven days of accepting the same from its Client.

11.7.2

11.7.3

11.7.4 11.7.5

11.7.6

11.7.7

11.7.8

11.7.9

[ 574 ]

11.7.10 The Issuer or its Registrar and Transfer Agent shall after due verification promptly confirm the conversion request to the Depository for credit of the units into the account of the Client. 11.7.11 In case any objection memo has been received for such units from the Issuer or its Registrar and Transfer Agent, the Participant shall facilitate the correction of such objections on a timely basis. ANNEXURE B Participants Name, Address & DP ID (Pre-printed) CONVERSION REQUEST FORM FOR EXISTING MUTUAL FUND UNITS (REPRESENTED BY STATEMENT OF ACCOUNT) INTO DEMATERIALISED FORM - THROUGH DEPOSITORY PARTICIPANT Serial No (Pre Printed) Date: _______________

I/We request you to convert the following units represented by Statement of Account (enclosed) issued by the Issuer into my/our account as per the details given below: Client ID Sole/First Holder Name Second Holder Name Third Holder Name Type of Security Folio Number Details of Units: Free Units ISIN Mutual Fund Name Locked-in Units Unit Description Quantity CRN (To be filled in by Participant) MF Units/Others (please specify)

Total No. of pages of Statement of Account: ______________ Details of Locked-in units (if any): ISIN Lock-in reason Lock-in release date

[ 575 ]

Notes: 1. In case the space is found to be insufficient, an annexure containing the said details in the same format may be attached. 2. Please use separate form for free units and locked-in units Declaration I/We hereby declare that the above mentioned units are registered in my/ our name and are not already dematerialised and no certificates are issued against these units. I/We also hereby declare that the units requested by me/us for conversion into dematerialised form are free from any lien or charge or encumbrance and represent the bonafide units of the Issuer to the best of my/our knowledge and belief. Holder(s) Sole/First Holder Second Holder Third Holder Participant Authorisation We have received the abovementioned units for conversion into dematerialised form. It is certified that the holders of the securities have beneficiary account with us in the same name(s). Name of the official : Signature : Participants Stamp & Date ========================================================== Acknowledgement Serial No (pre-printed) We hereby acknowledge the receipt of following units requested for conversion into dematerialised form by Mr/Ms/M/s _______________________________ having DP ID and Client ID ______________ Mutual Fund Name Unit Description Quantity Signature(s)

Date:

Participants Stamp & Signature

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Conversion of mutual fund units represented by Statement of Account (SoA) into dematerialised form Circular No: NSDL/POLICY/ 2010/0024 Date: March 9, 2010 Sub: Conversion of mutual fund units represented by Statement of Account (SoA) into dematerialised form As all Participants are aware, the facility of holding units in dematerialised form was informed vide Circular No. NSDL/POLICY/2009/0116 dated December 5, 2009. In this context, SEBI has approved the proposal for conversion of mutual fund units represented by Statement of Account (SoA) into dematerialised form. Accordingly, the procedure for conversion of mutual fund units represented by SoA into dematerialised form was informed to all Issuers/R&T Agents vide Circular No. NSDL/CIR/II/06/2010 dated March 9, 2010. A copy of this circular is enclosed for information of Participants. Participants are requested to guide their clients suitably. Circular Circular No.: NSDL/CIR/II/06/2010 Date: March 9, 2010 All Issuers/R&T Agents are hereby informed that SEBI has approved the proposal for conversion of Mutual Fund (MF) units represented by Statement of Account (SoA) into dematerialised form. In this context, the procedure for conversion of MF units represented by SoA into dematerialised form is given in the enclosed Annexure. Issuers/R&T Agents handling MF units are requested to be guided by the aforesaid procedure and may advise their clients who approach them with queries relating to procedure for conversion of MF units represented by SoA into dematerialised form. All R&T Agents are requested to take note of the above and inform their clients (Issuers / AMCs) accordingly. Annexure Conversion of existing Mutual Fund units represented by Statement of Account into dematerialised form - through Asset Management Company (AMC)/Registrar and Transfer Agent (RTA) 1) Submission of conversion request by the investor a) An investor desiring to convert its existing Mutual Fund (MF) units represented by Statement of Account (SoA) into dematerialised form shall submit to the AMC/RTA, a request for conversion [proforma of Conversion Request Form (CRF) enclosed at (ExhibitI)], alongwith a copy of Client Master Report (CMR) or Transaction Statement (only the page of Transaction Statement reflecting the name and pattern of holding) issued by its Depository Participant (DP) to such service centres of AMC/RTA as may be decided by the concerned AMC/RTA. The investor may efface (strike-off) the transaction/holding details so as to make them illegible. AMC/RTA (Service Centre) shall ensure that the units which the investor intends to convert belong to the list of units available for dematerialisation and the correct ISIN is mentioned on the CRF.

2)

Upon receipt of conversion request from the investor a)

[ 577 ]

b)

AMC/RTA (Service Centre) shall verify details viz., DP ID, Client ID, Name(s) of the investor(s) and holding pattern (mentioned on CRF) with the CMR/Transaction Statement of the beneficial owner account submitted by the investor. The conversion request shall be accepted by the AMC/RTA (Service Centre) only in case the aforesaid details match. If the CRF is in order, the AMC/RTA (Service Centre) will issue an acknowledgement duly signed and stamped to the investor(s). AMC/RTA shall ensure that the details in CRF viz., Name(s) of the investor(s), holding pattern of account holder(s) and signature of the investor(s) match with the details available in its records. In case of any mismatch, AMC/RTA shall reject the request for conversion of units and inform the investor suitably, providing reason(s) for such rejection. AMC/RTA shall validate the unit holder name(s) and PAN(s) (if available) from its records with the data obtained from the depository. In case of any mismatch, AMC/RTA shall reject the request for conversion of units and inform the investor suitably, providing reason for such rejection. AMC/RTA shall record the conversion of units, represented by statement of account, as requested by the investor(s) in its records. AMC/RTA shall credit the units by corporate action process in the depository to the beneficial owner account of the unit holder(s). The credit of the converted units will be reflected in the Transaction Statement provided by the Depository Participant to its client. In case of rejection of corporate action file uploaded by AMC/RTA to the depository system, the reason(s) of rejection of the corporate action shall be provided by the depository. AMC/RTA shall take necessary steps to rectify the same. EXHIBIT - I [PROFORMA]

c) 3)

Before crediting the units through the depository a)

b)

4)

After successful validation and verification of data/request a)

b) c)

d)

CONVERSION REQUEST FORM FOR EXISTING MUTUAL FUND UNITS (REPRESENTED BY STATEMENT OF ACCOUNT) INTO DEMATERIALISED FORM - THROUGH AMC/RTA Date (dd-mm-yy ) To AMC/RTA (Name) (Address) Sir/Madam I / We hereby confirm that I hold the mutual fund units as per the statement of account (enclosed) issued by you. I/We request you to convert the existing

[ 578 ]

units held by me/us as specified in details of units below into dematerialised form for crediting these units to my/our beneficial owner account having following details: DP ID Client ID Sole/First Holder Name Second Holder Name Third Holder Name Details of Units to be converted: Folio No. Scheme Name ISIN Number of Units Remarks (if any) I N

Authorised Signatories Holder(s) Sole/First Holder Second Holder Third Holder Instructions: 1. Please strike off as N.A. whatever is not applicable 2. Submit a copy of Client Master Report/Transaction Statement provided by the Depository Participant ========================================================== Acknowledgement We hereby acknowledge the receipt of request for conversion of Mutual Fund units represented by Statement of Account into dematerialised form by Mr/Ms/M/s _____________________ having DP ID _____________ Client ID ______________ details of which are given below. Folio No. Scheme Name Number of Units Names Signatures

Date: Circular No: NSDL/POLICY/ 2009/0116 Date: December 5, 2009

AMC/RTA Stamp & Signature

Sub: Facility for holding mutual fund units in dematerialised form All Participants are hereby informed that as per the scheme envisaged by SEBI vide Circular No. SEBI/IMD/CIR No.11/183204/2009 dated November 13, 2009 (copy enclosed) for transacting in mutual funds through stock exchange platform, NSDL has enabled holding these mutual fund units in dematerialised form.

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In order to encourage investors to avail this facility, it has been decided not to charge any fee to Participants till March 31, 2010 in respect of mutual fund units [security type code 20 Mutual Fund Units (TRASE)] routed through the stock exchange platform. The list of the mutual funds which have joined NSDL so for is given below: Sr. No. 1 2 3 4 5 6 7 8 9 Features: 1. 2. The existing depository accounts can be used for holding these mutual funds units in dematerialised form. Subscription: On subscription for mutual fund units by investor through stock exchange, Asset Management Company (AMC)/ Registrar & Transfer Agent (RTA) will credit the depository account of the Client directly through credit corporate action. 3. Redemption: (a) For redemption purpose, in addition to the investor placing an order through stock exchange the client will have to give an instruction through a delivery instruction slip (DIS) to its Participant to transfer the units to a designated Pool account of the Clearing Corporation (CC) of the stock exchange. The designated Pool accounts are given below:
CC Name CM BP ID Market Type Number Settlement Execution Pay-in Date deadline

Name of Fund Birla Sun Life Mutual Fund Fidelity Mutual Fund HDFC Mutual Fund ICICI Prudential Mutual Fund Reliance Mutual Fund Religare Mutual Fund SBI Mutual Fund TATA Mutual Fund UTI Mutual Fund

Sr.

Stock Name

No. Exchange

National Stock

National Securities Corporation Ltd.

IN565576

12 (Mutual Fund)

4.30 PM on Trade day (Order Day) As applicable

Exchange Clearing

Bombay Stock Limited

Indian Clearing Ltd.

IN619960

02 (Mutual Fund)

Exchange Corporation

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(b)

Participants are required to execute the DIS in the DPM system promptly. The CCs either have a standing instruction to receive credits or will execute a corresponding receipt instruction to receive units in its account. For those instructions which are matched in the depository system, the units will be debited from the account of the client and credited to the account of CC. The redemption proceeds will be sent by AMC/ RTA through appropriate payment mode such as direct credit, NEFT or cheque as decided by AMC from time to time, as per the bank account details of the Client available in the depository system.

(c)

4.

Transaction Statements: Participants must continue sending the Transaction Statement to their Clients as per the existing frequency which will include mutual fund units also.

DEPUTY GENERAL MANAGER INVESTMENT MANAGEMENT DEPARTMENT SEBI /IMD / CIR No.11/183204/ 2009 November 13, 2009 All Mutual Funds/ Asset Management Companies (AMCs)/ Association of Mutual Funds in India (AMFI) Recognised Stock Exchanges/ Depositories /Registrar to an Issue and Share Transfer Agents Sir / Madam, Sub: Facilitating transactions in Mutual Fund schemes through the Stock Exchange infrastructure 1. The need for enhancing the reach of mutual fund schemes to more towns and cities has been aired through various forums/ channels. To address this issue, various models have been debated and discussed. The infrastructure that already exists for the secondary market transactions through the Stock exchanges with its reach to over 1500 towns and cities, through over 200,000 Stock Exchange terminals can be used for facilitating transactions in mutual fund schemes. The Stock Exchange mechanism would also extend the present convenience available to secondary market investors to mutual fund investors. Units of mutual fund schemes may be permitted to be transacted through registered stock brokers of recognized stock exchanges and such stock brokers will be eligible to be considered as official points of acceptance as per SEBI Circular No. SEBI/IMD/CIR No.11/78450/06 dated October 11, 2006. The respective stock exchange would provide detailed operating guidelines to facilitate the same. In this regard, you are advised that : 5.1. Empanelment and monitoring of Code of Conduct for brokers acting as mutual fund intermediaries5.1.1. The stock brokers intending to extend the transaction in mutual funds through stock exchange mechanism shall be required to comply with the requirements specified in SEBI circular MFD/CIR/10/310/01 dated September 25, 2001 regarding passing the AMFI certification examination. All such stock brokers would then be considered as empanelled distributors with mutual fund/AMC.

2.

3.

4. 5.

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5.1.2.

These stock brokers shall also comply with the requirements in SEBI circulars dated MFD/CIR/06/210/2002 dated June 26, 2002, MFD/CIR/20/23230/02 dated November 28, 2002 and SEBI / IMD / CIR No. 8 /174648 / 2009 dated August 27, 2009, applicable to intermediaries engaged in selling and marketing of mutual fund units. It is clarified that, stock exchanges shall monitor the compliance of the code of conduct specified in the SEBI circular MFD/CIR/20/23230/02 dated November 28, 2002 regarding empanelment of intermediaries by mutual funds.

5.1.3.

5.2. Time stamping Time stamping as evidenced by confirmation slip given by stock exchange mechanism to be considered sufficient compliance with clause 5, 6 and 8 of SEBI Circular SEBI/IMD/CIR No.11/ 78450/06 dated October 11, 2006. 5.3. Statement of Account Where investor desires to hold units in dematerialised form, demat statement given by depository participant would be deemed to be adequate compliance with requirements prescribed under regulation 36 of SEBI (Mutual Fund) Regulations, 1996, and SEBI Circulars MFD/CIR/9/120/2000 dated November 24, 2000 and IMD/CIR/12/80083/2006 dated November 20, 2006 regarding despatch of statements of account. 5.4. Investor grievance mechanism Stock exchanges shall provide for investor grievance handling mechanism to the extent they relate to disputes between brokers and their client. 5.5. Dematerialization of existing units held by investors In case investors desire to convert their existing physical units (represented by statement of account) into dematerialized form, mutual funds / AMCs shall take such steps in coordination with Registrar and Transfer Agents, Depositories and Depository participants (DPs) to facilitate the same. 5.6. Know your client (KYC). Where investor desires to hold units in dematerialised form, the KYC performed by DP in terms of SEBI Circular MRD/DoP/Dep/Cir-29/2004 dated August 24, 2004 and this would be considered compliance with applicable requirements specified in this regard in terms of SEBI Circular ISD/ AML/CIR-1/2008 dated December 19, 2008 by mutual funds /AMCs. 6. Stock exchanges and mutual funds/AMCs, based on the experience gained may further improve the mechanism in the interest of investors. Necessary clarifications, if any, would be issued at appropriate time by SEBI in this regard. This circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with the provisions of Regulation 77 of SEBI (Mutual Funds) Regulations, 1996, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

7.

Yours faithfully RUCHI CHOJER

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NOTES

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