The Kalupur Commercial Co-operative
Bank Limited is the first Ahmedabad
based Co. Operative bank to work as a Depository
Participant (DP) of National Securities
Depository Limited (NSDL). It
now offers to its customers
a whole range of Depository
services
:::::::::::
DEPOSITORY SYSTEM
The concept of Depository
The Government of India enacted
the Depositories Act in August
1996, thus pioneering the concept
, of Depositories and entering
the age of paperless settlement
of securities. NSDL was inaugurated
as the first depository in India
on November 8, 1996 which is
promoted by IDBI, UTI, SBI and
NSE to provide electronic depository
facilities for securities traded
in equity and debt markets.
Benefits of Depository System
- Bad deliveries, and all
risks associated with physical
certificates, such as loss,
theft, etc. is eliminated
as in the Depository system,
physical securities are converted
into electronic book entries.
- Reduction in handling huge
volumes of paper for Brokers,
Custodian, Stock Exchanges,
Banks, etc.
- Settlement of trade is
faster and free of problems
thus enabling a higher frequency
of portfolio turnover.
- Transfer of shares is relatively
inexpensive, speedy and does
not involve the Transfer deeds
and Stamp Duty payment. Besides
this brokerage charged by
brokers is also less as chances
of bad delivery is almost
eliminated.
- Faster disbursement of Corporate
benefits like Rights, Bonus,
etc.
- The problem of odd lot is
totally eliminated as the
market lot for transaction
in Depository mode has been
fixed as one share.
- Periodic status reports
to investors on their holdings
and transactions, leading
to better
controls.
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KALUPUR BANK AS A DEPOSITORY (DP)
PARTICIPANT
National Securities Depository
Limited (NSDL) carries out its
Depository functions through
a network of "Depository
Participants" (DPs) who
actually conduct business with
the investors. The depository
system functions very much like
the banking system. Just like
in a Bank one can open an account
and deposit/withdraw transfer
money, similarly one can open
a securities account with a
Depository Participant (DP),
withdraw securities and instruct
the DP to deliver/receive securities.
Services provided by Kalupur
Bank as a DP
Bank is providing demat
services to their saving/current
account holder wherein the client
will have to maintain minimum/adequate
balance specified by the bank
from time to time.
:::::::::::
OPENING OF DEMAT ACCOUNT
The client needs to fill up
specified form and execute a
"Client -Participant Agreement"
with the DP(Kalupur Bank).
Demat account can be opened either
singly or with one or more joint
applicants. Any number of account can be opened with the DP or
with different DPs. With Opening of an account the client
gets identification
number called "Client-ID"
The following documents are
required for opening of a Depository
account
For Individuals , Corporate
& Clearing Members
- Account opening form duly
filled along with photographs.
- Agreement along with Schedule"
A' (rate structure) signed
on all pages to be stamped
.
- Debit authorisation for
debiting charges duly signed
in connection to demat account.
- In Case of individuals,
for proof of Identity &
address, a copy of voter’s
ID card or driving license
or passport is required. Additionally
for proof of address, a copy
of ration card or bank passbook
is to be submitted, if required.
Originals will also be required
for the above, which will
be returned after verification.
- For all account holders of individual account, HUF account,
NRI account, Trust account & Corporate account PAN no is
mandatory. Original PAN Card is require for verification.
Additional requirements
for Corporate Account
- MOA and AOA duly certified
along with Board Resolution
for Corporate
- Copy of form No.18 in case
of change of address duly
attested by a director
- Copy of form No.32 in case
of resignation & new appointment
of new director duly attested
by a director
- Certificate from present
banker regarding satisfactory
conduct of the current account.
Additional requirements
for Clearing Members
- SEBI Certificate for Clearing
Member, Stock Exchange letter
also required.
- Clearing Member ID (CM)
received from Clearing Corporation.
- Partnership deed and list
of partners and their addresses
on the Firm's letterhead in
case of Clearing Member is
a partnership firm.
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RATE STRUCTURE FOR DEPOSITORY
SERVICES
SCHEDULE
"A"
Fee Schedule for
Depository Services
(With effect from 1st
September 2007)
|
SERVICES
PROVIDED |
CHARGES |
Account
opening form and agreement
along with stamp of Rs.
100/- |
Rs.
110/- |
Dematerialisation
|
Rs.
3 per certificate plus
Rs.25/- per request |
Rematerialisation
|
Rs.
20/- for every hundred
securities or part thereof
or Rs. 20/- per certi,
whichever is higher |
Market/
Off market Transaction
(per transaction) sale
|
Rs.
20/-
|
Late Transaction Charges
(per sell transaction)
|
Rs
.20/- per instruction
|
Pledge
charges Pledge
Creation, Closure &
Pledge Invocation
|
0.02%
of the value of the transaction (Min
Rs. 30/- )
|
Rejection
of DRF (Postage) Sent
through Courier /
Registered A.D.
|
Rs.
25/-
|
Securities Lending/
Borrowing:
Lending/Borrowing Initiation
Lending/ Borrowing
Confirmation
Recall/ Repay
Initiation
Recall/Repay
Confirmation
|
0.02%
of the value of the
transaction (Min. Rs.
35/-) |
Annual Maintenance Charges
|
Rs.
250/- |
Other Charges
|
(a)
Stationary charges:
Rs.25/- per annum
(b) Slip stop transfer:
Rs. 50/- per request
(c) Modification of
client Details: Rs. 10/-
per request
|
Non-periodic Demat A/c.
Statement
|
Rs.
20/- Per A/c.for each
month |
Failed
Delivery Instruction
|
Rs.
20/- per transaction |
Ideas
Facility Charges
(Registration required)
|
Rs.
10/- per quarter |
- Fee schedule based on existing
NSDL charges and is subject to change at the sole discretion of the bank.
- All charges will be payable
monthly. Charges will be debited to the saving/current Account of the party.
- Service Tax will be payable
levied separately as per the rules in force.
request from NSDL.
- The Value of transactions will be in accordance with the rate provided by NSDL.
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DEMATERIALISATION OF SECURITES
Demat is a process by which
the physical certificates are
taken back by the Company/Registrar
and actually destroyed and the
physical stock is converted
into electronic entries in the
depository system. This facility
can be availed of after opening
securities account with the
DP .
Procedure involved in case
of dematerialisation
- Investor surrenders defaced
certificates marked 'Surrendered
for Dematerialisation"
along with Dematerialisation
Request form (DRF) to the
DP.
- The DP intimates NSDL of
the request and forwards the
concerned certificate(s) to
the registrar for the purpose
of Dematerialisation.
- Registrar confirms the dematerialisation
request from NSDL.
- Registrar validates the
request, updates records &
informs NSDL.
- NSDL in turn updates its
records and informs DP of
such dematerialisation.
- Thus the Investor's account
gets credited
- Registrar may reject demataisation request for any objection
/reasons.
Guidelines
for Demat Sevice
:::::::::::
REMATERIALISATION OF SECURITIES
Rematerialisation is process
of converting your electronic
holdings in to share certificates
in paper form.
Procedure involved in case
of rematerialisation .
- Investor submits Rematerialisation
Request Form (RRF) to DP.
- DP intimates NSDL of the
request and submits RRF to
the registrar.
- NSDL confirms Rematerialisation
request to the registrar.
- Registrar updates accounts
.and prints certificates &
informs NSDL .
- NSDL updates account and
Informs the same to the DP.
- Registrar dispatches certificates
to the investor.
::::::::::::::::REPURCHASE
OF SECURITIES
Repurchase is process
of getting NAV based
realisation of a particular
script in the list of securities.
Procedure involved in case
of repurchase.
- Investor submits
Repurchase Request Form
(RRF) to DP.
- DP intimates NSDL of the
request and submits RRF to
the registrar.
- NSDL confirms Repurchase request to the registrar.
- Registrar updates accounts
.and prints cheque on basis
of NAV of a particular
security.
- NSDL updates account and
Informs the same to the DP.
- Registrar dispatches
cheque
to the investor.
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MARKET AND OFF MARKET TRANSFERS
Settlement of Trades is faster
and free of problems. The role
of Kalupur Bank would be to
carry out clients' instructions
for the movement of securities
on sale or purchase..
Procedure involved when
you sell shares
- The investor places an order
with the broker to sell shares,
who in turn gives a contract
note to the investor.
- Investor instruct the Depository
Participant by way of a "Delivery
Instruction by Clients"
slips
(Annexure- L or Annexure- N)to debit the
account with the number of
shares sold.
- The shares in turn will
move from the clients account
to the broker's Clearing Member
(CM) account. The broker's
CM account thus gets credited.
- At the time of settlement
Broker transfers securities
from his CM account to Clearing
corporation or Clearing House
(CC/CH) by way of "Delivery-Out
Instructions by CM for Pay-
in" slips" , (Annexure
-S). Thus the broker's account
gets debited.
- On the day of pay out
investor will get cheque
from his broker.
Procedure involved when
you buy shares
- The investor places an order
with the broker to purchase
shares who in turn gives a
contract note to the investor.
- At the time of settlement,
the broker makes payment to
CC/CH via the Clearing Bank.
- The CC/CH then releases
shares to the Broker's CM
account.
- The broker gives the DP
"Delivery Instructions
by Clearing Member on Pay-out"
slips
(Annexure T) to debit the
CM account and in turn the
investor's account gets credited.
- The investor gives the
DP "Receipt Instructions"
slips (Annexure M) to credit
the securities account for
the shares purchased.
In case of off Market trades
In case when shares are sold
the client will give the DP
" Delivery Instructions
by clients" slips (Annexure
L or Annexure- N) to debit the account by filling
in details in box marked as
"For Off-Market trades".
In case when shares are purchased.,
the client will give the DP
" Receipt Instructions"
slips (Annexure M) to credit
the account by filling in details
in box marked as'' to be filled
in if Deliverer is a Client
**The client can give standing
instructions for credit wherein
the shares purchased will get
credited automatically into
the account.
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PLEDGE
The pledgor (borrower) can
pledge their dematerialised
shares held in electronic form
by making an application to
the DP. The securities lying
in the beneficiary account of
the pledgor (borrower) can be
pledged In favour of the pledgee
(lender / bank).
Procedure involved when
shares are Pledged
- For Initiation of the
Pledge
- The Pledgor (Borrower)
will give DP instructions
as to Creation of Pledge
as laid down in (Annexure
W)
- Similarly the Pledgee
(Lender) will give
instructions to his DP as to Confirm
the Creation of Pledge
as laid down in (Annexure
W)
- On receipt of instructions
from both the Pledgor
(Borrower) and Pledgee
(Lender) through their
DPs the Depository (NSDL)
will create the Pledge.
- For Closure of the Pledge:
- The Pledgor (Borrower)
will give DP instructions
as to Closure of Pledge
as laid down in (Annexure
W)
- Similarly the Pledgee
(Lender) will give
instructions to his DP as to Confirm
of the Closure of Pledge
as laid down in (Annexure
W)
- On receipt of instructions
from both the Pledgor
(Borrower) and Pledgee
(Lender) through their
DPs the Depository (NSDL)
will close the Pledge
- Invocation of Pledge :
- In case where pledgor fails to repay the
amount borrowed, pledgee may instruct his DP to invoke
the pledgor. Pledgee's
(lender/Beneficiary) account will be credited with the share who in turn
will sell off shares to set of borrower account.
Holdings
Kalupur Bank as a DP will hold
securities in its custody (in
electronic form) on behalf of
its clients. The client will
be provided a statement which
will give details about the
transactions done in the account
as well as securities held by
the client in the securities
account on a regular basis.
Freezing / Locking of investors
accounts
Securities account can be freezed
/locked for any given period
of time as a security measure.
During this period no debits
can be made to the clients account.
This additional facility is
given just to avoid any unauthorised
operations of the account. The
client may freeze particular ISIN (Company). Particular quantity of
ISIN or whole account.
Receipt of Corporate benefits
In case of any rights/bonus
issues, the distribution of
share entitlements will be done
in electronic form by NSDL on
basis of information provided
by the company. In case of monetary
benefits when a company announces
dividend, NSDL will provide
the details of all persons having
electronic holdings of that
particular company and the company
will disburse the dividend to
such holders by sending them
dividend warrants directly or though ECS.
New public issues
In case of fresh public issue
it is possible to get allotment
of shares in electronic form.
Applicants will have to mention
their Client ID Number and the
name of the DP in the application
form. In such, case shares allotted
will be credited directly to
the securities account of the
client. It is therefore evident
that, depository is a much more
safe, user friendly, reliable,
quick, cost saving mode of
holding and transacting securities.
We therefore request you to
seriously evaluate this option.
We are always available to you
for any assistance or clarifications
with a view to serve you in
a better way.
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D-MAT Services at a glance
1. Services at Branches
Bank provides various
services like
- Account opening for new demat
accounts
- Acceptance of demat request
forms
- Issuance of delivery slips
- Acceptance of delivery slips
for market & off market
trades.
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At following branches
Demat facility is Available
- Anand
- Anandnagar,
- Bopal,
- Drive-in Road,
- Kalupur,
- Madhupura,
- Maninagar,
- Nava Wadaj,
- Panchvati,
- Patrakar Colony,
- S.M. Road,
- Sola Road,
- St.Xavier's Road,
- Usmanpura,
- Vadodara,
- Vasna
- Vastrapur
2. Services through
Telephone/Internet.
Customer can avail 24 hours
demat balance services through
Tele-demat & IDEAS.
Tele - Demating Services :
Through this service customers
can receive their
demat account balances on
Telephone No.s
079-27541076,079-27541248,
079-27582035,
079-27582036.
IDEAS : IDEAS is a
service which gives customers
internet based demat account
balances & transaction for last
five days. This service is available
with at par charges with NSDL,
Rs. 10/- per quater per Account.
( http : //speed-e.nsdl.com)
SMS : Customer have to register their mobile no's to demat dept. On credit of shares in their account they will receive SMS. This will be much more helpful in case of IPO allotment
Guidelines
for Demat Sevice
|