Depository data infrastructure
Investor Charter

Investor Charter — Depository Participants

A comprehensive guide to investor rights, services, and grievance redressal.

SEBI Registered
INZ000323534
NSE · BSE · MCX
Member across 3 exchanges
CDSL Depository
DP ID 12104000

Vision & Mission

Vision

Towards making every investor financially secure, empowered, responsible, knowledgeable and market savvy.

Mission
  • ✓To enable efficient and transparent securities markets to enable investors to take well informed investment decisions.
  • ✓To empower investors through education and information so that they can take decisions without depending on intermediaries.
  • ✓To ensure investor protection through adequate disclosures, proactive regulation and effective enforcement of investor rights.

Business Transacted by the Depository & DP

A Depository is an organisation which holds securities (shares, debentures, bonds, government securities, mutual fund units etc.) of investors in electronic form. Depositories provide various services to investors directly and through their agents called Depository Participants (DPs). Services include basic facilities like account opening, dematerialisation, rematerialisation, transfers and pledging.

A Depository Participant (DP) is described as an agent of the depository. They are the intermediaries between the depository and the investors. The relationship between the DPs and the depository is governed by an agreement made between the two under the Depositories Act.

Services Provided by the Depository Through DPs

Basic Services
Activity / ServiceExpected Timeline
Dematerialisation of securities7 days
Rematerialisation of securities30 days
Mutual Fund transmission / dematerialisation of units7 days
Transmission of demat / dematerialisation of mutual fund units7 days
Depository participant account closure30 days
Settlement of demat securitiesOn the T+1 day (settlement day for NSE & BSE) after receipt of SLBS/normal securities from the clearing member / CM Pool, DP credits the beneficiary account of the client. Credit may be processed within the same day of receipt from the clearing member/Exchanges.
Pledging / hypothecation and closure of pledge of demat securitiesOn the same day as requested
Ancillary Services
TypeDescription
Basic Demat ServicesApart from Demat Services listed above, the Depository/DP provides services like change in address, change in bank details (ECS), change in signature, name correction, merger/demerger, consolidation/split, nomination and transposition.
Consolidated Account Statement (CAS)CAS is generated monthly for all active demat accounts with any transaction during the month, and yearly for accounts with no transactions. CAS is sent to investors by Depositories (NSDL/CDSL) electronically or physically.
e-DIS / POA ServicesTo facilitate the sale of securities from a demat account, Depositories have introduced e-DIS (electronic Delivery Instruction Slip). Alternatively, a client can execute a POA in favour of the Stock Broker authorising the broker to debit the client's DP account for settlement of trades.

Grievance Redressal Mechanism

Investor's Complaint / GrievanceTimelines
Investor complaint against DPs received by Depositories via SCORES, direct emails, or letters to the depositories/DPs.Reviewed by the Compliance team of the DP; response within 30 days.
Investor complaint against DPs/depositories forwarded by SEBI via SCORES.DP resolves within 30 days; if unresolved, the Depository takes up the matter within the SEBI SCORES timeline.
Complaint can escalate to the Depository's escalation committee and/or arbitration mechanism as defined in its Bye-laws and Business Rules; investors may also approach SEBI SCORES.Resolved within SEBI SCORES stipulated time; escalated to Grievance Redressal Committee of Depository if needed.
If unresolved, investor can approach SEBI via SCORES (register with Name, PAN, Address, Mobile Number, Email ID); beneficiaries may also pursue arbitration at the Depository level.As per SEBI SCORES timelines.

Resolution of Disputes through ODR

SEBI Online Dispute Resolution (ODR)

In case of any grievance or dispute with a depository participant, investors may seek resolution through the Online Dispute Resolution (ODR) mechanism.

1Investor files complaint against DP on the SMART ODR Portal (smartodr.in)
2Conciliation process — a neutral conciliator is appointed
3If unresolved, the matter is referred to arbitration
4Arbitral award is passed — binding on both parties

Special Circumstances — Termination of the DP

Special CircumstanceTimeline
Termination of DP by the depository — securities are transferred to a default DP and investors are informed. Surrender of registration by DP — investors are given the option to shift their account to another DP of their choice.Within 30 days from the date of receipt of all relevant documents from the investor, the DP shall close the account and transfer the securities to the account of the investor with the new DP, or as requested.
Suspension of DP by the depository.During the suspension period, the DP cannot process any transaction in clients' accounts; the investor should approach the Depository for any service or transaction.

Do's & Don'ts for Investors

Do’s
  • ✓Always deal with a SEBI registered Depository Participant for opening your demat account.
  • ✓Read all documents and conditions imposed by the DP before opening a demat account. Ensure you receive a copy of the agreement, client registration form, charges schedule, and terms & conditions.
  • ✓Ensure that you understand all rules, terms and conditions of the demat account before signing the DP account opening form.
  • ✓Be careful in selecting your DP. Check for the SEBI registration certificate. A list of registered DPs is available on cdslindia.com, nsdl.com and sebi.gov.in.
  • ✓Always keep a record of dates of submission of demat requests, the unique reference number, folio numbers of certificates submitted, and the status of the request.
  • ✓Do not leave your Delivery Instruction Slips (DIS) book with the broker or leave blank/signed DIS with anyone. When using a POA, ensure its scope is limited to demat account transactions only.
  • ✓Always verify holding balances in the demat account against the DIS submitted to your DP on a regular basis.
  • ✓Provide the Power of Attorney (POA) only to your stock broker (if you choose to) and not to any other intermediary.
  • ✓Always keep your contact details, email address and mobile number updated with your DP so you receive alerts and communications on time.
  • ✓Check your demat account statements periodically. Report any unauthorised transaction or discrepancy to your DP immediately.
  • ✓In case of any grievance, approach the DP first; if unresolved, approach SCORES/ODR.
  • ✓Transact only through registered intermediaries and ensure your intermediary is SEBI-registered and authorised.
  • ✓Always submit the DIS with complete information (ISIN, company name, number of securities to be transferred, date of submission, transferee's name and demat account number, etc.).
  • ✓Issue a DIS for securities to be transferred only when you are sure of the receiving party's name and the ISIN.
  • ✓Keep note of the time limit within which the demat request should be confirmed by the Registrar and Transfer Agent (R&T).
  • ✓Maintain a record of your demat account statement and DIS book.
Don’ts
  • ✕Do not deal with unregistered Depository Participants.
  • ✕Do not sign DIS without filling all required details. Do not give a DIS to anyone else. Be careful about multiple/extra DIS you may hold.
  • ✕Do not forget to cancel unused DIS, or write CANCELLED across it before discarding.
  • ✕Do not leave your demat account dormant for a long period without conducting any transactions. Dormant accounts need to be reactivated by submitting fresh KYC documents.

Rights of Investors

  1. 1Right to receive a copy of the Client Master Report.
  2. 2Right to receive all details of charges and fees levied by the DP.
  3. 3Right to receive a contract note for every executed trade from the broker on the same day.
  4. 4Right to receive the holding statement from the DP on request or at periodic intervals (at least once a year).
  5. 5Right to approach the compliance officer of the DP for redressal of any problem.
  6. 6Right to receive a copy of the agreement entered into with the DP.
  7. 7Right to receive a copy of the schedule of charges.
  8. 8Right to receive the holding balances and demat account statement.
  9. 9Right to appoint a nominee for the demat account.
  10. 10Right to pledge securities held in the demat account.
  11. 11Right to access the account either through internet facility or physical means.
  12. 12Right to operate the account jointly with another person.
  13. 13Right to a meeting with the compliance officer at the registered office of the DP if queries/grievances aren't resolved within the stipulated time.
  14. 14Right to be treated fairly and equitably.
  15. 15Right to approach the Depository / SEBI for redressal if not satisfied with the resolution at the DP level.

Responsibilities of Investors

  1. 1Provide correct and complete information at the time of opening a demat account or when any change is required.
  2. 2Provide proof of identity and address.
  3. 3Read and understand all terms and conditions in the demat account opening form.
  4. 4Ensure the demat account opening form is correctly filled; false statements/information may attract legal action.
  5. 5Provide correct bank account details, used for credits like dividend, bonus, etc.
  6. 6Update any change in bank account details with the DP at the earliest.
  7. 7Provide correct and complete KYC information as required.
  8. 8Report the loss of a DIS book or any unused DIS slips immediately.
  9. 9Safeguard the DIS book/unused DIS slips from unauthorised use.
  10. 10Verify the content of the account statement received from the DP and report any discrepancy.
  11. 11Ensure that any POA given to the DP/Broker is limited in scope to demat account transactions.

Code of Conduct for Depositories (Part D, Third Schedule — SEBI (D&P) Regulations, 2018)

  1. 1A depository shall make available its services to all eligible participants on a fair, open and transparent basis.
  2. 2A depository shall not indulge in any unfair trade practice and shall not use any manipulative or deceptive device, scheme or artifice to defraud investors or any other person.
  3. 3A depository shall not discriminate between Depository Participants, investors, issuers or their agents in the matter of providing services.
  4. 4A depository shall maintain high standards of integrity, promptitude and fairness in the conduct of its business.
  5. 5A depository shall ensure that public interest is protected at all times.
  6. 6A depository shall ensure its records are maintained accurately and in a timely manner.
  7. 7A depository shall not knowingly allow its facilities or services to be misused.
  8. 8A depository shall take reasonable steps to resolve conflict of interest so it does not adversely affect DPs, issuers or investors.
  9. 9A depository shall endeavour to make public all information reasonably necessary for investors in the securities market.
  10. 10A depository shall make available information it possesses or has access to, to relevant regulatory authorities as required.
  11. 11A depository shall ensure SEBI guidelines, circulars, directions and instructions are implemented effectively.
  12. 12A depository shall ensure its Bye Laws and Business Rules are consistent with SEBI guidelines, circulars, directions and instructions.
  13. 13A depository shall endeavour to maintain a high standard of service delivery to investors, issuers and DPs.

Code of Conduct for Participants (Part A, Third Schedule — SEBI (D&P) Regulations, 2018)

  1. 1A Participant shall make available its services to all eligible investors on a fair, open and transparent basis.
  2. 2A Participant shall not indulge in any unfair trade practice and shall not use any manipulative or deceptive device, scheme or artifice to defraud investors or any other person.
  3. 3A Participant shall maintain a high standard of integrity, promptitude and fairness in the conduct of its business.
  4. 4A Participant shall not knowingly allow its facilities or services to be misused.
  5. 5A Participant shall ensure its records are maintained accurately and in a timely manner.
  6. 6A Participant shall ensure its clients are provided with proper guidance in relation to demat account opening and other procedures.
  7. 7A Participant shall communicate clearly to the client about charges and fees.
  8. 8A Participant shall redress all grievances of investors speedily.
  9. 9A Participant shall ensure investors are informed about the risks associated with holding securities in demat form.
  10. 10A Participant shall maintain proper documentation in respect of every transaction entered into by the client.
  11. 11A Participant shall accept clients in conformity with the eligibility criteria in the Bye Laws and Business Rules of the Depository.
  12. 12A Participant shall ensure that the instructions of clients are duly executed.
  13. 13A Participant shall ensure that the assets of the client are safeguarded at all times.
  14. 14A Participant shall carry out the instructions of the Depository.
  15. 15A Participant shall not disclose client information to any person (other than the Depository or a regulatory/statutory/judicial/quasi-judicial authority in India) unless specifically authorised by the client.
  16. 16A Participant shall send holding statements to clients periodically.
  17. 17A Participant shall ensure its compliance officer is reachable and available for investors.
  18. 18A Participant shall provide details of charges in advance and notify clients of any changes in charges.
  19. 19A Participant shall maintain adequate internal controls to detect and prevent any unauthorised activity in its demat services.
  20. 20A Participant shall exercise due care and diligence while dealing with any service-related matter.

Investor Charter – Depository Participants · As per SEBI / Depositories Guidelines