INVESTOR CHARTER

Vision

Towards making the Indian Securities Market - Transparent, Efficient, & Investor friendly by providing a safe, reliable, transparent and trusted record-keeping platform for investors to hold and transfer securities in dematerialized form.

Mission

• To hold securities of investors in dematerialized form and facilitate its transfer, while ensuring safekeeping of securities and protecting the interest of investors.
• To provide timely and accurate information to investors with regard to their holding and transfer of securities held by them.
• To provide the highest standards of investor education, investor awareness, and timely services so as to enhance Investor Protection and create awareness about Investor Rights.

Details of business transacted by the Depository and Depository Participant(DP)

A Depository is an organization which holds securities of investors in electronic form. Depositories provide services to various market participants - Exchanges, Clearing Corporations, Depository Participants (DPs), Issuers, and Investors in both primary as well as secondary markets. The depository carries out its activities through its agents which are known as Depository Participants (DP). Details available on the link

Details of business transacted by the Depository and Depository Participant(DP)

• Execution of trades on behalf of investors.
• Issuance of Contract Notes.
• Issuance of intimations regarding margin due payments.
• Facilitate execution of early pay-in obligation instructions.
• Settlement of client’s funds.
• Intimation of securities held in Client Unpaid Securities Account (CUSA) Account.
• Issuance of retention statement of funds.
• Risk management systems to mitigate operational and market risk.
• Facilitate client profile changes in the system as instructed by the client.
• Information sharing with the client w.r.t. exchange circulars.
• Redressal of Investors grievances.

Description of services provided by the Depository through Depository Participants (DPs) to investor

1. Basic Services (Activities > Expected Timelines)
- Dematerialization of securities > 7 days

- Rematerialization of securities > 7 days

- Mutual Fund Conversion / Destatementization > 5 days

- Re-conversion / Restatementisation of Mutual fund units > 7 days

- Transmission of securities > 7 days

- Registering pledge request > 15 days

- Closure of demat account > 30 days

- Settlement Instruction > Depositories to accept physical DIS for pay-in of securities up to 4 p.m. and DIS in electronic form up to 6 p.m. on T+1 day

2. Depositories provide special services like pledge, hypothecation, internet-based services etc. in addition to their core services and these include

- Value Added Services
Depositories also provide value added services such as

1. Basic Services Demat Account (BSDA)
2. Transposition cum dematerialization
3. Linkages with Clearing System
4. Distribution of cash and non-cash corporate benefits (Bonus, Rights, IPOs etc.), stock lending, demat of NSC / KVP, demat of warehouse receipts etc.

- Consolidated Account statement (CAS).
CAS is issued 10 days from the end of the month (if there were transactions in the previous month) or half yearly (if no transactions).
- Digitalization of services provided by the depositories
Depositories offer below technology solutions and e-facilities to their demat account holders through DPs:

1. E-account opening: Details available on the link
2. Online instructions for execution: Details available on the link
3. e-DIS / Demat Gateway: Details available on the link
4. e-CAS facility: Details available on the link
5. Miscellaneous services: Details available on the link

Details of Grievance Redressal Mechanism

The Process of investor grievance redressal

1. Investor Complaint/ Grievances
Investor can lodge complaint/ grievance against the Depository/DP in the following ways:

1. Electronic mode
2. Offline mode [details of link to the form to be provided by DPs]
3. The complaints/ grievances lodged directly with the Depository shall be resolved within 30 days.

2. Investor Grievance Redressal Committee of Depository.

If no amicable resolution is arrived, then the Investor has the option to refer the complaint/ grievance to the Grievance Redressal Committee (GRC) of the Depository. Upon receipt of reference, the GRC will endeavor to resolve the complaint/ grievance by hearing the parties and examining the necessary information and documents.
3. Investor Grievance Redressal Committee of Depository.
The Investor may also avail the arbitration mechanism set out in the Byelaws and Business Rules/Operating Instructions of the Depository in relation to any grievance, or dispute relating to depository services. The arbitration reference shall be concluded by way of issue of an arbitral award within 4 months from the date of appointment of arbitrator(s).

For the Multi-level complaint resolution mechanism available at the Depositories

Guidance pertaining to special circumstances related to market activities: Termination of the Depository Participant

Type of special circumstances
Depositories to terminate the participation in case a participant no longer meets the eligibility criteria and/or any other grounds as mentioned in the bye laws like suspension of trading member by the Stock Exchanges..
Timelines for the Activity/ Service
Client will have a right to transfer all its securities to any other Participant of its choice without any charges for the transfer within 30 days from the date of intimation by way of letter/email.

Annexure B - INFORMATION CONTAINED IN LINKS TO THE INVESTOR CHARTERFOR DEPOSITORIES AND DPS

This document contains the contents pertaining to the qualifier “[https://www.cdslindia.com/Investors/InvestorCharter.html]” in the Investor Charter main document. The same is to be made available by the Depositories on their websites and web-links to the same is to be provided for incorporation in the Investor Charter. For reasons of convenience, the contents in main Charter and this document have been mapped with the same superscript.

Point 1: Value Added Services

1. Basic Services Demat Account (BSDA): The facility of BSDA with limited services for eligible individuals was introduced with the objective of achieving wider financial inclusion and to encourage holding of demat accounts. No Annual Maintenance Charges (AMC) shall be levied, if the value of securities holding is upto Rs. 50,000. For value of holdings between Rs 50,001- 2,00,000, AMC not exceeding Rs 100 is chargeable. In case of debt securities, there are no AMC charges for holding value upto Rs 1,00,000 and a maximum of Rs 100 as AMC is chargeable for value of holdings between Rs 1,00,001 and Rs 2,00,000.
2. Transposition cum dematerialization: In case of transposition-cumdematerialisation, client can get securities dematerialised in the same account if the names appearing on the certificates match with the names in which the account has been opened but are in a different order. The same may be done by submitting the security certificates along with the Transposition Form and Demat Request Form.:
3. Linkages with Clearing System: for actual delivery of securities to the clearing system from the selling brokers and delivery of securities from the clearing system to the buying broker.

Point 3: Digitization of services provided by the depositories

1. E-account opening:: Account opening through digital mode, popularly known as “On-line Account opening”, wherein investor intending to open the demat account can visit DP website, fill in the required information, submit the required documents, conduct video IPV and demat account gets opened without visiting DPs office.
2. Online instructions for execution: internet-enabled services like Speed-e (NSDL) & Easiest (CDSL) empower a demat account holder in managing his/her securities ‘anytime-anywhere’ in an efficient and convenient manner and submit instructions online without the need to use paper. These facilities allows Beneficial Owner (BO) to submit transfer instructions and pledge instructions including margin pledge from their demat account. The instruction facilities are also available on mobile applications through android, windows and IOS platforms.
3. e-DIS / Demat Gateway: Investors can give instructions for transfer of securities through e-DIS apart from physical DIS. Here, for on-market transfer of securities, investors need to provide settlement number along with the ISIN and quantity of securities being authorized for transfer. Client shall be required to authorize each e-DIS valid for a single settlement number / settlement date, by way of OTP and PIN/password, both generated at Depositories end. Necessary risk containment measures are being adopted by Depositories in this regard.
4. e-CAS facility: Consolidated Account Statements are available online and could also be accessed through mobile app to facilitate the investors to view their holdings in demat form.
5. Miscellaneous services: Transaction alerts through SMS, e-locker facilities, chatbots for instantaneously responding to investor queries etc. have also been developed

Para 5(1) of Investor Charter

Point 2 (Investor Grievance Redressal Committee of Depository):

If no amicable resolution is arrived, then the Investor has the option to refer the complaint/ grievance to the Grievance Redressal Committee (GRC) of the Depository. Upon receipt of reference, the GRC will endeavor to resolve the complaint/ grievance by hearing the parties and examining the necessary information and documents.

Point 3(Arbitration proceedings):

The Investor may also avail the arbitration mechanism set out in the Byelaws and

Business Rules/Operating Instructions of the Depository in relation to any grievance,

or dispute relating to depository services. The arbitration reference shall be concluded

by way of issue of an arbitral award within 4 months from the date of appointment of

arbitrator(s)

Para 8 of Investor Charter

Rights of investors

1.  No minimum balance is required to be maintained in a demat account.
2. No charges are payable for opening of demat accounts.
3. If executed, receive a copy of Power of Attorney. However, Power of Attorney is not a mandatory requirement as per SEBI / Stock Exchanges. You have the right to revoke any authorization given at any time.
4. You can open more than one demat account in the same name with single DP/ multiple DPs.
5. Receive statement of accounts periodically. In case of any discrepancies in
6. statements, take up the same with the DP immediately. If the DP does not respond, take up the matter with the Depositories.
7. Pledge and /or any other interest or encumbrance can be created on demat holdings.
8.  Right to give standing instructions with regard to the crediting of securities in demat account.
9.  Investor can exercise its right to freeze/defreeze his/her demat account or specific securities / specific quantity of securities in the account, maintained with the DP.
10. In case of any grievances, Investor has right to approach Participant or Depository or SEBI for getting the same resolved within prescribed timelines.
11. Every eligible investor shareholder has a right to cast its vote on various resolutions proposed by the companies for which Depositories have developed an internet based ‘e-Voting’ platform.
12. Receive information about charges and fees. Any charges/tariff agreed upon shall not increase unless a notice in writing of not less than thirty days is given to the Investor.

Para 9 of Investor Charter

Responsibilities of Investors

1. Deal with a SEBI registered DP for opening demat account, KYC and Depository activities.
2. Provide complete documents for account opening and KYC (Know Your Client).
3. Fill all the required details in Account Opening Form / KYC form in own handwriting and cancel out the blanks.
4. Read all documents and conditions being agreed before signing the account opening form.
5. Accept the Delivery Instruction Slip (DIS) book from DP only (preprinted with a serial number along with client ID) and keep it in safe custody and do not sign or issue blank or partially filled DIS