Be A Prudent Investor
ByOff Market
– Vikas Transfers
Kumar and Stamp
Jain, Assistant Duty
Vice President, NSDL
Indian Securities Market
Stocks and
NSE, BSE, MSE, MCX
Commodities
etc.
Derivative Exchanges
Market Regulator - SEBI NSDL
Depositories
CDSL
Stock Brokers, RTAs,
Mutual Funds,
Other Intermediaries
Investment Advisors
etc.
Starting Investment in Securities Market
Accounts Required
Trading or Broking Account Demat Account
Bank Account
Many DPs offer a 3-in-1 account facility which gives you the convenience of opening a
trading, demat and bank account – all together.
Now some DPs are now offering online demat account opening.
Trading or Broking account is required only if you want to buy / sell shares etc.
through stock exchange.
About NSDL
Established in 1996, First One of The World’s Largest Wide Network of
Depository in India Depository Depository Participants
Across The Country
NSDL’s Progress
Dec - 2010 Dec - 2015 Dec - 2020 May - 2021
67.56 119.30 227.51 261.07
Custody Value in ` Lakh Crore
Total value of all assets held in all NSDL demat accounts
NSDL’s Progress
300
Bank deposits and
250 244
NSDL Custody Value
200 186
172
160
153
146
150 140
129
117 Aggregate Bank Deposits of All Scheduled
110
Banks (in ₹ Lakh Crore)
100
NSDL Demat Custody Value (in ₹ Lakh Crore)
50
Bank Deposit Source : RBI Bulletins
0
Mar. 31, 2017 Mar. 31, 2018 Mar. 31, 2019 Mar. 31, 2020 Mar. 31, 2021
NSDL’s Progress
250
GDP and NSDL Custody Value
203
200 190 186
171 172
160
154
146
150
GDP at Market Price (in ₹ Lakh Crore)
NSDL Demat Custody Value (in ₹ Lakh Crore)
100
50
GDP Source : https://dbie.rbi.org.in/
0
2016-17 2017-18 2018-19 2019-20
NSDL Depository System
Issuer Company / RTA
CDSL NSE Clearing Limited
Indian Clearing
Corporation Limited
(Clearing Corporations)
DP 1 DP 2
Stock Broker / Stock Broker /
Trading Member 1 Investor 1 Investor 2 Clearing Member 2
Services offered by Depository Participant
Account Opening
Change in account details
Demat*, Remat of securities,
Conversion and Redemption of Account freeze
Mutual Fund Units (Account level, ISIN level
and Quantity level)
Transfer of securities** Pledge and Margin Pledge of
securities
*Even unlisted shares can be dematerialized. **Transfer of securities held in physical form not allowed w. e. f. April 1,
2019. Re-lodgement of transfer deeds which were submitted prior to this, but were rejected or returned, was allowed
till March 31, 2021. Shares pending for transfer with listed company / its RTA shall be issued only in demat.
NSDL’s Investor Centric e-Services
• NSDL's internet facility to • View transactions, holdings
enable users to submit along with valuation
various instructions online, • Subscribe to CAS
including Margin Pledge • Update email ID for CAS
• View and download 12 past
• You may register at
* CAS
www.nsdl.co.in • Participate in e-Voting
Facility for shareholders to vote
electronically on resolution of • View holdings along with
companies, Anytime, Anywhere NSDL valuations
NSDL Speed
e-Voting* - Mobile App*
• Participate in e-Voting
• Confirmation of e-DIS
• Register for IDeAS
*Free for all demat account holders
Transfer of Securities in Demat Form
1. As per Depositories Act, securities held in demat form are fungible
and freely transferable.
2. This means shares etc. held in demat form can be transferred from
one person to another or from one demat account to another demat
account freely except when they are under pledge, lock-in, etc.
3. Types of Transfers -
a) Market Transfer
b) Off Market Transfer
c) Inter-depository Transfer
Transfer of Securities in Demat Form
1. Off Market transfers are transfers between two beneficial owners’ demat
account. None of the parties to transfer (Source and Target accounts) are
Clearing Member.
Examples – Transfer by father to his child’s account as gift.
2. Market Transfer means transfer between accounts held by beneficial owner
and Clearing Member (Source and / or Target is a CM account).
Examples – Transfers for the purpose of pay in and payout.
Transfer of Securities in Demat Form
3. Inter Depository Transfers
i. Transfer of securities where source and target accounts
are in two different depositories.
ii. For inter depository transfers, ISIN should be active in
both depositories.
iii. These instructions are exchanged online between two
depositories.
How to Transfer Securities in Demat Form?
1. Transfer is possible only upon an instruction from the demat
account holder.
2. Instruction can be given by the demat account holder himself or by
his Power of Attorney holder.
3. Instruction can be given in paper form (through a Delivery
Instruction Slip) or electronically through SPEED-e.
4. Off Market instructions are permitted through DIS signed by Client
himself or through electronic mode after OTP validation only.
5. SPEED-e is a powerful alternate to Power of Attorney given in
favour of stock brokers.
Format of Delivery Instruction Slip
DIS Contents
Ensure to fill up the DIS completely -
1. Source and target account details
2. Market type and settlement number (for market transfers only)
3. ISIN(s) and quantity
4. Reason / purpose and Consideration (for off market transfers only)
5. Execution date
6. DIS must be signed by all the joint holders (or by Power of Attorney holder)
DP should issue acknowledgment for DIS
With Date and Time stamp
With Late stamp, if submitted beyond deadline (after 4 pm on T+1 day)
Check Your DIS
1. Issue of Delivery Instruction book
i. Pre-printed serial no.
ii. Pre-stamped Client ID
2. Re-issue of Delivery Instruction book
Submit signed Requisition Form to DP for another Delivery Instruction book
3. Mapping of client ID with DIS number will be recorded in depository system at the time
of issuance by DP
4. Verification of client ID – DIS number mapping at the time of entering DIS in Depository
system will happen.
Settlement of Off Market Transactions
Depository
2 3
DP 1 DP 2
1 4
Client A’s demat account Client B’s demat account
Funds movement between clients happen outside the depository system
Off Market Transaction
Source Target
Account Client Client
Instruction Delivery instruction by Client Standing Instruction or Receipt-in
instruction
Movement One client’s account to another client’s account
Remarks Additional verification if value > ₹ 5 Lakh
1. Off market instructions wait for adequate balance in the
source account till the end of the execution date.
2. Stamp Duty as applicable must be paid before the
execution of instruction in the depository system.
Stamp Duty on Transactions
Redemption of mutual fund units, issuance of bonus
Transactions not covered shares, off-market transfer of securities without
consideration such on gift, legacy transfer
Market value which is based on price or consideration
What value should be considered for SD?
involved as disclosed by trading parties
Use NSDL stamp duty calculator available at www.nsdl.co.in to know the amount of stamp duty payable and pay
the amount online.
Stamp Duty on Transactions
Stamp duty is based on the consideration amount mentioned by the transferor demat account holder in the
instruction slip and recorded in NSDL system by DP or account holder.
It can be paid by the demat account holder directly to
NSDL or through its DP.
It must be paid before the execution of the instruction
in depository system.
Take care to mention DP ID and Client ID of transferor client
correctly at the NSDL portal while paying stamp duty online.
Stamp duty collected by depository shall be deposited in the
account of concerned state / UT government based on the
residential address (correspondence address) pin code
mentioned in the demat account of the buying client (credit
side).
Be a Prudent Investor
Keep record of documents signed, account statements,
contract notes received and payments made. Save
important emails and take periodic back up of data.
Change password of your online accounts frequently. Never
share OTP and PIN with any one.
Read SMS, emails, letters, statements, bills sent by your
broker, bank, DP and NSDL. These are sent to you to keep
you updated.
Accept the DIS only if serial number is pre printed and Client
ID is pre stamped or pre printed. Keep DIS in safe custody.
Be a Prudent Investor
Inform your DP about any change in your Personal
Information such as address, bank account immediately.
Always mention your Mobile Number and email ID in
account opening form and keep them updated.
Do not act on Unsolicited SMS and emails providing Tips,
stock recommendations, assured returns etc.
NSDL publications and presentations are available in Hindi,
English and other languages at www.nsdl.co.in Education
Schedule of Awareness Programs, Registration and
Feedback facilities are available at www.nsdl.co.in.
NSDL Newsletter for Investors
The Financial Kaleidoscope – Free monthly newsletter in िहं दी Hindi and English
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Newsletter – The
www.nsdl.co.in Education Financial
Kaleidoscope
Grievances Redressal
1. Lodge your complaint with SEBI at
www.scores.gov.in/ or SEBI Mobile App
2. SEBI Toll free helpline - 18002667575 /
1800227575
3. NSDL Toll Free helpline - 18001020990 /
1800224430
4. Online submission of Grievances at
www.nsdl.co.in Query Now
6. NSDL email for other information -
[email protected] THANK YOU
We welcome your feedback and suggestions about this program at www.nsdl.co.in /
[email protected].
