The Hindu Business Line : Transactions thru depository account

The DP gives a transaction statement periodically, which will detail current balances and various transactions made through the depository account. If so desired, DP may provide the transaction statement at intervals shorter than the stipulated ones, probably at a cost.

At what frequency will the investor receive his transaction statement from his DP?

DPs have to provide transaction statements to their clients once in a month, if there are transactions and once in a quarter, if there are no transactions.

Moreover, DPs can provide transaction statement in electronic form under digital signature subject to their entering into a legally enforceable arrangement with the BOs to this effect.

What is to be done if there are any discrepancies in transaction statement?

In case of any discrepancy in the transaction statement, one can contact his/her DP. If the discrepancy cannot be resolved at the DP level, one should approach the depository.

Whom should one contact in case of any investor complaint/problem/query?

In case of any investor complaint/problem/query one may first contact his DP. If DP is unable to solve the complaint/problem/query one should approach concerned depository. If one is not satisfied one may approach the SEBI. One may also approach SEBI directly.

Is it possible to get securities allotted in public offering directly in the electronic form?

Yes, it is possible to get securities allotted to in public offerings directly in the electronic form. In the public issue application form there is a provision to indicate the manner in which an investor wants the securities allotted. He has to mention the BO ID and the name and ID of the DP on the application form.

Any allotment made will be credited into the BO account.

How are cash corporate benefits such as dividend/interest received?

The company concerned obtains the details of beneficiary holders and their holdings as on the date of the book closure/record date from depositories. The payment to the investors will be made by the company through the Electronic Clearing Service (ECS) facility, wherever available. Thus the dividend/interest will be credited to the bank account directly.

Where ECS facility is not available dividend/interest will be given by issuing warrants on which your bank account details are printed.

The bank account details will be those which you would have mentioned in your account opening form or changed thereafter.

How would one receive non-cash corporate benefit such as bonus etc.?

The company concerned obtains the details of beneficiary holders and their holdings as on the date of the book closure/record date from depositories.

The entitlement will be credited by the company directly into the BO account.

Who should be contacted in case of discrepancies in corporate benefits?

In case of discrepancies in corporate benefits, one can approach the company/its R&T agent.

What is lending and borrowing of securities?

If any person required to deliver a security in the market does not readily have that security, he can borrow the same from another person who is willing to lend as per the Securities Lending and Borrowing Scheme.

Can lending and borrowing be done directly between two persons?

No. Lending and borrowing has to be done through an `approved intermediary' registered with SEBI.

The approved intermediary would borrow the securities for further lending to borrowers.

Lenders of the securities and borrowers of the securities enter into separate agreements with the approved intermediary for lending and borrowing the securities. Lending and borrowing is effected through the depository system.

Can I lend the securities lying in my account?

Yes. You can lend your securities through Approved Intermediaries registered with SEBI.

How would I lend my demat securities?

You may enter into an agreement with the approved intermediary to be a lender under this scheme. After that, you may lend securities any time by submitting lending instruction to your DP.

How would I get back the securities lent by me?

The intermediary may return the securities at any time or at the end of the agreed period of lending.

Intermediary has to repay the securities together with any benefits received during the period of the loan.

How would I receive the corporate benefits, which would accrue on these securities during the period of lending?

The benefits will be given to the intermediary/borrower. However, whenever the securities are being returned/recalled, the intermediary/borrower will return the securities together with benefits received.

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