Under the provisions
of the Depositories Act, Indus Portfolio Private
Limited (Depository Participant -NSDL & CDSL)
provides various services to the investors / account
holders. These include basic facilities like Demat
account maintenance, dematerialisation, rematerialisation,
settlement of trades through market transfers, off
market transfers and inter depository transfer,
distribution of non - cash corporate actions and
nomination / transmission.
Detail of services offered by INDUS as a depository participant are given
ACCOUNT MAINTENANCE: To
avail of the various services offered by INDUS as
a Depository Participant, an investor / a broker
/ an approved intermediary has to open a Depository
account with IPPL. An investor who wants to hold
securities in dematerialized (electronic form) form
and receive or deliver securities by inter -account
transfer must have a depository account called beneficiary
account with IPPL.
DEMATERIALISATION: Dematerialisation is
the process by which a client can get physical share
certificates converted into electronic holding.
An investor intending to dematerialize its securities
needs to have an account with INDUS. The client
has to deface and surrender the share certificates
to IPP along with duly signed DRF. On receipt of
DRF, IPPL sends the securities to the concerned
Issuer / R & T Agent. If the issuer / R &
T agent finds the certificates / signatures of the
shareholders in order, credits the beneficial owner
account by respective holdings electronically.
REMATERIALISATION: Rematerialisation is
the process by which an investor / client can get
his electronic holdings converted into physical
certificates. The client has to submit the rematerialisation
request to IPPL. The IPPL enters the request in
its system, which blocks the client's holding to
that extent automatically. The IPPL sends the request
form (RRF) to the concerned Issuer / R&T agent.
The Issuer / R &T agent print the certificates;
dispatch the same to the client. Thereafter, the
client's blocked balances are debited.
MARKET & OFF MARKET TRANSFERS: Trading
in dematerialized securities is quite similar to
trading in physical form. The main difference is
that at the time of settlement, instead of delivery
/ receipt of physical share certificates, the same
is affected through account transfer in electronic
INTER DEPOSITORY TRANSFER: As a DP, IPPL
also provide the services of transfer of holding
(electronic balances) to an account in another depository
from an account with IPPL. It is termed as inter
depository transfer. This facility is quite similar
to the account transfers. Inter - depository transfer
can be done only for securities that are available
for dematerialisation on both the depository i.e.
NSDL & CDSL.
TRANSMISSION: The word " transmission
" means devolution of title to share otherwise
than by transfer, for example, devolution by death,
succession, inheritance, bankruptcy, marriage etc.
While the transfer of shares is brought about by
delivery of a proper instruments of transfer duly
stamped and executed, transfers of shares is done
by forwarding the necessary documents to the company.
On registration of the transmission of shares, the
person entitled to transmission of shares becomes
the shareholder of the company and is entitled to
all rights and subject to all liabilities as such
In the depository system, all these problems
are eliminated, as the shares are account balances
in the electronic form. The process of transmission
through the depository is not only simple but it
is also quicker. This is because the successor to
the title interacts only with one entity i.e. DP
PLEDGE & HYPOTHECATION: Securities
held in Demat Account with IPPL, can be pledged
/ hypothecated to avail of loan / credit facility
from Banks / Financial institutions. Pledge of securities
through demat accounts, requires that both the borrower
and lender should have demat account in same Depository.
Mr. Puneet Pahwa
Ph: 011 - 47671218
Email: email@example.com, firstname.lastname@example.org