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Operational Processes of Depositories in India

14th ACG Cross Training Seminar. Operational Processes of Depositories in India. Central Depository Services (India) Limited. Concept of Depository. Demataterialisation (Demat) and Rematerialisation ( Remat ) of Securities No Immobilization Beneficial Owner Level Accounting

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Operational Processes of Depositories in India

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  1. 14th ACG Cross Training Seminar Operational Processes of Depositories in India Central Depository Services (India) Limited

  2. Concept of Depository Demataterialisation (Demat) and Rematerialisation (Remat) of Securities No Immobilization Beneficial Owner Level Accounting No Nominee level accounting Challenges Multiple Exchanges Multiple Clearing Corporation Multiple Depositories Depository in India Started in 1996 More than 2 Crore (20 million) demat account Approximately INR 75 Lakh Crores (USD 1360 Billion) Central Depository Services (India) Limited

  3. Admission of DPs Admission criteria Approval/ Registration Certificate - Regulator Renewal after 5 years Permanent Registration Branches Service Centres # - NSDL website [NSDL at a glance May 19, 2012] Central Depository Services (India) Limited

  4. Admission of Securities Admission criteria Allocate ISIN - NSDL Create ISIN in system Activate ISIN Block / Deactivate ISIN Automatically on maturity date Due to Corporate Action Due to Regulatory orders # - NSDL website [NSDL at a glance May 19, 2012] Central Depository Services (India) Limited

  5. Admission of RTAs Admission criteria Checking documents at CDSL Monitoring expiry of RTA registration Beneficiary Holding Position (BenPos) Weekly (Friday) Month end On demand RTA to be registered with both the Depositories before they start operations Central Depository Services (India) Limited

  6. Government Securities GSec pertaining to Central Government State Government Issued/Controlled by Central Bank Reserve Bank of India (RBI) NDS (Negotiated Dealing System) CDSL - RTA Demat /Remat of Gsec Processing of Interest / Redemption Central Depository Services (India) Limited

  7. Mutual Fund Units Subscription /Buying or Redemption/Selling through Trading Platform Order Entry Platform AMC RTA Depository through DP Types of Mutual Fund schemes Open ended Close ended Interval Funds Exchange Traded Funds Fixed Maturity Plans Central Depository Services (India) Limited

  8. Settlement of Securities Clearing Corporation of Stock Exchanges does clearing & settlement of Trades Settlement cycles Money as well as Securities simultaneously T + 2 (equities, debentures, etc.) T + 1 (Corporate Bonds, SLB) T + 0 (Corporate Bonds) Securities and Money on different dates T + 0 (Mutual funds – redemption - securities) T + 1 to T + 7(Mutual Funds – redemption - money) Runs on time schedules From 0900 hours to 1700 hours Central Depository Services (India) Limited

  9. IPO/FPO IPO / FPO Setup of IPO/FPO Client (BOID) verification IPO Basis of Allotment Allotment Blocking securities Trading approval Unblocking securities on day of trading FPO Listing approval Allotment Trading approval Central Depository Services (India) Limited

  10. Corporate Action Corporate Action types Only Credit (Bonus, etc.) Only Debit (Redemption, etc.) Both Debit & Credit (Split, Demerger, etc.) Processing at SOD EOD Online Processing type Automatic Manual Central Depository Services (India) Limited

  11. Investor Services Internet access to account easi easiest Corporate Announcements SMS alerts (SMART) Debits, credits, Change in address/PoA/signature, etc. Grievance Redressal Mechanism – Arbitration Investor Awareness Programs (IAPs) Central Depository Services (India) Limited

  12. Commodities Commodity Exchange types Commodity types Settlement types e-Warehouse Receipts ICIN creation Demat Remat Revalidation Central Depository Services (India) Limited

  13. 14th ACG Cross Training Seminar ThanksQ & A Central Depository Services (India) Limited

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