Do you have to keep any minimum balance of securities in your account?

No, the Depository has not prescribed any minimum balance. In fact, you can have zero balance in your account. However, the DPs may fix some minimum limits.

What security do you have if the only proof of your holdings in your depository is merely a piece of paper indicating your account balance?


When you open an account with a DP, you sign an agreement with the Depository Participant, in which the DP indemnifies you for any misuse of your holdings. The Depository will also ensure that the interests of the investors are protected, so that your grievances, if any, against your DP will be resolved by the Depository.

Are there any additional security features which depository participants will offer you to protect your account?

Yes, every transaction in your account will be authorised by you. You can authorise any transaction either by affixing your signature or by using any smart card similar to the use of an ATM or a credit card. Your Depository Participant will advertise its facilities and you should go through them carefully.

There is a facility by which you can lock your account so that the Depository Participant will not be able to carry out any transactions in your absence without your authorisation.

Is it possible for you to get the securities allotted to you in public offerings credited to your account directly in electronic form?

Definitely. In fact, in the public issue application form itself there will be a provision for you to indicate the manner in which you want the securities allotted to you. All you have to do is to mention your client account number and the name of the DP and any allotment due to you will be credited into that account.

Who will give you the benefits arising out of your holdings, say bonus rights or dividend?

When any corporate event such as rights or bonus or dividend is announced for a particular security, the Depositories will give all the details of the clients having electronic holdings of that security as of record date / book closure to the Registrars and Transfer Agents of the Company who will then calculate the corporate benefits due to all the share holders. The disbursement of cash benefits such as dividend / interest will be done by the Company whereas the distribution of securities / entitlements will be done by the Depositories based on the information provided by the Registrars and Transfer Agents of the Company. Thus, bonus / rights shares, if any, will be credited to your account electronically.

Do you have an option as to the manner in which you wish to receive your corporate benefits?


Well, in case of those corporate events where you can exercise your option such as rights issue or optional conversion of debentures to shares, you do have a choice of either physical or electronic mode of holdings. However, corporate entitlements such as bonus will be made in the same form as of your original holdings.

In case of discrepancies in corporate benefits, whom do you contact?


You can approach your DP who in turn will contact the Registrars and Transfer Agents of the Company for clarifications regarding allotment of securities. In case of discrepancies in cash benefits you will have to contact the Registrars and Transfer Agents of the Company.

Who can I approach for further information or clarifications in the matter?

Your share broker can be of assistance to you. Our Registrars and Transfer Agents, M/s. Sharepro Services, will also be happy to provide any clarifications.



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