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WHAT IS CALL OPTION & PUT OPTION IN BONDS? stringlengths 12 375	Bond Option is a contract between seller and buyer to be executed in the future at a predefined time and price (irrespective of current market price). A call option gives the buyer the right to buy the bonds but does not create an obligation on either party to execute the option. A put option provides the seller with the right to sell the bonds but does not create an obligation on either party to complete the option. Bonds with embedded call options are called callable bonds, and Bonds with embedded puttable options are called puttable options. stringlengths 3 10.9k
How can I avail the service of a depository?	A depository interfaces with the investors through its agents called Depository Participants (DPs). If an investor wants to avail the services offered by the depository, the investor has to open an account with a DP. This is similar to opening an account with any branch of a bank in order to utilise the banks services....
How can I dematerialize my securities certificates?	In order to dematerialize certificates, you need to open a demat account. Once the demat account has been opened, you need to fill up a Dematerialization Request Form in prescribed form and submit it to your DP along with the security certificates. Your DP will forward the demat request to the concerned issuer company ...
How can I shift or transfer my demat account from one DP to another DP?	For shifting or transfer of a demat account, you need to first open a new demat account where you want the balances to be transferred to (if you already have another demat account, then you may use it for this purpose, instead of opening a new account). Then you need to submit duly filled and signed ‘Account Closure Fo...
How can I subscribe to Sovereign Gold Bonds (SGB) in demat form?	The SGB offers a superior alternative to holding gold in physical form. Option to hold SGB in demat form makes it even better and convenient. The process to buy or subscribe to sovereign gold bonds in demat form is quite easy. All you need to do is to mention your DP ID and Client ID in your subscription form. Some ban...
How does Depository ensure that its DPs adhere to the stipulated requirements?	All the DPs are subjected to Depositories inspection at least once in a year. In addition, they need to engage an independent and qualified auditor to undertake audit of their depository operations. Report of such audit should be forwarded to the depository associated with the DP, twice a year. DPs are also inspected b...
How do I open an account with a Depository and will I be periodically informed about the movement in my electronic account?	You may open an account with a depository participant (DP) of your choice. As an investor you will interact with National Securities Depository Limited (NSDL) or Central Depository Services Limited. (CDSL) through your Depository Participant.Your DP will update your account after each transaction and would periodically...
How do I select a DP?	You can select your DP to open a demat account just like you select a bank for opening a savings account. Some of the important factors for selection of a DP can be: Convenience - Proximity to your office/residence, business hours. Comfort - Reputation of the DP, past association with the organization, whether the DP i...
How long does the dematerialization process take?	As per SEBIs guidelines, DP is required to process the demat request received by it within 7 days. Further, issuer company / its RTA may take up to 15 days to process the demat request received by them. Considering the time required for transmission of documents from DP to issuer company / RTA, dematerialization will n...
How to Open a demat account?	Opening a demat account is quite simple. All you have to do is to approach a NSDL/CDSL DP, which will help you to complete the formalities. You need to fill up a form, submit PAN card and proof of address. In addition, you need to provide details of your bank account.After your demat account is opened, your DP will pro...
How will I know that my DP has updated my account after each transaction?	You will get account statement showing the transactions and balances periodically to help you to monitor the happenings in your account. The depositories have a system in place wherein a notification on sms for all the debits & credits effecting your demat account.
If my depository account is with One Depository such as NSDL, can I receive my securities from an account holder having account with some other depository etither from another NSDL DP or CDSL DP.	Yes. Inter depository transfers are possible.
If the demat request is not processed within the stipulated time, what to do?	Contact the RTA/your DP to look into the delay. A BO can also inform the Investor Grievances department of the Depository to look into the delay.
I have physical certificates with the same combination of names, but the sequence of names is different. In some certificates, I am the first holder and my wife is the second holder, whereas in some other certificates, my wife is the first holder and I am the second holder. Do I need to open two different accounts for ...	The joint holders are entitled to change the sequence of names by making a written request to the company. This does not constitute a transfer. Changing the sequence of joint holders is called Transposition. However, transposition facility can be availed for entire holdings in a folio and not allowed for part of the ho...
In case of minors in whose name is demat account opened?	A Minor’s demat account is opened in minor’s name as per PAN card.
Is dematerialization of securities compulsory?	NO, You can continue to hold securities in physical form.
Is it compulsory to mention the ISIN of the security while filling up the DRF?	Yes. The ISIN of the security should be mentioned in the DRF, to ensure that the correct security is dematerialized. If, however, the investor does not know the ISIN, the same can be obtained from the Depository Participant.
Is it right not to mention execution date on DIS?	No. You should not submit delivery instruction slips (DIS) to your DP without mentioning the execution date. It should be the date on which you wish your account to be debited for the mentioned security and quantity thereof. In case of market instruction, it must be well within the date of payin. For off-market transfe...
Is NSDL/CDSL regulated by any government authority?	NSDL & CDSL have been authorized to act as a securities depository by SEBI. Bothe the depositories are subject to periodical inspection by SEBI in addition to other applicable audits as per Companies Act, 2013.
Is there any charge for dematerialization of physical certificates?	CDSL does not levy any charge for dematerialization of securities. However, DPs may collect dematerialization charges together with postage / courier charges.
Is there any insurance cover taken for depository operations?	Depositories do obtain an insurance cover on behalf of all the DPs.
Is transfer deed required for dematerializing physical certificates?	No. There is no need to fill in a transfer deed. The physical certificates have to be accompanied by a DRF, which can be obtained from the DP.
What are different Types of demat accounts opened with Depository Partcipant?	Below are two types of demat accounts opened with a Depository Participant. Resident Individual Demat accounts which includes Minor’s, Non-Resident and Foreign Nationals The form for standalone Individual (Resident & Non-Resident) demat account opening is available on the DPs website or Non Individual / Corporate De...
What are the benefits of opening a Demat Account?	a.No stamp duty (A tax levied on documents, stamp duty applies to documents like cheques, receipts, licenses and transaction records.) on transfer of securities held in Demat form.b.Auto credit of rights / bonus / public issues in your Demat Account through ECS ( Electronic Clearing Service. It is a mode by which funds...
What are the benefits of participation in a depository?	The benefits of participation in a depository are:i. Immediate transfer of securities;ii. Elimination of risks associated with physical certificates such as bad delivery, fake securities, etc.;iii. Reduction in paperwork involved in transfer of securities;iv. Reduction in transaction cost;v. Nomination facility;vi. Cha...
What are the different types of Demat Fees and how is it charged?	Demat Transaction charges are monthly, and include NSDL and CDSL charges. You will receive these details in your monthly statement. De-materialisation charges are incurred monthly, and Annual Maintenance Charges are added at the expiry of every 12 months for the next year. All charges are debited from the authorised Sa...
What are the options for existing demat holders to apply for Delivery Instruction Booklet (DIB)?	The customer can place a request for Delivery Instruction Booklet (DIB) through the below two mode · Netbanking (For exisitng Single Demat account Holders only) · Physical DIS request to be submitted to DP servicing branch (Optional For existing Single Demat holders not using Netbanking/ All Joint account holders)
What are the services provided by a Depository?	A Depository provides following services to investors through a DP:a. Demat Account Opening.b. Dematerialization, i.e. converting physical securities into electronic form.c. Rematerialization, i.e. converting electronic securities balances held in a BO account into physical form.d. To maintain record of holdings in the...
What can I do with my demat account?	There are numerous uses of your demat account. Few important things that you can do with your demat account are listed below –You may apply for IPOs and NFOs. Do not forget to mention your DP ID and Client ID correctly in the application form. Same demat account can be used to purchase and hold shares and other types o...
What do you mean by Delivery Instruction Slip (DIS) and its Processing?	Delivery Instruction slips (DIS) are just like cheque leaves, but they must be clearly signed by all demat account holders. Make sure you keep them securely and submit on time for timely execution.Market Transactions should include:CMBP ID of your brokerCM name of your brokerMarket TypeSettlement NumberISIN NumberScrip...
What happens to the physical certificates after they are dematerialized ?	After dematerialization, physical certificates may be retained/destroyed by the Issuer / RTA.
What is a clearing member account and how is it different from a beneficiary account?	A registered member of any of the stock exchanges that have direct connectivity with the depositories holds a clearing member account or pool account. A Pool account is used by the members to hold securities received from clients and deliver them to clearing corporations. This account is also used to receive securities...
What is a demat account?	DEMAT account is a type of account that holds shares and securities in electronic form. DEMAT account is similar to a bank account, the only difference lies in the underlying asset held (DEMAT accounts hold shares while bank account hold money). It facilitates faster transactions and makes trade of securities extremely...
What is a depository?	A depository can be compared to a bank. A depository holds securities (like shares, debentures, bonds, Government Securities, units etc.) of investors in electronic form. Besides holding securities, a depository also provides services related to transactions in securities.
What is a Depository and how does it work?	A Depository is like a bank where securities are held in electronic form. There are two Depositories in India – National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL). Under the Depositories Act, investors can use the services of these Depositories through Depository Partic...
What is dematerialization?	Dematerialization is the process by which physical certificates of securities are converted into securities in electronic form by way of credit in investors demat account held with a DP. Dematerialization is change in form of holding, it does not result into change of ownership.
What is DRN?	DRN mean demat request number
What is eDIS?	eDIS (Electronic Delivery Instruction Slip) is a facility that allows you to sell your shares even if you have not submitted your POA (Power of Attorney).
What is in-person verification?	It is mandatory to establish the identity of the applicant at the time of opening account as per SEBI guidelines. This is done by the DP’s staff by verifying the affixed photograph on account opening form and the photo seen on document on PAN card with the person seeking to open the account. For Joint account holders, ...
What is meant by Freezing the account? How can I do this?	Any transaction in the demat account is possible only upon a valid instruction from the account holder. In addition, the entries in the depository software at DP’s end are possible through a maker checker system. Still in order to prevent any undesired transaction happening in the account, demat account holder may opt ...
What is RRN?	RRN means Remat Request Number
What is Standing Instruction given in the account opening form?	In demat account, debit or credit transactions are permitted only if it is duly authorized by the respective holder(s). As a Delivery Instruction Slip (DIS) is required for every debit transfer in the demat account, a Receipt Instruction Slip is required for every credit transfer in the demat account. By giving a oneti...
What is the procedure for dematerialization?	Following steps are involved in dematerialization of physical securities:• A Beneficiary Owner (BO) who wishes to dematerialize securities held by him in physical form has to submit duly filled and signed demat request form (DRF) to his Depository Participant (DP).• A separate DRF should be filled up for free securitie...
What is the process for Closure of Demat Account ?	Closing an account requires the submission of a form signed by all members. If there is any holding in the account this should be transferred before closure, which requires a valid Demat Account number. If there is a pending de-materialisation, the Account cannot be closed. However Demat Account holders can request the...
What precautions does depositories take to protect the data in the depository system?	Data security and data integrity are considered critical and given highest importance by depositories. The depositories follow highest standards in this regard. DPs are also required to follow the best practices to ensure that clients’ data and assets remain protected. Following are some of the measures adopted by depo...
What precautions should I take before submitting my certificates to DP for dematerialization?	You should take care of following -Verify that you are the registered owner of the securities.Pattern of ownership (name sequences) of securities is same as that in demat account from which you wish to initiate the demat request.Verify that securities you wish to dematerialize are indeed available for demat.Verify that...
What should I do if I want to open a demat account?	Once you have identified and decided to open an account with a particular DP, you may approach that DP and fill up an account opening form. You would be required to provide your photograph and self-attested copy of following documents - Please remember to take original documents to the DP for verification. In case you ...
What should I do if there is any discrepancy in my account statement?	In case of any discrepancy in the account statement, you must immediately contact your DP. If the discrepancy cannot be resolved at the DP level, you should approach the concerned depository who is associated with the depository.
Whats the Process of Transfer cum Closure cum Waiver (TCW):	A. Customers who wish to submit closure request [(Annexure Q)] need to come ‘In person’ – Any one of Demat Account holder(s) to be present at the time of submitting the transfer cum closure request. his requirement would also be applicable in case of NRI customers. In case of corporate Accounts, any one of the Authori...
What to do if I lose my account statement?	There is no need to worry. You may simply request the depository to provide your statement for the desired period once again. Using online facilities on the web or mobile apps you may view / download account statement as and when you want.
What type of instruments are available for demat ?	All types of equity/debt instruments viz. Equity shares, Preference Shares, Partly paid shares, Bonds, Debentures, Commercial Papers, Certificates of Deposit, Government Securities (G-SEC), etc. irrespective of whether these instruments are listed / unlisted / privately placed can be dematerialized with any of the depo...
What will be the charges for account opening and other depository related transactions?	Depositories charges the DPs and not the investors. Depositories charges to its DPs are fixed and are based on the usage of depositories system. Complete details of depositories charges payable by the DPs are available at the respective websites of depositories. The DP charges its client for the services offered. Th...
What will happen if my DP goes bankrupt or stops operation?	In a rare event of your DP going bankrupt or closing its operations, the interests of the demat account holders are fully protected. In such a situation, you would be given option to transfer your balances to any other DP of your choice or rematerialize the same.
Whether all the DPs are same?	Depositories have specified certain basic eligibility criteria for becoming a DP. The criteria are similar or even higher in certain respects than the corresponding provisions of SEBI regulations. All the DPs are same in the sense they are appointed by Depositories (NSDL/CDSL) only after grant of Certificate of Registr...
Whether different securities issued by the same Issuer will have same ISIN?	No. Different securities issued by the same issuer will have different ISIN code.
Who is a Beneficial Owner (BO) of the securities?	The investor whose securities are held in electronic form in a demat account opened with a depository through a Depository Participant is called as ‘Beneficial Owner’ (BO). All the benefits as a result of the holding the securities are given to such beneficial owner.
Who is a DP?	The term "DP" means Depository Participant i.He is an agent of the depository who is authorized to offer depository services to investors and is registered as a DP with SEBI. Financial institutions, banks, custodians, stockbrokers and other types of intermediaries specified under SEBI (Depositories and Participants) R...
Who is an Issuer?	An “Issuer” means any entity, such as corporates, state or central government organizations, issuing securities which can be held in depository in electronic form.
Who is an RTA?	An RTA i.e. Registrar and Transfer Agent is an agent of the issuer. RTA acts as an intermediary between the issuer and depository for providing services such as Dematerialization, Rematerialization, Initial Public Offer and Corporate actions.
Who is registered owner of Securities?	When securities of a company are held in physical form by an investor, name of the investor is recorded in the books of the company as a ‘Registered Owner’ of the Securities. Each certificate is identified by Folio number, certificate number and distinctive range numbers. When physical securities are converted in to el...
Why should I give my bank account details at the time of account opening?	Providing bank account details at the time of demat account opening is mandatory. These bank details are communicated to issuer companies / RTAs for the purpose of crediting any amount payable to you (such as dividend, interest or maturity payment or redemption amount) directly in your bank account. It is therefore sug...
Can a minor be a nominee?	Yes, a minor can be a nominee. Whenever, a minor is mentioned as a nominee in a demat account, details of his / her guardian should also be mentioned.
Can a minor nominate?	No. Minor cannot nominate either directly or through his / her guardian.
Can a Nominee or Joint Holder be added in a Minor Demat Account?	No, Nomination and Joint holding both cannot be done in a Minor Demat Account.
Can a non individual / corporate demat account avail nomination facility?	No, Nomination cannot be done incase of non individual / corporate demat account.
Can a Non resident become nominee in any Resident Demat account?	Yes, any individual –Resident or Non – Resident can become nominee in any resident account.
Can a NRI be a nominee?	Yes, NRI can be a nominee in a demat account subject to the provision of foreign exchange regulations in force.
Can a NRI nominate?	Yes, NRI can nominate directly. However, the power of attorney holder cannot nominate on behalf of NRI.
Can joint holders nominate?	Yes. Nomination is permitted for accounts with joint holders. However, in case of death of any of the joint holder(s), the securities will be transmitted to the surviving holder(s). Only in the event of death of all the joint holders, the securities will be transmitted to the nominee (if nomination given, else to legal...
Can separate nomination be made for each security held in a demat account?	No. Nomination can be made account wise and not security wise. This means, in case of death of account holder, all the securities lying in the demat account, are liable to be transmitted to nominee(s) in the pre-registered proportion. If you wish different nominees for different securities, then you may consider keepin...
Can the nominee be changed?	Yes, the nomination can be changed anytime by the account holder(s) by simply filling up the Nomination form once again and submitting it to the DP.
Can there be more than one nominee?	Yes, at present up to three nominations can be made for one demat account. In case, two or three nominees are mentioned, then it is also required to mention the proportion (%) in which various securities are desired to be transmitted upon death of the account holder.
How many nominees can be max updated in a single individual demat account?	Maximum three individuals can be nominated in a single demat account Also the percentage of their share can be specified accordingly.
Is it necessary to have nominee in the demat account?	Nomination is not mandatory for demat account utpo 31st March 2023. However, it is very much recommended to have nominee mentioned in the demat account. In the unfortunate case of death of sole account holder, it makes the process of transmission very easy and fast. In you do not wish to mention any nominee at the time...
Is nomination mandatory in demat account opening?	No, nomination is not mandatory till 31-03-2023 as per SEBI.. Still it is advisable for all demat accounts especially single holders in order to eliminate the cumbersome legal documents and procedure for transmission of shares and the cost involved. You need one witness while submitting the nomination form for updation...
Is witness mandatory while updating nominee in individual demat account?	Yes, Details and signature of one witness is mandatory for nominees updation in demat account.
What documents of nominee are required for updation of nomination in account?	Nominee can either provide his/ her Photgraph & Signature, or Pan number, or Aahaar Number (along with consent declaration) or copy of bank savings bank account or any Demat account number of Nominee.
What is the maximum number of nominees that can be updated in a single demat account whether held singly or jointly?	Maximum three individuals can be nominated along with the percentage share of proportion for each.
What is the meaning of ‘Nomination’?	Nomination is a simple process by which a holder of securities communicates his / her preference regarding who should receive these securities in case of his / her death. Process of nomination in respect of demat account can be done at the time of opening of demat account or any time later.
What is the procedure for appointing a nominee?	The demat account holders need to mention the information related to nominee(s) in the account opening form at the time of account opening. Up to three different individuals may be mentioned as nominee in one demat account. In case, nomination was not done at the time of account opening or was done but account holder(s...
What would happen if there is no nominee in the demat account held by sole holder?	In such a case, the securities would be transmitted to the account of legal heir(s), as may be determined by an order of the competent court. Following documents are required for this purpose -Duly filled in Transmission Form.Copy of the death certificate duly attested by a Notary Public or by a Gazetted Officer.A copy...
Who can avail Nomination facility and what is the process?	Nomination can be made only by individuals holding beneficiary owner accounts on their own behalf singly or jointly. Non- individuals including society, trust, body corporate, partnership firm, Karta of Hindu Undivided Family, Holder of power of attorney cannot nominate. If the account is held jointly, all joint holder...
Who can be a nominee?	Only an individual can be a nominee. Non individuals like society, trust, body corporate, partnership firm, Hindu Undivided Family cannot be a nominee in the demat account.
Who can nominate?	Nomination can be made only by individuals holding demat account singly or jointly. Non-individual holders like society, trust, body corporate, partnership firm , Hindu Undivided Family and holder of Power of Attorney cannot nominate.
Transmission in Demat Acts	Please select an option from Transmission in Demat Acts
What does transmission mean in relation to demat accounts?	Transmission is the process of law by which securities belonging to a deceased account holder are transferred to surviving joint holder(s) / legal heirs / nominee of the deceased account holder. Process of transmission in case of dematerialized holdings is relatively convenient as the transmission formalities for all s...
What do you mean by Transmission-cum-Demat form?	In case security certificates are held jointly with a person who is deceased, the surviving holders can submit the certificates along with an original / notarized / gazette attested copy of the death certificate of the deceased and a ‘Transmission cum Demat’ form. The combination of names of the surviving holders on th...
What is the meaning of Transmission cum Demat?	Transmission cum Demat is a very useful facility when one of the joint holders mentioned in securities certificate (held in physical form) has died and remaining holder(s) wish to have the securities transmitted in their name in demat form. Using this facility the twin objectives of deletion of name of one of the decea...
What is the procedure for transmission in case of death of one or more joint holder(s)?	In such a case, the securities would be transmitted to the surviving holder(s), irrespective of the nomination. For example, if the account is in the joint names of Mr. A, Mr. B and Mrs. C, in the event of the death of Mr. B, the securities will be transmitted to surviving holders that is, Mr. A and Mrs. C. The survivi...
What is the procedure for transmission of securities to the nominee in case of the death of the sole account holder?	In case of the death of the sole holder, for transmission of securities, the nominee needs to submit duly filled-in transmission form along with a copy of the death certificate duly attested by a Notary Public or a Gazetted Officer. In case the account of the claimant is not with the same Participant, copy of Client Ma...
What is the process of Transmission in case of death of account holder?	In the case where an account holder has passed away, it is possible to transfer securities to surviving Surviving Holders Can have the securities transmitted into their accounts by maintaining or opening the Demat Account in the same holding pattern, excluding the deceased holder. Nominees In the case of death of the ...
Transposition	Please select an option from Transposition
What is meant by Transposition cum Demat form?	In case security certificates are held jointly but the order of names on the certificates do not match exactly with the order of names in which the Demat Account is held with the bank, then the holders can submit a Transposition cum Demat form along with the DRF and certificates to enable Demat of these certificates in...
Pledge of Securities	Please select an option from Pledge of Securities
After repayment of the loan taken, how should I get back my pledge securities as free balance in my demat account?	Upon repayment of loan, pledgor should submit a duly filled in ‘Pledge Closure Initiation Slip’ to its DP. Once executed, the information is forwarded to DP of the pledgee. The pledgee then may submit ‘Pledge Closure Confirmation Instruction’ to its DP. (Alternatively, the pledgee may give instruction to its DP to clos...
Can I change the securities offered in a pledge?	Yes, if the pledgee (lender) agrees, you may change the securities offered in a pledge. For this purpose, a new request for creation of pledge will have to be given by the pledgor and the existing pledge needs to be closed.
How will the distribution of bonus shares for pledged shares happen?	If the shares are in pledged status on the record date, bonus shares are credited to pledgor’s account with pledge marked in favour of the pledgee. Later when the pledge is closed, all the shares (including the bonus) will be credited to the pledgor’s account as free balances. In case of invocation of pledge, all the s...
What is process for Freezing/De- freezing in demat account?	It’s possible to freeze your Demat Account at (a)Account level,(b) ISIN (International Securities Identification Number-. It is a unique 12-character alpha-numerical code for a security so you can trade in that security. Securities for which ISINs are issued include bonds, commercial paper, equities and warrants.) leve...
What is the difference between Pledge and Hypothecation?	In depository system, there is no difference between pledge and hypothecation except that pledge can be invoked by the lender (pledgee). Whereas, in case of hypothecation, for invocation to take place, consent of borrower (hypothecator) is also required.
What is the effect of creation of pledge on the securities?	Once the pledge instruction is confirmed in depository system, the underlying securities are blocked in the demat account of pledgor. Until this block remains, pledgor is disabled from disposing of those securities.
What is the meaning of pledging of shares?	Pledging is basically committing the shares held by a person (pledgor) in favour of another person (pledgee) as a security or collateral for the exposure granted by pledgee. Generally, shares are pledged by the concerned shareholder for taking loan against shares.

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