National Securities Depository Ltd.

Master Circular
on
Account Opening
Version 3.0
September 2011
‘Master Circular’ on 'Account Opening' - Version 3.0
Sr.No Topic Page
no.
(I) Guidelines in respect of account opening in case of individuals (Non- 5
Body Corporate)
1 Individuals, Karta of HUF, Partners in case of Partnership firm, 5
Guardian in case of minor account
1.1 In-person verification of applicant(s) at the time of opening depository 5
account
1.2 Execution of agreement 7
1.3 Submission of valid proof of identity / proof of address 7
1.4 Collection of KYC documents in case of joint holdings 8
1.5 Verification of Documents 8
1.6 Exercising of due diligence 8
1.7 Application of stricter criteria in selecting KYC documents 9
1.8 Concurrent Audit with respect to account opening 9
2 Procedure for capturing of demographic details of the account 9
holder(s)
2.1 Capturing of PAN details 9
2.2 Capturing of local and correspondence address 11
2.3 Capturing of Bank details 12
3 Mode of capturing the details in the DPM System 12
4 Procedure for opening HUF account 13
5 Procedure for opening of a minor account 14
5.1 Procedure to be followed by Participants on minor attaining majority 15
6 Accounts opened in the names of Partners for holding securities that 19
belong to a Partnership firm
7 Non-Resident Indian / Foreign National (NRI/FN) 20
7.1 KYC documentation and PAN for NRI and FN Clients 20
7.2 Opening of NRI (Repatriable/Non- Repatriable) account 21

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7.3 Reserve Bank of India (RBI) Clarification with respect to NRI / FN 22
8 Opening of account of an illiterate person 23
9 Opening of an account of a Blind person 24
10 Procedure to be followed with respect to Nomination 25
11 Procedure for change in demographic details 26
11.1 Change of address 26
11.2 Change of Signature 28
11.3 Change in status of Standing Instruction 28
11.4 Change in bank details such as account type, account number, name, 29
address and MICR
11.5 Change in SMS flag and/or mobile numbers 29
11.6 Addition / Deletion / Modification of Power of Attorney holder(s) 30
11.7 Make a nomination / Cancel the Nomination 30
11.8 Changes in Client Details based on request received from Client through 30
email or website of Participants
(II) Guidelines in respect of account opening in case of Body-Corporate 31
1 Procedure for opening account of a Body-Corporate 31
1.1 Documents to be obtained at the time of opening depository account 31
1.2 Verification of documents 32
1.3 Verification of PAN, address and bank details 32
2 Additional requirement with respect to Foreign Corporate Bodies 32
3 Other Types of Body Corporate Accounts 34
3.1 Opening of an Escrow Account 34
3.2 Procedure for opening depository account for unclaimed shares of 35
listed companies
4 Procedure for opening depository account for Limited Liability 35
Partnership (LLP)
5 Procedure for change in demographic details 36
5.1 Change of address 36
5.2 Change of authorised signatory 37

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5.3 Change in status of standing instruction 37
5.4 Change in bank details such as account type, account number, name, 37
address and MICR
5.5 Addition / Deletion / Modification of Power of Attorney holder(s) 38
5.6 Changes in Client Details based on request received from Client through 38
email or website of Participants.
6 Change in name of Body-Corporate Accounts 39
(III) Depository accounts opened in the capacity of Individual/Body 41
Corporate as applicable
1 Opening of depository accounts in case of Trusts such as Provident 41
Fund trusts, Gratuity trusts, Superannuation trusts etc.
2 Opening of promoter account 44
3 Opening of DR account 44
4 Opening of a Commodity Account 45
5 Procedure regarding operation of account through Power of Attorney 47
5.1 Sample Clause 47
5.2 General points regarding Power of Attorney 47
5.3 Review of Power of Attorney document 48
(IV) Procedure for opening and shifting/closing of Clearing Member (CM) 48
Account
1 Opening of CM Account 48
1.1 Shifting/Closure of CM Account 51
1.2 Procedure for change of name of CM account 52
2 Opening of Margin Account 53

(V) FAQs related to Account opening 53

Annexure I

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(I) Guidelines in respect of account opening in case of individuals (Non-Body
Corporates)

(1) Individuals, Karta of HUF, Partners in case of Partnership firm, Guardian in

case of minor account
(1.1) In-person verification of applicant(s) at the time of opening depository
account (NSDL/POLICY/2007/0016 dated March 16, 2007,
NSDL/POLICY/2008/0030 dated April 30, 2008 NSDL/POLICY/2008/0076
dated October 27, 2008 & NSDL/POLICY/2010/0013 dated February 6,
2010)
(a) At the time of opening depository accounts, the staff of the Participant should
establish the identity of the applicant(s) (including guardian in case of minor
account) by verifying the photograph(s) affixed in the account opening form
(Annexure J) as well as proof of identity document(s) as mentioned below in
point no.(I)(1)(1.3), with the person concerned. Further, in case of joint accounts,
'in-person' verification needs to be carried out for all the holders of the account.
(b) The staff of the Participant only should carry out 'in-person' verification. The
Participant should not outsource or assign the activity of 'in-person' verification to
an outside agency.
(c) Upon the applicant(s) submitting the account opening form, proof of identity &
address documents and PAN details, staff of the Participant should follow the
procedure as given below:
(i) Verify the identity of the applicant(s) as clarified in point no.(I) (1) (1.1)
(a) above.
(ii) After due verification, affix a stamp on the face of the account opening
form or on the document(s) collected as proof of identity to the effect that
the identity of the applicant(s) is verified 'in-person'.
The stamp should carry the following details:
 Name of the Participant and Participant ID,

 Name / Details of Branch/Service Centre,

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  Details of the Participant staff who has carried out 'in-person'
verification (Name, Employee code if any, Signature),

 Date and place where 'in-person' verification was carried out.

(iii) If ‘in-person’ verification is done through web camera, then mention

“IPV through webcam”.
(d) The ‘in-person’ verification done for opening trading account by a stock broker
will hold good for opening depository account by a Participant, if the stock broker
and Participant is the same entity or if one of them is the holding or subsidiary
company of the other. In case ‘in-person’ verification done for opening trading
account by stock broker is used for opening depository account, Participant must
ensure that the details of ‘in-person’ verification as is required to be maintained
by stock broker under stock exchange regulations are available with appropriate
cross-referencing (i.e. mention trading account number on depository account
opening form or on proof of identity at the place for ‘in-person’ verification).
(e) If the Participant wishes to keep the above records mentioned in point (I) (1) 1.1
(c) (ii) (i.e. verification details) in an electronic form, prior approval from NSDL
should be obtained as per the NSDL Business Rule 16.4.1. Further, the Participant
should ensure that the records are made available to NSDL officials, SEBI or any
other Statutory Authority, whenever required.
(f) Participants can stamp or print the 'in-person' verification details on the account
opening form (Annexure J). Such details may be stamped or printed on any page,
as the Participant may deem fit without making illegible the other details
mentioned in the account opening form. However, attachment of separate sheet to
the account opening form or affixing stickers on the account opening form
carrying 'in-person' verification details will not be permitted.
(NSDL/POLICY/2007/0022 dated April 18, 2007).
(g) Participants may use „web-camera‟ for carrying out ‘in-person’ verification for
opening of depository accounts at the branch/franchisee offices of the Participant
subject to compliance with other SEBI guidelines/circulars relating to opening of
depository accounts including verification of documents.
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(1.2) The applicant should fill up the Account Opening Form as per the format given in
Annexure J of the Business Rules of NSDL and submit the same to the Participant
alongwith the agreement (as per Annexure B of NSDL Bye Laws) duly executed
on a stamp paper of appropriate value. Further, the Participant shall be responsible
in deciding the value of the stamp paper. The schedule of fees to be charged by
the Participant to the Client should form a part of the agreement.
(1.3) The applicant should submit any one of the following as a valid proof of identity /
proof of address alongwith a photocopy (NSDL/PI/2004/1622 dated September 7,
2004):
(a) Proof of Identity (POI):
I. Passport
II. Voter ID Card
III. Driving license
IV. PAN card with photograph
V. Identity card/document with applicant‟s Photo, issued by
a) Central/State Government and its Departments,
b) Statutory/Regulatory Authorities,
c) Public Sector Undertakings,
d) Scheduled Commercial Banks,
e) Public Financial Institutions,
f) Colleges affiliated to Universities (this can be treated as valid only till
the time the applicant is a student),
g) Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council etc., to
their Members and
h) Credit cards/Debit cards issued by Banks.

(b) Proof of Address:

I. Ration card
II. Passport
III. Voter ID Card

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 IV. Driving license
V. Bank passbook / Bank Statement (NSDL/POLICY/2007/0074 dated December
1, 2007 and NSDL/POLICY/2008/0037 dated May 27, 2008)
VI. Verified copies of
a) Electricity bills (not more than two months old),
b) Residence Telephone bills (not more than two months old) and
c) Leave and License agreement / Agreement for sale.
VII. Self-declaration by High Court & Supreme Court judges, giving the new
address in respect of their own accounts.
VIII. Identity card/document with address, issued by
a) Central/State Government and its Departments,
b) Statutory/Regulatory Authorities,
c) Public Sector Undertakings,
d) Scheduled Commercial Banks,
e) Public Financial Institutions,
f) Colleges affiliated to Universities (this can be treated as valid only till
the time the applicant is a student) and
g) Professional Bodies such as ICAI, ICWAI, Bar Council etc., to their
Members.
(1.4) In case of joint holdings, POI and Proof of address documents must be collected
in respect of all the account holders.
(1.5) An authorised official of the Participant should verify the photocopies of
documents submitted with their corresponding originals and put his/her signature
on them with remarks "verified with original" before proceeding to open the
account.
(1.6) The aforesaid documents are the minimum requirement for opening of a
beneficiary account. Participants are advised to exercise due diligence while
establishing identity of the person to ensure the safety and integrity of the
depository system.

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(1.7) Participants can apply stricter criteria and accordingly, decide to accept selected
documents out of the list of documents prescribed above (point no. (I) (1) (1.3)),
as POI and Proof of Address (NSDL/PI/2004/2117 dated November 25, 2004).
(1.8) 100% verification needs to be carried out in respect of account opening by the
Concurrent Auditor of the Participant. The Concurrent Auditor should conduct the
audit in respect of all accounts opened during the day, by the next working day. In
case the audit could not be completed within the next working day due to large
volume, the auditor should ensure that the audit is completed within a week's
time. Participants would be required to appoint a firm of qualified Chartered
Accountant(s) or Company Secretary(ies) or a Cost and Management Accountant,
holding a certificate of practice for conducting the concurrent audit. Participants
in case they so desire, may entrust the Concurrent Audit to their Internal Auditors.
(NSDL/POLICY/2006/0021 dated June 24, 2006, NSDL/POLICY/2007/0017
dated March 22, 2007 and NSDL/POLICY/2009/0020 dated March 16, 2009).

(2) Procedure for capturing of demographic details of the account holder(s)

(2.1) Capturing of PAN details (NSDL/POLICY/2006/0007 dated March 3, 2006

and NSDL/POLICY/2006/0031 dated August 9, 2006):
(i) Participants should obtain a photocopy of the PAN card of the person(s) seeking to
open the account and verify the same with the original PAN card.
(ii) Further, the name of depository account holder(s) should be compared with the name
appearing on the website of the Income Tax Department (ITD) i.e.
https://incometaxindiaefiling.gov.in/knowpan/knowpan.do. Alternatively, subscribe
to the internet based service of NSDL (NSDL/POLICY/2007/0048 dated August 14,
2007) so that the name can be sought against the given PAN.
(iii)In case the name(s) do not match or the PAN is not present in the Income Tax
database, Participants should seek necessary clarification from the account holder(s)
and activate such accounts in the DPM System only after the discrepancy is resolved.
(iv) In case of joint accounts, the PAN of each of the joint holder should be captured in
the DPM System after making verification as explained above. As all Participants are

9
 aware, DPM System is enabled to capture PAN of all joint holder(s) of a depository
account.
(v) After verifying the details of PAN as mentioned above, the staff of the Participant
should affix a stamp as ‘PAN verified’, on the photocopy of the PAN card(s).
(vi) Thereafter, PAN flag(s) should be enabled in the DPM System
(NSDL/POLICY/2006/0012 dated March 25, 2006).

(2.1.1) With respect to PAN, Clients may have reported the following problems:
(a) PAN card has been lost / misplaced or PAN card was never received but has the PAN
allotment letter from the ITD;
(b) Change in the name of the Client due to marriage or voluntary action etc., (in case of
individuals) or due to merger, amalgamation etc. (in case of a corporate entity).

In this regard, Participants are advised that the ITD issues a new PAN card with the same
PAN with changes in PAN data, for the above reported problems. For detailed procedure,
Participants may refer http://www.incometaxindia.gov.in or http://www.tin-nsdl.com
(NSDL/POLICY/2006/0024 dated July 7, 2006).

In cases where there is minor mis-match in the name of Client as is mentioned in the
account opening form and the name displayed on the ITD website, the Participants can
collect the PAN card proof as submitted by the account holder. However, this would be
subject to the Participants verifying the veracity of the claim of such Clients by collecting
sufficient documentary evidence in support of the identity of the investors as provided in
the SEBI Circular No. MRD/DoP/Dep/Cir-29/2004 dated August 24, 2004 (Refer point
no. (I)(1)(1.3) above for list of documents which can be accepted as a valid proof of
identity). The Participant should call for any additional documents and / or clarification to
ascertain and satisfy itself about the identity of the entity.

(2.1.2) Participants are restricted from modifying the PAN of a holder in a Client account
in DPM System, once the PAN flag has been enabled. However, Participant may
approach NSDL for modifying the PAN or PAN flag and NSDL will provide a facility

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for Participants to register a request for modification of PAN for such holders in Client
account (NSDL/POLICY/2007/0052 dated September 13, 2007).

(2.1.3) Participants may note that PAN may not be insisted in the case of Central
Government, State Government and the officials appointed by the courts e.g. Official
liquidator, Court receiver etc. (under the category of Government) for transacting in the
securities market on behalf of the Central and State Government. Further, SEBI has
clarified that the exemption from mandatory PAN requirement applies to transactions
undertaken on behalf of the Central and State Government, but not to the transactions of
the employees of Central and State Government in their personal capacity. (SEBI
Circular No. MRD/DoP/Cir-20/2008 dated June 30, 2008 and NSDL Circular Nos.
NSDL/POLICY/2008/0048 dated June 30, 2008 & NSDL/POLICY/2008/0049 dated July
8, 2008).

(2.2) Capturing of local and correspondence address (NSDL/PI/2005/1102 dated

June 22, 2005 & NSDL/POLICY/2008/0040 dated June 4, 2008)
(a) Participants can capture two addresses in the DPM System for a Client (first
holder/sole holder) i.e. local and correspondence addresses. The Client Master Report
and Export will carry both these addresses.
(b) For both, local and correspondence addresses of a Client, Participants should ensure
that they collect and verify the KYC documents as mentioned in point nos. (I) (1)
(1.3) (Individual) and (II) (1) (1.1) (Body-Corporate) and only then the same should
be captured in the DPM System.
(c) The local address would be the default address that would be forwarded to the
Registrar & Transfer Agent (RTA) as well as used for printing Transaction Statement
(SOT) from DPM System. However, the Client has the option to request the
Participant to use the other address i.e. correspondence address for the aforesaid
purposes. In such a situation, the Participant should disable the default indicator under
the option "Beneficiary Address Local" (referred to as 'Address Preference Flag' in
batch file import format).
(d) Participants may capture the landmark details in the DPM System, which are not
mentioned in the proof of address submitted by the Client but are mentioned by Client
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 in the account opening form. The landmark details could include details like name of
the building / mall / junction / school / garden / hotel / bank / railway station /
company name / bus depot etc with the preceding words such as „near by‟, „adjacent
to‟, „behind‟, „next to‟, „opposite to‟, 'off' etc.

(2.3) Capturing of Bank details (NSDL/PI/2000/2295 dated December 20, 2000):

(a) Complete bank address including 9-digit MICR code is necessary for the Issuers
to undertake distribution of corporate benefits directly to the bank accounts of
beneficial owners. Participants are hereby advised to obtain a specimen copy of
cheque and capture 9-digit MICR codes for all the accounts opened with them.
Further, Participants are advised to capture bank address details strictly in the
manner described below:
Row 1 : Building / Tower / Apartment / Palace / Chamber / Mansion
Row 2 : Street / Road / Marg / Lane / Avenue / Rasta
Row 3 : Area name
Row 4 : City name
Pin code : Bank address PIN code

Participant need not seek from their Clients the proof of the bank details for
capturing the bank details in the depository account, if they have direct access to
the bank records for verification of the bank details provided by their Clients.

(3) Mode of capturing the details in the DPM System

(a) The Participant should enter the details of the Client as mentioned in the Account
Opening Form, in the DPM System after verifying with the POI and Proof of
Address. It may be mentioned that Participants can avail the facility of Bulk
Verify and Release with respect to opening of Client accounts in the DPM System
(NSDL/PI/2007/0019 dated April 4, 2007).
(b) The Participant should capture the Client‟s signature(s) as given in the Account
Opening Form in the DPM System.

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 (c) For ease of data entry, the Standing Instruction indicator in the DPM System
would be in an enabled status with respect to all types of Client accounts except
for accounts with sub-type “DR” at the time of opening depository accounts. For
those Clients who have not opted for Standing Instructions, the Participant should
disable the Standing Instruction indicator in the DPM System
(d) For ease of data entry, the SMS flag of the account holder will automatically get
enabled in the DPM System after the Participant captures the mobile number
(Participants are advised to strictly capture the ten digit mobile number with the
first digit as “6” / “7” / "8" / “9”) of the respective account holders at the time of
opening of depository accounts. If the Client submits the mobile number but does
not wish to opt for the SMS Alert facility, the Participant should capture the
mobile number in the DPM System and disable the SMS flag either from the front
end of the DPM System or through back office file import
(NSDL/POLICY/2008/0059 dated September 1, 2008 & Circular No.:
NSDL/POLICY/2010/0010 dated January 28, 2010).
(e) The Participant should save the details and enter the Client account number
(Client ID) generated by DPM System in the Account Opening Form.
(f) The Participant should print the Client Master Report and give it to the Client
alongwith a copy of the Agreement. Such information should be provided only
after the account is in “Active” status in the DPM System. (NSDL/PI/98/583
dated November 18, 1998).

(4) Procedure for opening HUF account

(a) Open the beneficiary account in the name of the Karta of the HUF. The HUF
account should not have joint holdings (NSDL/PI/2002/1346 dated August 12,
2002).
(b) POI and Proof of Address of 'Karta' should be obtained as mentioned in point no.
(I) (1) (1.3).
(c) PAN details of the HUF should be captured in the DPM System after due
verification (NSDL/POLICY/2006/0031 dated August 9, 2006).

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 (d) Since Clients are required to open HUF (depository) accounts in the name of
'Karta', they may face difficulty in encashing cheques / demand drafts in respect
of dividend / interest warrant, since the bank account may have been opened in
the name of HUF. For this purpose, RBI has clarified that a mandate may be taken
by banks from the accountholder that the cheques drawn in favour of 'Karta' can
also be collected in the account of HUF and vice-versa. Participants are advised to
take note of the above and provide a copy of „Client Master Report‟ so as to
enable the Clients to suitably take up the matter with their banks. A copy of the
letter received from RBI, clarifying the stand to be taken with respect to bank
account that is opened in the name of HUF may be provided at the request of the
Client's bank (NSDL/PI/2005/0159 dated January 27, 2005 and
NSDL/POLICY/2007/0064 dated October 19, 2007).

(5) Procedure for opening of a minor account

SEBI has intimated to NSDL clarifying the position on operation of the depository
accounts held in the name of minors as follows:
"Under [The] Hindu Minority and Guardianship Act, 1956, permission of court is
required in the case of transfer by a natural guardian of immovable property of a minor.
However, shares are not immovable property. Section 2(7) of Sale of Goods Act, 1930
includes shares within the definition of "goods". Neither the Indian Contract Act nor the
Sale of Goods Act provide for transfer by sale or otherwise by guardian/natural guardian
of goods/movable property in the name of minor to the effect that permission of court is
required in the matter of such transfer. In the case of accounts of minor in banks also, the
guardian is entitled to open, operate and even close the account also. The depository
account can, therefore, be operated by a natural guardian without any order from the
court though the same is neither expressly permitted nor prohibited." (NSDL/PI/2000/323
dated March 17, 2000)

Participants should follow the below given procedure for opening depository
account of a minor: (NSDL/POLICY/2007/0004 dated January 11, 2007,

14
NSDL/POLICY/2009/0015 dated February 27, 2009 and NSDL/POLICY/2010/0051
dated May 13, 2010)
(i) Account opened in the name of minor should not have joint holdings.
(ii) Obtain POI, Proof of Address and the photograph of the Guardian as per the
procedure laid down in point no. (I) (1) (1.3) above.
(iii) Photocopy of school leaving certificate / Marksheet issued by Higher Secondary
Board of respective states, ICSE, CBSE / passport of the minor / birth certificate
of the minor to ascertain the date of birth of the minor. At the time of accepting
either of these documents, Participant should verify the same with the original.
However, in case the client submits an original birth certificate, Participant can
accept the same as proof of date of birth.
(iv) PAN details of the minor should be captured in the DPM System after due
verification. (NSDL/POLICY/2006/0031 dated August 9, 2006)

(5.1) Procedure to be followed by Participants on minor attaining majority

(NSDL/POLICY/2008/0034 dated May 21, 2008).

On minor attaining majority (i.e. 21 years of age in case of minor whose Guardian is
court-appointed or 18 years where minor's account is represented by a natural guardian),
Participants should follow the procedure given hereunder:

S. No. Procedure Reference Remark

(i) Ascertain the cases Access the module Report displays accounts that are
where Minors have 'Reports' / Master List / in status 'Active', 'Suspended for
attained Majority. Minor turned Adult Debit' and 'Suspended for Debit &
available in the DPM Credit'
System

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(ii) Communicate to the Point no. (I) (1) of this Income Tax Department (ITD)
Client (Minor Circular and Annexure J of issues a new PAN card with same
attained Majority) Business Rules PAN with relevant changes on
immediately PAN card, on Minor attaining
advising him/her to majority. For detailed procedure,
submit a fresh Participants may refer
account opening http://www.incometaxindia.gov.in
form alongwith or http://www.tin-nsdl.com.
necessary KYC
documents & PAN
card alongwith
photograph of the
Client and also
comply with ‘in-
person’ verification.
(iii) Suspend the account DPM System. This is in case where the Client
for debit and disable does not respond within one
the standing month from the date of
instruction for credit communication as mentioned in
pertaining to the point no. (ii) above.
account of Minor.
(iv) Verify the account Point nos. (I) (1) and (2)
opening form (2.1) of this Circular and
alongwith necessary Circular no.
KYC documents and NSDL/POLICY/2008/0030
PAN as mentioned dated April 30, 2008.
under point no.(ii)
herein above.

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(v) Execute a fresh Annexure B of the Bye Retain the KYC documents of
Participant-Client Laws of NSDL. Guardian alongwith Participant –
agreement with the Client agreement executed earlier
Client. at the time of account opening by
the Guardian on behalf of the
Client as a part of account
opening documents.
(vi) Capture the new Point no. (I) (11) of this Ensure that the demographic
demographic details Circular details captured in the DPM
in the DPM System System match with the details in
after due verification the new account opening form,
of same. KYC documents and PAN card
submitted by the Client. If there is
mismatch in the demographic
details captured in the DPM
System or if Client submits a
request for modification of such
details like change of Bank
details, address details, etc. follow
the relevant procedure.
(vii) Capture the DPM System
signature of the
Client (Minor turned
Major) in the system
in place of the
signature of the
Guardian (captured
earlier).
(viii) Select “None” or Point nos. (I) (10) of this Select the option after the
“Nominee” as the Circular and Annexure JA aforesaid procedure as mentioned
case may be in the of Business Rules in aforesaid points is followed

17
 field and the identity of the Client is
„Nominee/Guardian‟ verified. As the Client has
in the DPM System become Major, he/she can now
to disable the entire make a nomination in his/her
Guardian details in account in favour of any person
the said account. If by filing with the Participant a
"Nominee" is request for making a nomination
selected enter the in prescribed form.
nomination details.
(ix) Any request or As Clients who have attained
instruction(s) from Majority are legally entitled to
the guardian, which execute a contract, Participants
is/are to be are advised NOT to accept any
processed or is requests or instructions signed by
having execution the Guardian on behalf of the
date falling on or Client on or after the date the
after the date the Client has turned Major.
Minor has turned
Major, shall be
processed/executed
only after receipt of
confirmation from
the Client (Minor
turned Major).
(x) Client (Minor turned major) account is suspended for debit for non-compliance with
PAN requirement
Follow the Point no. (I) (2) (2.1) of this
procedure Circular
mentioned in point
nos. (i) to (viii)
above and capture

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 the PAN details in
the DPM System
and enable the PAN
flag.
(xi) Accounts already suspended in cases where Clients have not responded

Follow the Point no. (I) (5), (5.1) and This is in cases where the
procedure as (5.2) of this Circular accounts pertaining to Minor
mentioned under Clients are suspended for debit
point no. (ii) to (viii) and the standing instruction for
above. credit is disabled on account of
failure of the Clients to respond
within the period of one month
from the date of communication
to Client from Participants.

(6) Accounts opened in the names of Partners for holding securities that belong to a
Partnership firm (NSDL/POLICY/2007/0009 dated February 12, 2007)
(i) The account should be opened only in the names of Partners and the securities that
belong to the Partnership Firm can be held in this account.
(ii) Obtain POI and Proof of Address of the Partners as per the documents mentioned in
point no. (I) (1) (1.3). Further, obtain a copy of the Partnership Deed to verify the
names of Partners.
(iii)Obtain an undertaking in the prescribed format from the Partners to the effect that the
Partners would comply with the provisions of the Companies Act, 1956 and other
applicable statutes in respect of securities of the Partnership firm held in the account
opened in the names of the Partners (NSDL/POLICY/2006/0008
dated March 4, 2006).
(iv) PAN details of the Partnership firm should be captured against the names of all the
Partners after due verification (NSDL/POLICY/2006/0031 dated August 9, 2006).
(v) Capture the bank details of the Partnership firm.
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(7) Non-Resident Indian / Foreign National (NRI/FN)
(7.1) Procedure to be followed by Participants with respect to KYC documents
and PAN of NRI (Repatriable/Non-Repatriable) and FN at the time of
opening an account in the respective category:
(i) Obtain POI and Proof of Address of the applicant as per the procedure laid down in
point no. (I) (1) (1.3) above.
(ii) Obtain a declaration from the Client that he/she has complied and will continue to
comply with FEMA regulations.
(iii) Participants are advised to obtain photocopies of Proof of Address in respect of
foreign address where the NRI/FN is residing and verify the same with originals. In
case the NRI/FN Clients have Indian address, Participants are advised to obtain
photocopies of Proof of local address and verify the same with originals. Further, in
case if the NRI/FN has submitted only Proof of Address of the country (foreign
address) where the NRI/FN is residing, in such a situation, Participants may capture
the foreign address in both local and foreign address fields given in the DPM System.
(iv) If Participants find it infeasible to carry out 'in-person' verification of the NRI/FN
Client by their staff and/or verify the original KYC documents (POI and Proof of
Address i.e. foreign address, where the NRI/ FN is residing) alongwith PAN card, in
such a situation, it is clarified that:
(a) the account opening form and photocopies of the KYC documents and PAN card
should be duly signed by the account holder; and
(b) photocopies of the KYC documents and PAN card is attested by any of the entities
viz; Notary Public, Court, Magistrate, Judge, Local Banker, Indian Embassy /
Consulate General of the country where NRI/FN is residing [outside India]; and
(c) the attestation is to the effect that it has been verified with the originals.
Participants should open the depository accounts or accept the PAN card only after it
is satisfied with the authenticity of the documents (POI, Proof of Address and PAN
card).
(v) In case where ‘in-person’ verification for NRI/FN Client has been carried out by the
staff of the Participant or if he/she personally visits the office of the Participant to

20
 submit the KYC documents and PAN card, in such a situation, the NRI/FN would be
exempted from obtaining attestation, on KYC documents and PAN card.

(NSDL/POLICY/2008/0030 dated April 30, 2008, NSDL/POLICY/2007/0022 dated

April 18, 2007, NSDL/POLICY/2006/0067 dated December 28, 2006 and
NSDL/POLICY/2006/0049 dated October 19, 2006).

(7.2) NRI (Repatriable/Non- Repatriable) account (NSDL/PI/98/007 dated

January 2, 1998):
(i) While opening an account for an NRI Client, the Participant should obtain copy of
the RBI approval letter, if any, for acquiring securities, alongwith the account
opening form and other necessary documents.
(ii) The account should be opened in the name of the NRI in the DPM System under
repatriable category when securities are held on repatriable basis and under non-
repatriable category when securities are held on non-repatriatable basis.
(iii) Participants are advised to capture the following details in the DPM System
against the RBI reference number and date:
(a) If the NRI has at any time purchased securities from the secondary market,
i.e., under Portfolio Investment Scheme, then the RBI reference number and
date mentioned in the RBI approval letter should be entered.
(b) If the NRI has never purchased securities from the secondary market, but the
securities have been allotted in the primary market, i.e., under Direct
Investment Scheme, then the Participant should mention the following :
RBI Reference No. : “Under General Permission”
RBI Approval Date : Present date
(Subsequently, whenever the NRI gives dematerialisation or receipt instructions
in respect of purchase of securities from the secondary market, the RBI reference
number and date should be entered therein)
(c) If the NRI does not hold any securities, then the Participant should mention
the following :
RBI Reference No. : “No Holdings”
RBI Approval Date : Present date
21
 (Subsequently, whenever the NRI gives dematerialisation or receipt instructions
in respect of purchase of securities from the secondary market, the RBI reference
number and date should be entered therein)
(iv) While processing dematerialisation, receipt, delivery or pledge instructions from
NRI Client, the Participant must obtain a copy of the relevant RBI approval letter
(e.g., RBI approval letter for sale in case of delivery instructions). The Participant
need not obtain copy of the RBI approval letter for every instruction, if the same
approval applies to each such instruction.

(7.3) RBI Clarification with respect to NRI/FN :

(NSDL/PI/2000/1891 dated October 6, 2000)
RBI vide its letter dated July 18, 2000 to one of the Participant of NSDL has issued the
following clarifications with regard to permission to open Bank Account and Depository
Account to sell shares acquired under ESOP by FN:
(a) RBI approval is not required for opening depository account.
(b) RBI has not put any condition that for opening of depository account, the non-
resident shareholder must have a bank account. The depository account may be
opened as per the norms of NSDL and the concerned bank.
(c) RBI has already granted General Permission for sale of shares on stock
exchanges by non-residents and for sale of shares by negotiated deals, application
in TS-1 form may be submitted to concerned Regional Office of RBI for
obtaining permission.
(d) FN can sell the shares held under ESOP on stock exchange without RBI
permission.

Participants are required to ensure that all transactions in the account are in compliance
with FEMA regulations. Accordingly, Participants are advised to obtain from the
NRI/FN, necessary documents evidensing general/specific approvals as may be required
under FEMA regulations.

22
(8) Opening of account of an Illiterate person (NSDL/PI/2002/0709 dated May 3,
2002):
NSDL has prescribed the procedure for affixing thumb impression (in Annexure J of
Business Rules) while filling an account opening form by an illiterate person. In this
context, Participants are advised to follow the below mentioned procedure:
(a) Illiterate person(s), at the time of opening an account with a Participant must affix the
thumb impression (left hand thumb in case of a male and right hand thumb in case of
a female) on the agreement as well as on the account opening form.
(b) All accounts opened by illiterate person(s) (hereinafter referred as Clients) must be
either introduced by an existing account holder or must be attested by applicant‟s
bank.
(c) The Client(s) must come in person to open the account and submit instruction forms
and affix his/her thumb impression in the presence of the official of the Participant.
The Participant should identify the Client(s) by verifying the photograph submitted
by the Client(s) and read out/explain the contents of the account opening form,
Participant-Client agreement and delivery instruction form to the Client(s). The
official of the Participant should then put his signature and remarks "Details
explained to the Client(s)", on the account opening form, copy of the agreement and
delivery instruction form.
(d) In case such Client(s) is/are temporarily or permanently disabled due to which he/she
cannot come in person to submit the instruction form as mentioned in point (c) above,
the thumb impression of the Client(s) on the instruction forms must be attested by a
Magistrate or a Notary Public or a Special Executive Magistrate or a similar authority
holding a Public Office and authorised to use the Seal of his office or a manager of
the account holder‟s bank. The Client should also produce a medical certificate about
his/her disability.
(e) A remark should be put in the DPM System (under the authorised signatory details
under "Signatories" screen) at the time of opening the account that the account holder
is illiterate or disabled. Further, the instruction forms issued to such Client(s) should
be pre-stamped as "Thumb Impression".

23
(f) At the time of opening of account, the aforesaid rules should be explained to the
Client(s) in the presence of a witness, who will have to sign the agreement and the
account opening form, as a witness.
Participants should note that the aforesaid guidelines are in addition to the existing
guidelines with regard to opening of an account and executing instructions.

(9) Opening of an account of a Blind person (NSDL/POLICY/2007/0049 dated

August 21, 2007):
(a) Obtain POI, Proof of Address and the photograph of the blind person(s) (hereinafter
referred as Client) as per the procedure laid down in point no. (I) (1) (1.3). Carry-out
'in-person' verification of the Client as per the procedure laid down in point no. (I)
(1) (1.1). Obtain PAN card of the Client and follow the procedure laid down in point
no. (I) (2) (2.1).
(b) The Participant should read out and explain to the Client, the contents of the account
opening form and Participant-Client agreement whenever so requested by the Clients.
In case the Client is an illiterate, Participant should follow the procedure laid down in
point no. (I) (8).
(c) The Participant should capture the Client‟s signature(s) as given in the Account
Opening Form in the DPM System. Further, a remark should be put in the DPM
System (under the authorised signatory details in 'signatories' screen) that the Client is
"Visually Challenged". Further, if the Client is illiterate, then Participant should put
in the remark as "Visually Challenged and Thumb Impression".
(d) For issuance, re-issuance and processing of Delivery Instruction Slips (DIS) of such
Clients, Participants are advised to follow the procedure laid down in NSDL Circular
No. NSDL/PI/2004/1401 dated August 5, 2004. Participants would also be required to
comply with NSDL Circular No. NSDL/POLICY/2007/0011 dated February 15, 2007
regarding SEBI circular on DIS. It is also added that the DIS issued to such Clients
should be pre-stamped as "Visually Challenged" or "Visually Challenged and Thumb
Impression" as the case may be. Further, these Client(s) should visit the office of the
Participant to deliver the DIS, only if they are illiterate.

24
Participants are requested to note that the above mentioned procedures will be applicable
for new accounts opened since August 21, 2007 (issuance of the revised circular) as well
as for processing of DIS for the existing Clients.

(10) Procedure to be followed with respect to Nomination

(NSDL/POLICY/2009/0002 dated January 3, 2009, NSDL/POLICY/2009/0004
dated January 9, 2009 and NSDL/POLICY/2009/0081 dated September 5, 2009):
(a) At the time of opening his/their account, the Client will be required to tick the
appropriate option as given below:
(i) “I/We wish to make a nomination and do hereby nominate the following person in
whom all rights and / or amount payable in respect of securities held in the
Depository by me / us in the said beneficiary owner account shall vest in the event
of my / our death.”
(ii) “I/We do not wish to make a nomination.”
(b) For Client(s) who make a nomination of his/their account in favour of any person,
may, fill-up with the relevant Participant the form laid out in Annexure JA of the
Business Rules. In the case of joint accounts, all the account holders shall be required
to affix their signatures to the said form. Such nomination shall be conclusive
evidence of the Client(s) disposition in respect of all the securities in the account for
which nomination has been made.
(c) The nomination can be made only by individuals holding beneficiary accounts on
their own behalf singly or jointly. Non-individuals including society, trust, body
corporate, partnership firm, karta of HUF, holder of power of attorney cannot
nominate. If the account is held jointly, all joint holders will sign the nomination
form.
(d) A minor cannot nominate. However, a minor can be a 'nominee'. In that event, the
name and address of the Guardian of the minor nominee shall be provided by the
beneficiary owner. The details with respect to date of birth of the minor nominee and
the flag to indicate such nominee should be captured in the DPM System
(NSDL/PI/2005/1102 dated June 22, 2005).

25
(e) The Nominee shall not be a trust, society, body corporate, partnership firm, karta of
HUF or a power of attorney holder. A non-resident Indian can be a Nominee, subject
to the exchange controls in force, from time to time.
(f) Nomination in respect of the beneficiary account stands rescinded upon closure of the
beneficiary account. Similarly, the nomination in respect of the securities shall stand
terminated upon transfer of the securities.
(g) Transfer of securities in favour of a Nominee shall be valid discharge by the
depository against the legal heir.
(h) The cancellation of nomination can be made by individuals only holding beneficiary
accounts on their own behalf singly or jointly by the same persons who made the
original nomination. Non-individuals including society, trust, body corporate,
partnership firm, karta of HUF, holder of power of attorney cannot cancel the
nomination. If the beneficiary account is held jointly, all joint holders will sign the
cancellation form.
(i) On cancellation of the nomination, the nomination shall stand rescinded and the
depository shall not be under any obligation to transfer the securities in favour of the
Nominee.
(j) Participants must send a communication to their existing Clients who have not yet
opted for nomination, to submit a declaration specifically stating the following:
I/We the undersigned wish to make a nomination in respect of my Beneficial
Owner (BO) account and the nominee details are as follows:
I/We the undersigned do not wish to make a nomination in respect of my BO
account.

Further, Participants are also requested to refer rule 12.6.3 of Business Rules of NSDL
with respect to details on nomination.

(11) Procedure for change in demographic details

(11.1) Change of address (NSDL/PI/2004/1622 dated September 7, 2004 &
NSDL/POLICY/2008/0040 dated June 4, 2008):

26
(a) While processing requests for change of address received from Clients, Participants
should obtain the following documents:
(i) a written application for change of address from the Client (In case of joint
holdings, all holders must sign the application);
(ii) POI [copy of any one of the documents mentioned in (I) (1) (1.3) (a) above of the
Client (sole holder or either of the holders) visiting the office of the Participant];
(iii)latest transaction statement of the account received from the Participant. In case a
Client (sole holder or either of the holders) personally visits the Participant's
office to submit an application (signed by all holders in case of joint holdings) for
change of address alongwith necessary documents (POI / proof of address)
mentioned in point no. (I) (1) (1.3), the Participant need not obtain the transaction
statement from such Client (NSDL/POLICY/2007/0030 dated June 18, 2007);
(iv) Proof of new address (copy of any one of the documents mentioned in (I) (1) (1.3)
(b) above) alongwith the original documents of the new address for verification.
(b) The Client should personally visit the office of the Participant where the Client
maintains and operates his/her account and submit the application for change of
address. However, in case the Client expresses inability to personally visit the office
of the Participant, the application for change of address alongwith other documents
can be submitted through an authorised representative, whose identity the Participant
must verify by collecting any of the proof of identity documents as stated in (I)
(1)(1.3) above.
(c) The Client or its authorised representative should sign the application once again in
the presence of the officials of the Participant.
(d) The Participant should verify the signature of the Client on the application and the
identity documents with the documents maintained with the Participant. Further, the
document pertaining to new address should be verified with the original. After due
verification, an authorised official of the Participant should put his/her signature on
the application with remarks "verified with original" and thereafter record the
change of address in the DPM System.
(e) However, in case Participant could not verify the documents because the records of
the documents submitted by the Client are kept at a different place, then the

27
 Participant must verify the same within a period of seven working days and only then
effect the change.
(f) After effecting the change of address in the DPM System, the Participant should send
a communication to the Client, confirming the change of address, to the old and the
new addresses.
(g) In case of change (addition/deletion/modification) in the landmark details for the
address which is already captured in the DPM System, Participants may limit the
changes to the landmark details, after obtaining a request from the Clients on a plain
paper, which is signed by all the holder(s) (in case of joint holdings). Participants are
advised to note that the address of the Client captured in the DPM System, as
mentioned in the proof of address, should not change and only limit the change in the
landmark details.

(11.2) Change of Signature (NSDL/PI/2004/0045 dated January 7, 2004):

Participants are advised to follow the below mentioned procedure for effecting change of
signature of Clients:
(i) The Client should make a request in writing specifying reasons for change in
signature.
(ii) New signature should be duly attested by Client's banker.
(iii)Client should visit the Participant's office personally and produce valid POI.
(NSDL/POLICY/2007/0030 dated June 18, 2007)
(iv) In the presence of officials of Participant, Client should affix his/her new signature.
(v) An authorised official of the Participant shall, under his signature, verify the identity
proof with the proof and photograph that were furnished at the time of opening of
account and thereafter, if found satisfactory, make necessary changes in its records.

(11.3) Change in status of Standing Instruction

If the Client requests for change in standing instruction, Participant should carry out the
changes in the DPM System based on proper authorisation received from the Client
(signed by all the holders in case of joint holdings). In case the „execution date‟ for
change in standing instruction is provided by the Client that date must be entered in the

28
DPM system. If „execution date‟ for change in standing instruction is not provided by the
Client, then the „current date‟ of execution of such instruction must be entered
(NSDL/POLICY/2009/0090 dated October 1, 2009).

(11.4) Change in bank details such as account type, account number, name, address
and MICR
(i) Participant should obtain written request signed by the Client. Participant should
ensure that the request submitted by the Client is completely filled, including the bank
account particulars of the Client and properly signed (signed by all the holders in case
of joint holdings) (NSDL/PI/97/119 dated July 22, 1997).
(ii) Obtain a specimen copy of cheque and capture the changes in the DPM System.
(iii)Update the MICR code while updating the bank account details of the depository
account holder(s) (NSDL/POLICY/2007/0023 dated April 24, 2007).

Participants need not seek from their Clients the proof of the bank details for capturing
the bank details in the depository account, if they have direct access to the bank records
for verification of the bank details provided by their Clients.

(11.5) Change in SMS flag and / or mobile numbers:

(i) Participant must obtain a written request from the Client for change in mobile number
and/or SMS flag.
(ii) For joint holdings, the written request must be signed by the holder whose mobile
number and / or SMS flag is being changed.
(iii)Participants are advised to strictly capture the ten digit mobile number with the first
digit as “6” / “7” / “8” / “9” and/or update the SMS flag, as requested by the client.
(iv) For ease of data entry, the SMS flag gets enabled automatically upon capture /
modification of mobile numbers in DPM System. Thus, Participants must take due
care at the time of modifying mobile numbers in the DPM System, particularly for
Clients who have not opted for SMS alert facility. If the Client submits the mobile
number but does not wish to opt for the SMS Alert facility, the Participant should

29
 capture the mobile numbers in the DPM System and disable the SMS flag from front
end of DPM System or through back office.

(11.6) Addition / Deletion / Modification of Power of Attorney holder(s)

In case the depository account is operated by Power of Attorney and there is an addition /
deletion / modification of power of attorney holder(s) of such an account, Participants
should carry out the changes in the DPM System after obtaining written request which is
duly signed by the Client (signed by all the holders in case of joint holdings) and new
Power of Attorney in case of addition / modification. In case of deletion, Participants
should ensure to dislodge the signature of the Power of Attorney holder(s) from the DPM
System.

(11.7) Make a nomination / Cancel the Nomination

In case the Clients request to make a nomination / cancel the nomination in their
depository accounts, Participants should carry out the changes in the DPM System
after obtaining written request alongwith Annexure JA, which is duly signed by
the Client (signed by all the holders in case of joint holdings).

After effecting the changes in the DPM System for the abovementioned demographic
details (11.3 to 11.7), the Participant should send a communication (letter / email / Client
Master Report generated from the DPM System or its back office or any other mode
which the Participant may deem fit) to such Client informing about the changes effected
in the account of the Client.

(11.8) Changes in Client Details based on request received from Client through
email or website of Participants:
Participant may add, modify or delete the details viz; Phone number, Fax number, Mobile
number, Email ID and SMS facility based on the request received from the Client
through email or website of Participant provided it ensures compliance with the
following:
(i) Request received through email:

30
 (a) Request is received from the email address which is recorded in the DPM
system.
(b) On receipt of request, a confirmation email is sent to the Client at the
email address recorded in the DPM system requesting the Client to reply to
email.
(c) The Client replies to the email sent as mentioned at point no. (b) above.
(ii) Request received through the website of Participant:
(a) There are adequate systems and security features in place to authenticate
the Client and to ensure that the Client itself has made a request for change.
(b) Participant must implement Secure Socket Layer (SSL) security for its
internet facility featuring site authentication and encrypted communication
and appropriate Client authentication so as to restrict the access only to the
Client.
(c) Participant will be liable to conclusively prove the origin, date and time of
receipt of request by it.

(iii) The records relating to requests received through email or web portal are
maintained by Participant for the stipulated period and are available for
audit/inspection, as and when called for.

(iv) After the changes are effected, keep the Client informed about the change
through alternate means (e.g.: if mobile number is changed, an email or letter
must be sent; if email address is changed, an SMS or letter at the address of the
Client must be sent, etc.).

(II) Guidelines in respect of account opening in case of Body-Corporate

(NSDL/PI/2002/1319 dated August 8, 2002)
1. Procedure for opening account of a Body-Corporate:
1.1) Participants shall obtain the following documents at the time of account
opening:

31
 (a) Memorandum & Articles of Association, board resolution for opening and
operating depository account and the list of authorised signatories alongwith
their specimen signatures and photographs, etc.
(b) Introduction by an existing account holder or by the applicant's bank.
(c) Proof of Address of the corporate evidenced by the document registered
electronically with Registrar of Companies (ROC) or Bank Statement or
Leave and License agreement/Agreement for sale or telephone bill (not more
than two months old) or electricity bill (not more than two months old) in the
name of body-corporate.
1.2) An authorised official of the Participant should verify the proof of address
with the original documents and put his/her signature on them with remarks
"verified with original" before proceeding to open the account. In case of
documents filed electronically with ROC, Participants can accept such
documents as a valid proof of address provided they ensure the following:
(a) Obtain copies of challans of payments made to ROC
(b) Verify the details viz. name of Client, company identification number
and address on the website of Ministry of Corporate Affairs viz.
http://www.mca.gov.in and keep a copy of screen shot.
1.3) PAN, address and bank details of the body-corporates should be captured after
due verification as mentioned in point no. (I) (2.1), (2.2), (2.3) and (3) above.
Participants shall capture the name & specimen signatures of the authorized
signatory(ies) and mode of operation in the “signatory name” panel of the
DPM System.

2. Additional requirement with respect to Foreign Corporate Bodies:

(a) Participants are advised to obtain photocopies of Proof of Address in respect of
foreign address in case of FII, Foreign Corporate Bodies, Foreign Banks,
Overseas Corporate Bodies etc. (referred as foreign entities) and verify the same
with originals. In case these foreign entities also have an Indian address,
Participants are advised to obtain the photocopies of Proof of Address of local
address and verify the same with originals. Further, in case if these entities have

32
 submitted only Proof of Address as foreign address, in such a situation,
Participants may capture the foreign address in both local and foreign address
fields given in the DPM System.
(b) If Participants find it infeasible to verify the original KYC documents (foreign
address of these foreign entities) and PAN card, in such a situation it is clarified
that:
(i) the KYC documents and PAN should be duly signed by the authorised
signatories; and
(ii) attested by the Indian Embassy / Consulate General of the country where the
registered office of the foreign entity is situated and
(iii) the attestation is to the effect that it has been verified with the originals.
Participants should open the depository account or accept the PAN card only
after it is satisfied with the authenticity of the documents (Proof of Address and
PAN card).
(c) As regards proof of address of FIIs/sub-accounts, a copy of the Power of Attorney
given by the FIIs/FII sub-accounts to the Custodians (which are duly notarized
and/or apostiled or consularised) that gives the registered address of the FIIs/sub-
accounts can be accepted as proof of address.
(d) U.N. entities/multilateral agencies which are exempt from paying taxes/filing tax
returns in India are exempted from the mandatory requirement of PAN. The
exemption, however, would be subject to the Participants collecting documentary
evidence in support of claim of such entities/agencies. After the Participants are
satisfied that such entities are exempt from paying taxes/filing tax returns in India,
Participants are advised to capture the description "EXEMPTCATG” under the
PAN field and enable the PAN flag in DPM System.
(e) Participants need not enter into Participant-Client agreement provided :
(i) FIIs are registered with SEBI and have entered into an agreement with the
Participant either directly or through their power of attorney holders in
accordance with the provisions of sub-regulation (1) of regulation 16 of the
SEBI (Foreign Institutional Investors) Regulations, 1995; and

33
 (ii) Such agreement gives the Participant an authority to act on behalf of the FIIs
for availing the services of the Depository; and
(iii) Such agreement has been filed with SEBI;
(iv) International Multilateral Agency, who has entered into an agreement with
the Participant under regulation 17 of the SEBI (Custodians of Securities)
Regulations 1996, and such agreement states that the Custodian will also act
as a Participant and all provision pertaining to Participant shall be applicable;
then such Participant need not enter into an agreement as per Annexure B of
the Bye Laws.
(f) Participants shall ensure that in case of foreign entities, all transactions in the
account are in compliance with FEMA Regulations. Accordingly, Participants are
advised to obtain from such foreign entities necessary documents evidencing
general/specific approvals as may be required under FEMA Regulations.
(g) Obtain a declaration from the foreign entity that it has complied and will continue
to comply with FEMA Regulations.

3. Other Types of Body Corporate Accounts (NSDL/PI/2009/0065 dated July 25,

2009):
(3.1) Opening of an Escrow Account:
Participants should accept the following documents for opening of an escrow account:
(a) KYC documents of Corporate and Escrow Agent.
(b) Copy of escrow agreement duly signed by all the parties.
(c) The account should be opened in the name as mentioned in the Scheme, which is
approved by a competent authority and is in accordance with SEBI regulations.
Further, the operation of such account should be governed by the terms and
conditions of escrow agreement.
(d) Copy of PAN card of both parties involved in such an arrangement. However, PAN
details of the Corporate should be captured in the account after the same has been
verified in accordance with point above (I) 2 (2.1).
(e) The account should be used only for holding securities, which are required to be
transferred under the specific scheme and in accordance with the SEBI regulations.

34
(f) As the account is opened for specific purpose, the same shall be closed immediately
after the shares held in the account are transferred to the respective demat accounts or
are extinguished as required under the said scheme.

(3.2) Procedure for opening depository account for unclaimed shares of listed
companies
(a) The depository account may be opened in the name as “<Name of Issuer> –
Unclaimed Suspense Account” under the type “Body Corporate” and sub-type
“Others” by the Issuer.
(b) The Issuer shall submit a declaration on its letterhead, signed by the authorized
signatories, stating that: “We hereby undertake that we will ensure compliance with
the provisions of the applicable SEBI guidelines for dealing with unclaimed shares.
We further undertake that the said depository account will only be used for specified
purposes”.
(c) Procedure mentioned above in point no. (II)(1) about opening of depository account
in case of body corporate should be followed.

4. Procedure for opening depository account for Limited Liability Partnership

(LLP)
(4.1) Obtain the following documents at the time of account opening:
(a) Limited Liability partnership agreement and certificate of registration.
(b) Resolution/Authority Letter for opening and operating account alongwith list
of authorised signatories, specimen signatures and photographs.
(c) Introduction by existing account holder or by applicant‟s bank.
(d) Any of the following documents as valid proof of address of LLP:
(i) Documents registered with ROC; or
(ii) Acknowledged copy of Income Tax return; or
(iii)Bank statement; or
(iv) Leave and License agreement / agreement for sale; or
(v) telephone bills (not more than two months old); or
(vi) electricity bills (not more than two months old).

35
 (e) PAN, address and bank details of LLP.
(4.2) An authorised official of the Participant should verify the proof of address with
the original documents and put his/her signature on it with remarks "verified
with original" before proceeding to open the account.
(4.3) PAN, address and bank details of LLP should be captured after due verification as
per the procedure mentioned in point no. (I) (2.1), (2.2), (2.3) and (3) of Master
Circular no. NSDL/POLICY/2009/0029 dated April 16, 2009.
(4.4) Participants shall capture the name & specimen signature(s) of the authorized
signatory(ies) and mode of operation in the “signatory name” panel of the DPM
System.
(4.5) Participant may open the depository account in the name of LLP Client under the
Type „Body Corporate‟ and sub-type „Limited Liability Partnership‟.

5. Procedure for change in demographic details of body-corporate account.

(5.1) Change of Address: (NSDL/POLICY/2009/0032 dated May 4, 2009)
(a) A written application for change of address of the corporate entity, signed by the
authorised signatories should be submitted to the Participant.
(b) Atleast one of the authorised signatories should visit the office of the Participant in
person to submit its application for change of address alongwith necessary
documents. However, in case authorised signatories expresses their inability to
personally visit the Participant‟s office, the application for change of address
alongwith other documents including the latest transaction statement can be submitted
through an authorised representative whose identity the Particiapnt must verify by
collecting any of the proof of identity documents as stated in (I) (1) (1.3) above.
(c) The authorised signatories or their authorised representative should sign the
application once again in the presence of the officials of the Participant.
(d) Participant should collect Proof of new address (copies of documents mentioned
under (II) (1) (1.1) alongwith the original document of new address, for verification
by the Participant).
(e) An authorised official of the Participant shall verify the application and the
abovementioned documents with the original and put his/her signature on the

36
 application with remarks "verified with original" and thereafter record the change
of address in the DPM System.
(f) The Participant should write a letter to the Client (Body-Corporate) at the old address
as well as the new address to confirm the change of address.

(5.2) Change of authorised signatory:

In case of change in authorised signatory, the Client should provide a fresh board
resolution mentioning authorised signatories who shall operate the depository account
alongwith the specimen signature and photograph of the new authorised signatory.
Participants need not obtain the details of the existing authorised signatories if they
remain unchanged. Thereafter, Participants are advised to capture the signature of the
new authorised signatories in the DPM System. Participants should ensure that the
signatures of the outgoing authorised signatories should be dislodged from the DPM
System.

(5.3) Change in status of Standing Instruction:

If the Client requests for change in standing instruction, Participant should carry out the
changes in the DPM System based on proper authorisation signed by the authorised
signatories of such an account.

(5.4) Change in bank details such as account type, account number, name, address
and MICR:
(i) Participant should obtain written request signed by the authorised signatories.
Participant should ensure that the request submitted by the Client is completely filled,
including the bank account particulars of the Body-Corporate and properly signed by
authorised signatories (NSDL/PI/97/119 dated July 22, 1997).
(ii) Obtain a specimen copy of cheque and capture the changes in the DPM System.
(iii)Update the MICR code while updating the bank account details of the Client
(NSDL/POLICY/2007/0023 dated April 24, 2007).

37
Participants need not seek from their Clients the proof of the bank details for capturing
the bank details in the depository account, if they have direct access to the bank records
for verification of the bank details provided by their Clients.

(5.5) Addition / Deletion / Modification of Power of Attorney holder(s)

In case the depository account is operated by Power of Attorney and there is an addition /
deletion / modification of Power of Attorney holder(s) of such an account, Participants
should carry out the changes in the DPM System after obtaining written request which is
duly signed by the authorised signatories and new Power of Attorney in case of addition /
modification. In case of deletion, Participants should ensure to dislodge the signature of
the Power of Attorney holder(s) from the DPM System.

(5.6) Changes in Client Details based on request received from Client through
email or website of Participants:
Participant may add, modify or delete the details viz; Phone number, Fax number, Mobile
number, Email ID and SMS facility based on the request received from the Client
through email or website of Participant provided it ensures compliance with the
following:
(i) Request received through email:
(a) Request is received from the email address which is recorded in the DPM
system.
(b) On receipt of request, a confirmation email is sent to the Client at the
email address recorded in the DPM system requesting the Client to reply to
email.
(c) The Client replies to the email sent as mentioned at point no. (b) above.
(ii) Request received through the website of Participant:
(a) There are adequate systems and security features in place to authenticate
the Client and to ensure that the Client itself has made a request for change.
(b) Participant must implement Secure Socket Layer (SSL) security for its
internet facility featuring site authentication and encrypted communication

38
 and appropriate Client authentication so as to restrict the access only to the
Client.
(c) Participant will be liable to conclusively prove the origin, date and time of
receipt of request by it.

(iii)The records relating to requests received through email or web portal are
maintained by Participant for the stipulated period and are available for
audit/inspection, as and when called for.

(iv)After the changes are effected, keep the Client informed about the change
through alternate means (e.g.: if mobile number is changed, an email or letter
must be sent; if email address is changed, an SMS or letter at the address of
the Client must be sent, etc.).

6. Change in name of Body-Corporate accounts (NSDL/POLICY/2008/0085

dated December 16, 2008):
(i) The DPM System allows Participants to make name change in Corporate accounts for
Client types viz., Body-Corporate, Bank, Financial Institution (FI), FII, Mutual Fund
(MF), Trust and various sub-types as given in the enclosed Annexure I.
(ii) Documents required to be collected by Participants at the time of change of name of
Corporates are given below:
(a) In case the entity is registered under the Companies Act, 1956, the following
documents should be obtained from the Client:
Letter requesting for change of name signed by the authorized signatories.
Certified true copy of fresh certificate of incorporation consequent upon
change of name issued by the Registrar of Companies.
Certified true copy of Board Resolution for change of name.
(b) In case of other corporate entities, the following documents should be obtained
from the Client:
Letter requesting for change of name signed by the authorized signatories.
Certified true copy of Board Resolution for change of name.

39
 Certificate of registration issued by SEBI / relevant Statutory Authorities,
as applicable.
(iii)The change of name for a Corporate account can be carried out in the DPM System
through Client Modification Module - Primary and Address Details Modification.
(iv) While carrying out the modifications, the name of any existing account holder of an
account can neither be deleted nor any new name can be added. Participants can only
make changes to the name(s) of existing account holder(s) of the account.
(v) When the instruction is captured and verify/released, the DPM System will flash:
(i) an alert message on the screen as to whether the Participant wishes to make
changes to the PAN, email ID, mobile number etc. of the account holder. Participants
may ignore such message if there are no changes to be carried out with respect to the
aforesaid details.
(ii) a warning message on the screen to re-capture the signatures of the authorized
signatories. Participants may ignore such message if Participants have already re-
captured the signatures of the authorized signatories or there is no change to the
authorized signatories.
(vi) The Client Name Audit Report in the DPM System will display the old as well as new
name of the Corporate.

Note :
1. In case of amalgamation / scheme of arrangement, Participants are requested to close
the existing account and open new account by following the prevailing process, as at
present.
2. Name change to the Corporate account can be carried out only through the front end
application of the DPM System.
3. The pledge details in the DPM System of the Participant of the pledgee will continue
to reflect the old name of the Corporate, if the Corporate is the pledgor.
4. Subsequent to name change, the Transaction Statement (SOT) report will reflect the
new name of the Corporate for the SOT generated for the past dates as well. The
Statement of Holding (SOH) report will also reflect the new name of the Corporate.

40
 Hence, it is for the Corporate to decide whether it wants to open a new account or
continue with the existing account with the new name.

After effecting the changes in the DPM System for the abovementioned demographic
details (point nos. 5.2 to 5.5 and 6), the Participant should send a communication (letter /
email / Client Master Report generated from the DPM System or its back office or any
other mode which the Participant may deem fit) to such Client informing about the
changes effected in the account of the Client.

(III) Depository accounts opened in the capacity of Individual/Body Corporate as

applicable
(1) Procedure for opening depository account in case of Trusts such as Provident
Fund trusts, Gratuity trusts, Superannuation trusts etc.
(NSDL/POLICY/2008/0018 dated March 24, 2008)
The procedure and documents required for the opening of depository accounts in case of
registered trusts/ public trusts, un-registered / private trusts and trusts established by
organisations for providing terminal benefits to its employees is as follows:

(A) Registered Trust:

In case the depository account is to be opened by a registered trust where a registration
certificate is issued by a Statutory Authority under the provisions of the Bombay Public
Trust Act, 1950 or The Indian Societies Registration Act, 1860, Participants are advised
to obtain the following documents:
(i) Requisite KYC documents, PAN Card and Bank details of the registered trust as per
the requirement mentioned at Point Nos. II (1) above for body corporate.
(ii) Notary certified true copy of the trust deed,
(iii)Certified true copy of registration certificate issued by the authority under provisions
of the Bombay Public Trusts Act, 1950 or The Indian Societies Registration Act,
1860,

41
(iv) Certified copy of the resolution passed by the Board of Trustees giving the names of
trustees authorised by the Board of Trustees to open and operate the depository
account.

After obtaining the documents, Participants are advised to follow the below mentioned
procedure:
(i) Open the depository account under the category and in the name of "Trust",
(ii) Capture the PAN and Bank details of the registered trust in the DPM System after due
verification,
(iii)Capture the signature of the trustee(s) in the DPM System.

(B) Unregistered Trust:

The Department of Company Affairs had vide its circular dated June 12, 1957 clarified
that the shares in a company which are the property of trust can be held in the names of
trustees being Individuals, Corporations, Companies or Societies registered under the
Societies Registration Act, 1860 without the addition of the statement that they are
trustees. It is also further clarified in the said circular that the shares can be held in the
name of a trust if the trust is a separate legal entity such as registered society. Hence,
unless the trust is a separate legal entity, the depository accounts have to be opened in the
names of trustees irrespective of whether they are Individuals, Corporations or
Companies.

As per the circular issued by the Department of Company Affairs, the relationship of trust
between a trustee and the beneficiary is not required to be taken note of in the account by
the Participants while opening the depository account. Trusts established for holding of
securities for the benefit of family members, holding of securities for the benefits of
employees etc would fall in this category. In these cases, Participants are advised to treat
the applicant as a private trust and obtain the following documents:
(i) Notary certified true copy of the trust deed,
(ii) If the trustee(s) are individuals, then open the depository account in the individual
name under the category 'Individual' by obtaining documents viz. Account opening
form, POI, Proof of Address, etc. of the Client / Applicant, including carrying out 'in-
42
 person' verification, as per the procedure laid down in Clause No. (I) (1) above for
non body-corporate accounts,
(iii)In case the trustee(s) of the unregistered trust are corporations, companies or entities
registered under the Bombay Public Trust Act, 1950 or The Indian Societies
Registration Act, 1860, then open the accounts in their respective names under the
Type 'Body-Corporate' and Sub-type 'Others' by obtaining documents mentioned at
Point No. (II) (1) above for body corporate. Further, Participants should obtain
certified copies of the resolution passed by such entities giving the names of the
authorised official(s) i.e. trustee(s) who shall open and operate the depository
account,
(iv) Only those securities that belong to the trust can be held in such a depository account.
Securities belonging to the trustee(s) in their individual capacities will have to be held
in separate depository account(s) of such person(s),
(v) Capture the PAN and Bank details of the unregistered trust in the DPM System, after
due verification,
(vi) Capture the signature of the individuals in case the trustee(s) are individuals. In case
the trustee(s) of the unregistered trust are corporations, companies or entities
registered under the Bombay Public Trust Act, 1950 or The Indian Societies
Registration Act, 1860, capture the signature of the authorised signatories in the DPM
System.

(C) Opening of accounts for Terminal Benefit Funds operated as Trusts:

In case of terminal benefit funds such as Provident Fund / Gratuity Fund /
Superannuation Fund that are operated as Trusts and where a Recognition Certificate is
issued by the Income Tax Authorities and / or the Regional Provident Fund
Commissioner, as the case may be, Participants are advised to obtain the following
documents:
(i) Requisite KYC documents, PAN and Bank details of the trust as mentioned at Point
No. II (1) above for body corporate,
(ii) Notary certified true copy of the trust deed,

43
(iii)Certified true copy of Recognition Certificate issued by the Income Tax Authorities
and / or the Regional Provident Fund Commissioner, as the case may be,
(iv) Certified copy of the resolution passed by the Board of Trustees giving the names of
trustee(s) authorised by the Board of Trustees to open and operate the depository
account,
(v) Only those securities that belong to the trust can be held in such an account.
Securities belonging to the trustee(s) in their individual capacities will have to held in
a separate depository account(s) of such person(s).
After obtaining the documents, Participants are advised to follow the below mentioned
procedure:
(i) Open the depository account under the category and in the name of "Trust",
(ii) Capture the PAN details and Bank details of the registered trust in the DPM System
after due verification,
(iii)Capture the signature of the trustee(s) in the DPM System.

(2) Opening of promoter account (NSDL/POLICY/2007/0047 dated August 13,

2007)
Separate sub-types are available in the DPM system to enable promoters to separately
hold securities issued as "Promoter" of the company. While opening such accounts,
Participants are advised to obtain an undertaking from the Client that said beneficiary
account(s) are opened for the sole purpose of holding and transacting for the securities
held as promoter and no other securities will be held/transacted in the said account.

(3) Opening of DR account (NSDL/PI/2002/0846 dated May 29, 2002,

NSDL/PI/2002/1336 dated August 9, 2002 and NSDL/PI/2009/0059 dated July 18,
2009):
A sub-type "DR" is present for the Client types viz.; 'Resident', 'Non Resident Indian',
'Foreign Institutional Investor', 'Corporate Bodies', 'Foreign National' and 'Mutual Fund'.
This sub-type is for the purpose of enabling investors to separately hold equity shares
issued upon cancellation of Depository Receipts (GDR/ADR) held by them. Further, the

44
existing account holders under Client type 'Foreign National' have been categorised under
the sub-type "FN".
In this context, Participants are advised as follows:
(a) In order to receive the securities issued upon cancellation of the Depository Receipts
(DRs) held by the investors, they will have to open a separate account with sub-type
"DR" under the relevant Client type/category and ensure that only such securities are
credited in this account.
(b) The standing instruction indicator in the DPM System should not be enabled for
accounts with sub-type "DR". The Clients will have to give specific receipt
instructions to the Participants for receiving securities issued upon cancellation of
DRs.
(c) In this regard, it is also clarified that since the Client has already been identified by
the Participant (the Client should be an existing account holder), a separate agreement
may not be required. However, Participants must ensure that the Client gives a letter
mentioning its intention to open a separate account for holding DR-cancelled
securities and that it will be bound by the agreement it had earlier signed with the
Participant (NSDL/PI/2002/0899 dated June 7, 2002).

(4)Opening of a Commodity Account (NSDL/PI/2003/1882 dated November 27,

2003, NSDL/PI/2005/1441 dated August 9, 2005 and NSDL/POLICY/2009/0007
dated January 20, 2009)
(i) Account opening procedure will be similar to depository account. All precautions and
procedures for account opening, change in address, etc. as applicable to securities
account shall be followed. For the purpose, Participant should be empanelled with
Commodity Exchanges (who have established connectivity with NSDL) for providing
depository services relating to warehouse receipts.

(ii) Accounts opened under this agreement shall hold only electronic warehouse receipts
of respective Commodity Exchanges and cannot be mixed up with other securities.
Further, the Participant needs to open separate accounts and enter into separate
agreements with the Clients for holding warehouse receipts of NCDEX and MCX. In

45
 case the Client intends to hold warehouse receipts of National Spot Exchange Limited
(NSEL), the account opened for holding warehouse receipts of MCX can be used,
provided the Participant is empanelled with both MCX and NSEL. If the Participant
is exclusively empanelled with NSEL, Clients need to open a depository account and
execute the prescribed agreement with the Participant for holding electronic
warehouse receipt of NSEL.

(iii) Participants may make their own business/contractual agreement with the
Commodity Exchanges / warehouse owners, as they deem fit, including terms and
conditions related to collection of rent, etc. If Participants are required to collect any
charges/tax/rent on behalf of Commodity Exchanges / Warehouse, Participants may
have to ensure that such function has adequate legal basis.
(iv) NSDL will issue circular relating to activation of Commodities Identifier [ICIN]
(equivalent to ISIN) as and when such ICINs are activated in the system. The
transaction statement will contain ICIN-wise balances. Commodity descriptor will
contain unit of measurement, for e.g.:- "(ICIN No.) Castor Seed Grade A,
Ahmedabad ( in MTs)." MT = Metric Tonnes.
(v) Initial credit of electronic warehouse receipts into depository account will be effected
by way of corporate action.
(vi) Procedure for transfer, pledge and freeze will be the same as is applicable to
securities.
(vii) Participants are advised to note that for making a request for delivery of
commodities/metals represented by warehouse receipts "Physical Delivery Request
Form" (PDRF) in the prescribed format should be filled-up by the Clients and after
processing the requests such instructions should be executed in the DPM System by
the Participants using „Remat/Repurchase Screen‟ under the type „Remat‟. The
procedure for rematerialisation of warehouse receipts will be same as is applicable for
securities. Participant shall issue acknowledgment for receipt of the remat request by
entering remat request (transaction) number on the acknowledgment portion and
attest the signature of the Client on the copy of PDRF. Client will submit this

46
 acknowledgment and attested copy of PDRF to the warehouse at the time of taking
delivery.

(5) Procedure regarding operation of account through Power of Attorney

(NSDL/PI/2000/982 dated June 23, 2000):
(5.1) Sample Clause
A sample clause is given hereunder which if it forms a part of the Power of Attorney
could suffice:
"To sell or otherwise deal with or dispose of and to purchase, subscribe or otherwise
acquire in any manner from the market or under public or rights issues or otherwise and
accept the transfers of any stocks, funds, shares, debentures, Government and other
promissory notes, securities, bonds, debentures, annuities or other mercantile negotiable
instruments which shall or may at any time belong to me or which hereafter be
transferred to me, whether solely or jointly and whether in my own right or having any
other interest of whatsoever nature and however arising and in any capacity whatsoever
including those belonging to others with my name and for such purposes to sign, execute
or endorse all instruments of transfer and other documents for any purpose what so ever
by the virtue of these present."

(5.2) General points regarding Power of Attorney

(i) A Power of Attorney executed prior to the promulgation of The Depositories Act is
valid and enforceable.
(ii) It is the responsibility of the Participant to verify whether the Power of Attorney is
adequate and sufficiently authorising the holder of the Power of Attorney i.e., the
donee to operate the account of the beneficial owner.
(iii)Power of Attorney should be notarized in case of photocopy.
(iv) Depository accounts can be operated both by the account holder(s) as well as by the
Power of Attorney holder i.e. donee. For this purpose, Participants should ensure that
the signatures of the account holder(s) and the Power of Attorney holder are captured
in the DPM System (NSDL/POLICY/2007/0054 dated September 22, 2007).

47
(v) With respect to accounts that are operated through Power of Attorney, Participant
should ensure to enable the Power of Attorney flag of such accounts.
(NSDL/PI/2005/1102 dated June 22, 2005)

(5.3) Participants are advised to review the Power of Attorney document and if the
Power of Attorney contains any clause similar to what has been stated below, the Power
of Attorney should be modified suitably
(i) Power of Attorney Holder i.e. Donee has the sole authority to operate the account and
the account holder(s) is/are restrained from operating the account;
(ii) DIS books are denied to the account holders who have executed a Power of Attorney;
(iii) Participants are authorised to merge the securities kept under various accounts of the
Clients; and
(iv) Participants will have a lien on the securities of the Clients.
The above clauses are against the interests of investors and Participants are advised to
desist from including such clauses in the Power of Attorney.
Participants are advised to provide DIS books to the Clients who have executed a Power
of Attorney and allow the Clients to operate their accounts as well.
Further, Participants are advised to maintain separate accounts of the clients, in
conformity with Regulation 42 of SEBI (Depositories and Participants) Regulations,
1996. Lien on the securities can be created only as per Regulation 58 of SEBI
Regulations and as per the procedure laid down in the Bye Laws and Business Rules of
NSDL (NSDL/PI/2005/2329 dated November 25, 2005).

(IV) Procedure for opening and shifting of Clearing Member (CM) Account:

1) Opening of CM Account

(a) The CM should fill up the Account Opening Form as per the format given in
Annexure K of the Business Rules of NSDL and submit the same to the Participant
alongwith the agreement (as per Annexure B in the Bye Laws) duly executed on a
stamp paper of appropriate value. Further, the Participant shall be responsible in
deciding the value of the stamp paper. The schedule of fees to be charged by the
Participant to the CM should form a part of the agreement.
(b) Following documents are required for opening a CM account:
48
 (i) A copy of the letter from the Clearing Corporation/Stock Exchange intimating
allotment of the CC-CM-ID to the CM signed by its authorised official.
(ii) A copy of the latest SEBI registration certificate (not applicable for CMs of
Commodity Exchanges).
(iii)Board Resolution for authorised signatories.
(iv) Memorandum of Association and the Articles of Association (in case of
Corporates).
(v) Specimen copy of the cheque for capturing the 9-digit MICR code.

(c) Participant should verify the completeness of the account opening form and verify the
copies submitted with the original documents.
(d) If the documents are in order, the Participant should accept them and give an
acknowledgement duly signed and stamped to the CM.
(e) The Participant should forward the following documents to NSDL for allotment of
CM BP ID
(i) Copy of Account opening form,
(ii) Copy of the letter from the Clearing Corporation/Stock Exchange intimating
allotment of the CC-CM-ID signed by its authorised official and copy of the latest
SEBI registration certificate (not applicable for CMs of Commodity Exchanges).
These documents should be verified with the original document and stamped
"Verified with Original" alongwith the stamp of the Participant, signature of
Compliance Officer, name and designation.
(f) NSDL will allot the CM-BP-ID and intimate to the Participant electronically.
(g) The Participant should capture the signature(s) of the authorised signatories as given
in the Account Opening Form in the DPM System.
(h) The Participant should enter the Client account number generated from the DPM
System in the Account Opening Form.
(i) The Participant should print the Client Master Report and give it to the CM alongwith
a copy of the Agreement.

(1.1) Shifting/Closure of CM Account (NSDL/PI/005 dated February 5, 1997)

49
The CM may close an existing clearing account and open a new clearing account with
another Participant. The CM will have to submit an application for closure of account to
its Participant and an application for opening a CM account along with other documents
for shifting of the CM account as explained below to the new Participant. The existing
CM account will be closed by the old Participant after balances are moved out by the
CM. The CM will be assigned a new CM-BP-ID by NSDL and a new CM account will
be opened by the new Participant. Further, the CM may also submit the closure
application upon closure of business/suspension, Participant may close the account.

The procedure for closure and shifting of CM account is as follows:

(a) The CM will submit the application for closing the clearing account to the Participant
(old) in duplicate.
(b) The Participant (old) will verify that the application for closing the clearing account is
duly filled and if in order issue an acknowledgement to the CM on the duplicate copy.
(c) If the application is not in order the Participant will return the application to the CM
for rectification.
(d) The CM will submit the following documents to the Participant (new):
(i) Application for opening a CM account (as mentioned in point no. (IV) (1))
(ii) Letter from Clearing Corporation/Stock Exchange regarding allotment of CC-
CM-ID signed by its authorised official.
(iii)Application for shifting of clearing account. (as per the below given format)
(iv) Acknowledgement copy (signed & stamped by the authorised official) of the
application for closure of the account from the previous Participant.
(v) Copy of the latest SEBI registration certificate (not applicable for CMs of
Commodity Exchanges).

Participant should verify the completeness of the account opening form and verify the
copies submitted with the original documents.

(a) If the application is not in order the Participant will return the application to the CM
for rectification.

50
(b) If the application is in order, the Participant (new) will execute the agreement and
give a copy of it to the CM.
(c) The Participant (new) will forward the copy of the account opening form along with
the above mentioned documents to NSDL. All the documents should be verified with
its original and a stamp "Verified with Original" should be put on the same
alongwith the name, designation and signature of compliance officer. NSDL will allot
the Clearing Member a new CM-BP-ID.
(d) The Participant (new) will open the clearing account after the new CM-BP-ID is
downloaded to its DPM System and intimate NSDL about opening of the account and
the date from which pay out is intended to be received in new CM account, however,
not later than seven days from opening of CM account by the Participant (new).
(e) The new account will be marked to receive receipts-in due on pay-out after NSDL
receives intimation from Participant (new).
(f) NSDL will intimate the Participant (old) to commence the procedure for closure of
the account.
(g) On receipt of intimation from NSDL, the Participant (old) will disable the standing
instruction (if any). After the completion of one BOD/EOD cycle, the Participant will
verify the balances in the clearing account. If the balances happen to be zero and there
are no outstanding instructions for the clearing account, the Participant will change
the status of the account to "To be closed" and intimate NSDL accordingly.
(h) On receipt of intimation from the Participant (old), NSDL will revoke the old CM-BP
ID of the CM.
(i) In case balances in its clearing account are not zero, the Participant (old) will inform
the CM to move its balances out of the CM Pool account in a reasonable time.
(j) The Participant (old) will again verify the balances in the account. If the balances
happen to be zero, the Participant will follow the procedure mentioned in point no. (g)
above.
(k) If the balance in the old clearing account has not been reduced to zero within one
week of opening of the new account, the Participant (old) shall inform NSDL
forthwith that the balance has not been reduced to zero.

APPLICATION FOR SHIFTING OF CLEARING ACCOUNT

51
 To be forwarded through Depository Participant (new)

Date:

Mr. Prashant Vagal

Vice President
National Securities Depository Limited
Trade World 4th Floor
Kamala Mills Compound
Senapati Bapat Marg Lower Parel
Mumbai - 400 013
Dear Sir,

Sub: Shifting of Clearing Member Account

This is to inform you that we wish to shift our Clearing Member Account as per the
details mentioned below:

Name of Clearing Member (CM)

Name of Clearing Corporation (CC)

CC - CM -ID (Allotted by CC)

CM- BP-ID (existing) (Allotted by NSDL)

Name of Depository Participant ( Old)

Name of Depository Participant (New)

We request you to please allot a new CM-BP-ID to facilitate shifting of the Clearing
Member Account.

Yours faithfully,

(Clearing Member)

(1.2) Procedure for name change of CM account

52
The following documents should be forwarded to NSDL for effecting change of name in
the CM account.
(a) Copy of the latest SEBI registration certificate in the new name (not applicable for
CMs of Commodity Exchanges).
(b) Letter from the Clearing Corporation/Stock Exchange signed by its authorised official
mentioning the CC-CM-ID and effecting the change of name in its system.
(c) Copy of document/ certificate received from ROC notifying the name change.
(d) Copy of High Court Order in case of name changes due to mergers/amalgamations.

These documents should be verified with the original document and a stamp "Verified
with Original" should be affixed on the documents alongwith name, designation and
signature of Compliance Officer.

(2) Opening of Margin Account (NSDL/POLICY/2007/0029 dated June 15,

2007)
A new sub-type viz. "Margin Account" has been added to the Client types viz.;
'Resident' and 'Body Corporate' under Client Maintenance Module in DPM System.
The new sub-type "Margin Account" is added to enable CMs to open beneficiary
accounts to hold securities for Client margin purposes. While opening such accounts,
Participants are advised to obtain an undertaking from the CM/Brokers that the said
beneficiary account(s) are opened for the sole purpose of holding and transacting for
Client margin purposes and no other securities will be held/transacted in the said account.

(V) FAQs related to Account opening

(1) What is the procedure for accepting telephone bills as Proof of address?
(NSDL/POLICY/2006/0026 dated July 17, 2006)
Telephone bills in respect of landline telephones provided by any service provider can be
accepted as proof of address. It is hereby clarified that telephone bills (not more than two
months old) pertaining to only Landline telephones (other than Fixed Wireless Phone)
irrespective of the service provider can be accepted by Participants as proof of address.
Participant may ascertain the fact that such telephone number exists in the name of the
entity, by making a call or by any other means.

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(2) In case of Corporate Client whether proof of address filed electronically can be
accepted as proof of address?
As per the recent amendments in Income Tax Act, 1961 and Companies Act, 1956,
Companies are required to file various documents, returns etc electronically. In this
regard, it is hereby clarified that acknowledged copy of Income Tax Return, if filed
electronically, will not be accepted as a valid proof of address in case of corporate
Clients. Further, in case of documents filed electronically with ROC, Participants can
accept such documents as a valid proof of address provided they ensure the following:
a. obtains copies of challans of payments made to ROC.
b. verify the details viz. name of Client, company identification number and
address on the website of Ministry of Corporate Affairs viz.
http://www.mca.gov.in and keep a copy of screen shot.

(3) What is procedure for opening a beneficiary account in the name of a

proprietorship firm?
Participants are advised to note that a depository account cannot be opened in the name
of the proprietorship firm. The account has to be opened in the name of the proprietor by
obtaining the documents mentioned in point no. (I) (1) (1.3) above and capturing the
PAN details of the proprietor.

(4) Can a commodity depository accounts be opened in the name of "Partnership

firm" and "Proprietorship firm"?
Commodity depository accounts can be opened in the name of "Partnership firm" and
"Proprietorship firm" under type/sub-type "Body Corporate/Others", as the structure and
regulations governing transactions in commodities do not prohibit a
partnership/proprietorship firm to hold commodities in the name of partnership/
proprietorship firm. For the purpose, Participant should be empanelled with Commodity
Exchanges for providing depository services relating to warehouse receipts.

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(5) What is the procedure to be followed if there are more than three holders?
(NSDL/PI/99/231 dated April 8, 1999)
In the account opening module of the DPM System, there is a provision for only three
joint names as presently, allotments in the primary market and purchases in the secondary
market are permitted only with a maximum of three joint names. However, there are very
old cases of shareholdings where the number of joint holders are four or even more. The
issue of dematerialisation of such holdings was discussed in the SEBI meeting held on
February 12, 1999 and it was decided that Depositories shall formulate a system to
incorporate more than three joint names for Client accounts and Participants shall be
advised accordingly. It was also decided that no credits, other than on account of
dematerialisation of securities would be allowed to such accounts. In view of this,
Participants are advised to follow the procedure given below for the same :
A separate account must be opened in the name of the joint holders with four or more
names. The standing instructions to receive credits, receipt instructions, new issue
applications and any other instruction which has the effect of crediting this account
should not be accepted. Appropriate annexure should be attached to the account opening
form in order to include various details viz; name, address, signatures, etc. of more than
three holders. An undertaking should be obtained from the Client on the lines that "the
Client shall not use this account for the purpose of allotments in the primary market or
purchases from the secondary market and hence no instructions other than for
dematerialisation, bonus, rights & preferential offer will be given by the Client to any
person which has the effect of crediting this account"

While opening the account, the Participant shall capture the names of the four or more
joint holders by numbering them in the DPM and entering the first holder‟s name in the
first holder‟s field and accommodating the rest of the names in the fields for second and
the third holder, eg. : - In case of joint holdings in four joint names of Mr. A, Mr. B, Mr.
C & Mr. D, the account can be opened in the DPM as follows; First Holder‟s Name : 1.
Mr. A; Second Holder‟s Name 2. Mr B; Third Holder‟s Name 3. Mr. C 4. Mr. D.

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The Participant shall process the dematerialisation request as per the usual procedure
while ensuring that the pattern of holding as per the certificate tallies with the pattern of
holding as per the account. After the balances in such joint account become nil, the
aforesaid joint account should be closed.

Participants are further advised that in case of holdings of a "Trust" held in the joint
names of four or more trustees, the procedure given above for opening the account can be
adopted without any restrictions on receiving credits into that account.

(6) Whether bank statement can be accepted as Proof of Address?

(NSDL/POLICY/2007/0074 dated December 01, 2007, NSDL/POLICY/2008/0037 dated
May 27, 2008 and NSDL/POLICY/2009/0076 dated August 28, 2009)

Yes. The bank statement should not be more than two quarters old as on the date of
receipt of the account opening form. Further, the bank statements may be monthly or for
any other period, subject to the foregoing.

Examples:
Sr. Date of receipt of Account Bank statement should not be older than
No. Opening Form
1. September 15, 2009 March 31, 2009
2. October 15, 2009 June 30, 2009

(i) Original bank statement:

Conditions:
(a) The original bank statement is printed on the stationery of the bank, carries logo
& name of the bank, displays the name and address of the Client.
(b) Obtain a cancelled cheque leaf in original OR a photocopy of cheque and the
authorized official of Participant should verify the same with the original cheque
and put his/her signature on it with the remarks "verified with original".

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 (c) Match the bank details including the account number mentioned on the cheque
with that mentioned in the bank statement.

(ii) Copy of bank statement:

Conditions:
(a) All the conditions mentioned at point no. (i) (a) to (c) are followed.
(b) The authorised official of the Participant should verify the photocopy of the bank
statement submitted with the corresponding original and put his/her signature on
it with the remarks "verified with original".

(iii) Original Bank statement on plain paper (Computer generated):

Conditions:
(a) The bank statement clearly mentions the name and address of the Client.
(b) The bank statement is duly attested (signed and stamped) by the authorised
official of the bank mentioning the name and designation of such authorized
official.
(c) Obtain a cancelled cheque leaf in original OR a photocopy of cheque and the
authorized official of Participant should verify the same with the original cheque
and put his/her signature on it with the remarks "verified with original".

(iv) Bank statement issued in electronic form:

Conditions:
a) Print out of the bank statement clearly mentions the name and address of the
Client.
b) Obtain a cancelled cheque leaf in original OR a photocopy of cheque with the
name of the Client pre-printed on it. However, in case of a photocopy of cheque it
can be accepted provided the authorized official of Participant verifies the same
with the original cheque and puts his/her signature on it with the remarks
"verified with original”.
Disclaimer : While every care has been exercised by NSDL in compiling the master
circular out of the various circulars/guidelines issued by NSDL from time to time,
NSDL does not warrant completeness or accuracy of information and disclaims all
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liabilities, losses and damages arising out of the use of this information. For any
specific/latest information, Participants are requested to refer to the relevant
circular(s) issued by NSDL from time to time.

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Annexure I – Types and Sub-types for Corporate accounts where
change of name can be effected in DPM System

Sr.No. Type Sub-Type

1 FI Govt. sponsored FI
2 FI SFC
3 FI Others
4 FI Govt. sponsored FI – Promoter
5 FI SFC-Promoter
6 FI Others-Promoter
7 FII Mauritius Based
8 FII Others
9 FII DR
10 Body Corporate Domestic
11 Body Corporate OCB-Repatriable
12 Body Corporate Govt.Companies
13 Body Corporate Central Government
14 Body Corporate State Government
15 Body Corporate Co-operative Body
16 Body Corporate NBFC
17 Body Corporate Non-NBFC
18 Body Corporate Broker
19 Body Corporate Group Company
20 Body Corporate Foreign Bodies
21 Body Corporate Others
22 Body Corporate OCB-NonRepatriable
23 Body Corporate OCB-DR
24 Body Corporate Foreign Bodies – DR
25 Body Corporate Margin Account
26 Body Corporate Domestic-Promoter
27 Body Corporate Govt.Companies - Promoter
28 Body Corporate Central Government - Promoter
29 Body Corporate State Government - Promoter
30 Body Corporate NBFC-Promoter
31 Body Corporate Non-NBFC-Promoter
32 Body Corporate Group Company - Promoter
33 Body Corporate Foreign Body-Promoter
34 Body Corporate Others-Promoter
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35 Body Corporate Co-operative Body - Promoter
36 Body Corporate Foreign Venture Capital
37 Body Corporate Domestic – DR
38 Body Corporate Limited Liability Partnership
39 Body Corporate Limited Liability Partnership - DR
40 Mutual Fund DR
41 Mutual Fund MF
42 Bank Foreign Bank
43 Bank Co-operative Bank
44 Bank Nationalised Bank
45 Bank Others
46 Bank Others-Promoter
47 Bank Nationalised Bank - Promoter
48 Bank Foreign Bank - Promoter
49 Bank Co-operative Bank - Promoter
50 Trust

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