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