| Sr. no. | Brief about the Activity / Service | Expected Timelines for processing by the DP after receipt of proper documents |
|---|---|---|
| 1 | Dematerialisation of securities | 7 days |
| 2 | Rematerialisation of securities | 7 days |
| 3 | Mutual Fund Conversion / Destatementisation | 5 days |
| 4 | Re-conversion / Restatementisation of Mutual fund units | 7 days |
| 5 | Transmission of securities | 7 days |
| 6 | Registering pledge request | 15 days |
| 7 | Closure of demat account | 30 days |
| 8 | Settlement Instruction | For T plus 1 day settlements, Participants shall accept instructions from the Clients, in physical form up to 4 p.m. (in case of electronic instructions up to 6.00 p.m.) on T day for pay-in of securities. For T plus 0 day settlements, participants shall accept EPI instructions from the clients, till 11:00 AM on T day. Note: ‘T’ refers ‘Trade Day’ |
What is the Investor Charter for NSDL & CDSL?
The Investor Charter for NSDL and CDSL defines the rights and obligations of investors regarding their dealings with the National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL). This charter ensures transparency, fair treatment, and efficient dispute resolution mechanisms for investors holding securities in dematerialised form. It serves as a crucial guideline, outlining the standards of service delivery, investor protection measures, and avenues for grievance redressal within the depository system, fostering trust in the securities market.
1. Vision
Our vision is to transform the Indian Securities Market into a transparent, efficient, and investor-friendly environment. We achieve this by providing a secure, reliable, and transparent platform for investors to hold and transfer securities in dematerialised form.
2. Mission
Our mission is twofold: first, to securely hold investors' securities in dematerialised form and facilitate their transfer while safeguarding their interests. Second, we are committed to providing investors with timely and accurate information regarding their securities holdings and transfers. We also prioritise investor education and awareness, delivering high standards of service to enhance investor protection and promote awareness of investor rights.
3. Business Operations of the Depository and Depository Participants (DP)
A depository is an institution that electronically holds securities on behalf of investors. Depositions provide critical services to market participants such as exchanges, clearing corporations, Depository Participants (DPs), issuers, and investors in both primary and secondary markets. Depository activities are conducted through their agents known as Depository Participants (DPs). For more information, please visit NSDL and CDSL.
Explanation of services offered by the Depository via Depository Participants (DP) to investors
Basic Services
Depositories provide special services like pledge, hypothecation, internet based services etc. in addition to their core services and these include:
| Sr No | Type of Activity /Service | Brief about the Activity / Service |
|---|---|---|
| 1 | Value Added Services | Depositories also provide value added services such as Depositories also provide value added services such as a. Basic Services Demat Account(BSDA)1 b. Transposition cum dematerialization2 c. Linkages with Clearing System3 d. Distribution of cash and non-cash corporate benefits (Bonus, Rights, IPOs etc.), stock lending, demat of NSC/KVP, demat of warehouse receipts etc. |
| 2 | Consolidated Account statement (CAS) | CAS is issued 10 days from the end of the month (if there were transactions in the previous month) or half yearly (if no transactions). |
| 3 | Digitalisation of services provided by the depositories | Depositories offer below technology solutions and e-facilities to their demat account holders through DPs: a. E-account opening4 b. Online instructions for execution5 c. e-DIS / Demat Gateway6 d. e-CAS facility7 e. Miscellaneous services8 |
Details of grievance redressal mechanism
The process of investor grievance redressal
| 1 | Investor Complaint/ Grievances | Investor can lodge complaint/grievance against the Depository/DP in the following ways: a. Electronic mode - (i) SCORES (a web based centralised grievance redressal system of SEBI) [https://scores.sebi.gov.in] Any IPO/Rights issue/ NCD related queries/ complaints you can write to - sebicomplaints@hdfcbank.com Two Level Review for complaint/grievance against DP: - First review done by Designated Body - Second review done by SEBI (ii) Respective Depository’s web portal dedicated for the filing of compliant [NSDL - https://www.epass.nsdl.com/complaints/websitecomplaints.aspx & CDSL - https://www.cdslindia.com/Footer/grievances.aspx ] (iii) Emails to designated email IDs of Depository [NSDL - relations@nsdl.co.in & CDSL - complaints@cdslindia.com ] b) Offline mode : - Emails to designated email IDs of Depository Participant can be sent to [infodp@hdfcbank.com] [dphelp@hdfcbank.com] - Physical query/ complaint can be submitted to DP serving Branch in the form9 The complaints/ grievances lodged directly with the Depository shall be resolved within 21 days. |
| 2 | Online Dispute Resolution (ODR) platform for online Conciliation and Arbitration |
If the Investor is not satisfied with the resolution provided by DP or other Market Participants, then the Investor has the option to file the complaint/grievance on SMARTODR platform for its resolution through online conciliation or arbitration. [ https://smartodr.in/register ] |
| 3 | Steps to be followed in ODR for Review, Conciliation and Arbitration | Investor to approach Market Participant for redressal of complaint. > If an investor is not satisfied with the response of a Market Participant, he/she can escalate the complaint on SEBI SCORES portal. > Alternatively, the investor may also file a complaint on SMARTODR portal for its resolution through online conciliation and arbitration. > Upon receipt of complaint on SMARTODR portal, the relevant MII will review the matter and endeavor to resolve the matter between the Market Participant and investor within 21 days. > If the matter could not be amicably resolved, then the Investor may request the MII to refer the matter case for conciliation. > During the conciliation process, the conciliator will endeavor for amicable settlement of the dispute within 21 days, which may be extended with 10 days by the conciliator. > If the conciliation is unsuccessful, then the investor may request to refer the matter for arbitration. > The arbitration process to be concluded by the arbitrator(s) within 30 days, which is extendable by 30 days. |
Illustration of new grievance redressal system:
The flow-chart of new grievance redressal system
6. Guidance pertaining to special circumstances related to market activities: Termination of the Depository Participant
| Sr No | Type of special circumstances | Timelines for the Activity/ Service | |
|---|---|---|---|
| 1 | ⦁Depositories to terminate the participation in case a participant no longer meets the eligibility criteria and/or any other grounds as mentioned in the bye laws like suspension of trading members by the Stock Exchanges. ⦁Participant surrenders the participation by its own wish |
Client will have a right to transfer all its securities to any other Participant of its choice without any charges for the transfer within 30 days from the date of intimation by way of letter/email. |
7. Dos and Don’ts for Investors
9. Responsibilities of Investors
10. Code of Conduct for Depositories
11. Code of Conduct for Participants
Investor Complaints Data
Data for every month ending
| Sr. | Received From | Carried forward from previous month | Received during the month | Total Pending | Resolved | Pending at the end of the month | Average Resolution time (in days) (working days) | |
|---|---|---|---|---|---|---|---|---|
| Pending for less than 3 months | Pending for more than 3 months | |||||||
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | |
| 1 | Directly from Investors | 19 | 98 | 13 | 104 | 13 | 0 | 3 |
| 2 | SEBI (SCORES) | 2 | 15 | 3 | 14 | 3 | 0 | 3 |
| 3 | Depositories | 4 | 14 | 3 | 15 | 3 | 0 | 3 |
| 4 | Other Sources (if any) | 1 | 5 | 2 | 4 | 2 | 0 | 8 |
| 5 | Grand Total | 26 | 132 | 21 | 137 | 21 | 0 | 17 |
Trend of monthly disposal of complaints
| Sr. | Month | Carried forward from pervious month | Received | Resolved | Pending |
|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | 6 |
| 1 | April/2024 | 21 | 221 | 215 | 27 |
| 2 | May/2024 | 27 | 163 | 164 | 26 |
| 3 | June/2024 | 26 | 132 | 137 | 21 |
| Grand Total | 74 | 516 | 516 | 74 |
Trend of annual disposal of complaints
| Sr. | Year | Carried forward from pervious year | Received during the year | Resolved during the year | Pending at the end of the year |
|---|---|---|---|---|---|
| 1 | 2017-18 | 24 | 931 | 954 | 1 |
| 2 | 2018-19 | 1 | 534 | 534 | 1 |
| 3 | 2019-20 | 1 | 511 | 507 | 5 |
| 4 | 2020-21 | 5 | 637 | 634 | 8 |
| 5 | 2021-22 | 8 | 1062 | 1061 | 9 |
| 6 | 2022-23 | 9 | 2025 | 2003 | 31 |
| 7 | 2023-24 | 31 | 2020 | 2030 | 21 |
| 8 | 2024 till June 2024 | 21 | 516 | 516 | 21 |
| Grand Total | 100 | 8236 | 8239 | 97 |
Frequently Asked Questions
An Investment Charter is a comprehensive document that outlines the principles, rights, and responsibilities governing the relationship between investors and financial service providers. It aims to ensure transparency, accountability, and fairness in investment activities. The charter provides detailed information on the services offered, the standards of service delivery, and the procedures for addressing grievances. It also emphasises investor protection, education, and awareness, helping investors make informed decisions. By setting clear expectations and guidelines, the Investment Charter fosters a trustworthy and efficient investment environment, promoting confidence and security for all stakeholders involved in the financial markets.
An Investor Charter is a formal document outlining the rights and responsibilities of investors within a specific financial framework. It serves as a guide to ensure that investors are treated fairly, transparently, and ethically by financial institutions, such as depositories. The Charter typically includes information on the services provided, standards of service delivery, and mechanisms for grievance redressal. It aims to protect investors' interests, provide them with timely and accurate information, and promote investor education and awareness. By clearly defining these elements, the Investor Charter fosters trust and confidence in the financial system, encouraging more informed and empowered investment decisions.