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INVESTOR CHARTER FOR DEPOSITORIES AND DEPOSITORY PARTICIPANTS
Vision
Towards making Indian Securities Market - Transparent, Efficient, & Investor friendly by providing
safe, reliable, transparent and trusted record keeping platform for investors to hold and transfer
securities in dematerialized form.
Mission
• To hold securities of investors in dematerialised form and facilitate its transfer, while ensuring
safekeeping of securities and protecting interest of investors.
• To provide timely and accurate information to investors with regard to their holding and transfer
of securities held by them.
• To provide the highest standards of investor education, investor awareness and timely services
so as to enhance Investor Protection and create awareness about Investor Rights.
Details of business transacted by the Depository
and Depository Participant (DP)
A Depository is an organization which holds securities of investors in electronic form. Depositories
provide services to various market participants - Exchanges, Clearing Corporations, Depository
Participants (DPs), Issuers and Investors in both primary as well as secondary markets. The depository
carries out its activities through its agents which are known as Depository Participants (DP). Details
available on the link https://www.cdslindia.com/DP/dplist.aspx
Description of services provided by the Depository
through Depository Participants (DP) to investors
(1) Basic Services
Sr. Brief about the Expected Timelines for processing by the DP after
No. Activity / Service receipt of proper documents
Dematerialization of
1 7 days
securities
Rematerialization of
2 7 days
securities
Mutual Fund Conversion
3 5 days
/ Destatementization
Re-conversion /
4 Restatementisation of 7 days
Mutual fund units
Transmission of
5 7 days
securities
Registering pledge
6 15 days
request
7 Closure of demat account 30 days
For T+1 day settlements, Participants shall accept instructions from
the Clients, in physical form up to 4 p.m. (in case of electronic
8 Settlement Instruction instructions up to 6.00 p.m.) on T day for pay-in of securities. For
T+0 day settlements, Participants shall accept EPI instructions from
the clients, till 11:00 AM on T day. Note: ‘T’ refers ‘Trade Day’
(2) Depositories provide special services like pledge, hypothecation, internet based services etc. in
addition to their core services and these include
Sr.
Type of Activity /Service Brief about the Activity / Service
No.
Depositories also provide value added services such as
a. Basic Services Demat Account (BSDA)
b. Transposition cum dematerialization
1 Value Added Services c. Linkages with Clearing System
d. Distribution of cash and non-cash corporate benefits (Bonus, Rights,
IPOs etc.), stock lending, demat of NSC / KVP, demat of warehouse
receipts etc.
Consolidated Account CAS is issued 10 days from the end of the month (if there were
2
statement (CAS) transactions in the previous month) or half yearly(if no transactions) .
Depositories offer below technology solutions and e-facilities to their
demat account holders through DPs:
a. E-account opening
Digitalization of services
3 b. Online instructions for execution
provided by the depositories
c. e-DIS / Demat Gateway
d. e-CAS facility
e. Miscellaneous services
Details of Grievance Redressal Mechanism
(1) The Process of investor grievance redressal
Investor can lodge complaint/ grievance against the Depository/DP in the following
ways:
a. Electronic mode -
(i) SCORES 2.0 (a web based centralized grievance redressal system f SEBI)
Two Level Review for complaint/grievance against DP:
- First review done by Designated Body
Investor Complaint/ - Second review done by SEBI
1 (ii) Respective Depository’s web portal dedicated for the filing of compliant
Grievances
(iii) Emails to designated email IDs of Depository - complaints@cdslindia.com
b. Offline mode :
Investors can send physical letters to CDSL on our registered office address.
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
Online Dispute Resolution SMARTODR platform for its resolution through by online conciliation or
2 (ODR) platform for online arbitration.
Conciliation and Arbitration
SMART ODR -https://smartodr.in/login
• Investor to approach Market Participant for redressal of complaint
• If investor is not satisfied with response of 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 endeavour to resolve the matter between the Market
Participant and investor within 21 days.
Steps to be followed in ODR
• If the matter could not be amicably resolved, then the Investor may request
3 for Review, Conciliation and the MII to refer the matter case for conciliation.
Arbitration
• 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 arbitrator(s) within 30 days,
which is extendable by 30 days.
The Beneficial owner who suffered a loss due to the actions of Depository
Participant (“DP”)/ Central Depository Services (India) Limited (“CDSL”) needs to
file their claim with DP/ CDSL along with relevant documents including but not
limited to:
• Statement of claim
• Details of estimated loss (including calculation) and supporting documents
Claim to be filed by • FIR Copy (in case of alleged fraud and infidelity of employee)
4
Beneficial Owner: • Declaration stating that same relief has not been sought before any other
fora
The hard copy of the claim is to be addressed to the CDSL Legal Team at the
registered office of the Company and the soft copy is to be submitted to the Email
ID - claims@cdslindia.com.
Guidance pertaining to special circumstances
related to market activities: Termination of the
Depository Participant
Sr.
Type of special circumstances Timelines for the Activity/ Service
No.
Client will have a right to transfer all its securities to
• Depositories to terminate the participation in case a
any other Participant of its choice without any
1 participant no longer meets the eligibility criteria and/or any
charges for the transfer within 30 days from the date
other grounds as mentioned in the bye laws like suspension of
of intimation by way of letter/email.
trading member by the Stock Exchanges.
• Participant surrenders the participation by its own wish.
Dos and Don’ts for Investors
For Do’s and Don’ts please refer to the link Dos and Don’ts for Investor
Rights of investors
For rights please refer to the link Rights of investors
Responsibilities of Investors
For responsibilities please refer to the link Responsibilities of Investors
Code of Conduct for Depositories
(Part D of Third Schedule of SEBI (D & P)
regulations, 2018)
For rights please refer to the link Code of Conduct for Depositories
Policy on processing of claims from IPF
• CDSL IPF Policy890 KB
• CDSL IPF Policy FAQ746 KB