DP

Tradejini provides depository services to investors as a Depository Participant with Central Depository Services Limited (CDSL).

The Depository system in India links issuers, Depository Participants, Depositories such as NSDL& CDSL and clearing houses / clearing Corporation of Stock Exchanges. This facilitates holding of securities in dematerialized form and securities transactions are processed by means of account transfers.

Tradejini’s depository service offers you a secure, convenient, paperless and cost effective way to keep track of your investment in shares and other instruments over a period of time, without the hassle of handling physical documents. Your DP account with us takes care of your depository needs like dematerialization, re-materialization, transfer and pledge of shares, stock lending and borrowing.

We offer the following services to our customers

Dematerialization guidance

Speedier account opening

Maintenance of securities in electronic form

Account update based on investor’s instructions

Re-materialization option

Periodic issuance of Holding Statement

Transaction history for computation purposes

Enjoy the dual benefits of trading and depository services under one roof and experience efficient, hassle-free and prompt depository services. We offer depository services to create a seamless transaction platform – execute trades through Tradejini Financial services and settle the transactions through the Tradejini Depository Services. Tradejini Depository Services is part of our value added services with multiple interfaces to take care of client needs.

Your De-mat account is safe and absolutely secure in our hands, every debit instruction is executed only after its authenticity is established.

DP-FAQ


What is dematerialization?

The dematerialization system is an alternative to the physical existence of securities, where securities are converted in the electronic form and deposited in a depository account in the investor’s name

What is the need for dematerialization?

The need for an alternative to physical securities arose because dealing in paper entailed risks such as loss in transit, delays in deliveries, theft, forgeries and mutilation of certificates. Also transfer of ownership took very long and there was settlement risk besides the paper work involved. Conversion of securities in the electronic form eliminates these problems

How does an individual investor participate in this system?

To dematerialize your shares, you need to open a demat account with a depository through a depository participant (DP). The DP will then undertake to dematerialize your shares by sending them to the concerned company and to hold them in your demat account

What is a Depository?

A depository is an organization where the securities of shareholders are held in the electronic form at their request, through the medium of a depository participant (DP). A depository system can be compared to a banking system. If an investor wants to avail of the services offered by a depository, the investor has to open an account with the depository through a DP. This is very similar to opening an account with any branch of a bank in order to avail of its services. We offer our services through CDSL.

Is a depository just another form of a custodial service, the only difference being that securities are held in the electronic form? Are there additional benefits in the depository system?

No, the two are different. The most important feature of buying shares in the depository mode is immediate transfer of ownership and complete elimination of registration, follow-up, objections, etc. Investors can reap significant benefits through depositing securities with CDSL.

  • Immediate transfer of ownership rights
  • No bad deliveries / objections
  • No stamp charges on securities transferred
  • Minimum paperwork
  • No losses associated with physical paper such as - loss, theft, mutilation, forgery, etc.
  • Reduced transaction costs
  • Highly simplified method for pledging/hypothecation of securities with Banks
  • Facilitates Securities Lending
  • Facilitates freezing / de-freezing of security accounts
  • Enables movement towards faster settlement cycles in keeping with Global trends
  • Dividend & Bonus shares & stock split are received without any further action from clients
  • Transmission of Shares: It is much simplified & hassle free as client need not apply to all companies and instead register with the DP
  • Nomination facility available for easier change of hands
  • Change of address or any other details is hassle free as the client need not to approach each company and instead intimate the DP which will automatically reflect in all companies record.
What role do the CDSL play as the apex bodies?

CDSL carry out and monitor the depository functions through a network of DPs who in turn will be actually interacting with the investors. However, as required by the Depository Ordinance, the CDSL would be responsible to all investors holding accounts with the DPs. It will essentially operate on a two tier structure where CDSL maintain accounts of their DPs, who in turn maintain their clients' accounts The DPs operate on online software provided by the CDSL, and there is online connectivity between their operating system and the DP's system. The depositories also maintain online connectivity with Registrars / Transfer Agents of the securities and perform a daily reconciliation of all the account balances in order to ensure that the number of securities issued and dematerialized in the depository is correct

CDSL essentially perform the following functions through their various participants

  • Enable surrender and withdrawal of securities to and from the depository
  • Maintain investor holdings in the electronic form
  • Effect settlement of securities traded on the Exchanges
  • Settlement of trades not done on the Stock Exchanges i.e. Off Market Trades
  • Coordination of benefits accruing on the depository accounts of investors
Can I dematerialize odd lot shares?

Yes, odd lot shares can also be dematerialized for a fee.

What are the Annual Charges and transaction charges pertaining to DP?
(Click Here to Know about DP charges)

  • The fee at the time of opening the account is Rs.400/ +Service tax and for subsequent years it is Rs. 300/ towards Annual maintenance charges.
  • The transaction fee for delivery instruction is Rs.14.5 plus service tax per instruction (at the time of selling only)

For more details related to DP, customers can mail their enquiries to dp@tradejini.com or call us at 080-4020 4020