Tax Management India. Com
                        Law and Practice: A Digital eBook ...
TMI - Tax Management India. Com
Case Laws Acts Notifications Circulars Classification Forms Articles News
Highlights
D. Forum
What's New
Sub-Menu

Share:      

        Home        
 
Home Circulars 2015 SEBI SEBI - 2015 This
← Previous Next →
  • Login

 

User Login
Username  
Password  
Stay sign in     

Forget password       New User/ Regiser


Register for Demo / Trial


Annual Subscription Offer

With popular demand, we introduce:-
Special offer on GST Package for Professionals
i.e. CA/CWA/CS/Advocate/Others @ 2500/- +GST



 

Master Circular for Depositories - SEBI - CIR/MRD/DP/6/2015

Extract

..... at account 1.6 Facility for a Basic Services Demat Account (BSDA) 1.7 Change of Name in the Beneficial Owner (BO) Account 1.8 Fees/Charges to be paid by BO 1.9 Safeguards on transfer of securities in dematerialized mode 1.10 Delivery Instruction Slip (DIS) Issuance and Processing 1.11 Transmission of shares 1.12 SMS alerts for demat accounts operated by Power of Attorney 1.13 Exemption from sending quarterly statements of transactions by depository participants (DPs) to clients in respect of demat accounts with no transactions and no security balances 1.14 Discontinuation of sending transaction statements by depository participants to clients 1.15 Exemption to Depository Participants (DPs) from providing hard copies of transaction statements to BOs 1.16 Transfer of funds and securities from Clearing Member pool account to BO Account 1.17 Consolidated Account Statement (CAS) for all securities assets Section - 2: Depository Participants (DP) Related 2.1 Supervision of branches of depository participants 2.2 Printing of Grievances Redressal Mechanism on Delivery Instruction Form Book Section - 3: Issuer related 3.1 Charges to be paid by Issuers 3.2 Activation of International Securit .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... ications Section 1: Beneficial Owner (BO) Accounts 1.1 Opening of BO Account by non body corporates 1.1.1 Proof of Identity (PoI) i. Permanent Account Number (PAN) to be the sole identification number for all transactions in the securities market Reference circular MRD/DoP/Cir-5/2007 dated April 27, 2007 With effect from July 02, 2007, PAN is the sole identification number for all transactions in the securities market, irrespective of the amount of transaction. A copy of the PAN card with photograph may be accepted as Proof of Identity. In this regard, intermediaries shall:- a. Put necessary systems in place so that the databases of the clients and their transactions are linked to the PAN details of the client. b. Build necessary infrastructure to enable accessibility and query based on PAN thereby enabling retrieval of all the details of the clients. c. Collect copies of PAN cards issued to the existing as well as new clients by the Income Tax Department and maintain the same in their record after verifying with the original. d. Cross-check the aforesaid details collected from their clients with the details on the website of the Income Tax Department i.e. http://incometaxindiaefil .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... er/Notary public/ elected representatives to the Legislative Assembly/Parliament/Documents issued by any Govt. or Statutory Authority. f. Identity card/document with address, issued by any of the following: Central/State Government and its Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Colleges affiliated to Universities and Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council etc., to their Members. g. For FII/sub account, Power of Attorney given by FII/sub-account to the Custodians (which are duly notarized and/or apostiled or consularised) that gives the registered address should be taken. h. The proof of address in the name of the spouse may be accepted. i. Aadhaar Letter issued by UIDAI shall be admissible as Proof of Address in addition to Proof of Identity. Reference Circular MIRSD/09/2012 dated August 13, 2012 j. e-KYC service launched by UIDAI shall also be accepted as a valid process for KYC verification. The information containing the relevant client details and photograph made available from UIDAI as a result of e-KYC process shall be treated as a valid proof of address. Referen .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... h accounts. 1.2.2 Central and State Government and officials appointed by Courts Reference Circular MRD/DoP/Cir-20/2008 dated June 30, 2008 PAN card may not be insisted upon in case of transactions undertaken on behalf of Central Government and/or State Government and where transactions are conducted by officials appointed by Courts e.g. Official liquidator, Court receiver etc. Reference Rule 114C (1)(c) of Income Tax Rules However DPs, before implementing the above exemption, shall verify the veracity of the claim of the organizations by collecting sufficient documentary evidence in support of their claim for such an exemption. 1.2.3 Investors in Sikkim Reference Circular MRD/DoP/Dep/Cir-09/06 dated July 20, 2006 Investors residing in the state of Sikkim are exempted from the mandatory requirement of furnishing PAN card details for their demat accounts. Reference Hon’ble High Court of Sikkim judgment dated March 31, 2006 DPs shall verify the veracity of the claim of the investors that they are residents of Sikkim, by collecting sufficient documentary evidence in support of their address 1.2.4 UN entities and multilateral agencies exempt from paying taxes/ filling tax returns .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... ation of demat account opening process Reference Circular SEBI/MIRSD/ 12/2013 dated December 04, 2013 i. SEBI has taken a number of steps in the recent past to simplify the Account opening and KYC process in the securities markets. In continuation of the efforts in the same direction, it has now been decided in consultation with both the Depositories and Associations of stock brokers and Depository Participants to further simplify and rationalize the demat account opening process. ii. The existing Beneficial Owner-Depository Participant Agreements shall be replaced with a common document “Rights and Obligations of the Beneficial Owner and Depository Participant”. The document annexed herewith shall be mandatory and binding on all the existing and new clients and depository participants. This will harmonize the account opening process for trading as well as demat account. This will also rationalise the number of signatures by the investor, which he is required to affix at present on a number of pages. iii. The Depository Participant shall provide a copy of Rights and Obligations Document to the beneficial owner and shall take an acknowledgement of the same. They shall en .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... ant SEBI and/or Depository circulars/directions/notifications issued from time to time. 7. The DP shall not increase any charges/tariff agreed upon unless it has given a notice in writing of not less than thirty days to the Beneficial Owner regarding the same. Dematerialization 8. The Beneficial Owner shall have the right to get the securities, which have been admitted on the Depositories, dematerialized in the form and manner laid down under the Bye Laws, Business Rules and Operating Instructions of the depositories. Separate Accounts 9. The DP shall open separate accounts in the name of each of the beneficial owners and securities of each beneficial owner shall be segregated and shall not be mixed up with the securities of other beneficial owners and/or DP’s own securities held in dematerialized form. 10. The DP shall not facilitate the Beneficial Owner to create or permit any pledge and /or hypothecation or any other interest or encumbrance over all or any of such securities submitted for dematerialization and/or held in demat account except in the form and manner prescribed in the Depositories Act, 1996, SEBI (Depositories and Participants) Regulations, 1996 and Bye-Laws/ .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... d on the instructions of the Beneficial Owner, the DP shall initiate the procedure for transferring such security balances or rematerialize such security balances within a period of thirty days as per procedure specified from time to time by the depository. Provided further, closure of demat account shall not affect the rights, liabilities and obligations of either theBeneficial Owner or the DP and shall continue to bind the parties to their satisfactory completion. Default in payment of charges 19. In event of Beneficial Owner committing a default in the payment of any amount provided in Clause 5 & 6 within a period of thirty days from the date of demand, without prejudice to the right of the DP to close the demat account of the Beneficial Owner, the DP may charge interest at a rate as specified by the Depository from time to time for the period of such default. 20. In case the Beneficial Owner has failed to make the payment of any of the amounts as provided in Clause 5&6 specified above, the DP after giving two days notice to the Beneficial Owner shall have the right to stop processing of instructions of the Beneficial Owner till such time he makes the payment along with .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... prescribed under the Bye-laws of the depository and that such procedure shall be applicable to any disputes between the DP and the Beneficial Owner. 29. Words and expressions which are used in this document but which are not defined herein shall unless the context otherwise requires, have the same meanings as assigned thereto in the Rules, Bye-laws and Regulations and circulars/notices issued there under by the depository and /or SEBI. 30. Any changes in the rights and obligations which are specified by SEBI/Depositories shall also be brought to the notice of the clients at once. 31. If the rights and obligations of the parties hereto are altered by virtue of change in Rules and regulations of SEBI or Bye-laws, Rules and Regulations of the relevant Depository, where the Beneficial Owner maintains his/her account, such changes shall be deemed to have been incorporated herein in modification of the rights and obligations of the parties mentioned in this document. 1.4 Opening of demat account in case of HUF Reference: SEBI/ MRD/CDSL/ 149156 /2009 dated January 01, 2009 It is noted that as per law, in case of HUF, shares can be held in the name of Existing Karta on behalf of HUF. There .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... of securities in the account as on the last day of previous billing cycle. 1.6.4 Charges: i. The charge structure may be on a slab basis as indicated below: a. No Annual Maintenance Charges (AMC) shall be levied, if the value of holding is upto ₹ 50,000. b. For the value of holding from ₹ 50,001 to ₹ 200,000, AMC not exceeding ₹ 100 may be charged. ii. The value of holding shall be determined by the DPs on the basis of the daily closing price or NAV of the securities or units of mutual funds, as the case may be. Where such price is not available the last traded price may be taken into account and for unlisted securities other than units of mutual funds, face value may be taken in to account. The value of suspended securities may not be considered for the purpose of determining eligibility of demat account as BSDA. iii. If the value of holding in such BSDA exceeds the prescribed criteria at any date, the DPs may levy charges as applicable to regular accounts (non BSDA) from that date onwards. iv. The DPs shall reassess the eligibility of the BOs at the end of every billing cycle and give option to the BOs who are eligible to opt for BSDA. 1.6.5 Services for .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... continues to remain zero balance even after one year. ii. Accounts which become zero balance during the year: For such accounts, no transaction statement may be sent for the duration when the balance remains nil. However, an annual statement of holding shall be sent to the BO. iii. Accounts with credit balance: For accounts with credit balance but no transactions during the year, half yearly statement of holding for shall be sent to the BO. 1.7 Change of Name in the Beneficial Owner (BO) Account Reference Circular CIR/MRD/DP/27/2012 dated November 01, 2012 1.7.1 In order to simplify the procedure of change of name in individual Beneficial Owner’s (BO) account, it has been decided that an individual BO may be allowed to change his/ her name, subject to the submission of following documents at the time of change of name of the individual in the BO account. i. In case of change in name on account of marriage following documents shall be submitted: a. Marriage Certificate or copy of Passport showing husband’s name or publication of name change in official gazette. ii. In case of change in name on account of reasons other than marriage a. Publication of name change in offic .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... ance 3 quarters i.e. 3/4th of the AMC. Likewise, if a BO closes/shifts his account in the third quarter, he shall be refunded the amount for the balance one quarter i.e. 1/4th of the AMC. ii. For the purpose of the above requirement the year shall begin from the date of opening of the account in quarterly rests. iii. The above requirements shall be applicable to all existing and new accounts held with DPs which collect annual/half yearly upfront AMC. It is clarified that the above requirements shall not be applicable to those DPs who collect quarterly/ monthly AMC. 1.8.6 Dissemination of tariff/charge structure of DPs on the website of depositories Reference Circular MRD/Dep/Cir- 20/06 dated December 11, 2006 i. DPs shall submit to their depository the tariff/charge structure every year, latest by 30th April, and also inform the depository the changes in their tariff/charge structure as and when they are effected with a view to enabling the BOs to have a comparative analysis of the tariff/charge structure of various DPs. ii. For this purpose depositories shall put in place necessary systems and procedures including formats, periodicity, etc. for collection of necessary data from th .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... erred at a time. The authorized official of the DP verifying such transactions with the BO, shall record the details of the process, date, time, etc., of the verification on the instruction slip under his signature. 1.10 Delivery Instruction Slip (DIS) Issuance and Processing Circular SEBI/MRD/DOP/01/2014 dated January 07, 2014 Standardization of DIS i. Depositories shall ensure that the DIS is standardized across all DPs in terms of: a. Serial Numbering of Delivery Instruction Slips so as to enable system level checks by the depositories. b. Layout and size of DIS so as to facilitate scanning and easy retrievability of records ii. The DIS must bear a pre-printed serial number, DP ID, and a pre-printed/pre stamped Beneficial Owner (BO) ID. The depositories shall prescribe a standard method of serial numbering and ensure that serial numbers issued by a DP are unique within the DP-ID. iii. DPs shall ensure that a. same DIS shall not be used for giving both market and off-market instructions b. a single DIS shall not be used for transactions with multiple execution dates. Monitoring of DIS iv. Upon issuance of DIS booklets or loose slips to BO, the DPs shall make available immediately .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... on the date of application for transmission, is within the threshold limit of Rupees Five lakh in value, the DPs shall not insist on additional documents other than any one or more of the documents mentioned below. i. Affidavit - to the effect of the claim of legal ownership of the shares ii. Deed of indemnity - indemnifying the depository and DP iii. NOC from other legal heir(s), wherever applicable, along with the Claim Form/TRF and copy of death certificate duly notarized/ attested by a Gazetted officer or Family Settlement Deed as an alternate to the NOC duly executed by all the legal heirs of the deceased Beneficial Owner, provided that: a. The Family Settlement Deed clearly vests the securities in favour of the person seeking transmission in his/ her name. b. Vesting of securities in favour of the person seeking transmission in his/ her name is not contingent upon any other onerous conditions in such Family Settlement Deed. Note: If the division of shares as per the Family Settlement Deed is amongst more than one person, then the Family Settlement Deed can be considered as an NOC for transmission of shares to each legal heirs applying for transmission. However, if DPs still .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... ath certificate duly attested by a Notary Public or by a Gazetted Officer. iii. Self attested copy of PAN card of the nominee. (Copy of PAN card may be substituted with ID proof in case of residents of Sikkim after collecting address proof) 2 For securities held in single name without a nominee, following additional documents may be sought: i. Affidavit made on appropriate non judicial stamp paper - to the effect of identification and claim of legal ownership to the securities ii. For value of securities upto ₹ 2,00,000 (Rupees Two lakh only) per issuer company as on date of application, one or more of the following documents: a. No objection certificate [NOC] from all legal heir(s) who do not object to such transmission (or) copy of Family Settlement Deed duly notarized or attested by a Gazetted Officer and executed by all the legal heirs of the deceased holder. b. Indemnity made on appropriate non judicial stamp paper - indemnifying the STA/Issuer Company. iii. For value of securities more than ` 2,00,000 (Rupees Two lakh only) per issuer company as on date of application: a. Succession certificate (or) Probate of will (or) Letter of Administration (or) Court decree. 1.12 S .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... .) and not for other reasons (i.e. residence/office closed, address incorrect, address incomplete, etc.). iv. The DP informs such clients through alternative means (such as outbound call, SMS or email) that their transaction statements are returned undelivered and they need to communicate the proper (new) address. v. The DP ensures that on receipt of request for address modification from the client as per the stipulated procedure, the dispatch of transaction statements is immediately started. Further, the DP ensures that transaction statements that were not delivered and dispatched due to discontinuation are also dispatched immediately without any additional cost to the clients. 1.15 Exemption to Depository Participants (DPs) from providing hard copies of transaction statements to BOs Reference Circular MRD/DoP/Dep/Cir-27/2004 dated August 16, 2004 DPs are permitted to provide transaction statements and other documents to the BOs under Digital signature, as governed under the Information Technology Act, 2000, subject to the DP entering into a legally enforceable arrangement with the BO for the said purpose. While such practice in the aforesaid manner shall be deemed to be in compli .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... nt in 2014 to create one record for all financial assets of every individual, it has been decided to enable a single consolidated view of all the investments of an investor in Mutual Funds (MF) and securities held in demat form with the Depositories. ii. The Depositories and the Asset Management Companies (AMCs)/ MF-RTAs shall put in place systems to facilitate generation and dispatch of single Consolidated Account Statements (CAS) for investors having MF investments and holding demat accounts. AMCs/ RTAs shall share the requisite information with the Depositories on monthly basis to enable generation of CAS. iii. Consolidation of account statement shall be done on the basis of PAN. In case of multiple holding, it shall be PAN of the first holder and pattern ofholding. Based on the PANs provided by the AMCs/MF-RTAs, the Depositories shall match their PAN database to determine the common PANs and allocate the PANs among themselves for the purpose of sending CAS. For PANs which are common between depositories and AMCs, the Depositories shall send the CAS. In other cases (i.e. PANs with no demat account and only MF units holding), the AMCs/ MF-RTAs shall continue to send the CAS to th .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... ate negative consent. Depositories shall accordingly inform investors in their statements from the month of January 2015 about the facility of CAS and give them information on how to opt out of the facility if they do not wish to avail it. xi. Where such an option is exercised, the concerned depository shall inform the AMC/MF-RTA accordingly and the data with respect to the said investor shall not be shared by the AMC/MF-RTA with the depository. xii. If there is any transaction in any of the demat accounts of the investor or in any of his mutual fund folios, then CAS shall be sent to that investor on monthly basis. In case there is no transaction in any of the mutual fund folios and demat accounts then CAS with holding details shall be sent to the investor on half yearly basis. However, in case of demat accounts with nil balance and no transactions in securities and in mutual fund folios, the requirement to send physical statement shall be applicable as specified at para 1.6.5 and 1.6.6 of this chapter. xiii. Further, the holding statement dispatched by the DPs to their BOs with respect to the dormant demat accounts with balances shall also be dispatched half-yearly. xiv. The dispa .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... / Allotment/ Bonus/ Dividend/ Rights/ Redemption/ Interest Prelisting offer documents (shares) Prelisting offer documents (debentures and bonds) Delisting of Securities Buyback of Securities Takeover and Restructuring Corporate Governance and Listing conditions Brokers and stock exchanges Stock Brokers Sub brokers Portfolio managers Stock exchanges Registrar and Transfer Agents Other entities Collective Investment Schemes Debenture Trustees Merchant Bankers Bankers to Issue Credit Rating Agencies Custodian of Securities Foreign Institutional Investors Underwriters Venture Capital Funds KYC Registration Agency(KRA) Alternative Investment Fund Mutual Funds Depository and Depository Participants Information to SEBI: Price Manipulation Insider trading You can file your complaints online at http://scores.gov.in or alternately send your complaints to Office of Investor Assistance and Education of SEBI at Mumbai or Regional Offices at the following addresses: Address of SEBI Offices Office of Investor Assistance and Education, SEBI Bhavan, Plot No.C4-A, 'G' Block, Bandra Kurla Complex, Bandra (E), Mumbai 400 051 Tel: 022-26449188 / 26449199 (http://scores.gov.in) SEBI, Northern R .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... preferential allotment, bonus issue etc of the listed company, prior to receipt of final listing / trading approval, the depositories shall devise a mechanism so that such new securities created shall be frozen till the time final listing/ trading permission is granted by the exchange. Reference Circular CIR/MRD/DP/24/2012 dated September 11, 2012 iii. In order to achieve the above, the Depositories are advised to allot such additional shares/securities under a new temporary ISIN which shall be kept frozen. Upon receipt of the final listing/ trading permission from the exchange for such additional shares/ securities, the shares/securities credited in the new temporary ISIN shall be debited and the same would get credited in the preexisting ISIN for the said security. Thereafter, the additional securities shall be available for trading. iv. The stock exchanges are advised to provide the details to the depositories whenever final listing / trading permission is given to securities. Further, in case of issuance of equity shares by a company, listed on multiple stock exchanges, the concerned stock exchanges shall synchronize their effective dates of listing / trading approvals and int .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... October 27, 2004 Debt instruments shall necessarily be admitted on both the Depositories. 3.5 American Depository Receipts (ADRs)/Global Depository Receipts (GDRs) 3.5.1 Delivery of underlying shares of GDRs/ADRs in dematerialised form Reference Circular SMDRP/Policy/Cir-9/99 dated May 6, 1999 Underlying shares of GDRs/ADRs shall be compulsorily delivered in dematerialised form. Pursuant to RBI directions in this regard, a non-resident holder of ADRs/GDRs issued by a company registered in India, on surrender of such ADRs/GDRs, can acquire the underlying shares when such shares are released by the Indian Custodian of the ADR/GDR issue. Further, the company whose shares are so released, or a Depository shall enter in the register or books, wherein such securities are registered or inscribed, an address outside India of the non-resident holder of shares. 3.5.2 Tracking of underlying shares of GDRs/ADRs Reference Circular D&CC/FITTC/Cir-09/2002 dated July 4, 2002 and Circular D&CC/FITTC/Cir-10/2002 dated September 25, 2002 To ensure easy tracking of the underlying shares released on conversion of the “depositories receipts” all such shares shall be credited to a sep .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... n the database of depositories. 3.6.3 Usage of electronic payment modes for making cash payments to the investors Reference Circular CIR/MRD/DP/10/2013 dated March 21, 2013 i. For making cash payments to the investors, companies whose securities are listed on the stock exchanges shall use, either directly or through their Registrars to an Issue and Share Transfer Agent (RTI & STA), any RBI (Reserve Bank of India) approved electronic mode of payment such as Electronic Clearing Services (ECS) [LECS (Local ECS) / RECS (Regional ECS) / NECS (National ECS)], National Electronic Fund Transfer (NEFT), etc. ii. In order to enable usage of electronic payment instruments, companies whose securities are listed on the stock exchanges (or their RTI & STA) shall maintain requisite bank details of their investors - a. For investors that hold securities in demat mode, companies or their RTI & STA shall seek relevant bank details from the depositories. To this end, vide circular SEBI/MRD/DEP/Cir-3/06 dated February 21, 2006 and letter MRD/DEP/PP/123624/2008 dated April 23, 2008, depositories have been advised to ensure that correct account particulars of investors are available in the d .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... e is no separate extended time limit for late confirmations). By 2.30 pm Completion of process and download obligation files to brokers/ custodians by the CC/CH. 3 T+2 By 11.00 am Pay-in of securities and funds By 1.30 pm Pay-out of securities and funds. ii. All Depositories shall adhere to the aforementioned activity schedule to implement T+2 rolling settlement. DPs shall adhere to the designated activities within the prescribed time limits as under: b. DPs shall accept instructions for pay-in of securities from clients in the physical form atleast upto 4 p.m. and in electronic form atleast upto 6 p.m. on T+1. c. DPs shall complete execution of pay-in instructions latest by 10:30 a. m. on T+2. d. Depositories shall download the processed pay-in files to the Exchange / Clearing House / Clearing Corporation latest by 11:00 a.m. on T+2. e. Pay-out of securities by the Exchange / Clearing House / Clearing Corporation to the Depositories shall be executed by 1:30 p.m. on T+2. f. Pay-out of securities shall be completed by the Depositories by 2:00 p.m. on T+2. iii. All instructions received by the DPs shall have an execution date, which may be either a current date or a future date. Ins .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... the contract becoming illegal under section 16 of the SCRA (unless it is put through the stock exchange). The DP-BO agreement cannot add anything to or subtract anything from this position. However, it should be the responsibility of the DP to ensure that the client's contract is not rendered illegal on account of delayed execution of the delivery instruction. ii. Keeping the hardships to change all the existing DP-BO agreements to enforce the above into consideration, it is advised that suitable bye laws can be made under section 26(2)(e) and (d) of Depositories Act, 1996 for imposing such obligation on the DPs. Therefore, it is advised to amend/insert bye laws which should expressly provide that the DPs shall execute the non pay-in related instructions on the same day or on the next day of the instruction. Further, pending such amendment, suitable instructions may be issued to DPs to adhere to such time limit. iii. The above clause may be suitably incorporated in the DP-BO agreement while opening new accounts. 4.4 Approval of amendments to Bye Laws / Rules of Stock Exchanges and Depositories Reference Circular LGL/Cir-2/2003 dated February 19, 2003 i. Depositories and exchang .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... levant sections of the Depositories Act and SEBI (Depositories and Participants) Regulations, 1996. Depositories may also advise DPs that an off-market transfer of shares leads to change in ownership and cannot be treated as pledge. Further, this issue may also be taken up in the investor awareness programs wherein the manner of creation of pledge can be effectively communicated to the BOs directly. 4.7 Foreign investments in infrastructure companies in securities markets Reference Circular MRD/DSA/SE/Dep/Cust/Cir-23/06 dated December 22, 2006 i. Pursuant to Government of India Policy, foreign investments in infrastructure companies in the securities markets, namely Stock Exchanges, Depositories and Clearing Corporations shall be as under: a. Foreign investment shall be allowed in such companies up to 49% with a separate Foreign Direct Investment (FDI) cap of 26% and Foreign Institutional Investment (FII) cap of 23%; b. FDI shall be allowed with specific prior approval of FIPB; c. FII shall be allowed only through purchases in the secondary market; d. FII shall not seek and will not get representation on the Board of Directors; e. No foreign investor, including persons acting in co .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... e, the period of 15 days will be counted upon the receipt of additional information. c. maintain a monthly record of the complaints which are not addressed/redressed within 15 days from the date of receipt of the complaint/information, alongwith the reason for such pendency. d. Upload/update the ATR on the SCORES. Failure to do so shall be considered as non-redressal of the complaint and the complaint shall be shown as pending. 4.11 Limitation period for filing an arbitration reference Reference Circular CIR/MRD/DP/4/2011 dated April 7, 2011 i. It is decided that the limitation period for filing an arbitration reference shall be governed by the law of limitation, i.e., The Limitation Act, 1963. The modified limitation period shall also be applicable to cover inter alia the following cases: a. where the limitation period (in terms of Limitation Act 1963) have not yet elapsed and the parties have not filed for arbitration with the depository, OR b. where the arbitration application was filed but was rejected solely on the ground of delay in filing within the earlier limitation period; and the limitation period (in terms of Limitation Act 1963) have not yet elapsed. 4.12 Disclosure of .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... y BOs Decided by the Arbitrators Decided by Arbitrators in favour of the BOs Pending for Redressal with Arbitrators 1 2 3 N Total *including against its authorized persons, employees, etc. **Non actionable means the complaint that are incomplete / outside the scope of Depository (Arrange the DPs in descending number of complaints filed against them during the period) Report 1C: Redressal of Complaints received against Depository Participants (DPs) during 2009-10: Updated on mmm dd yyyy (to be updated every quarter) (In excel sheet) Sl. No Name of the DP Status of DP (active/ inactive/ in process of termination /withdrawal) No. of BOs accounts at the beginning of the year No. of Complaints received against the DP * Of the Complaints received during 2008-09 No. of Complaints Resolved through the Depository Non actionable** Arbitration Advised Pending for redressal with Depository No. of Arbitration filed by BOs Decided by the Arbitrators Decided by Arbitrators in favour of the BOs Pending for Redressal with Arbitrators 1 2 3 N **Non actionable means the complaint that are incomplete / outside the scope of Depository (Arrange the DPs in descending number of complaints filed against th .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... aints Received Redressed through Depository Non-Actionable* Pending for Redressal with Depository 1 2 3 N Total *Non actionable means the complaint that are incomplete / outside the scope of Depository (Arrange the companies in descending number of complaints filed against them during the period) Report 4B: Redressal of Complaints lodged by investors against Listed Companies during 2009 -10: Updated on mmm dd yyyy (to be updated every quarter) (In excel format) Sl. No. Name of the Company No. of Complaints Received Redressed through Depository Non-Actionable* Pending for Redressal with Depository 1 2 3 N Total *Non actionable means the complaints that are incomplete / outside the scope of Depository (Arrange the companies in descending number of complaints filed against them during the period) Table 1 A Type Details Type I Account Opening Related I a Denial in opening an account I b Account opened in another name than as requested I c Non receipt of Account Opening Kit I d Delay in activation/ opening of account I e Non Receipt of copy of DP Client Agreement/Schedule A of Charges Type II Demat/Remat Related II a Delay in Dematerialisation request processing II b Delay in Rematerial .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... ivity with the depositories. However, if the CC/CH of a stock exchange desires to function as any other "Depository Participant", i.e. to open BO accounts for investors or clearing member account, registration as DP with SEBI is mandatory. ii. In view of the above, Depositories are advised to provide continuous electronic means of communication / connectivity to the CH/CC of the Exchanges without insisting for a mandatory registration as DP with SEBI with a condition that such entities would not be permitted to open BO accounts for investors or clearing member account. 4.15 Computing and monitoring of the Aggregate Value of Portfolio of Securities (AVPS) of the BOs held in dematerialised form by Stock Broker DPs i. For the purpose of computing the AVPS of the beneficial owners held in dematerialised form under Regulation 19(a)(viii) of SEBI (Depositories and Participant) Regulations, 1996, the securities held by bank and financial institutions as well as promoters holdings of a company held in dematerialised form, may be excluded Reference: SMDRP/RKD /NSDL/2494 /98 dated November 18, 1998, SMDRP/CDSL / 18300 /2000 dated November 16, 2000. ii. In view of the potential risk .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... through their RGESS designated demat account, Depositories may seek necessary transactional details from stock exchanges viz. Actual Trade value, Trading date, Settlement number, etc, for the purpose of enforcing lock-in and for generating reports mandated vide MoF notification on RGESS. On receipt of such request from depositories, stock exchanges shall provide the details to depositories on an immediate basis. It shall also be ensured that a uniform file structure is used by stock exchanges and depositories for such intimation of transaction details. e. With regard to point 3(ix) (a) & (b) of RGESS notification, depositories may seek confirmation, as applicable, from stock exchanges. f. With regard to the securities held in the RGESS designated account, treatment of the corporate actions shall be as given at Annexure A. iii. Stock exchanges shall furnish list of RGESS eligible stocks / ETFs / MF schemes on their website. Further, the list shall also be forwarded to the depositories at monthly intervals and whenever there is any change in the said list. For this purpose, Mutual Funds / AMCs shall communicate list of RGESS eligible MF schemes / ETFs to the stock exchanges. Ann .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... Recommendations for Securities Settlement Systems (RSSS); and the Recommendations for Central Counterparties (RCCP). CPSS and IOSCO have strengthened and harmonised these three sets of standards by raising minimum requirements, providing more detailed guidance and broadening the scope of the standards to cover new risk-management areas and new types of FMIs. ii. The PFMIs comprise of 24 principles (Annex 1) for Financial Market Infrastructure to provide for effective regulation, supervision and oversight of FMIs. They are designed to ensure that the infrastructure supporting global financial markets is robust and well placed to withstand financial shocks. iii. Full, timely and consistent implementation of the PFMIs is fundamental to ensuring the safety, soundness and efficiency of key FMIs and for supporting the resilience of the global financial system. In addition, the PFMIs play an important part in the G20's mandate that all standardized over-the-counter (OTC) derivatives should be centrally cleared. Global central clearing requirements reinforce the importance of strong safeguards and consistent oversight of derivatives CCPs in particular. Financial Market Infrastructure ( .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... any systems provide delivery versus payment (DvP), where delivery of the security occurs if and only if payment occurs. An SSS may be organised to provide additional securities clearing and settlement functions, such as the confirmation of trade and settlement instructions. Central Counterparties (CCP) A central counterparty interposes itself between counterparties to contracts traded in one or more financial markets, becoming the buyer to every seller and the seller to every buyer and thereby ensuring the performance of open contracts. A CCP becomes counterparty to trades with market participants through novation, an open-offer system, or through an analogous legally binding arrangement. CCPs have the potential to significantly reduce risks to participants through the multilateral netting of trades and by imposing moreeffective risk controls on all participants. For example, CCPs typically require participants to provide collateral (in the form of initial margin and other financial resources) to cover current and potential future exposures. CCPs may also mutualise certain risks through devices such as default funds. As a result of their potential to reduce risks to participants, C .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... isdictions. Principle 2: Governance An FMI should have governance arrangements that are clear and transparent, promote the safety and efficiency of the FMI, and support the stability of the broader financial system, other relevant public interest considerations, and the objectives of relevant stakeholders. Principle 3: Framework for the comprehensive management of risks An FMI should have a sound risk-management framework for comprehensively managing legal, credit, liquidity, operational, and other risks. Credit and liquidity risk management. Principle 4: Credit risk An FMI should effectively measure, monitor, and manage its credit exposures to participants and those arising from its payment, clearing, and settlement processes. An FMI should maintain sufficient financial resources to cover its credit exposure to each participant fully with a high degree of confidence. In addition, a CCP that is involved in activities with a more-complex risk profile or that is systemically important in multiple jurisdictions should maintain additional financial resources sufficient to cover a wide range of potential stress scenarios that should include, but not be limited to, the default of the two .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... depositories A CSD should have appropriate rules and procedures to help ensure the integrity of securities issues and minimise and manage the risks associated with the safekeeping and transfer of securities. A CSD should maintain securities in an immobilised or dematerialised form for their transfer by book entry. Principle 12: Exchange-of-value settlement systems If an FMI settles transactions that involve the settlement of two linked obligations (for example, securities or foreign exchange transactions), it should eliminate principal risk by conditioning the final settlement of one obligation upon the final settlement of the other. Default management Principle 13: Participant-default rules and procedures An FMI should have effective and clearly defined rules and procedures to manage a participant default. These rules and procedures should be designed to ensure that the FMI can take timely action to contain losses and liquidity pressures and continue to meet its obligations. Principle 14: Segregation and portability A CCP should have rules and procedures that enable the segregation and portability of positions of a participant’s customers and the collateral provided to the C .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... procedures and should provide sufficient information to enable participants to have an accurate understanding of the risks, fees, and other material costs they incur by participating in the FMI. All relevant rules and key procedures should be publicly disclosed. Principle 24: Disclosure of market data by trade repositories A TR should provide timely and accurate data to relevant authorities and the public in line with their respective needs. Annexure 2 1. Clearing Corporations a. Indian Clearing Corporation Ltd. (ICCL) b. MCX-SX Clearing Corporation Ltd. (MCX-SXCCL) c. National Securities Clearing Corporation Ltd. (NSCCL) 2. Depositories a. Central Depository Services Ltd. (CDSL) b. National Securities Depository Ltd (NSDL) 4.18 Annual System Audit of Depositories Circular No. CIR/MRD/DMS/13/2011 dated November 29, 2011 i. The depositories should annually conduct System Audit as per the System Audit Framework. The system audit framework encompasses the System Audit Process, Auditor Selection Norms, Terms of Reference (TOR), and Audit Report Guidelines as per the annexure below. ii. The Systems Audit Reports and Compliance Status should be placed before the Governing Board of the d .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... y participants e.g. stock exchanges, clearing houses, depositories etc. The audit experience should have covered all the Major Areas mentioned under SEBI's Audit Terms of Reference (TOR). 2. The Auditor must have experience in / direct access to experienced resources in the areas covered under TOR. It is recommended that resources employed shall have relevant industry recognized certifications e.g. CISA (Certified Information Systems Auditor) from ISACA, CISM (Certified Information Securities Manager) from ISACA, GSNA (GIAC Systems and Network Auditor), CISSP (Certified Information Systems Security Professional) from International Information Systems Security Certification Consortium, commonly known as (ISC) Income Tax Department since changed the link for verification to: https://incometaxindiaefiling.gov.in/e-Filing/Services/KnowYourPanLink.html. 3. The Auditor should have IT audit/governance frameworks and processes conforming to industry leading practices like CobiT. 4. The Auditor must not have any conflict of interest in conducting fair, objective and independent audit of the Exchange / Depository. It should not have been engaged over the last three years in any consultin .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... t; Email Archival Implementation > Incidences of security violations in last year & corrective actions taken. 5. Access policy and controls 6. Electronic Document controls 7. General Access controls 8. Performance audit - It must include > Comparison of changes in transaction volumes since previous audit > Review of systems (hardware, software, network) performance over period > Review of the current volumes against the last Performance Test performed 9. Business Continuity / Disaster Recovery Facilities - It must include > BCP manual, including Business Impact Analysis, Risk Assessment and DR process > Implementation of policies > Back-up procedures and recovery mechanism using back-ups. > Storage of Back-up (Remote site, DRS etc.) > Redundancy - Equipment, Network, Site etc. > DRS installation and Drills - Management statement on targeted resumption capability (in terms of time required & extent of loss of data) > Evidence of achieving the set targets during the DRS drills in event of various disaster scenarios. > Debrief / review of any actual event when the DR/BCP was invoked during the year 10. IT Support & IT Asset Management - .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... onformities. Further, along with the audit report, the Stock Exchange / Depository shall also submit a declaration from the MD / CEO certifying the integrity and security of IT Systems. 4.19 Guidelines for Business Continuity Plan (BCP) and Disaster Recovery (DR) Circular No. CIR/MRD/DMS/12/2012 dated April 13, 2012 and clarification issued vide Circular No. CIR/MRD/ DMS/17/2012 dated June 22, 2012 i. The stock exchanges and depositories should have in place Business Continuity Plan (BCP) and Disaster Recovery Site (DRS) so as to maintain data and transaction integrity. ii. Apart from DRS, stock exchanges should have a Near Site (NS) to ensure zero data loss whereas, the depositories should also ensure zero data loss by adopting a suitable mechanism. iii. The DRS should be set up sufficiently away, i.e. in a different seismic zone, from Primary Data Centre (PDC) to ensure that both DRS and PDC are not affected by the same disasters. iv. The manpower deployed at DRS / NS should have similar expertise as available at PDC in terms of knowledge / awareness of various technological and procedural systems and processes relating to all operations such that DRS / NS can function at short n .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... Policy Document a) The BCP - DR policy of stock exchanges and depositories should be well documented covering all areas as mentioned above including disaster escalation hierarchy. b) The stock exchanges should specifically address their preparedness in terms of proper system and infrastructure in case disaster strikes during business hours. c) Stock Exchanges / Depositories / Clearing Houses or Clearing Corporations of Stock Exchanges should also demonstrate their preparedness to handle any issue which may arise due to trading halts in stock exchanges and / or failure or stoppages at other Stock Exchanges / Depositories / Clearing Corporations d) The policy document and subsequent changes / additions / deletions should be approved by Governing Board of the Stock Exchange / Depositories and thereafter communicated to SEBI. viii. Considering the above, stock exchanges and depositories are advised to submit their BCP - DR policy to SEBI within 3 months from the date of this circular. Further, they should also ensure that point 1 (vi) (f) mentioned above is also included in scope of system audit as mentioned in the circular no. CIR/MRD/DMS/13/2011 dated November 29, 2011. ix. These gui .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... mentioned circulars, depositories shall designate a senior official as the head of BCP function. 4.21 Guidelines for inspection of Depository Participants (DPs) by Depositories Reference Circular SEBI/MRD/DMS/05/2014 dated February 07, 2014 i. Depository System Review Committee (DSRC) was constituted by SEBI to undertake a comprehensive review of the depository system of Indian Securities market. ii. As a first measure, DSRC has reviewed framework adopted by the depositories with regard to the inspection of depository participants (DPs). Considering the recommendations of the committee, it has been decided that depositories shall ensure the following while inspecting their DPs. Inspection Areas and Sample Size iii. For conducting inspection of DPs, depositories shall inspect the areas as mentioned in Annexure - I. During inspection, depositories shall cover implementation of circulars / guidelines issued by SEBI and guidelines / operating instructions / directions by depositories in respect of these areas. In addition, Depositories may include such other areas as felt appropriate. iv. For the purpose of determining the size of sample, depositories shall be guided by 'Adaptive S .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... egulatory arbitrage, if any. Depositories shall share the risk rating / categorization of common DPs with each other. For the purpose of determining sample size and frequency of the joint inspection of such common DPs, the higher risk categorization assigned by any of the Depository shall prevail. Annexure -I List of Inspection Areas 1. Depositories shall inspect the areas mentioned at para 2 below during inspection of DPs with regards to any 1.1. Circulars / Guidelines issued by SEBI on the areas mentioned below. 1.2. Guidelines / Operating Instructions / Directions from depositories on the areas mentioned below. 2. In case there are built in system checks at the depository that ensure compliance of any of the inspection areas / sub -areas with regard to point 1.1 and 1.2 above, the depository may decide on the including the same during the inspection of DPs Inspection Areas A. Account Opening / KYC Documents A.1. Account Opening forms A.2. KYC Documents A.2.1. PAN Verification A.2.2. In-person verification A.2.3. Forwarding of Documents to KYC Registration Agency (KRA) A.3. Proof of Identity (POI) A.4. Proof of Address A.5. Correspondence Address A.6. Authorized Signatories A.7. .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... , reporting and record keeping H.2. Appointment of Principal officer as required under PMLA Act,2002 H.3. Mechanism to deal with alerts provided by Depository H.4. Suspicious Transactions reports to FIU H.5. Any other area as may be specified by the depository I. Maintenance of record and documents I.1. Information regarding place(s) of record keeping I.2. Outsourcing of record keeping activities I.3. Any other area as may be specified by the depository J. Service Centre Opening and closing/ modification of service centers J.1. Procedure for Opening /Closure of Service centers J.2. Details of Service centre on Depository website J.3. Qualified persons at service centers J.4. Any other area as may be specified by the depository K. Information Technology areas K.1. Hardware, Software and Network requirements / configurations K.2. Logical and Physical restrictions / safeguards K.3. IT Security K.4. Procedure for alteration of parameters / configurations K.5. Redundancy K.6. Any other area as may be specified by the depository L. Power of Attorney (POA) L.1. Documents executed L.2. Maintenance of POA Register L.3. Clauses of POA L.4. Registration of BO for SMS Alert facility for POA L .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... current inspection. In case the total number of instances / cases is less than the final sample size, then 100% of the samples shall be verified. DP Rating / Categorization Multiplier High risk 3 Medium High risk 2 Medium risk 1.5 Low risk 1 The selected sample shall maintain the proportion of new accounts opened in each category, except for Account Opening Forms (AOF) relating to FIIs where it shall be checked on a 100% basis. 2. Sample Size for inspection area relating to DIS Base sample size: 10% of total DIS processed or 200 processed DIS whichever is higher, with a maximum cap of 1000 DIS. Final Sample Size: The sample size shall also be dependent on rating / categorization of DP. The following multipliers shall be used to determine the final sample size for the current inspection. In case the total number of instances / cases is less than the final sample size, then 100% of the samples shall be verified. DP Rating / Categorization Multiplier High risk 3 Medium High risk 2 Medium risk 1.5 Low risk 1 Out of total intra depository instructions to be verified, the percentage of on and off market instructions would be in the ratio of 1/3 and 2/3. DIS issuance sample size shall be .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... ude all inspection areas and sub areas, as per Annexure -I (List of Inspection Areas) of this circular, in the above model to arrive at the Quantitative Score for a DP. Table: Indicative Table for calculation of Quantitative Score for Complaints Received Sr No Type and Nature of Complaint Weight (A) (Number of Complaints redressed) / Number of Complaints received) Inspection Score IS = A*B T Complaints T.1 Complaint Sub Area 1 T.2 Complaint Sub Area 2 Total Score for Complaints Quantitative Score = Σ (Scores of Inspection Areas including Total score for Complaints) II. Qualitative Score Calculation: Specific weights shall be assigned to each area as decided by depository. The Total Qualitative Score shall be the summation of all area scores. Sr. No Qualitative Factors Weight (A) Point on the scale of 1 to 10. [10 being the Worst] (B) Area score =(A) * (B) 1 Ownership and Governance 2 IT security and Business Continuity 3 Regulatory / procedural Compliance 4 Automation of systems and processes for critical activities 5 Quality of Management 6 Financial Status / profitability of DPs 7 Pending enquires / Penalties imposed by SEBI / Depositories on DP operations 8 Complaints redr .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... st on behalf of beneficiary owners. Therefore, the clearing member, clearing corporation as well as the intermediaries cannot have voting rights in respect of securities held in the pool account. 4.24 Risk Management Policy at the Depositories Reference: CIR/MRD/DP/1/2015 dated January 12, 2015 i. The depositories are advised to establish a clear, comprehensive and well documented risk management framework which shall include the following: a) an integrated and comprehensive view of risks to the depository including those emanating from participants, participants' clients and third parties to whom activities are outsourced etc.; b) list out all relevant risks, including technological, legal, operational, custody and general business risks and the ways and means to address the same; c) the systems, policies and procedures to identify, assess, monitor and manage the risks that arise in or are borne by the depository ; d) the depository's risk-tolerance policy; e) responsibilities and accountability for risk decisions and decision making process in crises and emergencies. ii. The Depositories shall put in place mechanism to implement the Risk Management Framework through a Ris .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

..... 7. 30. MIRSD/DPS-III/Cir-9/07 dated July 3, 2007. 31. MIRSD/DPS- III/Cir-23/08 dated July 25, 2008. 32. SEBI/MRD/Dep/Cir-03/2008 dated February 28, 2008. 33. MRD/DoP/Cir-20/2008 dated June 30, 2008. 34. MRD/DoP/SE/Dep/Cir-2/2009 dated February 10, 2009. 35. CIR/MRD/DP/19/2010 dated June 10, 2010. 36. CIR/MRD/DP/20/2010 dated July 1, 2010. 37. CIR/MRD/DP/22/2010 dated July 29, 2010. 38. CIR/MRD/DO/37/2010 dated December 14, 2010. 39. CIR/MRD/DP/04/2011 dated April 07, 2011. 40. CIR/MRD/DP/05/2011 dated April 27, 2011. 41. MIRSD/SE/Cir-21/2011 dated October 5, 2011. 42. CIR/MRD/DMS/13/2011 dated November 29, 2011. 43. CIR/MRD/DMS/12/2012 dated April 13, 2012 44. CIR/MRD/ DMS/17/2012 dated June 22, 2012 45. CIR/MRD/ICC/16/2012 dated June 15, 2012. 46. CIR/MRD/DP/21/2012 dated August 02, 2012. 47. CIR/MIRSD/09/2012 dated August 13, 2012. 48. CIR/MRD/DP/22/2012 dated August 27, 2012. 49. CIR/MRD/DP/24/2012 dated September 11, 2012. 50. CIR/MRD/DP/DA/25/2012 dated September 21, 2012. 51. CIR/MRD/DP/27/2012 dated November 01, 2012. 52. CIR/MRD/DP/32/2012 dated December 06, 2012. 53. CIR SEBI/MIRSD/01/2013 dated January 04, 2013. 54. CIR/MRD/DP/10/2013 dated March 21, 2013. 55. CIR SEBI/MR .....

X X   X X   Extracts   X X   X X

Login / Subscribe to Access Full Page

Master Circular for Depositories - SEBI

X X   X X   Extracts   X X   X X

 

← Previous Next →

 

 

 

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || Database || Members || Refer Us ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.
|| Site Map - Recent || Site Map || ||