1. What are the benefits of availing depository services?

The following are the advantages of holding shares in dematerialisation form:

  • Elimination of risks associated with physical certificates such as bad delivery, fake securities, delays, thefts, etc.
  • Immediate transfer of securities
  • No stamp duty on transfer of securities
  • Reduction in paperwork involved in transfer of securities
  • Reduction in transaction cost
  • No odd lot problem, even one share can be sold
  • Change in address recorded with Depository Participant gets registered with all companies in which investor holds securities electronically, eliminating the need to correspond with each of them separately
Transmission of securities done by Depository Participant eliminates correspondence with companies


2. Are the Company's shares required to be traded compulsorily in demat form? Do I have the option of holding them in physical form?

The shares of the Company are compulsorily traded in demat form. However you can continue to hold shares in physical form.


3. How do I open a demat account?

The list of Depository Participants is available on the websites of NSDL & CDSL.

You need to approach a Depository Participant, complete an account opening form and follow the account opening procedure. The account opening form must be supported by proof of Identity, proof of residence and a photograph of the shareholder. It is now mandatory to provide PAN whilst opening the demat account.

The demat account needs to be opened in the name of all the joint-holders, in case physical share certificates are held in joint names.


4. How do I convert shares to demat form?

In order to dematerialise physical securities you need to fill a Demat Request Form (DRF) which is available with the Depository Participant and submit the same along with the physical certificates that you wish to dematerialise. DRF needs to be signed by all joint-holders. Separate DRF must be filled for each ISIN no.
The complete process of dematerialisation is outlined below:

  • Surrender certificates for dematerialisation to your Depository Participant.
  • Depository Participant intimates Depository of the request through the system and forwards the certificates to the R & T Agent of the Company.
  • After dematerialising certificates, R & T Agent updates accounts and confirm the demat request with the Depository.
  • Depository updates its accounts and informs the Depository Participant.
  • Depository Participant updates the account of the shareholder.

You can trace the demat credit from the statement of holdings sent to you by the Depository Participant from time to time.

The above process approximately takes 21 days.


5. Can I open multiple demat accounts?

You can have more than one demat account, with different Depository Participants.


6. Do I have to keep any minimum balance of securities in my demat accounts



7. Do I have to open my demat account with the same Depository Participant as the broker?

No. Depository / Depository Participant can be chosen by the shareholder as per his/her convenience irrespective of the Depository Participant of the broker.


8. What is required to be done if I have physical certificates with the same combination of names, but the sequence of names is different i.e. some certificates with 'A' as first holder and 'B' as second holder and other set of certificates with 'B' as first holder and 'A' as second holder.?

You may open only one demat account with 'A' & 'B' as the account holders and lodge the share certificates with different order of names for dematerialisation in the same account. You will need to fill-up an additional form called "Transposition cum Demat" form. This would enable you to effect change in the order of names as well as dematerialise the securities.


9. Can I freeze or lock my demat accounts?

Yes. You can freeze or lock your accounts for any given period of time. Accounts can be frozen for debits (preventing transfer of securities out of accounts) or for credit (preventing any movements into accounts) or for both.


10. How do I buy or sell dematerialised shares?

The procedure for buying and selling dematerialised shares is similar to the procedure for buying and selling physical shares. The difference lies in the process of delivery (in case of sale) and receipt (in case of purchase) of securities.

In case of purchase, the broker will receive the shares in his demat account on the pay-out date. The broker will give instructions to his Depository Participant to debit his account and credit your demat account. You will need to give a Receipt Instruction to the Depository Participant for receiving credit by filling  an appropriate form. You can also give a standing instruction for credit into your account that will obviate the need of giving Receipt Instruction every time.

In case of sale, you will need to give Delivery Instruction to the Depository Participant to debit your account and credit your broker's account.

Some banks and broker firms have the facility of on-line transactions for which Login ID and passwords are provided.


11. What is Delivery Instruction Slip (DIS)? What precautions do I need to observe with respect to DIS?

Delivery Instruction Slips (DIS) are filled whilst giving delivery instructions to the Depository Participant  DIS may be compared to a cheque book for a bank account.

The following precautions are to be taken in respect of DIS:

  • Ensure and insist with your Depository Participant to issue a DIS book; do not use loose slips.
  • Ensure that DIS numbers are pre-printed and Depository Participant takes acknowledgment for the DIS booklet issued to you.
  • Ensure that your demat account number [client id] is pre-stamped/pre-printed.
  • If the account is a joint account, all the joint-holders have to sign the DIS. DIS cannot be executed if all joint-holders have not signed.
  • Do not leave signed blank DIS with anyone viz., broker/sub-broker.
  • Keep the DIS book under lock and key when not in use.


12. How do I know that the Depository Participant has updated my account after each transaction?

The Depository Participant gives a transaction statement periodically, which details current balances and various transactions made through the Depository Account. If so desired, the Depository Participant may provide the transaction statement at intervals shorter than the stipulated ones, probably at a cost.

In addition, since the Company receives BENPOS of all demat holdings every Friday, the Company’s R & T Agent can assist shareholders seeking information in this respect.

A faster method to obtain the aforesaid information would also be through logging on to “CG Investor Access”, an on-line, web-based folio access system provided by the Company which will enable you to view your shareholding information from anywhere in the world. The portal provides you information regarding your shareholding in the Company (both physical and demat) and a host of other information relating to payment of dividends, mandates, address updation, share transfers, duplicate issues etc. Click here to access this portal.

However it may be noted that information provided by the R&T Agent or the portal is valid as on the immediately preceding Friday.


13. At what frequency should I receive my transaction statement from the Depository Participant?

Transaction statement is received from the Depository Participant once in a quarter. If a transaction has been carried out during the quarter, a statement is usually sent within fifteen days of the transaction. However you may like to check with your Depository Participant, the rules relating to your demat account.


14. Whom do I contact in case of any complaint/problem /query?

Our R & T Agent or our Investor Services Department can assist you in case of any difficulty in the dematerialisation process. Their contact details are provided under "Co-ordinates" in the Investors Section.


15. How do I get my dividends on demat shares? Will I get the Annual Report after I demat my shares and would I be able to attend the AGM?

The Company receives a list of demat account holders, their shareholding and other related details, through the Depositories, on the Record Date (this is known as BENPOS). The Company will issue dividend warrants in favour of the demat account holders on the basis of BENPOS data.

The rights of shareholders holding shares in demat form are at par with the holders in physical form. Hence you will be eligible to receive Annual Report and dividends and will have the right to attend the AGM as any shareholder.


16. What are the chances of any fraud/disputes in using a demat account? Whom should I approach in such cases?

Common risk factors applicable to trading in physical shares like mismatch in signatures, loss in postal transit etc., are absent since the demat shares are traded in a scripless mode.

However, in the unlikely event of any other dispute, the concerned Stock Exchange and/or Depository viz. NSDL/CSDL or Securities and Exchange Board of India, may be approached for resolving such issues.


17. Can odd lot shares be dematerialised?

Yes, odd lot share certificates can also be dematerialised.


18. What should I do if there is any discrepancy in my transaction statement?

In case of any discrepancy in the transaction statement, you can contact your Depository Participant. If the discrepancy cannot be resolved by the Depository Participant you can approach the Depository, ie NSDL or CDSL.


19. How do I re-convert my shares into physical form?

If you wish to convert your securities in physical form you must to fill the Remat Request Form (RRF) and request your Depository Participant for rematerialisation of the balances in your demat account. The process of rematerialisation is outlined below :

  • Submit the RRF.
  • Depository Participant intimates Depository of the request through the system.
  • Depository confirms rematerialisation request to the R & T Agent of the Company.
  • R & T Agent updates accounts and prints certificates.
  • Depository updates accounts and downloads details to Depository Participant

R & T Agent dispatches certificates to the shareholder.