Buying dematerialized securities
For receiving demat securities you may give a one-time standing instruction to your DP. This standing instruction can be given at the time of account opening or later. Alternatively, you may choose to give separate receipt instruction every time some securities are to be received. The transactions relating to purchase of securities are summarised below:
* You purchase securities through a broker ;
* You make payment to your broker who arranges payment to clearing corporation on the pay-in day ;
* Your broker receives credit of securities in its clearing account (clearing member pool account) on the pay-out day;
* Your broker gives instructions to its DP to debit clearing account and credit your account;
* You receive shares into your account. However, if standing instructions are not given at the time of opening the account, you will have to give ‘Receipt Instructions’ to your DP for receiving credit,.
You should ensure that your broker transfers the securities from its clearing account to your depository account, before the book closure. If the securities remain in the clearing account of the broker, the company will give corporate benefits (dividend or bonus) to the broker. In that case, you will have to collect the benefits from your broker.
Selling dematerialized securities
The procedure for selling dematerialised securities is very simple. After you have sold the securities, you would instruct your DP to debit your account with the number of securities sold by you and credit your broker’s clearing account. This delivery instruction has to be given to your DP using the delivery instruction slips given to you by your DP at the time of opening the account. Procedure for selling securities is given here below:
* You sell securities in any of the stock exchanges linked to NSDL through a broker;
* You give instruction to your DP to debit your account and credit the broker’s [clearing member pool] account;
* Before the pay-in day, your broker gives instruction to its DP for delivery to clearing corporation;
* Your broker receives payment from the stock exchange (clearing corporation) ;
* You receive payment from the broker for the sale of securities. |
