Depository Participant Services
Karnataka Bank has been foraying into newer areas of banking products and services to meet the increasing needs of its customers. As a further step towards this Karnataka Bank has become a Depository Participant of Central Depository Services (India) Limited (CDSL) and has launched the DP services from 16-03-2006.
Introduction to Depository services:
A Bank where its Head Office provides the facility of opening and conduct of Accounts through its branches, a Depository institution extends various services to the investors through its agents known as Depository Participant. In India, now there are two Depositories. They are CDSL and NSDL. Participant can be anybody who complies with the eligibility requirements. Participant (DP) can be a Bank also. All the various functions undertaken and enabled through Demat accounts is referred to as DP activity. Under the depository system, a demat account holder or holder/owner of securities who is entitled to all the benefits (such as dividend or interest/bonus or right shares etc), is known as a Beneficial Owner (BO). However, in the books of the issuer company, the name of the Depository will appear as the Registered Owner against those securities which are held by the BO in his demat account with that Depository.
Prerequisites of opening a Demat Account:
The formalities involved in opening a bank account and a demat account are similar. An investor desirous of holding his securities in electronic form can open a demat account with a DP of his choice by completing necessary account opening formalities after furnishing proof of his/her identity, photograph and proof of address. An agreement with the DP in the prescribed format is to be executed by paying requisite stamp duty.
Dematerialisation of Securities:
After getting the demat account number from the DP, the BO can cause credit of fresh purchases of securities to his demat account and/or transfer the balances held in demat account held with other DP to this newly opened demat account. He can also tender the securities held by him/her in physical form to DP for dematerialization and credit to the demat account. After necessary verification, DP forwards the physical securities (duly defaced) either to the company or to their duly appointed RTA (Registrar and Transfer Agent) who, after necessary scrutiny, destroys the certificates in physical form and authorizes the depository to give corresponding (electronic) credit to the subject demat account. The details and balance in the BO account recorded and maintained with the Depository are available to DPs in their office through the continuous connectivity via V-sat or leased lines. The DP is required to provide the BO, at regular intervals, with a statement of account, which gives the details of transactions and closing balance.
Free Facilities by CDSL to its Demat Account Holders:
The evolution of the Indian capital market has seen several enhancements during the past few years and this has been a result of innovative use of newer technologies. In the reduced settlement cycle era, investors require updated demat account information at a much faster pace than ever before. In other words, the quest for account status information has risen manifold.
In order to facilitate a CDSL demat account holder to easily adapt to the fast reducing settlement cycle, CDSL has introduced Internet-enabled services called "easi" and "easiest" to empower a demat account holder in managing his securities 'anytime-anywhere' in an efficient and convenient manner, all in a state-of-the-art secure environment. Further to effective risk control mechanism for monitoring of demat account, CDSL has also introduced "smart" facility.
To know more on "easi" ,"easiest" and "smart" - http://www.cdslindia.com
FAQ on DP Services - http://www.cdslindia.com/faq/main.htm
The Branches selected (Designated) to undertake Depository Services.
Charges/Tariff for Demat Services
Basic Services Demat Account
Grievances Redressal Mechanism
Clarifications required if any, can be obtained from the designated branches or from HO- DP Cell (Tel. No. 0824-2228319 and email address