Issuers and R&t Agents

Issuers and R&T Agents

The Depositories Act, 1996 gives option to investors to hold their securities either in physical form or in book entry form with a depository. Issuer of the security i.e. company may offer a facility to hold the securities issued by it in demat form by entering into an agreement with NSDL. The issuers who intend to offer demat facility will have to establish connectivity with NSDL either directly or through a Registrar & Transfer Agent having connectivity with NSDL.

Eligibility Criteria

Following category of securities are eligible for dematerialisation as per SEBI (Depositories & Participants) Regulations, 1996:

(a) shares, scrips, stocks, bonds, debentures, debenture stock or other marketable securities of a like nature in or of any incorporated company or other body corporate;

(b) units of mutual funds, rights under collective investment schemes and venture capital

funds, commercial paper, certificates of deposit, securitised debt, money market instruments and government securities, unlisted securities shall also be similarly eligible for being held in dematerialised form in a depository.

All Issuers of these securities may make their securities available for dematerialisation upon fulfilment of certain criteria. The Executive Committee of NSDL determines the securities that are eligible for dematerialisation. Before dematerialisation commences, the Issuer or its R&T Agent, if any, has to comply with the following conditions :

(i) The Issuer and/or its R&T Agent undertakes to co-operate at all times to redress the

grievances of the client and the DP.

(ii) The Issuer and/or its R&T Agent shall have adequate hardware and software systems to interact with Depository as specified