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Unit 7: Depositories and Custodians

(v) Deliver stocks to brokers within 24 hours of availability of clear funds from the Notes
broker or 48 hours of payment through a high value cheque or pay order or demand
draft by the broker, whichever is earlier.

(vi) Where collateral is taken for shares which are released to the broker for the
rectification of bad delivery, the collateral should be reasonable with reference to
the bad delivery portion; and for the collateral in the form of cash, interest would be
paid by the custodian to the broker.

7.5.1 The Stock Holding Corporation of India Ltd.

Stock Holding Corporation of India Ltd. (SHCIL) was incorporated as a Public Limited Company
in 1986. It has been jointly promoted and owned by leading Banks and Financial Institutions viz.,
IFCI Ltd., IDBI Bank Ltd., SU-UTI, LIC, GIC, NIA, NIC, UIC, and TOICL, all leaders in their fields of
business. SHCIL began by offering custodial and post trading services, adding depository services
and other services to its portfolio over a period of time. SHCIL has established itself in India as a
one-stop solution provider in the Financial Services domain.

Why SHCIL?

1. Well integrated front and back office, paper and electronic systems. A focussed Client
Relation Team to manage your needs & queries. A single point contact for your comfort.
2. In-house capability to address all IT needs in terms of software development, maintenance,
back office processing, database administration, network maintenance, backups and disaster
recovery.

3. Multilevel security is maintained in software, applications and guards to access to various
data, client and internal reports.
4. Expertise in running processes utilising digital signatures.

5. Regular Audits internal and external, by SEBI, Depositories, Clients and compliance to
rules and regulations.
6. Constant review and benchmarking of processes to ensure adherence to global best practices.

7. Insurance cover with international re-insurance.
8. Full Confidentiality of business operations.
Aim of the SHCIL
 to make it easy for an investor to buy/sell securities
 to keep active share and debenture certificates in safe custody

 to computerise trading among active investors of such institutions, mutual funds etc.
 to create regional SHCs as volumes grow
 to credit dividend and other payment directly to investors through central collection, and
to act as a bank/custodian for shares
The SHCIL renders services like:
 Clearing and settlement services

 Registration and Transfer processing
 Depository services

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