Page 56 - DCOM504_SECURITY_ANALYSIS_AND_PORTFOLIO_MANAGEMENT

Unit 1: Introduction to Capital Market

3. Part of the certificates pertaining to a single DRF is partly paid-up; the DP will reject the Notes
request and return the DRF along with the certificates. The DP may advise the client to
send separate requests for the fully paid-up and partly paid-up securities.
4. Part of the certificates pertaining to a single DRF is locked-in, the DP will reject the request
and return the DRF along with the certificates to the client. The DP may advise the client
to send a separate request for the locked-in certificates. Also, certificates locked-in for
different reasons should not be submitted together with a single DRF

In case the securities are in order, the details of the request as mentioned in the form are entered
in the DPM (software provided by NSDL to the DP) and a Dematerialisation Request Number
(DRN) will be generated by the system. The DRN so generated is entered in the space provided
for the purpose in the dematerialisation request form. A person other than the person who
entered the data is expected to verify details recorded for the DRN. The request is then released
by the DP which is forwarded electronically to DM (DM - Depository Module, NSDL’s software
system) by DPM. The DM forwards the request to the Issuer/ R&T agent electronically.
The DP will fill the relevant portion viz., the authorisation portion of the demat request form.
The DP will punch the certificates on the company name so that it does not destroy any material
information on the certificate.
The DP will then dispatch the certificates along with the request form and a covering letter to the
Issuer/ R&T agent. The Issuer/ R&T agent confirms acceptance of the request for dematerialisation
in his system DPM (SHR) and the same will be forwarded to the DM, if the request is found in
order. The DM will electronically authorise the creation of appropriate credit balances in the
client’s account. The DPM will credit the client’s account automatically. The DP must inform the
client of the changes in the client’s account following the confirmation of the request.
The issuer/ R&T may reject dematerialisation request in some cases. The issuer or its R&T Agent
will send an objection memo to the DP, with or without DRF and security certificates depending
upon the reason for rejection. The DP/Investor has to remove reasons for objection within 15
days of receiving the objection memo. If the DP fails to remove the objections within 15 days, the
issuer or its R&T Agent may reject the request and return DRF and accompanying certificates to
the DP. The DP, if the client so requires, may generate a new dematerialisation request and send
the securities again to the issuer or its R&T Agent. No fresh request can be generated for the
same securities until the issuer or its R&T Agent has rejected the earlier request and informed
NSDL and the DP about it.

Case Study Savings vs Investment

I lost all my savings in the stock market scam of 1998. “I lost all my savings when CRB
Capital markets shut down.” Or if you want something current then try -
“I lost all my savings in the ‘New’ economy meltdown of 2000.” Make no mistake- these
are painful statements. All through our lives, we have been repeatedly advised that we
must save money for a rainy day. And when we did just that, some of us have suffered the
misfortune of losing it all.

A penny saved...... is a penny earned is what I was told by my favorite English teacher in
middle school. Unfortunately that penny doesn’t get us very far anymore. Nobody told
me about the silent enemy called inflation that could lay waste to the coin that the tooth
fairy left under my pillow. Incidentally I was also taught how to calculate interest by an
Contd...

LOVELY PROFESSIONAL UNIVERSITY 51