Corporate Benefits

Is it possible to get securities allotted in public offering directly in the electronic form?

Yes, it is possible to get securities allotted to in Public Offerings directly in the electronic form. In the public issue application form there is a provision to indicate the manner in which an investor wants the securities allotted. Investor has to mention the Beneficial Owner ID and the name and ID of the DP on the application form. Any allotment made will be directly credited into the BO account of investor and you can trade immediately after trading starts on the exchange.
How are cash corporate benefit such as dividend / interest received?
 

In a demat environment, you are required to give your bank account details to your DP. The concerned company obtains the details of beneficiary holders and their holdings as on the date of the book closure / record date from Depositories. The payment to the investors will be made by the company through the ECS (Electronic Clearing Service) facility, wherever available. Thus the dividend / interest will be credited to your bank account directly. Where ECS facility is not available dividend / interest will be given by issuing warrants on which your bank account details are printed. The bank account details will be those which you would have mentioned in your account opening form or changed thereafter.
What is delivery instruction slip (DIS)?
To give the delivery of shares from one account to another account, the investor has to fill ‘Delivery Instruction Slip (DIS)’. DIS may be compared to cheque book of a bank account. The following precautions are to be taken in respect of DIS:-
Ensure and insist with your DP to issue DIS book Ensure that DIS numbers are pre-printed and DP takes acknowledgment for the DIS booklet issued to investor.
Ensure that your account number [BO client id] is pre-stamped.
If the account is a joint account, all the joint holders have to sign the instruction slips. Instruction cannot be executed if all joint holders have not signed.
Avoid using loose slips
Do not leave signed blank DIS with anyone viz., broker/sub-broker.
Keep the DIS book under lock and key when not in use.
If only one entry is made in the DIS book, strike out remaining space to prevent misuse by any one.
Investor should personally fill in target account -id and all details in the DIS.
Keep track of your DIS at frequent intervals.
Is it possible to give delivery instructions to the DP over Internet?
Yes. Both NSDL and CDSL have launched this facility for delivering instructions to your DP over Internet, called SPEED-e and EASI respectively. The facility can be used by all registered users after paying the applicable charges. This would allow you to transfer shares through click of a mouse.