SHCIL processes the entire paperwork required with the

bank.
• The service is available at any of over 100 branches of
SHCIL.
ADVANTAGES
•

Our tie ups with banks give you a wider range of banks to choose from. This leads to
a wider range of specified and non-specified shares to get loan against.
•

The add shares team helps you with the paper formalities
precedent to a loan.
•

You can now get a loan at a competitive interest rates and margins. This is a
resultant of their tie up with a wide range of banks.
•

Add shares simplify long-winded loan procedures for you and

facilitates early disbursements of funds.
•

Add shares are available at any of our branches numbering

over 120.
(B) EQUIBUY
INTRODUCTION
Even after payments have been made we have to wait patiently to see those shares
reflected in the DEMAT account. With the odd surprise of not seeing them at all
which you cannot discount!
As your depository participant SHCIL assures you safe delivery of shares every time
you buy on the exchange. We have lined up a panel of reputed brokers who process
your orders on priority

Our positions as the clearing corporations of leading stock

exchanges ensures smooth and sure credits in your account.
An initial advance and timely replenishments into the purchase
advance account take care of the payment for your purchases.
Go through the detailed EQUIBUY procedure and you will see how
EQUIBUY in a one stop shop for your share purchases.
FEATURES
•

An EQUIBUY instruction from you gets the shares credited

into your account the next day of payout.
• Payment for your purchase made from a running account
called purchase advance into which you remit an initial advance of Rs. 1000 and
maintain a minimum balance of Rs. 250 at all times.
•

Choose one or more brokers from a list of 77 brokers empanelled with SHCIL.
Registration with broker is not necessary if you are already registered under any of
our other product schemes.
• Purchase on BSE or NSE.
ADVANTAGES
•

Buy shares with a single instruction and get an assured credit of shares into your
account the next day of payout. Leave the settlement procedures and broker
interaction to us.
• Affect a faster turnaround of your portfolio.

EQUIBUY has a very nominal charge attached to it.

• An initial advance of Rs. 1000 in the purchase advance
account and replenishments, as and when necessary, take
care of payment for your purchases.
• Choose the exchange you want to buy from- BSE or NSE.
• Choose from a range of 77 SHCIL empanelled brokers to
execute your purchases.
•

EQUIBUY from the SHCIL center closest to you. Select from

120 plus SHCIL centers across the country.
PROCEDURE
• If you are not already registered with one or more of our 77
empanelled brokers under any of our other product schemes, register yourself by
filling up a broker registration form.
•

Fill up a remittance slip to open the purchase advance

account by making an initial advance of Rs. 1000.
• Approach any SHCIL branch and submit a purchase request
slip.
•

Your request will be good till the end of the day. If the shares are not purchased
before the end of the day your request lapses and a fresh request can be submitted
the next day.
•

Your purchase request is transmitted to the broker as soon

as you place request.
•

The broker executes the trade and confirms trade details to SHCIL. The payment for
the shares purchased along with the service charge is made from the purchase
advance account.
•

The shares get credited into your account the next day of
payout
TARIFF
On Delivery Basis
• 0.65% on the value of transaction on delivery basis with a
minimum of Rs. 65 per client per broker settlement.
(C) FUND INVEST
INTRODUCTION
Fund invest is a basket of financial products ranging from fixed income securities
like fixed deposits, infrastructure bonds and capital gain bonds to variable income
securities like initial public offers (IPOs) of equities and mutual funds. It is an attempt
to offer financial products that that cater to the various investment needs of our
esteemed clients. An effort to guide the investor to a product portfolio that best suits
his risk-return profile. Applications for investments can be sourced from any of the
SHCIL offices. Apart from guiding our investors to pick up the right combination of
investment instruments we help them in ‘after-sales’ service by acting as an
interlocutor between the investor and the issuer of the securities. SHCIL is an AMFI
registered mutual fund advisor (ARMFA).
FEATURES

At present, SHCIL is distributing schemes of 28 different mutual funds. All these

funds offer a wide variety of investment option depending on the risk appetite of the
investor. Some of the major categories are:
Debt funds: The debt funds have the mandate of investing
primarily in debt papers.
Equity funds : The equity funds have the mandate of investing
primarily in equities.
Balanced funds: The balanced funds have the mandate of
investing both in equities as well as debt papers.
Capital gain bonds come under 54EC capital gains bonds, where the investors get
exemption from capital gain tax. These are ‘on- tap’ issues. At present, SHCIL is
distributing capital gain bonds of rural electrification corporation, national housing
bank, small industries development bank of India and national highway authority of
India. Infrastructures bonds are issued by ICICI bank and IDBI, with section 88 as
the main feature.
Private placements: debt papers issued for private placement
with structural obligations by the state and central government typically targeted for
trusts and provident funds are distributed by stock holding.
Fixed deposits: fixed deposits with high investment rating and
issued by blue-chip corporate are distributed by us. These papers generally offer 50
to 100 basis points more than bank fixed deposits of comparable period. At present,
we are distributing IDBI SUVIDHA fixed deposits and HDFC fixed deposits.
Initial Public Offer: IPOs offered by blue-chip corporate can be
subscribed from stock holding. Issues recently distributed by us
are Canara Bank, Allahabad Bank, Bharti Tele and I-Flex.

(D) GOI BONDS

INTRODUCTION
Savings bonds are issued by RBI on behalf of government of India
in the following series:
8.0% taxable bonds: These bonds are held in electronic form in an account called
bond ledger account (BLA). Bond ledger accounts can be opened and operated with
RBI designated receiving offices. SHCIL has been designated as one of the
receiving offices by RBI for this purpose. Subscriptions for savings bonds can be
submitted at any of our branches.
Savings bonds being sovereign in nature are absolutely safe and an attractive
investment option in the current volatile market situation.
The following categories can subscribe to savings bonds:
Category
of
investor
8.0% (taxable)
Individual

• His or her individual capacity.

• Individual capacity on joint basis.

• Individual capacity on anyone or survivor basis.

• On basis of a minor as father/mother/legal guardian.

HUF
(Hindu
Undivided
Family )
Charitable
Institution
•

Charitable institution to mean a company registered under section 25 of the Indian

companies act, 1956.
•

An institution which has obtained a

certificate of registration as a charitable
institution in accordance with a law in force.
• Any institution which has obtained a certificate
from income tax authority for the purpose of
section 80G of the income tax act, 1961.
University
•

University means a university established or

incorporated by a central, state or provincial
Act and includes an institution declared under
Section 3 of the University Grants Commission
Act, 1956 to be a university for the purposes of
the act.
FEATURES
The salient features of the bonds are listed below:
Feature
Investment limit
8.0% (taxable)
Minimum investment is Rs.
1000 and there is no maximum
Interest option

Tax benefits

Transferability

Nomination
Repayment
Premature encashment
limit.
Payable half yearly on 1st Feb.,
1st
Aug or cumulative on
maturity.
Interest is taxable under IT Act, 1961. Exempt from wealth tax under Wealth Tax
Act, 1957.
Non- transferable, non tradable
and
cannot
be
used
as
collateral for borrowings.
Available. Only sole holder or
the
surviving
holder
can
nominate.
Repayable on expiry of 6 years from date of issue. No interest would accrue after
maturity.
Not available.
ADVANTAGES

Hassle free maintenance: the GOI bonds held in electronic form in an account called
bond ledger account. This ensures smooth investing minus paperwork.
•

Electronic clearing services: you can avail of electronic clearing system (ECS)
services. This ensures automatic credit of benefits and redemptions when they
accrue.
•

Easy access: you can apply for subscriptions into these

bonds in any SHCIL center across the country.
•

Dispatch: certificate of holdings are dispatched to the client

through courier on realization of subscription.
PROCEDURE
Subscription is a very simple process. Obtain the application form from any of
SHCIL notified centers across India. SHCIL officials will assist you in filling up of
your application form. Fill up all the relevant columns provided in the application
form. E.g. for ECS facility, a proof of the ECS account like cancelled
Cheque/bankers certification authenticating the account number and MICR details.
Attach a Cheque /draft/pay order in accordance with the series of subscription you
want to make for the requisite amount in favor of:
‘Stock holding corporation of India ltd. a/c GOI 8.0% savings
(taxable) bonds,
A certificate of holding will be issued specifying the investment(s) made under the
bond ledger account. The date of investment will be the date of realization of the
instrument(s).
CHECKLIST
Kindly attach the following documents as per the checklist below:
• Document
8.0% (taxable)
•

ECS mandate documents

•

Power of attorney documents (if appointed)

•

HUF declaration (for HUF investors only)

•

Certificate of identity – for address change and nominee

claims
•

Minor – birth certificate, legal or natural guardian

certificate
•

Form 60 or PAN for investments above Rs. 50000.

• Charitable institutions- TDS exemption certificate from IT
department, board resolutions, trust deed
•

Form 15H (individuals claiming exemption of TDS)

• Universities – incorporation certificate under section 3 of
the

University Grants Commission Act, 1956.

(E) INSURANCE
INTRODUCTION
SHCIL, a company promoted by insurance majors and financial institutions, is a
corporate agent of LIC for life insurance products and NIA for general insurance
products. SHCIL has a dedicated team of IRDA certified insurance advisors to
provide all services relating to insurance. We also provide free professional advice
to clients on need base insurance. SHCIL has 100 odd branches all over India to
take care of all your insurance related queries and needs.
FEATURES
•
 An insurance policy compensates you against the financial impact that can arise
following loss, damage of destruction of your property (such as home or vehicle) or
your health or life.
•

A fundamental principle of insurance is to put you in the same financial position after
a loss or accident that you enjoyed before the loss. This is relatively easy with repair
or replacement of (say) a car, but is much more difficult with the loss of life. The
insurance policy is a contract and like any contract contains clauses and conditions.
Claims are settled in accordance with the conditions detailed in the policy.

• SHCIL distributes life insurance policies of LIC and non-life

insurance policies of NIA.
• The service is available at any of over 100 branches of
SHCIL.
LIC PRODUCTS
Key Man
KEY MAN INSURANCE
Children Insurance Policy
Komal Jeewan plan 159
Jeewan Kishore plan 102
Jeewan Chayya plan 103
Endowment Policy
Endowment with Profits plan 14
Limited Payment Endowment

Jeewan Mitra plan 133

Jeewan Anand plan 149
Joint Life (Jeewan Saathi)
Policy plan 89
Retirement plan
Retirement plan
NIA PRODUCTS
MEDICLAIM POLICY
FIRE INSURANCE
PRIVATE CAR INSURANCE
HOUSEHOLDER’S POLICY
MEDICLAIM POLICY
The insurance policy can be used to protect the insured party
against
expenses
incurred
for
hospitalization
for

• Liability for third party’s injury or death, third party property

and towards the paid driver too.
• Drunken driving.
HOUSEHOLDER’S POLICY
The householder’s insurance policy comprises of ten sections covering the insured’s
building, fixtures and fittings, contents, jewelry and valuables, television sets and
VCR’S, bicycles, accompanied baggage as well as personal accident and public
liability benefits. Of these ten, the insured party must opt for at least three sections
and section 2 is compulsory.
If the insured party opts for cover for more than 4 sections excluding compulsory
sections, a discount of 15 % is on the non tariff sections. For more than 6 sections,
excluding sections 1 and 2, 20 % discount is offered on non tariff sections.
(F) STOCK DIRECT
INTRODUCTION
Stock direct has changed the way you look at trading in securities. From your
desktop you can now send instructions for buying/selling shares. A three way hands
shake between leading brokers, national and international banks and SHCIL is the
crux of stock direct.
Stock direct – India’s first online trading platform was launched in 1999. Today stock
direct is the most secure online trading platform which combines encryption
technology/digital signature features. A few clicks will seamlessly check your funds
and security positions, route the order to the broker of your choice and do the
necessary fund and share movements for you.

FEATURES
• A single instruction enables you to combine your trading,
fund and shares transfer with SHCIL taking care of the
settlement.
•

Trade from home on the internet with floppy containing

stock direct software.
• Security measures based on encryption and digital signature
technology make your online deals 100% secure.
• Open a purchase advance account with SHCIL to facilitate
your fund transfers.
• Choose the exchange to trade from BSE and NSE.
ADVANTAGES
One Stop Shop
Give a single instruction towards funds confirmation for buy orders, order routing to
your broker and fund and share movements for settlement purpose.
Convenience
Trade at home through net.
Security
Digital signature technology based on 128 bit encryption makes
your transactions 100% secure.
Cost effective
No minimum value of transaction.
Choice of Stock Exchanges
Buy/sell shares on BSE/NSE

PROCEDURE
•

If you already have a DEMAT account with us, fill up a conversion form to convert
your DEMAT account to stock direct. If you do not have a DEMAT account, fill up a
DEMAT account opening form and submit it at any of our branches.
•

Register with any of our empanelled brokers by filling up the broker registration form
and submit it along with the account opening/conversion form.
•

Open account with SHCIL, a running account called the purchase advance by
remitting an initial advance of Rs. 1000 by way of Cheque /DD.
TARIFF
Brokerage
0.50% with a minimum of Rs.50 per client per broker per
settlement*.
Normal ISA charges applicable as per client’s tariff scheme.
Service tax applicable as per GOI notifications.
Media charges (one time): Rs.100 + Service tax.
(G) PENSION FUNDS
INTR ODUCTION
SHCIL offers pension fund administration services to pension fund trusts. The
pension fund scheme administered by the trust could be a defined benefit or a
defined contribution scheme. For both the scheme types, SHCIL offers the entire
range of services that
• Customized pension fund administration software to meet
the unique features of the pension scheme.
• Records of members maintained in electronic form to enable
quick access and retrieval of data.
•

System generated pension orders, uniquely referenced with

necessary supporting documents.
• Employees benefit from timely release of pension orders.
• Substantial saving in cost achievable through outsourcing.
•

Benefit from SHCIL’s vast and rich experience in providing back office services to
the financial services industry as a whole and in the area of pension administration
in a particular.
•

Application of latest IT technology to smoothen operations

and achieve speedier settlement.
• Benefit from the wide network of SHCIL offices across the
country.

SERVICES OF FERED BY SHCIL

(1) CUSTODIAL SERVICES
INTRODUCTION
SHCIL provides first-rate custodial services to India’s leading Financial Institutions,
Insurance Companies, Mutual Funds, Foreign Institutional Investors (FII’s), Banks,
Indian and Foreign Venture Capital Companies, Funds, PF Trusts & Corporate.
SHCIL,s core competence in custodial business spans 18 years, with a dedicated
pool of trained and experienced professionals working literally round the clock using
state-of-the-art computer systems and world class technology. SHCIL maintains
dedicated communication channels, well connected to client institutions, stock
exchanges, clearing houses and depositories, thus maintaining process and quality
leadership.
As a custodian entrusted with sizable assets, SHCIL is continuously leveraging its
scale and capabilities to help its clients mitigate risk and optimize efficiencies with
greater control.
CLEARING AND SETTLEMENT SERVICES
POST TRADING SERVICES
SHCIL has specially trained personnel handling thousands of trade instructions
involving large values on sophisticated systems using digital signature on STP
(straight through processing) systems, ensuring smooth trade confirmations to stock
exchanges. SHCIL provides the choice of multiple STP service provides enabling

competitive advantage of efficient settlements. SHCIL seamlessly monitors trades

and ensures failed trade management with reporting and resolution of mismatches,
etc. At SHCIL, a client has the flexibility of settlement of funds through a wide panel
of banks having RTGS facility.
SETTLEMENT SERVICES
Most of the institutional trades are settled through the clearing house of the stock
exchanges. As a custodian, SHCIL facilitates timely settlement of funds and
securities. Funds are collected /deposited from/to client and settled with the clearing
houses.
Most of the institutional trades are settled in the depository mode. For the
institutional segment alone, SHCIL has a unique clearing code on the two principal
stock exchanges and separate DPM units on both NSDL and CDSL. This ensures
smooth settlement of transactions on both exchanges/depositories, based on the
deliverables and receivables received by them for each settlement. Daily verification
of settlements (auction/normal) facilitates smooth reconciliation of settlements of
client’s trades and mitigates systemic risk.
For debt market deals SHCIL ensures timely movement of
securities and funds.
• If you would like to receive credit of shares purchased
directly into your account, mark standing instruction as ‘yes’.
YOUR ACCOUNT IS OPENED
Once your account is opened, you will be allotted a client identity
number. You will be sent an operating kit containing:
• Details of your account as recorded by SHCIL.
• Copy of the agreement entered into with SHCIL.
•

‘Delivery instruction by client’ booklet allotted to your DEMAT account. This booklet
helps you transfer shares from your account to broker account and other accounts.
•

Now you are ready to operate your DP account.

IMPO R TANT POINTS
• PAN mandatory.
• SMS alerts for debits and failed trades provided by NSDL.
CDSL is providing only for debits. Hence clients may get their
mobile number and SMS flag updated.
•

As per the latest NSDL guidelines, client may give local address or correspondence
address, depending on his preference to receive the communications from the
companies.
•

Complete address of the bank branch, bank account number, account type and 9
digit MICR number is mandatory. Please provide the specimen copy of a Cheque for
noting the correct 9 digit MICR code.
• At the time of account opening, clients are requested to
provide the proofs for identification and address. The list
may be provided.
•

Thumb impressions should be attested by a magistrate or a

notary public or a special executive magistrate.

NSDL does not have the facility to operate a beneficiary

account on ‘either or survivor’ basis.
•

The power of attorney should either contain a clause which gives power to sell or to
deal with securities generally or a clause which gives power to operate depository
account. NSDL has provided a sample clause in its circular number:
NSDL/PI/2000/982 dated June 23, 2000. The sample clause is as follows:
“To sell or otherwise deal with or dispose-off and to purchase, subscribe or
otherwise acquire in any manner from the market or under public or rights issue or
otherwise and accept the transfers of any stock, funds, shares, debentures,
government and other promissory notes, securities, bonds, annuities or other
mercantile negotiable instruments which shall or may at any time belong to me or
which hereafter be transferred to me, whether solely or jointly and whether in my
own right or having any other interest of whatsoever nature and however arising and
in any capacity whatsoever including those belonging to others with my name and
for such purposes to sign, execute or endorse all instruments of transfer and other
documents for any purpose whatsoever by virtue of these present”.
NOMINATION FOR DP ACCOUNTS – INDIVIDUAL(S)
BENEFICIARY ACCOUNTS
•

As per the instructions received from the depositories, we can take cognizance of
nomination only if it is submitted in the prescribed format and the same ahs to be
registered with the depository participant (DP) under a ‘nomination registration
number’ (NRN). In the absence of NRN, DP will

not be able to transmit the securities in favor of the nominee only if it is registered
and after duly submitting the prescribed documents.
•

If nomination has not been registered, account holders may submit the nomination
form in the prescribed format to the nearest SHCIL center. On registration of the
nomination, the NRN will be communicated to the account holder(s). In case
nomination is not registered, securities can be transmitted to legal documents as per
depository guidelines.
MAINTENANCE
Change in Permanent/Correspondence Address
•

A request letter (format available on the site) signed by all the holders are required
along with this photocopy of proof of identification and proof of new address is
required. Please bring the originals with you for verification purpose. Client or the
authorized bearer can visit our branch for the same. Copy of the last transaction
statement received from SHCIL is also required.
•

Change in Signature
•
 Request letter (format available) signed by the client. The new signature to be
attested by the bank. The request may be submitted along with the copy of POI and
the photocopy of the latest transaction statement received from SHCIL.
Addition of P AN /MAPIN
•

Request letter by the client giving the PAN/MAPIN number

For the occasional delivery and receipt of securities in the physical mode, SHCIL
ensures prompt scrutiny, processing and lodgment of securities with the respective
company/ registrar and transfer agent, with the objective of final transfer to the
purchaser, with objections handling if needed. SHCIL also ensures that delivery of
physical securities to exchanges is handled strictly as per exchange regulations.
PHYSICAL CUSTODY (VAULT) SERVICES

DEATH OF BENEFICIARY ACCOUNT HOLDER(S) –

TRANSMISSION OF ACCOUNT
Transmission of account takes place in the event of the death of the beneficiary
account holder(s). There can be three situations in transmission of account. See
which category you fit into and
follow the relevant procedure:
(1)When the account has joint holders and one dies.
(2)When the account has a sole holder with a nominee.
(3)When the account has a sole holder without a nominee.
If the shares are transmitted to beneficiary account of surviving
holders and this beneficiary account is in a DP other than
SHCIL.
•

Classify the transmission case into the above categories.

• Over and above the documents explained above, the client
master list from the target DP has to be submitted.
Freezing Of Account
An account is frozen /suspended:
•

Only on your instruction.

•

By competent authority, i.e., by the depository/SEBI.

• On receipt of court order.
De-freezing Of Account
De-freezing of an account takes place:
• Only on your instruction.
•

For de-freezing pledge accounts, your instruction has to be

accompanied by bank authorization.
(3 ) DEMAT
De-materialization is the process of conversion of shares from
physical form to the electronic mode. Our dedicated DEMAT team

enable you to convert your physical holdings/debentures/bonds/G-

SECS into electronic mode in a quick and hassle free manner.
TRANSPOSITION CUM DEMATERIALIZATION
The clients can get the securities dematerialized in the same account if the names
appearing on the certificates match with the names in the DEMAT account but are in
different order. This can be done by submitting the certificates along with the
transposition form and the dematerialization request form (DRF).
TRANSMISSION AND DEMATERIALIZATION
In case of death of one or more of the joint folders, the surviving holder(s) can get
the name(s) of the deceased deleted from the security certificate and get the same
dematerialized. Notarized copy of the death certificate, transmission form as per
annexure OB and the dematerialization request form (DRF) have to be submitted by
the surviving joint holder(s) along with the security certificates.
As per SEBI, scrips can be divided as:
•

Scrips Eligible For DEMAT

These scrips can be traded either in physical or electronic form.
•

Scrips falling under compulsory DEM AT

These scrips can be traded only in electronic form.
• Submit DEMAT Request Form.
Once your demat account is opened with us and you have received your client
identity number, you can start dematerializing your shares. You can submit the
shares over the counter at any of our branches. Do go through the tips given on
filling up the DRF to avoid rejection.
Your Shares Are Dematerialized
•

When the company gives you credit, these shares will reflect under ‘free’ column.
Now you can sell these shares. In case the company is not satisfied with the details
furnished, it will reject the shares.
•

If your shares have been rejected by the company, SHCIL will forward the shares to
you on receiving them from the company.
(4) PLEDGE
You can pledge or hypothecate your dematerialized shares against loan or credit
facilities extended by a pledgee who also has an account with a DP.
The Pledge Procedure
•

Pledgor fills in a form requesting the DP to pledge the shares

and hands it over to the DP.
•

If the form is complete in all respects, the DP processes the form and generates a
pledge/hypothecation instruction number for the request.
•

Securities to the extent of the instruction are debited from free or locked-in balances
and credited as pledged balances of the Pledgor so that they cannot be used for any
transactions.
•

The pledgee will submit a form to its DP to accept/reject the

pledge/hypothecation request.
•

If the pledgee accepts the request by the pledgor, the acceptance is communicated
electronically to the pledgor’s DP. Once the pledge’s DP confirms the acceptance of
the pledge, the pledgor cannot cancel the pledge/hypothecation order. The
pledgee’s DP executes the pledge/hypothecation request as per the instructions
given