Housing Finance

Q. Who can avail Housing Loan from your Bank?
A. Any Individual

Q. Please let me know the purpose for which I can avail Housing Loan?
A.

	For construction of house.
	For purchase of house/ flat.
	For purchase of house/ flat from the original allottee, i.e. on First Power of Attorney basis.
	For carrying out repairs/ renovation/ additions/ alterations in the existing house.

Q. How much loan amount can I avail?
A. In case of house/flat, 75% of the cost of project, depending upon project cost and your repaying capacity. In case of Plot, loan to the extent of 60% of the cost of plot will be permissible.

Q. What will be the rate of interest?

Rate of Interest

I. Housing Finance to Individuals including NRIs For repayment period	Fixed Option for loans		Floating Option for loans
	Upto 20 lac	Above 20 lac	Upto 20 lac	Above 20 lac
i) Upto 5 years	10.25	11.25	9.00	10.00
ii) Above 5 & upto 10 years	11.00	12.00	9.25	10.25
iii) Above 10 & upto 20 years	11.25	12.25	9.50	10.50
iv) Above 20 yrs & upto 25 yrs.	11.75	12.75	10.00	11.00

Note : 1. Fixed Rate of interest are subject to re-set clause of five years.
2. For persons availing loan for 2nd or subsequent house, 1% extra rate of interest will be levied.
3. Interest rates, updated as on 18.10.2007

Can the option on the rate of interest exercised at the time of sanction be switched over during the currency of the loan?
A. The option for Fixed or Floating Rate of Interest exercised by the borrower at the time of sanction will not be allowed to be switched over for a minimum period of 3 years. Thereafter, any change would be at the discretion of the Sanctioning Authority.

Q. How much period is available for repayment?
A. Loan together with interest is to be repaid in Equated Monthly Installments within a maximum period of 25 years, or before the borrower attains the age of 65 years.

Q. Whether interest applicable is flat rate or at reducing balance?
A. Interest is charged on reducing balance.

Q. What formalities are to be completed for availing the facility?
A. Formalities vary from case to case. For details, kindly contact our nearest branch.

Q. What security is required by the bank for making the loan?
A.

	Mortgage of property for which finance is being given.
	In case of purchase of house flat from housing board/ society where mortgage cannot be created immediately, a tripartite agreement shall be executed amongst the housing board/society, borrower and the Bank.
	In case of purchase of house/ flat on first power of attorney, additional security by way of mortgage of some other property or pledge of Bank's Fixed Deposit Receipt/ LIC policy/ Govt. securities has to be provided.
	Suitable third party guarantee acceptable to the Bank which may include guarantee from family members/ other relatives.

Updated as on 18.10.2007

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Car Loan

Q Who can avail Car Loan?
A Individuals and Business Concerns.

Q Whether finance is also available for used cars?
A Finance is also available for purchase of used cars not older than 3 years.

Q How much loan can be availed under the scheme?
A For individuals, loan amount shall be 25 times the Net Monthly Salary/Income, subject to maximum of Rs.15.00 lac or 80% of the cost of the vehicle whichever is less. In case of business concerns, loan amount can be need based and is not subject to any ceiling.

Q Whether the income of the spouse is also taken into account for determining the amount of loan?
A Yes, income of the spouse can also be taken into account for determining the amount of loan. In such cases, the spouse shall stand a guarantor.

Q What will be the repayment period?
A Amount of loan together with interest shall be repayable maximum in 84 equal monthly installments. However, for old car, loan together with interest is to be repaid maximum in 60 equal monthly installments.

Q What is the rate of interest charged?
A.

Amount	Under Floating Rate of Interest Option (% p.a.)
For Individuals with minimum RBL score of 60	11.50
For others (incl. business concerns)	12.00

Q Whether interest applicable is flat rate or at reducing balance?
A Interest is charged on reducing balance.

Q What formalities are to be completed for availing the facility?
A The following documents are required to be submitted:

	Proforma Invoice of Car to be purchased.
	Proof of residence
	Proof of Income
	Details of guarantor.

Updated as on 18.10.2007

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Professional Loan

Q. Who is eligible to get loan under the scheme?
A. The following categories of professionals are eligible to get loan under the scheme:

	Persons already practicing or new entrants in various professionals, having licenses issued under Central or State Legislations.
	Associations of persons engaged in a single profession provided that each member of such an association is qualified and duly licensed to practice in the profession; and
	The qualified professionals will be required to produce a certified copy of the license for the record at the bank.

Q. What is the purpose for which advance is sanctioned?
A. Loans under this scheme may be granted for the purpose of financing purchase of equipment used by the borrowers, business premises, construction, making alterations or renovation of business premises/ nursing homes or for working capital requirements, in their professions.

Q. How many loans can be availed under this scheme?
A. Amount of loan: Need based on merits within the overall permissible limits as under: Metro/ Urban S.Urban/ Rural Area 1.Medical practitioners 5.00 lac 10.0 lac 2. Other professionals 5.00 lac 5.00 lac 3. Margin : Nil up to Rs.25000/-. 25% Above Rs.25000/-

Q. What is the rate of Interest charged?
A.

* Subject to change.

Q. What will be the repayment period for the term loan?
A. Repayment will be in equal monthly installments within the following periods: · Loans up to Rs.50000/- 48 months · Loans beyond Rs.50000/- 60 months

Q. What is the procedure for disbursement of the loan?
A. Payment will be made direct to the suppliers/ dealers. In case of construction of the premises, the loan may be disbursed in phases after verifying the end use in terms of the plan as also at the spot.

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Education Loan

Q. What are the types of education for which education loans are given?
A. Education loans are given for pursuing all types of education viz. general, professional, technical and vocational courses.

Q. Which costs are financed under the scheme?
A. The scheme enables the needy students to meet the following costs for studies in India as well as abroad: admission fees, books & stationery, instruments required for the course, monthly fees, examination fees, insurance premium for policy on life of the borrowing student, caution deposit/ building fund/ refundable deposit supported by bills/ receipts, expenses like study tours/ project work/ thesis etc. required to complete the course, boarding and lodging expenses, and travel expenses/ passage money including air fare for joining the course abroad.

Q. Who is eligible to get loan under the scheme?
A.

Student eligibility

	Should be an Indian National.
	Secured admission to Professional / Technical courses through Entrance Test / Selection process.
	Secured admission to foreign University / Institutions.
	Student should have secured pass marks in the qualifying Examination for admission to Graduation Courses.

Q. How much loan amount can I avail?
A. Need based finance, subject to repaying capacity of the parents / students with margin subject to the following ceilings :-

	For studies in India: Rs. 7.50 lacs
	For studies abroad: Rs.15.00 lacs

Q. What is the security required by the bank?
A. The following additional security in addition to the personal liability of the borrower is required:

Q. What is the rate of interest charged in the loan?
A. Interest rates are linked with BPLR, as under :

Amount	Under PNB Vidya Lakshya Purti Scheme	Under PNB Sarvottam Shiksha Scheme
Upto Rs.4 Lacs	12.25%	11.25%
Above Rs.4 Lacs & Upto Rs.15 Lacs	13.50%	12.75%

The Interest rates are subject to change from time to time.

Q. What is the method of application of interest in the loan?
A. The interest shall be charged at simple rate from the date of disbursement till the commencement of repayment of loan. Thereafter, compound interest is charged on reducing balance.

Q. When does the repayment of loan commence?
A. Repayment will commence after Course period + 1 year OR 6 months after getting job, whichever is earlier.

Q. What is the repayment schedule?
A. Principal and interest is repayable in 60 to 84 monthly installments.

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Krishi Cards

Q. Can I raise loan under this scheme for activities other than Agriculture?
A. Yes, for other rural household requirements such as education, consumable items, medical expenses, etc. up to 25% of the limit or Rs.25,000/- whichever is lower.

Q. Do I need minimum qualification to be eligible under the scheme?
A. No.

Q. If I have 5 acre of unirrigated land, am I eligible under the scheme?
A. Yes.

Q. Can I take the payment from the other branches also?
A. Yes, but within the same district whereas the illiterate cardholders will avail the facility from the issuing branch only.

Q. Do I have to pay any additional fee/charge for withdrawing cash from other than the issuing branch?
A. Yes, if you withdraw cash from the branch other than the issuing branch a commission @2% is charged and the same is deducted from the cash withdrawn.

Q. If I want to renew my Krishi Card what formalities are required?
A. You should approach the issuing branch one month before the expiry of the card with a written request for the same.

Q. Is there any concept of the margin under the scheme?
A. For limits up to Rs. 2,00,000/-, the margin requirements are nil. For limits above Rs.200,000/- up to Rs. 3,00,000/-, margin requirement is 10%.

Q. In case of loss of card/passbook what are the formalities?
A. Inform the card issuing branch by quickest means and a new card is re-issued on payment of nominal charges of Rs.200/-.

Q. How do you work out the eligible limit?
A. The limit is worked out on the basis of your total income from farm as well as non-farm activities, extent of land holding, acreage and average yield of crops grown, price realisations etc.

Q. How do I repay the amount raised against the card?
A. Aggregate credits into the account during the 12/18 months period as the case may be, should at least be equal to the maximum outstanding in the account. The cardholder will also have to maintain his/her cash credit account in credit balance for at least one week once a year. However, the consumption loan portion shall be adjusted within a period of three years. All the repayments/deposits by the cardholder shall be made at the card-issuing branch only.

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Mortgage of Property

Q. For which activities loan can be raised under this scheme?
A. Loans can be provided under this scheme to both individuals as well as business enterprises for the purpose of meeting business and personal needs. Personal needs would cover children's higher education, travel, daughter's marriage, medical emergencies, etc. Loans, however, are not available for speculative purpose.

Q.Are loans available in rural/semi-urban areas?
A. Loans are available anywhere in India from PNB branches.

Q. What is the repayment schedule for this scheme?
A. Loan together with interest is repayable in maximum 84 equal monthly installments.

Q. What is the security to be provided for this loan?
A. Loans can be provided under this scheme against non-encumbered residential house/flat or commercial or industrial property (in the shape of building/industrial shed) self occupied or vacant.

Q. What is the rate of interest to be charged on loans under this scheme?
A. BPLR + 1.75% (i.e. presently 14.75%)

Term premia of 0.50% be added in interest rates in respect of Term Loans repayable in three years & above.

Updated as on 18.10.2007

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Future Lease Rentals

Q. For which activities loan can be raised under this scheme?
A. Loans can be provided under this scheme to both individuals as well as business enterprises for the purpose of meeting business and personal needs. Loans, however, are not available for speculative purpose.

Q. What is the repayment schedule for this scheme?
Ans. Maximum 120 monthly instalments or remaining period of lease whichever is earlier.

Q. What is the security to be provided for this loan?
A. Security under this scheme is to be provided as under:

	Assignment of lease rentals.
	Equitable mortgage of any immovable property to the extent of 100% of the loan.

Q. What is the rate of interest to be charged on loans under this scheme?
A. At present Interest rate is 12.75% as Term Loan. This is subject to change from time to time. (updated as on 30.09.2007) Term premia of 0.50% be added on loans repayable in three years & above.

Q. Are there any processing charges for loans under this scheme?
A. Loan carries a nominal processing charges of Rs.200 for loans up to Rs. 2 lac, and Rs. 150 per lac or part thereof in case of loans over Rs. 2 lac. There are no pre-payment charges. FAQs-Finance to Housewives and other women

Q. Who can avail Loan from your Bank under the scheme for financing housewives?
A. Any woman/housewife, 18 years of age and above, living at a place for more than 6 months and who has not been a member of any industrial co-operative society, as also not indebted to any cooperative or state agency, can avail loan under this scheme.

Q. What kind of activities can be got financed under this scheme?
A. Housewives and other ladies can avail this loan for projects relating to artisans, village and cottage industries, SSI, small business and retail trade. Industrial projects requiring higher assistance may also be considered under the scheme of financing small-scale industries.

Q. How the loan is disbursed?
A. The amount of loan for purchase of equipment shall be paid directly to the supplier. Advances against raw material will be made either in the form of pay order in favour of the supplier or on the presentation of bill to the bank. In respect of requirements of petty items like tools, equipment and raw materials, cost not exceeding Rs.800/- per item, the amount may be released either to the borrower or to supplier in cash up to Rs.3000/- on merits, without insisting for performa bills, cash-memo(s) etc.

Q. What will be the loan amount?
A. The amount to be disbursed will be need based, subject to ceiling of Rs.25,000/- per borrower for purchase of machinery/equipment etc. and meeting working capital requirement of one operating cycle.

Q. What will be the repayment period?
A. The term loan/composite term loan is required to be adjusted in 36 monthly installments starting 3 to 6 months from the date of availment depending upon generation of surplus.

Q. What is the rate of Interest charged?
A. At present Interest rate is 12.00%. This is subject to change from time to time.

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Mahila Udham Nidhi Scheme

Q. Who can avail loan under Mahila Udyam Nidhi Scheme from your Bank?
A. Entrepreneurs engaged in new projects in tiny and small scale sectors for manufacture, preservation or processing of goods ((tiny enterprises would include all industrial units and services industries (except Road Transport Operators) satisfying the investment ceiling prescribed for tiny enterprises viz. Rs. 5 lakh). Apart from this, all tiny and small scale industry entrepreneurs (including those who have availed this facility earlier) are also eligible for undertaking expansion, modernisation, technology upgradation and diversification. Sick units in the tiny and small scale sectors including service enterprises as mentioned above, which are considered potentially viable, besides all industrial activities and service activities (except Road Transport Operators) in the SSI sector, are also eligible for loan under this scheme.

Q. What are the criteria for project outlay for financing under this scheme?
A. The project cost criterion (including margin money for working capital) is as under: q for new projects: not exceeding Rs.10.00 lakh per project. q for existing units and service enterprises: the outlay on expansion/modernisation/technology upgradation, or diversification or rehabilitation should not be exceeding Rs.10.00 lakh per project.

Q. How is the soft loan portion disbursed?
A. The soft loan is to be disbursed in accordance with terms and conditions of sanction and only after the promoter(s) has (have) brought in her (their) own contribution in full. In this connection, the bank acts as agent of SIDBI for sanction, disbursement and recovery of soft loan.

Q. What will be the soft loan amount?
A. A soft loan under this scheme can be sanctioned up to 25% of the project cost with a ceiling of Rs.2.50 lakh per project to meet the gap in equity as per prescribed Debt Equity Ratio (DER) of 1.857:1 (excluding State subsidy which may be retained for meeting working capital), after taking into account the promoters' own contribution equivalent to 10% of the project cost. In addition, term loan may be sanctioned as per usual norms under Refinance Scheme of SIDBI.

Q. What will be the repayment period of the soft loan?
A. The soft loan is repayable within 10 years (inclusive of initial moratorium period of not more than five years). However, the period of repayment of soft loan will be co-terminus with that of term loan.

Q. What are the rate(s) of Interest charged for the soft loan and the term loan respectively?
A. In case of the soft loan, only service charge @ 1% p.a. is payable, which may be retained by lending office. As for the term loan, the interest rates will be as advised from time to time OR structure under the Refinance Scheme as fixed by SIDBI from time to time, in case refinance has been availed.

Q. What is the extent of Refinance/reimbursement of the soft loan that can be availed under this scheme?
A. The term loan under the scheme will be provided as given under the Refinance Scheme. The Soft Loan, on the other hand, will be reimbursed to the extent of 100%.

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Anupam Accounts

Q. Who can open an Anupam Account?
A. Account can be opened by individuals, sole proprietorship concerns, partnership firms, associations, trusts, limited companies etc. Minors are not eligible.

Q. What is the minimum amount of deposit and period for opening the account?
A. Account can be opened with a minimum deposit of Rs.10,000/- for any period from 6 months to 120 months.

Q. Whether the customer can avail overdraft against the deposits instantly and when a chequebook for overdraft is issued?
A. Yes, Overdraft against the deposit is available instantly and automatically. A chequebook is issued at the time of accepting the deposit.

Q. Whether simple/compound rate of interest is payable on deposits?
A. Interest on deposit is paid on quarterly compounding basis at term deposit rates.

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DEBIT Card

1. What is a Debit Card?
Reply: A Debit Card provides access to ATMs for cash withdrawals, balance enquiries and mini statement, on-line electronic payment for purchases from your savings / current (individual) accounts. You can also transfer funds through ATM to your own / other PNB accounts and also transfer / receive funds to / from any MasterCard or Maestro card holder (Debit or Credit card) of other selected banks.

2. How many type of Debit cards Punjab National Bank is issuing?
Reply: At present following types of Debit card Bank is issuing:
i. PIN based Debit Card (Maestro card)
ii. Signature based Classic Debit card (Master card)
iii. Signature based Gold Debit card with photo (Master card)

3. What is PIN (Personal Identification Number)?
Reply: PIN is a unique 4 digit number that allows you to access your account through Debit Card at ATMs.
For safety, your PIN should always be kept completely confidential and your card too should remain in your possession and not to be handed over to anyone else. Neither write PIN on the Back of the Debit card nor Keep Debit Card along with PIN.

4. How can I get a Debit Card?
Reply: Debit card can be obtained from any CBS branch of PNB (irrespective of your account maintaining branch) by filling a Debit Card application form. In case of Non-Personalized card (without name) the card would be issued instantly. In case of Personalized card (with name) the card would be issued in 7-8 working days. You can also get a Debit Card through PNB 24 Hour Call Centre by making a call at 1800 180 2222 (Toll free) and 0124-2340000 (accessible from mobile also), in which case the deactivated card would be delivered at your address directly within 7-10 working days. However you can send the duly filled application from along with proof of identity to HO for activation of the card.

5. I have not received my personalized card even after 10 days of giving the request at the branch / call centre.
Reply: You should contact the Branch / call centre to enquire about the status of your request. In case you do not get a satisfactory reply, please contact Debit Card Cell at 011 – 23710021 or through email at debitcard@pnb.co.in

6. I have received the Debit Card but the PIN is not legible .
Reply: You should contact the card issuing branch and request for a duplicate PIN. You can collect the Duplicate PIN from the branch after 7 working days.

7. Where my Debit card can be used?
Reply: Debit Card can be used throughout the world on all the ATMs having Maestro/Cirrus logo.

8. How does the Debit Card work?
Reply: Insert your Debit card in ATM and follow the instructions displayed on the screen. On POS you need to swipe the card and sign the Bill after verifying the amount.

9. What is the validity of PNB Debit Card?
Reply: PIN based Maestro Debit card has no expiry date. However Signature based Debit Card is valid for 7 years from the date of issue.

10. Are there any transaction limits for the Debit Card?
Reply: For PIN Based Maestro Debit card and Signature Based classic Debit card the daily cash withdrawal limit at ATM and shopping limit at merchant establishments are Rs. 25,000 each. However per transaction limit at ATM is Rs. 15,000 only.
For Signature Based Gold Debit Card, the daily cash withdrawal limit at ATM and shopping limit at merchant establishments are Rs. 40,000 and Rs. 60,000/- respectively. However per transaction limit at ATM is Rs. 15,000 only.

11. If Debit card is lost or misplaced what should I do?
Reply: You should immediately contact our below given no. of call centre to get the card hotlisted / blocked.
1800 180 2222 (Toll Free)
Contact Numbers 0124 – 2340000 (Accessible from Mobile also)
In case you do not get the Call Centre no, contact our helpdesk no of ATM Switch at 011 -23765143, 011 - 23323672.

12. Is there any Fee for the issuance of Debit card?
Reply: PNB Debit Card is issued free of cost. However a nominal fee of Rs. 100 per Year will be levied after one year of Card issuance every year.

13. Is there any charge levied for use of the card for Cash withdrawal?
Reply: No charge is levied for use of the card for cash withdrawal at PNB ATMs while Rs. 20/- is levied at other bank sharing ATMs under MITR, NFS, SBI Group, EBL and the ATMs with Maestro/Cirrus Logo upto 31st March 2009 after which it will be free of charge. Balance Enquiry is free at all banks’ ATMs.

14. Can a fresh Debit card issued in lieu of lost/damaged card and what is the amount to be charged?
Reply: Yes. Rs. 100/- for lost card while free of charge for replacement of damaged card.

15. If lost card is subsequently found/traced and restored to cardholder, can it be reactivated?
Reply: card once hot listed / blocked cannot be re-activated. You can make a request for a fresh card.

16. What is Mini Statement?
Reply: It is a statement of account showing last 10 transactions made in the account through PNB ATM.

17. How should I maintain the secrecy of PIN?
Reply: If at any time you feel that the PIN has been inadvertently or otherwise divulged to any one you should change the same through any PNB ATM immediately.

18. How often can I change the PIN?
Reply: PIN can be changed any number of times.

19. How many accounts maximum can be linked to my Debit card?
Reply: Maximum of 3 accounts held in the same name and same capacity can be linked to a Debit card.

20. Does Bank bear any liability for unauthorized use of the Card?
Reply: No. The responsibility is solely vested with the cardholder.

21. What is CVV No.?
Reply: On the back of Debit card (Classic & Gold) there are 7 digits out of which the last 3 digits are the card CVV no. This no. can be used only for ecommerce transaction.
Please note that this CVV no is an important value in the card as any person can misuse the card over the internet if he is aware of this value besides other information (like card no., name and Expiry date) without having actual possession of the card. You should remember the CVV number mentioned on the reverse of the Debit card and hide this number by blackening it out to avoid its misuse.

22. What is Add-On card facility?
Reply: Any card holder can get 2 more Debit cards in the name of his / her spouse and dependent parents and children not below 18 years old. Debit card will be linked to the cardholder’s main account.

23. My Debit card doesn’t work successfully on ATMs.
Reply: Debit Card does not work successfully on ATMs due to any of the following reasons;
• You may be using the card before the expiry of 24 working hours of receipt of the card from the branch, the time required for activation of the card.
• In case you have received the card through the call centre, you have not sent the required documents (application form and proof of identity) to HO.
• You may not have swiped the card properly. Try 2 to 3 times.
• The quality of the magnetic stripe of your card has been damaged / deteriorated due to which it is not accepted by any ATM where the card reader may be weak. In such a case you may try at another nearby ATM and if still does not work, get it replaced by a new one from PNB branch free of cost.
• Your account may be inoperative or frozen at branch level due to some reason. Please contact your branch to know the account status.
• You may be using wrong PIN.
• You might have selected the wrong account type i.e. savings instead of current or vice-versa.
• Connectivity from the ATM to your branch has failed. In such case please try after some time or use another ATM nearby.

24. My Debit card works successfully on PNB ATMs but not on other Bank’s
ATMs.
Reply: The problem may be due to connectivity failure at other bank ATM to PNB. Please try after some time when connectivity is restored. Alternately you may try another ATM nearby.

25. My Debit card works successfully on ATMs but not at POS terminals.
Reply: Debit card does not work successfully on POS terminals due to any of the following reasons;
• Connectivity failure at that particular time.
• Weak card reader of POS.
• Magnetic stripe of the card deteriorated / damaged.
• It may be a Maestro Card (PIN based).
You may use the card after some time when the connectivity is restored or get the card replaced with a signature based card (non-Pin based) from PNB free of cost.

26. My card doesn’t work on few ATMs of PNB.
Reply: The quality of the magnetic stripe of your card has been damaged / deteriorated due to which it is not accepted by few ATMs where the card reader may also be weak. Try at some other nearby ATM. In such case you may get the card replaced by a new one from PNB branch free of cost and lodge a complaint in the branch for replacement of card reader of ATM            

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I General

Q1. What is a Depository?
A. Depository is an organization where the securities of a shareholder are held in the electronic form. This is done at the request of the shareholder through the medium of a Depository Participant (DP). A depository is similar to a Bank. If an Investor wants to utilize the services offered by a depository, he/she has to open an account with the depository through a DP.

Q2. What is a Depository Participant?
A DP is your representative in the depository system and is similar to your bank branch. Your DP will maintain your securities account balances and intimate to you the status of your holdings from time to time. According to SEBI guidelines, financial institutions, banks, custodians, stock brokers etc., can become depository participants. PNB is a registered DP with National Securities Depository Limited (NSDL).

Q3. What are benefits of opening a demat a/c?
A. The benefits of participation in a depository are:
• Quick transfer of securities
• No stamp duty on transfer of securities
• Elimination of risks associated with physical certificates such as bad delivery, fake securities, etc
• Reduction in paperwork involved in transfer of securities
• Reduction in transaction cost
• Nomination facility
• Change in address recorded with DP gets registered electronically with all companies in which investor holds securities eliminating the need to correspond with each of them separately
• Holding investments in equity, debt instruments and Government securities in a single account
• Automatic credits into demat account, of shares, arising out of split/consolidation/merger etc

Q4. What is a authorized branch of D.P?
A. For extending the benefits of depository services to our clients, a number of braches are authorized to maintain your securities account. They are dealing with a centralized Depository participant (PNB).
Q5 Why should an Investor prefer to buy shares in the depository mode?
A.When you buy shares in the depository mode you will become the owner of those shares in the depository within a day of the settlement being completed. You will not have to apply to the Company for registering the shares in your name. Thus, there will be no possibility of loss or theft when the share certificates are posted to the company. You will have no fear that any fake or stolen shares may have been delivered to you.

Q6 What is dematerialisation?
A.Dematerialisation is a process by which the physical certificates of an investor are taken back by the Company / Registrar and actually destroyed and an equivalent number of securities are credited in the electronic holdings of that investor. This is done at the request of the investor. An investor will have to first open an demat account with a DP and then request for the dematerialisation of his certificates through the DP so that the dematerialised holdings can be credited into that account.

Q7 Can my electronic holdings be converted back into certificates?
A.Yes. If you wish to get back your securities in the physical form all you have to do is to request the DP for the Rematerialisation of the same. Rematerialisation is the term used for converting electronic holdings back into certificates. The authorized branch will forward your request to NSDL through our DP after verifying that you have the necessary security balances. NSDL in turn will intimate the registrar who will print the certificates and dispatch the same to you.

Q8 How will an Investor know that his DP has updated his account after each transaction?
A.Just like a bank branch, the authorized branch will give you a statement of account. The statement of account will be dispatched to you periodically by the DP.

Q9 What if there are any discrepancies in the statement ?
A.In case of any discrepancy in the statement of account, you can contact the DP. If the discrepancy cannot be resolved at the DP level an investor may approach NSDL for clarification.

Q10 What happens if I lose my account statement?
A.Simple, inform the authorized branch and obtain a duplicate account statement . Your statement cannot be used by anybody else for trading in your account.

Q11 Is an investor restricted from having account with only one DP?
A.There are absolutely no restrictions to the number of DPs you can open accounts with.

Q12 Does an investor have to keep any minimum balance of securities in his client account?
A.No, the depository has not prescribed any minimum balance. In fact, you can even have zero balance in your account.

Q13 What security do I have if the only proof of my holdings in the depository is merely a piece of paper indicating my account balance?
A.When you open an account with an authorized branch, you sign an agreement with the DP in which the DP indemnifies you for any misuse of your holdings. The depository will also ensure that the interests of the investors are protected so your grievances, if any, against the DP will be resolved by the depository.

Q14 Is it possible for me to get the securities allotted to me in public offerings directly in the electronic form?
A.Definitely, in fact the public issue application form itself contains a provision for you to indicate the manner in which you want the securities to be allotted to you. All you have to do is to mention your client account number and the name of the DP and any allotment due to you will be credited into that account.

Q15 Who will give me the benefits arising out of my holdings, say a bonus or dividend?
A.When any corporate event such as rights, bonus or dividend is announced for a particular security, the depository will give all the details of the clients having electronic holdings of that security as of record date/book closure to the registrar. The registrar will then calculate the corporate benefits due to all the shareholders. The disbursement of cash benefits such as dividend/interest will be done by the registrar whereas the distribution of securities entitlements will be done by the depository based on the information provided by the registrar.

Q16 Do I have any option for the manner in which I wish to receive my corporate benefits?
A In case of those corporate events where you can exercise your option such as rights issue or optional conversion of debentures to shares, you do have a choice of either physical or electronic
.
II Dematerialisation
Q1 Can an investor dematerialise any share certificate?
A. The investor can dematerialise only those certificates that are already registered in his name and belong to the list of securities admitted for dematerialisation at NSDL. Shares held in street name (market deliveries) cannot be dematerialised.

Q2 Is a transfer deed required for dematerialising certificates?
A. No. The certificates have to be accompanied by a Demat Request Form (DRF) which can be obtained from the authorized branch and there is no need for a transfer deed.

Q3 Can an investor dematerialise shares, which are pledged with a bank, which is a DP as well?
A. The investor can, with the permission of the bank.

Q4 Do dematerialised shares have distinctive/ certificate numbers?
A. No. Dematerialised shares do not have any distinctive or certificate numbers. These shares are fungible - which means that 100 shares of a security are the same as any other 100 shares of that security.

Q5 Can odd lot shares be dematerialised?
A. Yes. Odd lot share certificates can also be dematerialised.

Q6 Is dematerialisation compulsory?
A. No. According to the Depositories Act, 1996, an investor has the option to hold shares either in physical or in dematerialised form.

Q7 Is it compulsory to mention the ISIN number of the company while filling up the Demat Request form?
A.Yes, the ISIN name and number should be mentioned. This, to a certain extent, ensures that the security mentioned in the Demat Request Form is the same as the one the client intends to dematerialise. However, the client need not remember cryptic numbers and can take the help of his DP in filling these forms, which we will gladly do it for him.

III Rematerialisation
Q1 Does NSDL keep blank share certificates of companies?
A.During a Rematerialisation process, the request goes from the DP to the R&T agent via NSDL. The R&T Agent, after processing the request, will print and despatch the share certificate directly to the investor. In this process, NSDL does not directly handle certificates.

Q2 What should the investor do if his name has been wrongly spelt on the certificates given to him after a remat?
A.During a remat the instruction from the investor travels to the R&T agent from the DP via NSDL. The R&T agent processes it and sends the certificate, with the name printed as it appears in the beneficiary account, to the investor directly. Despite this, if the name is mis-spelled, then the investor can send it for rectification to the R&T agent along with the relevant documents.

Q3 Since depository is the registered holder in company's books, will a remat be a case of transfer from Depository to investor and a stamp duty charged on it?
A. No. Transfer of registered ownership of securities from a person to a depository or from a depository to a beneficial owner shall not be liable to stamp duty related to transfer.

Q4 Can odd lot securities be rematerialised?
A.The investor has the option of rematerialising his total holdings or part of it. In addition to this, he has the option to get the certificates in market lot or jumbo lot. In view of this, beneficiary owners can remat their securities even if it is an odd lot.

IV Pledging
Q1 Can locked-in securities be pledged?
A. Yes. However they cannot be invoked before the lock-in release date.
Q2 Who will receive corporate action benefits on the pledged securities?
A. Even after the securities are pledged, the pledgor continues to remain the beneficiary holder of those securities and will receive benefits of a corporate action, if any.

V Corporate Actions
Q1 How will the investor receive dividend/interest, if any, on the securities he is holding?
A. NSDL gives the issuer/ R&T agent of the security for which dividend has been announced a list of beneficial owners as of the record/ book closure date. Based on this list provided by NSDL, the issuer/ R&T agent directly forwards dividend payment to the investor, as in case of the physical environment. Presently, NSDL does not handle cash corporate actions.
Q2 If an investor has holdings in dematerialised form will the bonus/ rights issue against this be in the same form?
A. The bonus/rights issue against holding in dematerialized form can be either in the physical/dematerialised form as per the choice of the investor. If no choice is given, then by default the securities will be issued in the form they are currently held. Thus if a shareholder holds some shares in physical form and some others in demat, then bonus/rights shares will be received in both the forms in proportion to the holdings in each form.
Q3 If an investor has holdings in physical form, can the bonus/ rights issue against this be in the dematerialised form?
A. Yes, if the investor chooses to receive this non cash corporate action in dematerialised form, they will be credited to the depository account. Please note that this facility will be available only in case of those companies linked up with NSDL.
Q4 Will the rights issue form be sent by the depository or issuer?
A.As in the physical segment the issuer/ their R&T agent will mail the rights form directly to all investors including those in the electronic segment.
Q5 How will the investor confirm that he has received his bonus/ rights entitlement?
A.The statement of holding and transaction statement sent by the investors DP, will show the bonus/ rights credit into his account. This report is sent to the investor on monthly basis. In addition, an allotment advise will be send by the issuer/ their R&T agent for bonus/ rights entitlement.

VI Public Offerings
Q1 Does the applicant get preference in allotment if he applies in dematerialised form?
A.The basis of allotment is independent of the form (physical/ dematerialised) in which securities are applied. Thus the applicant won't get preference in allotment if he applies for securities in dematerialised form.

Q2 If the applicant is allotted securities in dematerialised form, when will he get electronic credit in his account?
A If securities are allotted in the dematerialised form, these would be credited to applicants account any day between allotment date and listing date, at the discretion of the company.

Q3 How will the applicant come to know that his application for public issue in electronic form has been accepted?
A.The issuer company/ their R&T agent will forward the applicant the allotment advise giving the number of shares allotted in dematerialised form.

VII Safety Measures
Q1 How will an investor know that the DP has updated his account after each transaction?
A. At least once a month, the DP will give the investor a statement of holdings and a transaction statement, which details out the current balances and the various transactions done through that depository account. In addition, NSDL forwards a statement of holding every month to randomly selected list of beneficial owners, which acts as a counter check.

Q2 What is to be done if there are any discrepancies in the statement of holdings?
A. In case of any discrepancy in the statement of holdings, the investor can contact his authorized branch. If the discrepancy cannot be resolved at this level, the investor may approach NSDL. NSDL also sends out statement of holdings to clients of DPs picked at random. In case the balance in the investors account as indicated by his authorized branch does not tally with the balance as indicated by NSDL, the investor may contact his DP/ NSDL for clarification.

Q3 What security does an investor have if only proof of his holdings in the depository is merely a piece of paper indicating his account balance?
A.There are various checks and balances in the depository design to ensure safety of the investor holdings.

Q4 What happens when a DP goes bankrupt?
A.In all such cases there is absolutely no need for an investor to be unduly concerned as enough provisions are there for the investor to transfer his account from the defunct DP to another DP or get the securities rematerialised. There cannot be any lien on the account holder’s assets by creditors belonging to the DP or NSDL and therefore the account holder’s assets are absolutely safe. There is no credit risk in case of a defunct NSDL or its DPs.

Q5 How confidential are the Depository Account details?
A.There are strict systems and procedures established to protect the confidentiality of investor information at the depository to ensure that these are available to only authorised persons.

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