Off - Market Transfers..!
Trading in dematerialised securities / shares/ is quite similar to trading in physical securities.
The major difference is that at the time of settlement, instead of delivery / or receipt of securities/shares in the physical form, the same is affected through account transfers.
Share trades which are not settled through the Clearing Corporation/ Clearing House of an exchange are classified as "Off Market Trades".
Delivery of securities /shares to or from sub - brokers, delivery for trade-for-trade transactions, by this definition are off-market trades.
The selling client will have to give a delivery instruction to his/her Depository Participant (DP) to transfer securities from his/her depository account to the buying client's depository account.
To receive securities from the selling client's depository account, the buying client must give a receipt instruction if he has not already given a standing receipt instruction to his/her DP.
The details in the "delivery" and "receipt" instructions must match else the transfer will not take place.
The transfer will take place on the "execution date" indicated in the instructions. If the buying client has given a standing receipt instruction, this may be ignored.
The payment aspect is handled outside the NSDL environment between the selling and buying clients.
- Bye-Law 9.6 : Transfer of balances
- Business Rule 12.3 : Off-Market trades
- For a transfer of securities to be effected from one account to another, details mentioned in the "delivery" and "receipt" instructions need to match.
- Investors need to be especially careful with respect to the "execution date" mentioned in the two forms. The transfer would be rejected if there is a mismatch in this regard even if all other details in the 2 forms match.
- In case the buyer has already given a standing receipt instruction to his DP, this may be ignored.
NSDL at a Glance (February 28, 2015)
| Client Accounts Active | 1,37,70,639 |
| Accounts having Debt instruments | 364,672 |
| DPs | 273 |
| DP Service Centres | 15,936 |
| DP Geographical Coverage (Cities/Towns) | 1,550 |
| Companies Joined | 13,742 | ||
| Demat Custody Quantity (mn. securities) | 9,09,866 | ||
| Demat Custody Value (Rs. Crore) | 119,21,789 | US$ () | 1,929(billion) |
| Demat Custody | Instruments | Value (in Rs. Million) |
| Shares | 13,857 | 94,063,563 |
| Debt/Bonds | 10,956 | 16,828,388 |
| CP | 1,762 | 24,83,396 |
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