How Does Sale Delivery Of Securities Work

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General

How does Sale / Delivery of Securities work?

Sale/Delivery of Securities.

Securities transactions can be settled in demat form for the transactions done on stock exchanges connected to NSDL/CDSL. Trading in dematerialised securities is done through your broker just like trading in physical securities.

Sell dematerialised securities

You can sell your dematerialised securities in any of the stock exchanges linked to NSDL/CDSL through a broker of your choice.
You need to give a 'delivery instruction' to your DP for debit of your depository account and credit of your broker's clearing member account.
You receive payment from the broker for the sale in the same manner you would receive payment for a sale in the physical mode.

Buy dematerialised securities

You can purchase securities in any of the stock exchanges connected to NSDL/CDSL through a broker of your choice and make payment to your broker. Make sure you tell your broker you want only demat shares.
Broker receives credit in his clearing account with his DP on the day of payout. He can immediately transfer these securities to your depository account, provided your account is already active.
Broker gives instructions to his DP to debit his clearing member account and credit your depository account.

Delivery of security

To deliver securities in electronic form, you have to authorise the DP to transfer balances from your account.

You must give a debit authorisation to ICICI Bank in the booklet of instruction slips provided to you. The slip should be given physically at the nearest Branch.
(You can also register for the e-Instruction facility to submit transfer instructions through Internet / IVR (Interactive Voice Response System) on Phone and with "Speak to Transfer" through our Phone Banking Officer)
In the instruction slip, you have to mention the counter-party account details. The counter-party account may be within the same DP (Intra-DP transfers) or with a different DP (Inter-DP transfers) within NSDL or with another depository - CDSL (Inter Depository Transfers). For transfers within NSDL, a TIFD (transfer instruction for delivery) is required. For transfers to a CDSL account, an IDT (inter-depository transfer instruction) is required and vice versa.

1. Getting instruction slips (TIFD/IDT booklets)

You are provided a "Personalized TIFD booklet" at the time of opening the account. You will need to use slips from this booklet for all your transfers.
For IDT (Inter Depository Transfer slips), request for the same in writing to the nearest Branch. The request should be signed in presence of the Branch Officer. Ensure you use slips allotted to your demat account only as per business rules of NSDL/CDSL.
Please do not use someone else's slip since that will not be accepted by the system and also cannot be processed as per business rules of NSDL/CDSL.
Please do not give your blank slip to anyone as this may lead to frauds and associated complications. If you lose your booklet, report the same in writing (under signature of all account holders) to the nearest Branch immediately.
If you are nearing exhaustion of all slips in the booklet, you can request for reissue of a new booklet by visiting nearest bank branch. Submit the request on the requisition slip present in your existing booklet. Where you are unable to present the request on the requisition slip, you can submit a letter. However, the letter should be signed in presence of the Branch Officer You can also register for the Internet Banking and Phone Banking facilities to submit the request on Internet / Phone.
The booklet will be couriered to you and will reach you within a week from the date of submitting the request.
On receiving your booklet, verify that your DPID, DP Account No. and name is present on all slips including the Requisition slip.
In emergencies where you have exhausted your TIFD/IDT booklet and cannot wait for the time required to fulfil your request for a new booklet, you can also get TIFD / IDT slips issued across the counter for emergency use.

For getting an emergency slip from your branch:

- You have to personally visit your home branch

- You have to personally visit your home branch

- You have to request for the slip on the prescribed form available at the branch.

TIFD / IDT issued in such a manner are valid only for immediate use

2. Filling up an instruction slip (TIFD/IDT)

The request should be filled up in the appropriate slip issued to you. For transferring securities to an account within NSDL, use TIFD slips. For transferring securities from an account within NSDL to an account with CDSL, use IDT slips.

There are two common types of accounts within NSDL/CDSL - beneficiary accounts (opened by the normal investors) and clearing member pool accounts (opened by brokers). Accordingly, there are two types of transfers possible with TIFDs.

An instruction for transfer of security from a Beneficiary Account to a Clearing Member Account (Broker's pool account) is termed as a Market TIFD. This is for delivering securities to the broker for onward delivery to the stock exchange towards fulfilling settlement obligations in respect of trades done on a stock exchange (Market Trades).

An instruction for transfer of security from a Beneficiary Account to another Beneficiary Account is termed as an Off Market TIFD (Off Market Trades).

The following points are to be noted:

Details are to be filled up only for Market Trades on a TIFD slip.

CM-BP-ID: This is the Clearing Member Business Partner ID of the Broker to whom the securities are to be transferred. The CM-BP-ID is an 8-character code starting with 'IN' provided by NSDL/CDSL to the clearing member. You should find this out from your broker. Any incorrect entry can result in transfers to the wrong account.
CM Name: This is the name of the Broker to whom the securities are to be transferred. This is the market type on which the trade has been done by your broker. The stock exchange has separate segments for each market type in which the orders are matched e.g. Rolling, Rolling Odd Lot, etc. You should confirm this with your broker.
Market Type: This is the market type on which the trade has been done by your broker. The stock exchange has separate segments for each market type in which the orders are matched eg. Rolling, Rolling Odd Lot, etc. You should confirm this with your broker.
Settlement No: This is the settlement no. in which the trade has been done by your broker. This is a 7-character code. You should confirm this with your broker.

You should submit the slip latest by 4 p.m. on business day prior to the execution date. TIFDs received after 4 p.m. will be accepted on 'Best Effort' basis and ICICI Bank does not undertake any liability for its non-execution. They may also attract a late charge (Please refer the rate card). In case of market trades, also ensure that the execution date is specified such that securities are transferred to the pool account before the exchange pay-in deadline.

Strike out the portion relating to Off - Market Trades.

Details to be filled up only for Off-Market Trades on a TIFD slip.

DP ID: This is the Depository Participant ID with whom the target account (the account to which the securities are to be transferred) is maintained. It is 8-character starting with 'IN'. You should find this from the target account holder. Incorrect DP ID may result in transfer of securities to a wrong account.
DP Name: This is the name of the Depository Participant with whom the target account is maintained. You should find this from the target account holder. Please note that this is not the name of the account holder.
Client ID: This is the 8-digit account number of the target account. You should find this from the target account holder. Any incorrect entry can result in transfers to the wrong account.

Strike out the portion relating to Market Trades

Details to be filled up only in an IDT slip.

Depository ID: This is the Depository ID for CDSL. It is 'IN000026'.
Client ID: This is the 16-digit account number of the target account (the account to which the securities are to be transferred). You should find this from the target account holder. Any incorrect entry can result in transfers to the wrong account.

Details to be filled up in both TIFD slips (for both Market and Off-Market Trades) and IDT slips.

ISIN: This is the International Security Identification Number (ISIN) of the security to be transferred. This is a 12-character code starting with 'IN'. You should confirm this from your transaction statement and then fill up the same. You can also check this on www.icicibank.com or from your nearest Branch or from your Broker. Be careful in specifying the correct ISIN where a security has multiple ISINs.
Security Name: This is the name of the security to be transferred.
Quantity: This is the number of units of securities to be transferred. This is to be filled up both in figures & in words in the space provided.
Total ISIN to be delivered: This is the total number of ISINs to be delivered under the particular slip. Also strike out the rows of ISIN details which are not used to avoid any tampering.
Execution Date: This is the date on which the securities are to be transferred from your account. In case of market trades, you should fill this up in consultation with your broker. In case the execution date mentioned by you is a NSDL/CDSL business holiday, the next working day is taken to be the execution day.

You may issue the instruction well in advance of the date on which you want the securities to be debited from your account. By giving a future dated instruction you cover the risk against non-execution of instruction due to lack of time or last minute rush.

Example for applicability of Best Effort Stamp & Late Charges:

Instruction Submitted on Execution Date on Best effort Stamp Late Charges*

Monday (day T) Wednesday (day) T+2) No No

Tuesday (day T+1) till 4 p.m. Wednesday (day T+2) No No

Tuesday (day T+1) after 4 p.m. Wednesday (day T+2) Yes No

Wednesday (day T+2) before Pay-in deadline Wednesday (day T+2) at 10:30 AM for on- Market & 7:30 for off market Yes Yes

*Late charge is Rs.10/- per ISIN

Signature: The slip must be signed by all the account holder's as per the specimen registered with ICICI Bank. In case of personalised booklets, the names of all holders are preprinted. Mismatch in signature of even one of the joint holder's results in the rejection of the TIFD. For help on filling up, refer to the sample filled-in TIFD provided in Annexure 2.

3. Submitting the form

You can submit the TIFD at any ICICI Bank branch. Take the acknowledgement copy after stamping by the ICICI Bank official.

You may issue the instruction well in advance of the date on which you want the securities to be debited from your account. By giving a future dated instruction, you cover the risk against non-execution of instruction due to lack of time or last-minute rush. You should submit the slip latest by 4 p.m. of the business day before the execution date (i.e. there should be one clear working day gap between the date of submission of the TIFD and the execution date).

Transfer instructions should not be submitted for execution day as holiday. If there is a holiday in between, instruction should be submitted one day in advance.

Submitting TIFD / IDT through Internet

You have to first register for the e-Instruction facility by filling up the prescribed form available at the branch. You can specify upto five accounts to which you can transfer securities through Internet/Phone.
Login to www.icicibank.com using infinity user id and password provided to you.
Click on required Demat account number appearing on "My Accounts" page of www.icicibank.com
Holdings of the selected demat account will be displayed on the next page.
Click on e-Instruction link on the left menu.
The next page will display prenotified target accounts linked with demat account selected in 3.4.3. Select the target account as required by you and click "GO" button.
Fill up the execution date, ISIN, Quantity and settlement number (If required) on the next page and click on button "Submit".
Next page will display all the details entered by you till now. Please check the same and click on "Back" button if you wish to change the same or on "Confirm" button if you want to proceed.
A reference number will appear on the next screen, Note the same for future reference.

4. Debit in the Demat Account

There will be a debit in your account on the execution date specified in the instruction. You can check the same in your transaction statement. You can also check the same on www.icicibank.com or through IVR or visit the nearest Branch. You will also receive an alert for the success/failure of the transfer on SMS registration form for "Mobile Alerts" on www.icicibank.com

5. Failure to execute Instructions

An instruction can fail either at the Central Processing Office of ICICI Bank or at NSDL/CDSL.

A failure can happen at the Central Processing Office on account of signature mismatch or if the TIFD slip is incomplete or not properly filled up. Please take due care while filling up the TIFD. There can be a failure at NSDL/CDSL if your account does not have the required number of specified shares or problem with the target a/c.

You will be intimated about the failure through a letter. On receipt of such intimation, the customer should do the needful in terms of submitting a correctly filled TIFD taking into account the reasons for rejection as intimated to you.