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::::::::: Eligible
Pledgees:::::::::
As the physical securities are converted into electronic balances in
CDS, lenders are required to open an Eligible Pledgee account with CDC
in order to lend against electronic book entry securities. The
pledgors can pledge the desired securities only in favor of Eligible
Pledgee in CDS. Once pledged, the securities are no longer available
for transfer/ delivery to the pledgor until such time as Eligible
Pledgee releases them from pledge. In short, the control over the
pledged securities moves to Eligible Pledgee until the securities are
released. Any benefits however, still accrue to the Pledgor. Eligible
pledgees can also call the pledged securities in another account if
they so desire.
Eligibility Criteria
Any person, company, corporation or institution in such class as the
board may, from time to time, determine in this behalf, may apply to
the CDC for recognition by the CDC for the purpose of admission to the
CDS as Eligible Pledgee.
Account Opening Procedure
A) The applicant initiates a
written request for the account-opening package (containing necessary
documents to open an account).
B) Upon meeting the
eligibility criteria, an account-opening package containing various
documents is
sent to the applicant. The applicant is required to
fill these documents apart from providing other
relevant documents.
Documents Included in
Account Opening Package (Eligible Pledgee)
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Documents
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Individual Account |
Corporate Account |
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Admission Form:
General information about the client is obtained on this
form (address, telephone #'s, authorized signatories of
the account etc). |
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Users
Establishment Form: This form is required to establish the
users as per CDS users access policy, who will be using
the system on day to day basis. |
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Agreement: The
agreement states terms and conditions agreed upon by both
parties for opening an account with CDC.
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Specimen
Signature Card: Name & signatures of authorized
signatories are obtained on this card.
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Specimen Hardware
Confirmation Letter: To confirm that the applicant has the
necessary hardware for installation of software to
interface with CDS. |
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Specimen Users
Profile: A profile of users who will be using the system
on day to day basis is required from the applicant.
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Specimen Board
Resolution: Certified true copy of the Board Resolution
authorizing the company to enter into an agreement with
CDC and nominating signatories on behalf of the company is
required. |
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OTHER REQUIRED
DOCUMENTS |
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Attested copy of
Stock Exchange Registration Certificate |
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If applicable
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Certified true
copy of Memorandum & Articles of Assoc./Charter/Bye laws
(which ever applicable) |
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Certified true
copy of Certificate of Incorporation |
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Certified true
copy of Certificate of Commencement of Business (if
applicable) |
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Security Deposit
& Documentation Fee |
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C)
The applicant submits the above-mentioned documents (complete
in all respect) to CDC.
D) Upon receipt the
documents, CDS software is installed at the premises of the applicant.
E) As soon as the
account is activated, a sealed envelope containing Ids and Passwords
of the
Central Depository System is provided to the
applicant.
Please note that it takes three working days to open an account after
submission of documents (provided the documents are complete in every
respect).
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