NATIONAL SECURITIES DEPOSITORY LIMITED - NSDL

1. Account Openinga. GeneralSection 5Regulation 41Regulation 42 (1)Bye Law 6.4.1Bye Law 9.1.2Bye Law 9.1.5Bye Law 9.1.6Rule 12.1.2Any person, through a participant, may enter into an agreement, in suchform as may be specified by the bye-laws, with any depository for availing itsservices.Every participant shall enter into an agreement with a beneficial owner beforeacting as a participant on his behalf, in a manner specified by the depositoryin its bye-laws.Separate accounts shall be opened by every participant in the name of eachof the beneficial owners and the securities of each beneficial owner shall besegregated, and shall not be mixed up with the securities of other beneficialowners or with the participant's own securities.No Participant shall conduct business as a Participant with its Clients unless ithas entered into an agreement with its Clients.The Participant shall maintain separate accounts in respect of each Clientand its own account. The Participant shall intimate the balances held in itsown account and Client account to Depository on a daily basis.The Client will be required to enter into an agreement with the Participant inaccordance with the provisions of Chapter 6 of these Bye Laws.Once the application has been accepted by the Participant, the applicantwill be issued a Client account number.The Participant shall ensure that the application form submitted by the Clientis completely filled, including the Bank Account particulars of the Client, andproperly signed.Master circular on Account Opening version 2.6 was issued in July 2010. Circulars issued thereafterand other relevant circulars are listed belowCircular No:Sub: Mandatory requirement of 'In-person' verification of ClientsNSDL/POLICY/Attention of Participants is invited to NSDL Circular No. NSDL/POLICY/2008/2010/0009 0030 dated April 30, 2008 wherein Participants were advised that 'in-person'Date: January 19, 2010 verification of Beneficial Owners at the time of account opening should becarried out by the Participant staff only.SEBI has now clarified vide its Circular No. SEBI/MIRSD/Cir. No. 02/2010 datedJanuary 18, 2010 (copy enclosed) that the 'in-person' verification done foropening Beneficial Owners account by a Participant will hold good for openingtrading account by a stock broker and vice versa, if the stock broker andParticipant is the same entity or if one of them is the holding or subsidiarycompany of the other.Participants are advised to take the note of the above and ensure compliance.[ 1 ]