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|Deal only through SEBI registered intermediaries.||Don't undertake off-market transactions in securities.|
|Invest based on sound reasoning after taking into account all publicly available information and on fundamentals.||Don't deal with unregistered intermediaries.|
|Beware of the false promises and to note that there are no guaranteed returns on investments in the Stock Market.||Don't be misled by rumours circulating in the market.|
|Give clear and unambiguous instructions to your broker/ sub-broker / DP.||Don't blindly follow media reports on corporate developments, as some of these could be misleading.|
|Be vigilant in your transactions.||Don't hesitate to approach the proper authorities for redressal of your doubts / grievances.|
|Insist on a contract note for your transaction.||Don't leave signed blank DISs of your demat account lying around carelessly or with anyone.|
|Verify all details in the contract note, immediately on receipt.||Do not sign blank DIS and keep them with DP or broker to save time.|
|Always settle dues through the normal banking channels with the market intermediaries.||Do not keep any signed blank transfer deeds.|
|Scrutinize minutely both the transaction and the holding statements that you receive from your DP.|
|Keep copies of all your investment documentation.|
|Handle DIS Book issued by DP's carefully.|
|Insist that the DIS numbers are pre-printed and your account number (client id) be pre-stamped.|
|In case you are not transacting frequently make use of the freezing facilities provided for your demat account.|
|Deliver the shares in case of sale or pay the money in case of purchase within the time prescribed.|
|Be aware of your rights and responsibilities.|
|In case of complaints, approach the right authorities for redressal in a timely manner.|
|Register e-mail address to receive all documents, notices, including Annual Reports and other communications of the Company in electronic form.|
Amongst the various stakeholders of the Corporation, one of the most important constituents are the esteemed shareholders. The Corporation’s equity shares were listed on the Bombay Stock Exchange in 1978, a year after its incorporation. The equity shares of the Corporation got listed on the National Stock Exchange in 1994, the same year the exchange commenced operations.
The Corporation has always ensured that the interests of its shareholders are served with the highest priority in line with its objectives and principles. It has consistently ensured that shareholders are empowered and has always endeavoured to honour their statutory rights, some of which are listed below –
Some of the obligations entrusted on shareholders are:
1. What is Dematerialization?
The process of converting securities (i.e. shares, bonds etc.) held in physical form into electronic form is known as dematerialization. Under this process securities held by an investor in physical form are converted to an equal number of securities in electronic form and credited into the investor's demat account maintained by him with his Depository Participant (DP).
2. What are the advantages of holding securities in dematerialized form?
The advantages of holding securities in dematerialized form are as following: Convenient mode of holding securities, especially in case you are holding shares of many companies.
IN VIEW OF THE ADVANTAGES OF HOLDING SHARES IN DEMATERIALIZED FORM, SHAREHOLDERS HOLDING SHARES IN PHYSICAL FORM ARE REQUESTED TO KINDLY CONSIDER DEMATRIALISING THE SAME AT THE EARLIEST.
3. Why should I demat shares of HDFC? Is dematerialization compulsory for trading in HDFC Shares?
SEBI has made it compulsory for all investors to settle their trades in HDFC shares only in electronic form. Hence, shareholders intending to trade in HDFC shares are required to hold the same in electronic form.
4. How can I dematerialize my share certificate(s)?
Procedure for dematerialising the shares held in physical form is provided here under:
NOTE: Therefore, under no circumstances should you submit your DRF and the share certificate(s) directly to Link Intime India Private Limited.
5. Is pledge of dematerialized shares possible?
Yes, dematerialised shares can be pledged for the purpose of availing of any loan/ credit facility or collateral arrangement with banks/ financial institutions.
6. Are shareholders holding shares in dematerialized form, eligible to receive Annual Report and attend General Meetings?
Yes, shareholder holding shares in dematerialized form are entitled to receive dividend, notices, annual report, attend general meetings and participate and vote thereat to the extent of their shareholding.
7. Whom should I inform change in my address, bank account details etc. in respect of shares held in demat form?
All request/ communication regarding change in address, bank account details, NECS mandate, registration of nomination etc. should be addressed to your DP directly.
8. Whom should I contact in case of non-receipt of dividend, bonus etc.?
Kindly Contact the Registrar and Share Transfer Agent of the Corporation, Link Intime India Private Limited, quoting your beneficiary account number (i.e. Client ID) and DP ID.
9. Can I do Demat cum deletion of name?
Yes, you can. Kindly contact your DP for more information.
10. What is rematerialisation of shares?
It is the process through which shares held in electronic form are converted into physical form.
1. I would like to buy shares of HDFC. How do I proceed?
The detailed procedure for purchase of shares in HDFC is as follows:
2. What are the types of accounts for dealing in securities in demat form?
Following are the types of accounts for dealing in securities in demat form:
3. What precautions an online investor must take?
Following are the Precautions an online Investor must take:
SEBI vide its Circular No. SEBI/LAD-NRO/GN/2018/24 dated June 8, 2018, amended Regulation 40 of the SEBI (Listing Regulations) 2015 pursuant to which post December 5, 2018, transfer of securities could not be processed unless the securities were held in the dematerialized form. The said deadline was extended by SEBI to March 31, 2019. However, transfer deed(s) lodged on or before March 31, 2019 and returned due to deficiency in the document may be re-lodged for transfer till March 31, 2021, being the cut-off date for re-lodgement of transfer deed(s) as clarified by SEBI vide its circular dated September 7, 2020.
Transfer of securities shall not be processed unless the securities are held in the dematerialised form with a depository including those re-lodged. Further transmission or transposition of securities held in physical or dematerialised form shall be effected only in dematerialised form.
SEBI has further clarified that the Members are not prohibited from holding the shares in physical form even after April 1, 2019.
1. What is nomination facility?
This facility is mainly useful for individuals holding shares in sole name. In the case of joint holding of shares by individuals, nomination will be effective only in the event of death of all joint holders. Nomination refers to the act of nominating a person in whom the shares would vest in the event of unfortunate death of the nominator (shareholder).
2. How do I make a nomination with regard to my shareholding?
The procedure for making nomination with regard to shareholding in physical form is as follows:
You may contact RTA for Nomination Form. Or click here for Nomination Form (SH-13)
3. Do I have to send the share certificate(s) along with the nomination form?
4. Can a nomination made be changed? What is the effect of nomination upon transfer of shares?
Yes. A nomination once made can be revoked by making a fresh nomination in Form No. SH-14. In case joint shareholders have made a nomination, and one of them expires, the surviving shareholder(s) can make a fresh nomination. Further, upon transfer of shares, the nomination stands automatically rescinded.
5. What is the procedure for transfer of shares in favor of the Nominee?
The procedure for transfer of shares in favor of the Nominee is as follows:
Upon death of the shareholder or the joint holders, as the case may be, the Nominee would be required to furnish the following documents in addition to any other documents as may be required by the RTA for the purposes of identification.
6. What is the effect on the nomination in the event of death of one of the joint holder?
In the event of death of one of the joint holder, the shares will devolve on the surviving shareholders to the exclusion of the nominee. In this case, the surviving shareholders may make a fresh nomination if they so desire.
7. Who can appoint a nominee and who can be appointed as a nominee?
Individual shareholders holding shares in single name or joint names can appoint a nominee. In case of joint holding, joint holders together have to appoint the nominee. An individual having capacity to contract only can be appointed as a nominee. Minor(s) can, however, be appointed as a nominee.
8. Are the joint holders deemed to be nominees to the shares?
Joint holders are not nominees; they are joint holders of the relevant shares having joint rights on the same. In the event of death of any one of the joint holders, the surviving joint holder(s) of the shares is/ are the only person(s) recognised under law as holder(s) of the shares. Surviving joint holder(s) may appoint a nominee.
9. Is nomination form required to be witnessed?
A nomination form must be witnessed.
10. Can a Non-Resident (NRI) nominate?
Yes, a NRI can nominate. But a Power of Attorney holder cannot nominate on behalf of NRI.
11. Can a NRI be nominated?
NRI can be a nominee on repatriable or non-repatriable basis subject to RBI’s permission as applicable.
Note: In case you hold shares in demat form please contact your DP for further information.
1. What will happen to the dividend which is not paid to me on account of non updation of my Bank Account details?
The declared dividend which remains unpaid for a period of 30 days from the date of declaration will be transferred to unpaid dividend account for the concerned financial year. You may claim your dividend by updating your bank details by submitting the required documents.
However, dividends not claimed, within seven years from the date of its transfer to the unpaid dividend account, will be transferred to the Investor Education and Protection Fund (IEPF) established by the Government.
2. I have not received the dividend on shares of HDFC held by me. What should I do?
As a policy, HDFC pays dividend to its shareholders commencing from the next day after its declaration. In case you have updated your Bank A/c details and still not received the credit of dividend amount in your bank account within 15 days from the date of declaration, please write to the RTA furnishing the particulars of the dividend not received and also quoting your folio number/client ID particulars (in case of demated shares) along with cancelled cheque leaf and self-attested PAN Card copy.
In case of non-receipt of physical dividend warrant or dividend(s) of previous years - You may please write to the RTA with relevant particulars like folio number, concerned dividend, along with declaration, cancelled cheque leaf and self-attested PAN Card copy etc., After verification, unclaimed/unpaid dividend(s) will be credited into your registered bank account.
In case the electronic payment fails or is rejected by the Bank, the RTA shall issue dividend warrants / demand drafts with Bank A/c details printed on it and post it to the address registered with the Corporation / DP.
3. How does one get dividend on shares held in dematerialized form?
The RTA/Corporation obtains the details of beneficiary holders (shareholders) from the Depositories as on the date of the book closure /record date fixed by the Board of Directors.
Dividend in respect of shares held in dematerialized form is normally paid electronically if the 9-digit MICR code is available in the said details.
In the absence of the said MICR code, physical instrument such as Banker’s cheque or demand draft with Bank A/c details printed on it are issued and dispatched to the address registered with the DP.
In respect of shareholders maintaining a bank account for dividend purpose with HDFC Bank Limited, the RTA/Corporation gives direct credit of the dividend amount to the said account.
4. How can I re-validate a dividend warrant?
In case you have updated your Bank A/c details, please return the outdated (stale) dividend warrant along with a request letter to RTA for electronic payment of dividend.
In case you have not updated your Bank A/c details, you are requested to kindly update the same by following the procedure explained above.
Subsequently, contact RTA for payment of your dividend electronically.
5. Status of unclaimed dividend declared by HDFC during previous years?
|Particulars||Dividend For 1995-96 To 2014-15||Dividend From 2015-16 To 2021-22|
Transferred to the Investor Education and Protection Fund (IEPF).
Will be transferred to IEPF on the due date.
Yes, It can be claimed from IEPF (www.iepf.gov.in).
Can be claimed from the Corporation before the due date of transfer to IEPF.
6. When is the unclaimed/unpaid amount transferred to the IEPF Fund?
Pursuant to section 124(5) of Act, 2013, a company shall transfer any amount lying in the Unpaid Dividend Account for 7 years along with interest accrued, if any, thereon to the Fund.
7. What is the purpose of Form IEPF-5?
Any person whose shares, unclaimed dividend, matured deposits, matured debentures, application money due for refund or interest thereon, sale proceeds of fractional shares, redemption proceeds of preference shares etc. has been transferred to the IEPF Fund, may claim the shares under provision to sub-section (6) of section 124 or apply for refund, under clause (a) of subsection(3) of section 125 or under proviso to sub-section (3) of section 125, as the case may be, to the Authority by making an application in Form IEPF-5 online available on IEPF website (www.iepf.gov.in) alongwith fee, as decided by the Authority from time to time in consultation with the Central Government, under his own signature.
8. What will be the course of action where the Corporation declares dividend on the shares which have already been transferred to the fund?
If the Corporation declares any further dividend on the shares which have already been transferred to the Fund, the amount received on such shares shall also be transferred to the Fund.
1. What is the new tax regime as per the Finance Act, 2020?
The Finance Act, 2020 has removed the levy of Dividend Distribution Tax and adopted the classical system of dividend taxation under which Corporates would not be required to pay Dividend Distribution Tax. The dividend shall be taxed only in the hands of the shareholders. However, companies are required to deduct tax at source (‘TDS’) on the dividend income at prescribed rates for all shareholders i.e. resident/non-resident/FII/FPI.
2. What is the date of applicability of the new tax regime?
The new tax regime is applicable w.e.f. April 1, 2020.
3. I am a resident shareholder. At what rate my dividend will be subjected to TDS?
In case of resident shareholders whose PAN is registered with Corporation/Depository Participant, tax @ 10% on dividend income will be deducted at source. In absence of registration of PAN, TDS rate of 20% will apply.
4. Where can a shareholder find the rate of applicable TDS? Kindly refer the below table for easy reference.
|Particulars||Resident Shareholders||Non Resident Shareholders - other than FIIs/FPIs||FII/FPIs|
|Threshold||Rs.5000 (Applicable only to Individual Shareholders)||Nil||Nil|
|Form 15G / 15H||Nil Can be submitted only by Individual shareholders||Not applicable||Not applicable|
|DTAA benefit||Not applicable||Subject to furnishing mandatory documents as prescribed under the Income tax Act, 1961 (IT Act)||Subject to furnishing mandatory documents as prescribed under the I-T Act|
20% (plus applicable surcharge and education cess) subject to applicable DTAA rates
20% (plus applicable surcharge and education cess) subject to applicable DTAA rates
Nil/ Lower withholding certificate under Section 195/ 197 of the I-T Act
As per the rates specified in the Nil/ lower withholding certificate issued by the Income Tax Authority as per the provisions of Section 195/ 197 of the I-T Act.
Kindly refer the Corporation’s website at https://www.hdfc.com/investor-services#dividend for complete details.
5. How can a shareholder update his/her PAN?
6. Can a shareholder submit Form no. 15G/ 15H for non deduction of tax at source?
Resident shareholder, being an individual, whose total dividend income in a financial year from the Corporation exceeds ₹5,000 and who wish to receive dividend without deduction of tax at source may submit a declaration in Form No. 15G. In case if a resident shareholder is aged 60 years or more, he/she may submit Form No. 15H.
7. I hold shares of the Corporation under the Hindu Undivided Family (HUF) category. Can I submit Form no. 15G/Form no. 15H?
No. Kindly note that the threshold of Rs.5,000 or option to file Form 15G / Form 15H is not applicable to Resident HUF shareholders and the Corporation would deduct TDS in respect of such shareholders, as specified under Section 194 in full.
8. From where a shareholder can obtain Form 15G/ 15H?
For the convenience of shareholders, template of Form No. 15G/15H has been made available on the website of the Corporation at https://www.hdfc.com/investor-services#dividend.
A shareholder may also obtain the same by writing an email to RTAemail@example.com.
9. What is the procedure to submit Form no.15G/ 15H online?
Click on the link https://investorservices.hdfc.com/isd_form15gh
Enter Date of Birth
Enter Folio No. or Client ID
Display Form 15-G or 15-H on the screen
10. What is the procedure to submit physical Form no.15G/ Form no. 15H?
Form No. 15G/ Form No. 15H should be submitted in original to RTA, Link Intime India Private Limited C-101, 1st Floor, 247 Park, Lal Bahadur Shastri Marg, Vikhroli (West) Mumbai Mumbai-400083.
Kindly note that the said forms (online/physical) will be accepted till June 30, 2022.
11. Which other documents are required to be submitted along with physical Form no. 15G/Form no. 15H?
No other documents are required to be submitted along with Form no. 15G/ Form no. 15H. However, kindly ensure that your PAN is registered with your Depository Participant in case you are holding shares in demat form and with the RTA in case you are holding shares in physical holding.
12. What if I do not submit Form no. 15G/Form no. 15H?
In case you do not submit Form no. 15G or Form no. 15H, the Corporation would deduct tax at applicable rates in case your total dividend income from the Corporation in a financial year exceeds Rs.5000. However, you may claim refund of the tax by submitting the relevant documents at the time of filing of your income tax return with the Income Tax Authorities.
13. If Form no. 15G/Form no. 15H are submitted online, then whether submitting the physical copy is compulsory?
No, if it is submitted online, then submission of physical copy is not required.
14. What is the amount of dividend which is exempt from TDS?
Total dividend income in a financial year for resident individual shareholders not exceeding Rs.5,000 is exempt from TDS. TDS may also be exempt in the following cases:
15. What is the TDS rate for Non-resident shareholders?
Non-resident shareholders may visit the website of the Corporation at https://www.hdfc.com/investor-services#dividend wherein rates of TDS have been provided category wise.
16. Who is eligible to claim benefits under Double Taxation Avoidance Agreement?
As per section 90 of the I-T Act, a non-resident shareholder (including FPI and FII) has an option to be governed by the provisions of the Double Taxation Avoidance Agreement (‘DTAA’) between India and the country of tax residence of the shareholder, if such DTAA provisions are more beneficial to such shareholder. To avail the DTAA benefits, the nonresident shareholder will have to compulsorily provide the following documents:
a. Copy of Permanent Account Number (PAN), if available. In absence of PAN, the shareholder to provide contact address (of the country where the shareholder is a resident), email address, contact number and Tax identification number of the country in which it is resident to avail the DTAA benefit. In absence of the above details, TDS rate of 20% plus applicable surcharge and health and education cess of 4% will apply.
b. Self-attested copy of Tax Residency Certificate (‘TRC’) issued by the revenue tax authorities of the country of which shareholder is tax resident, evidencing and certifying shareholder’s tax residency status during FY 2021-22.
c. Completed and duly signed Self-Declaration in Form 10F.
d. Self-declaration of having no taxable presence, fixed based or permanent establishment in India in accordance with the applicable Tax Treaty and Beneficial ownership by the non-resident shareholder.
Declaration can be downloaded from https://www.hdfc.com/investor-services#dividend
The Corporation will apply its sole discretion and is not obligated to apply the beneficial DTAA rates for tax deduction on dividend payable to shareholders. Application of beneficial DTAA rate shall depend upon the completeness and satisfactory review by the Corporation of the documents submitted by the Non- Resident shareholders.
17. Are DTAA benefits also applicable to FPI/FII shareholders?
Yes. The detailed explanation in this regard is provided below.
The Finance Act, 2021, inserted a proviso to section 196D(1) of the I-T Act to provide that in case of a payee to whom an agreement referred to in section 90(1) or section 90A(1) applies and such payee has furnished the TRC referred to in section 90(4) or section 90A(4) of the I-T Act, then the tax shall be deducted at the rate of 20% or rate or rates of income-tax provided in such agreement for such income, whichever is lower.
Accordingly, the TDS rates mentioned above will be further subject to any benefits available under the DTAA read with MLI provisions, if any, between India and the country in which such FPI/FII shareholder is considered as resident in terms of such DTAA read with MLI. This amendment is effective on all dividend payments on or after April 1, 2021.
18. How can a shareholder know the quantum of tax deducted by the Corporation from the dividend being paid?
The amount of tax deducted on dividend being paid would be mentioned on the dividend warrant and the e-payment advice.
19. Will TDS deducted be different in case a shareholder does not file Income Tax Return?
Effective July 1, 2021, Finance Act, 2021 has inserted section 206AB of the I-T Act on special provision for TDS for non-filers of income-tax return whereby tax has to be deducted at twice the rate specified in the relevant provision of the Act.
Section 206AB(1) of the I-T Act provides that where TDS is required to be deducted under Chapter XVIIB, other than sections 192, 192A, 194B, 194BB, 194LBC or 194N on any sum or income or amount paid, or payable or credited, by a person to a specified person, the tax shall be deducted at the higher of the below rates:-
- at twice the rate specified in the relevant provision of the Act; or
- at twice the rate or rates in force; or
- at the rate of 5%.
Further, sub section (2) of section 206AB provides that where sections 206AA and 206AB are applicable i.e. the specified person has not submitted the PAN as well as not filed the return; the tax shall be deducted at the higher rate between both the said sections.
20. Who is a specified person?
The term ‘specified person’ is defined in sub section (3) of section 206AB of I-T Act who satisfies the following conditions:
- A person who has not filed the income tax return for previous years immediately prior to the previous year in which tax is required to be deducted, for which the time limit of filing of return of income under section 139(1) of the I-T Act has expired; and
- The aggregate of TDS and TCS in his case isRs.50,000 or more in the said previous years.
The non-resident who does not have the permanent establishment is excluded from the scope of a specified person.
SEBI CIRCULAR NO. SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2021/655 DATED NOVEMBER 3, 2021
The Securities and Exchange Board of India (SEBI) vide its circular no. SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2021/655 dated November 3, 2021 (SEBI Circular) has prescribed Common and Simplified Norms for processing service request of investors holding shares in physical form and norms for furnishing PAN, KYC details and Nomination.
In terms of the said circular, the folios wherein certain details like PAN, nomination, mobile number or email address are not available, are required to be freezed with effect from April 1, 2023.
Further, SEBI vide its circular dated December 14, 2021 has provided Clarifications with respect to Circular dated November 03, 2021.
In this connection, the Corporation has sent a letter to the concerned shareholders holding shares in physical form requesting them to submit their KYC details by submitting duly filled in Form ISR-1 along with relevant supporting documents as may be applicable.
On receipt of the said documents and its verification, the RTA would update the requested details in its records.
The link for downloading the SEBI circulars and Form ISR-1, Form ISR-2, Form ISR-3, Form SH-13 and Form SH-14 in fillable mode are provided below.
Click here for SEBI Circular dated November 3, 2021
Click here for SEBI Circular dated December 14, 2021
Click here for Form ISR-1 - Request For registering PAN, KYC details or Changes / Updation thereof
Click here for Form ISR-2 - Confirmation of Signature of securities holder by the Banker
Click here for Form ISR-3 - Declaration Form for Opting-out of Nomination by holders of physical securities in Listed Companies
Click here for Form ISR-4 - Request for issue of Duplicate Certificate and other Service Requests
Click here for Form SH-13 – Nomination Form
Click here for Form SH-14 - Cancellation or Variation of Nomination