Freezing of DP Account
This query is : Resolved
30 November 2009
What is meant by freezing of a DP account? In what way freezing affects a beneficiary account holder? Can an account holder freeze a specific quantity of a specific security in an account?
30 November 2009
A depository account holder (beneficiary account) may freeze securities lying in the account for as long as the account holder wants it. By freezing the account, account holder can prevent unexpected debits or credits or both, creeping into its account.
The following types of freeze facility available in the NSDL system may be availed of by submitting freeze instruction to the DP in the prescribed form.
Freeze for debits only - A demat account holder may freeze the account only for debits by submitting a freeze instruction to its DP. However, during the period of freeze, the account holder will continue to receive credits like Bonus or credits arising out of any other corporate action.
Freeze for debits as well as credits - An account holder may freeze the account for debits as well as credits. No debits and credits can be made in the account, unless the account holder issues unfreeze instruction. This facility is beneficial to clients who do not use their account for long periods. By freezing their account for debits and credits, they can avoid undue credits to their accounts in addition to preventing debits.
Freeze a particular ISIN in the account - An account holder may freeze a particular ISIN (security of a specific company) from being debited from the account, without freezing the whole account. If this type of freeze facility is used, all other securities in the account can be debited or credited but the securities under the specific ISIN will be frozen for debit. The client will be able to use other securities lying in its demat account and also receive credits in the ISIN which has been frozen for debit.
Freeze a specific number of securities held under an ISIN in an account - An account holder may freeze a specific quantity of a specific security in an account.
The following types of freeze facility available in the NSDL system may be availed of by submitting freeze instruction to the DP in the prescribed form.
Freeze for debits only - A demat account holder may freeze the account only for debits by submitting a freeze instruction to its DP. However, during the period of freeze, the account holder will continue to receive credits like Bonus or credits arising out of any other corporate action.
Freeze for debits as well as credits - An account holder may freeze the account for debits as well as credits. No debits and credits can be made in the account, unless the account holder issues unfreeze instruction. This facility is beneficial to clients who do not use their account for long periods. By freezing their account for debits and credits, they can avoid undue credits to their accounts in addition to preventing debits.
Freeze a particular ISIN in the account - An account holder may freeze a particular ISIN (security of a specific company) from being debited from the account, without freezing the whole account. If this type of freeze facility is used, all other securities in the account can be debited or credited but the securities under the specific ISIN will be frozen for debit. The client will be able to use other securities lying in its demat account and also receive credits in the ISIN which has been frozen for debit.
Freeze a specific number of securities held under an ISIN in an account - An account holder may freeze a specific quantity of a specific security in an account.
30 November 2009
I thank you Expert for your detailed reply on the topic. Regards.
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