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.

B)  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. 

Account Opening Package (Eligible Pledgee) contains the following documents and request for other required documents:

Documents	Individual Account	Corporate Account
Admission Form: General information about the client is obtained on this form. Admission Form (Corporate)	Yes	Yes
Agreement: The agreement states terms and conditions agreed upon by both parties for opening an account with CDC.	Yes	Yes
Specimen Signature Card: Name & signatures of authorized signatories are obtained on this card.	Yes	Yes
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.	No	Yes
OTHER REQUIRED DOCUMENTS
Certified true copy of Stock Exchange Registration Certificate (If applicable)	Yes	Yes
Certified true copy of Memorandum & Articles of Association	No	Yes
Certified true copy of Certificate of Incorporation	No	Yes
Certified true copy of Certificate of Commencement of Business (if applicable)	No	Yes
Security Deposit & Documentation Fee	Yes	Yes
Certified true copy of Banking License(if applicable)	No	Yes
Certified true copy of NBFC License(if applicable)	No	Yes
Certified true copy of SECP Brokerage Certificate (if applicable)	Yes	Yes
Certified true copy of Minimum Subscription Certificate and Prospectus (if applicable)	No	Yes

C) The applicant submits the above-mentioned documents (complete in all respect) to CDC.

D) Upon receipt of the documents, CDS software is installed at the premises of the applicant.

E) A comprehensive training session is conducted to train the users of the CDS to their 
     satisfaction. The session explains in detail the concept & workings of the CDS.

F) As soon as the account is activated, following Ids and passwords are sent to the Applicants:

     •  CDS User IDs & Passwords
     •  Dialup ID & Password (If Applicable)

It is also to be noted that it takes three working days to open an account after submission of documents (provided the documents are complete in every respect).