Saturday, December 14, 2002 marked the beginning of a new phase in the history of the depository system in India with the commencement of "on-line inter-depository transfers". This facility enables transfer of securities between the two depositories any time during the specified business hours. For users, the facility represents a radical departure from the erstwhile two-batch format, through which inter-depository transfers were effected.

1. Using this facility, securities can be transferred between the depositories as per the convenience of investors, clearing members and depository participants, any time during the specified business hours.
2. Immediately after the securities have been received in pay-out, Beneficial Owners (BOs) / Clearing Members (CMs) can transfer securities held in their account from/to any account with the other depository.
3. For credits received by BOs / CMs from the other depository, the settlement details for which such credit is received would be reflected in the transaction statement of the receiving BO/ CM account, provided the same are furnished by the delivering account holders from the other depository. All CMs should advise their clients to provide settlement details while transferring securities from the other depository into accounts held with CDSL.

1. Besides the convenience of "anytime" transfer of securities, the on-line facility has increased the users' options in utilising securities received for subsequent transactions, particularly, for meeting delivery obligations consequent to sale of securities.
2. The introduction of on-line, inter-depository transfers also enables investors to reduce the counter-party risk especially for high value transactions, as funds and securities can move simultaneously - where funds will move through the banking system and securities move on-line, through depositories.
3. The securities received in one pay-out on one depository can be made available for an immediate subsequent pay-in through the other depository. The securities received in the CDSL account would be immediately available to meet the pay-in obligations, using the multiple, convenient pay-in options like early pay-in, normal pay-in, BO-level pay-in, and auto pay-in available in the CDSL system.