SGL-2 facility is to be used to keep accounts of the constituent investors. In other words, SGL-2 is used to route investments of clients who are not eligible to directly open SGL-1 accounts. The entity which offers SGL-2 facility has to keep sub-accounts for each investor separately in its books; SGL-2 account with RBI will show the consolidated balances of all account holders.
NSDL / CDSL acts as the R&T agents for G-Sec. NSDL / CDSL distribute both Cash and Non-Cash Corporate benefits. Ordinary DEMAT A/c may also be used for G-Sec.
If the ISIN for a specific G-Sec has not been activated, the DP informs the G-Sec cell of the depository by faxing a standard letter along with a photocopy of the certificate or the SGL credit advice. Based on this communication, ISIN is generated and activated in the depository system.
DRF-GS (in case of NSDL) to be used for Dematerialization process. DP should forward G-Sec along with DRF-GS to NSDL with in 7 days of receipt. If G-Sec is issued by PDO - Mumbai, Certificate Number is prefixed by
If G-Sec is issued by other PDO, the DP will accept them provided the Form of Transfer has been attested by the respective PDOs. The DP endorses on the reverse of the certificate by writing 'Tendered for Cancellation and credit to SGL A/c no. _________, Mumbai. DPs are instructed not to Punch Holes on the face of G-Sec. No request for partial dematerialization of a certificate should be entertained. RBI Credits G-Sec to SGL-2 A/c of NSDL
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