This is a long mail but very important.
As most of you may remember NSDL had issued a circular about opening and
operating a demat account by the Blind. This circular was discriminatory and
awful for us. One of our members T Sekar had filed a writ Petition in the
madras High Court but nothing has happened so far.
Dr. Sam and Neha of ST Xaviers and I had met the Chairman and Managing Director
of NSDL Mr. Bhave on 12 June 2007. I have to put on record here that Mr. Bhave
was very pleasant, forthcoming and accepted our suggestions without murmur or
ifs and buts . the only point he made was that the memorandum should come from
an organisation working for the Blind instead of me as an individual which I
readily accepted.
I had drafted a Memorandum and taken it to Mr. Bhave and he had suggested some
points which I have now incorporated and is my final version. this is the same
tactics that I plan to employ for the banking problem. First study the problem
completely, then read the law thourghly then approach the highest possible
official and then get all or lots of the organisations to come together for a
common cause. We had done similar work on the copyright problem.
1. Please read the Letter which is copied below
2. Find holes, make comments, add or subtract. Give me your feedback soon.
3. I will finalise this letter based on your suggestions
4. Let me know which organisations will be willing to sign the letter and send
it as a consolidated set. Our target is that atleast 25 organisations should
send the same letter only filling up the details in the first paragraph.
5. I apolagise for the delay in sending it to everyone but.....Also like to
thank Sekar,Mahendra,SS pathak, Shiv, Harish, B.V Yadhav and all others who
helped me not to forget Sam and Neha.
Kanchan
10th July 2007
To
National Securities Depository Ltd.
Trade World, A Wing, 4th & 5th floors,
Kamala Mills Compound,
Lower Parel, Mumbai-400013.
Attn. Mr. Bhave,Chairman cum Managing Director
Re: Circular No. NSDL/PI/2005/1584
August 26,2005
The _____________(name of organization) was founded in ______ and has ____
branches_____ members and its main objects are_______.
Our members/clients have brought to our attention your above referred to
Circular and the difficulties faced by them due to this circular.
At the outset we have to thank you for considering the "Blind" as clients and
Attempting to mitigate some the problems faced by them while opening and
operating a Demat account. The visually challenged community recognizes that
the NSDL had issued the above circular in good faith to secure the interests of
the visually challenged community. However in practical operation of the
circular, we, as a group, have encountered more inconveniences.
We understand that there is a thin line between "operating a demat account" and
"trading in securities" and NSDL is not concerned with "trading". However in
today's scenario the Client has to "operate" his DP Account while "trading" and
therefore the effect of the above circular is felt while he is "trading". The
activities of "trading" and "operating" are merged.
Our representative Dr. Sam Taraporevala, Ms. Neha Trivedi and Ms Kanchan
Pamnani had apprised you of these problems in their meeting with you on 12 June
2007. This Letter/memorandum is a formal request to you:
To withdraw the above Circular and
If necessary make modifications in other circulars to deal with the special
situation
Our aforesaid request is based on the following:
1. Some facts about the Visually Challenged
1.. Technology has empowered the Visually Challenged, to undertake,
activities hitherto impossible earlier. Blind persons use software, generically
called "screen reader", which delivers the computer's output in speech. This
has made it possible for blind persons not only to run applications on the
computer but also surf the net. Blind persons are now, independently,
undertaking internet banking and also participating in e-shopping. In addition,
this technology, is also, gainfully used to obtain up to date information and
conduct market research. This technology is not only available on Desktop and
Notebook PC's; it is also available on Smart phones. Hence, a blind person can
also read SMS alerts by himself.
b. The visually challenged in India are making great strides in securing
for themselves financial independence.
c. Some of them achieve this independence by studying and getting jobs
d. Some who do not educate themselves formally still educate themselves by
keeping abreast of the developments in the financial markets by getting
voluntary readers and others to read the newspapers, reports for them, listen
to the financial news on television, radio, surf the internet etc.
e. Whether educated or uneducated the visually challenged have found that
the financial markets in India offer an opportunity to enhance their income and
provide financial independence as well as better lifestyles for them and their
families. Ultimately resulting in better social standing in the community.
2. Visually Challenged in India
The visually challenged in India who transact in securities are of the
following types:
a. Totally blind who have no demat account and want to start an account.
They may be able to sign or may use thumb impression.
b. Totally blind who have a demat account and want to continue to trade in
securities and operate their accounts. They may be able to sign or may use
thumb impression.
c. Low vision whose signature is not consistent and who may or may not
have a demat account.
d. Senior citizens and others who had opened demat accounts but whose
signature does not correspond with the specimen signature on the records of the
D.P anymore.
3. Problems and Issues with reference to this Circular
a. Discriminatory
This circular discriminates against the Visually challenged client and puts the
visually challenged to greater hardship as compared to the sighted client.
NSDL has not considered the different kinds of Visually challenged clients that
need to operate accounts but have Made rules only for "Blind clients"
To open a demat account no other class of persons are asked to physically
attend the office of the D.P. However the blind who anyway find it difficult
physically to go from one place to another are forced to be present at the
office of the DP to open an account.
In the case of all other proposed clients, forms for opening of an account are
sent to the clients' address by the D.P. or its representative.
The procedure for identification of client is the same for every client of a DP
and all documents have to be similarly furnished by a blind person who wants to
open an account. There was no need of a special clause for the blind client.
Further the "Blind Client" feels the inequity every time he tries to operate
the account.
has not considered the available methods of trading allowed to sighted clients.
The booklet of delivery instruction slip not being given to the Blind client is
discriminatory and violates other circulars of NSDL.
The need for thumb impression can be made mandatory only for those who cannot
sign. Others need not be treated as illiterate only because of this circular.
The requirement for different thumb impression of male and female clients does
not seem to have any basis.
If at all there is an issue of protecting the blind client, it is at the time
of sale of security. Even then his coming into the DP's office does not ensure
his safety.
A client who decides to open an account also knows his responsibilities. He is
aware of what is a DP and what he as a client needs to do. the contents of the
account opening form and DP-client agreement. are available on the internet and
can be read directly by the blind client. He does not need an official of the
DP to do anything for him. Most clients have persons who read to them if they
can't read it on the internet themselves.
b. Hardship/inconvenience
This Circular adds to the hardship already being suffered by the Visually
Challenged instead of helping them.
inconvenience is further aggravated since the blind person has to come in every
time he wants to operate his account.
the delay caused due to this Circular causes further problems in the life of
the Visually challenged.
Giving a Blind client a loose leaf slip in fact makes his life more difficult
since he has to keep them safely.
Actually there is no need at the time of purchase of security even then a Blind
client is asked to attend the office of the DP.
The need for 2 companions to open the account is imposed as a hardship on the
blind customer.
c. Companions
Instead of protecting the client the need for companions actually makes the
Client vulnerable to emotional blackmail, envy of others, exposure to others
opinion and maybe even fraud apart from compromising his financial independence
and a target.
It does not serve any purpose.
It makes the blind person more dependent on others. Having one of the 2
companions accompany him at all times during his transactions violates his
independence,
The "Companions" have no legal standing.
It violates the right of privacy of the blindperson.
These companions cannot be forced to come in nor can they be held legally
responsible for any mistakes.
Also the hardship caused to the Companions has to be considered.
Case of a blind man working at IDBI World Trade Center, Cuffe parade (South
Mumbai ) having a demat account with IDBI Bank and staying at Virar (North West
of Mumbai in the Thane District) who has to get his wife to travel about 2
hours to Cuffe parade (his DP) every time he wants to trade.
The need for companion's signature should not be enforced as the Agreement also
has a provision for witness signature.
Capturing the companion's signature is of no legal use as he cannot be held
liable in case of fraud by him or by the DP official or any other intermediary.
d. Deprivation
It has deprived the visually challenged from benefiting from the advancement in
technology.
The conditions imposed in the Circular are depriving the "Blind client" from
excersising his right to enter and carry on the business of investing in the
share market.
The operational and logistical problems hinder the visually challenged person
at every stage.
over all it is a circular which instead of helping as had been envisaged by the
NSDL, is actually a nightmare for the visually challenged community and is
violative of their natural justice and fundamental rights .
4. Our Suggestions
Having said the above, we therefore urge the NSDL to:
withdraw the above Circular and
If necessary make modifications in other circulars to deal with the special
situation
We, further urge the NSDL to follow the same procedure for opening and
operating the Demat accounts for sighted person as for the blind persons with a
single exception that wherever required a blind person is allowed to use his
thumb print as a form of signature if he/she wishes to do so.
All the other facilities and arrangements relating to the opening and/ or
operating of accounts can be availed by the visually challenged client if he so
wants to do so within the already existing framework, such as
a. Power of Attorney -every client has the right to appoint an "attorney"
or representative to transact on his behalf and to operate the Demat account
by signing the delivery instruction slip in case of sale and cheques in case of
purchase. This facility already exists and does not need to be modified to be
adapted for the use of blind clients. We are aware of several visually
challenged clients using this method for overcoming the problems.
b. For senior citizens and clients whose signatures are not consistent and
do not tally with the specimen signature a letter is given by the client to
confirm the sale. This modus has been resorted to overcome issues at the time
of audit. No special provision has to be passed to continue with this procedure.
c. The client has a right to trade over the internet or do teletrading if
he has an account with a DP which offers such a facility and the client having
signed the appropriate power of attorney with the DP. The visually challenged
clients can continue using this service like any other sighted client.
d. If at all there is a question of signatures and safety it is at the
time of sale. At the time of purchase the issue does not arise and the Blind
client can use the same procedures as the regular clients.
5. Future solution
In addition to internet and tele-trading which dispenses with withdrawal slips
and the need for signatures in the not so distant future there will be for all
clients "Biometric system for thumb print recognition on paper". Experiments
are being conducted at present in India to make this a safer way to transact
for all citizens. Once these systems are in place the same can be used by NSDL
for account operation
6. Facility by the DP
In case a visually challenged client does go to the office of the DP we would
request you to instruct the DPs to
a. Make the visually challenged client know of the possibilities as
mentioned in (4) above
b. Help the visually challenged to complete the form or the withdrawal
instruction slip as the case may be
c. Assist him in any manner that is required
We therefore strongly believe that the only thing required is perhaps a little
bit of ground assistance for visually challenged persons and not any separate
rules which only add to their inconvenience and hardship. Cause as sated above
whilst they may have been put in place for greater security, one they do not
guarantee that and second the visually challenged are technically not at any
higher risk as compared to the sighted.
We therefore request you to kindly do the needful and withdraw this Circular.
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