Opening of Savings Bank Account

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Opening of Savings Bank Account: For opening SB a/cs as per RBI guidelines KYC (Know Your Customer) norms are to be followed. In this, the customer should be introduced by a prominent person in the society or by another customer of the bank who is holding an account for more than 6 months. Residence proof and copy of pan card /Form 60 should also be submitted. Mode of Operation: Mode of operation plays a vital role in SB a/cs. For eg: In the case of joint accounts with two people, if any one wants to operate the account, then “either or survivor “instruction is to be given. If they want to do joint operation “jointly” is to be given. When it is more than two, for any one to operate, the instruction is “any one of us or survivors”. Another instruction in case of joint account is “Former or Survivor”. In all these the „Survivor‟ clause is very important because the survivor will automatically get the claim in case of the death of one of the a/c holders only if the survivor clause is clearly mentioned at the time of opening of the account. Minor account can be opened with natural guardian. Pass Book will be issued to SB a/c holders which gives the transactions in the account. Nomination facility is also available in SB a/c. Nominee is the person decided by the a/c holder eligible to get the balance amount outstanding in the account on the event of death of the a/c holder.

Definition of 'Global Depositary Receipt - GDR'
1. A bank certificate issued in more than one country for shares in a foreign company. The shares are held by a foreign branch of an international bank. The shares trade as domestic shares, but are offered for sale globally through the various bank branches. 2. A financial instrument used by private markets to raise capital denominated in either U.S. dollars or euros.

Definition of 'American Depositary Receipt - ADR'
A negotiable certificate issued by a U.S. bank representing a specified number of shares (or one share) in a foreign stock that is traded on a U.S. exchange. ADRs are denominated in U.S. dollars, with the underlying security held by a U.S. financial institution overseas. ADRs help to reduce administration and duty costs that would otherwise be levied on each transaction.

Definition of 'International Depository Receipt - IDR'
A negotiable certificate issued by a bank representing ownership of stock of a foreign company held by the bank in trust. The International Depository Receipt (IDR) is known as the American Depository Receipt (ADR) in the United States; ADRs represents stocks of quality issuers from a number of developed and emerging markets. In Europe, IDRs are known as Global Depository Receipts, and trade on the London, Luxembourg and Frankfurt exchanges.

Indian Depository Receipt
An Indian Depository Receipt is an instrument denominated in Indian Rupees in the form of a depository receipt created by a Domestic Depository (custodian of securities registered with the Securities and Exchange Board of India) against the underlying equity of issuing company to enable foreign companies to raise funds from the Indian securities Markets.[1] The foreign company IDRs will deposit shares to an Indian depository. The depository would issue receipts to investors in India against these shares. The benefit of the underlying shares (like bonus, dividends etc.) would accrue to the depository receipt holders in India. The Ministry of Corporate Affairs of the Government of India, in exercise of powers available with it under section 642 read with section 605A had prescribed the Companies (Issue of Indian Depository Receipts) Rules, 2004 (IDR Rules) vide notification number GSR 131(E) dated February 23, 2004.

Standard Chartered PLC became the first global company to file for an issue of Indian depository receipts in India.[2] The rules provide inter alia for (a) Eligibility for issue of IDRs (b) Procedure for making an issue of IDRs (c) Other conditions for the issue of IDRs (d) Registration of documents (e) Conditions for the issue of prospectus and application (f) Listing of Indian Depository Receipts (g) Procedure for transfer and redemption (h) Continuous Disclosure Requirements (i) Distribution of corporate benefits. These rules (“principal rules”) were operationalized by the Securities and Exchange Board of India (SEBI)—the Indian markets regulator in 2006. Operation instructions under the Foreign Exchange Management Act were issued by the Reserve Bank of India on July 22, 2009.[3] The SEBI has been notifying amendments to these guidelines from time to time.

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