easiest
Also written Electronic Access to Securities Information and Execution of Secured Transaction
CDSL's internet facility (Electronic Access to Securities Information and Execution of Secured Transaction) through which BOs and CMs submit debits, credits, freezes, pledges and confiscations.
In plain language
CDSL gives its account holders two internet facilities with almost the same name. The exam tests the difference.
easi is for looking. The name is short for Electronic Access to Securities Information. You use it to see your holdings, statements, the status of your instructions and the value of your portfolio.
easiest is for doing. The name is short for Electronic Access to Securities Information and Execution of Secured Transaction. So the two extra letters, "est", stand for that last part. With easiest, a beneficial owner or clearing member can send its own debit and credit instructions. No paper slip is needed.
The workbook lists what it covers. It covers off-market, on-market, inter-depository and early pay-in transfers. It covers freeze and unfreeze. It also covers pledge, unpledge and confiscation. At NSDL, instructions over the internet go through a different facility, called SPEED-e.
How it works
From Chapter 5 (Internet-based depository operations of CDSL), with Chapters 4, 8 and 9.
What a BO or CM can do through easiest:
| Area | Functions |
|---|---|
| Transfers | Off-market, on-market, inter-depository, early pay-in |
| Freeze | Freeze or unfreeze at BO level, ISIN level, or a partial freeze |
| Pledge | Pledge as pledgor; accept as pledgee, if both BOs are registered for easiest; the pledgee can confiscate if the pledgor defaults |
| Margin pledge | A BO can initiate a margin pledge; a CM can accept it as pledgee and re-pledge to the clearing corporation as pledgor |
| Nomination | A sole holder can update or opt out of nomination (through easi or easiest, or CDSL's website) |
Registration.
- A sole holder does not submit a registration form to the DP for authentication, and needs no trusted account declaration as a trusted account user.
- Joint holders must submit a duly signed registration form to the DP for authentication.
PMS pool accounts (Chapter 4). easiest registration for a PMS Pool Account follows the procedure for a CM account. A PMS Manager can group several PMS Pool Accounts opened for different clearing corporations or schemes under its primary easiest login, if they share the same PAN and SEBI registration number. It then submits a signed grouping form to the DPs concerned.
Clearing members (Chapter 8). A CM can check deliveries received into its settlement account through NSDL's IDeAS or CDSL's easi and easiest.
easi vs easiest:
| easi | easiest | |
|---|---|---|
| Purpose | Information | Information and transactions |
| Chapter 8 description | Real-time holdings, instruction status, past transactions, statement printouts, daily valuation | Submit debit/credit instructions, freeze, pledge, confiscation |
A worked example
Illustrative investors and figures.
Case 1 — a sole holder pledging. Deepak, a sole holder with CDSL, holds 1,000 shares worth Rs 640 each (Rs 6,40,000). He borrows from a friend's investment company, which is also registered for easiest.
- Deepak registered for easiest without submitting a registration form to his DP, because he is a sole holder.
- He sets up a pledge of 600 shares (600 x 640 = Rs 3,84,000) from his easiest login.
- The lender accepts it as pledgee from its own easiest login. This works only because both are registered for easiest.
- Deepak defaults, and the pledgee executes confiscation through easiest.
Case 2 — joint holders freezing. Lata and Mohan hold a joint CDSL account. Before a long trip they want to freeze one ISIN only. They must first submit a duly signed registration form to their DP. Once registered, they can apply an ISIN-level freeze, leaving the rest of the account free.
Case 3 — margin. Deepak pledges 200 shares (Rs 1,28,000) to his broker as margin from easiest. The broker's CM accepts the margin pledge from its easiest login and re-pledges the shares to the clearing corporation.
The easi check. If Deepak only wanted to see the day's portfolio value, easi would be enough.
Why NISM asks about it
Chapter 5 (Functions of DP - Account operations, 3% weightage) describes easi and easiest among CDSL's internet facilities, including freeze levels, pledges, margin pledges, registration for sole vs joint holders and nomination updates. Chapter 8 (13%) defines both in footnotes. Chapter 9 (10%) repeats the pledge and margin-pledge functions, and Chapter 4 (12%) covers PMS pool account grouping. Expect "which CDSL facility allows submission of instructions?" (easiest, not easi), and questions on who needs a registration form.
Common exam traps
- easi views, easiest executes. The "est" is Execution of Secured Transaction.
- CDSL, not NSDL. NSDL's view facility is IDeAS and its instruction facility is SPEED-e.
- Both parties to an easiest pledge must be registered for easiest.
- Sole holders skip the registration form; joint holders don't.
- Freeze at three levels: whole BO account, a single ISIN, or partial.
- CMs can accept margin pledges and re-pledge to the CC through easiest.
- PMS grouping needs the same PAN and SEBI registration number across the grouped pool accounts.
- Case in the workbook varies. It writes "easiest" in lower case in some places and "Easiest" in others. It is the same facility.
Check yourself
1.Which CDSL facility permits a beneficial owner to submit transaction instructions and to pledge securities?
- a)easi
- b)easiest
- c)SMART
- d)IDeAS
Show the answer
Answer: (b) easiest
easiest — Electronic Access to Securities Information and Execution of Secured Transaction — which permits BOs/CMs to submit debit/credit transaction instructions to effect off-market, on-market, inter-depository and early pay-in of transactions, freeze/unfreeze and pledge, unpledge and confiscation.
Option A is the viewing facility: easi — Electronic Access to Securities Information — whereby beneficial owner can view their demat account holding, download the transaction statements.
Option C is the SMS alert registration, and option D is NSDL's viewing facility, not CDSL's.
The extra capabilities of easiest:
Through the easiest facility, the BO can freeze their demat account at BO level, ISIN level as well as can initiate partial level freeze.
The BO can pledge the securities as a pledgor, and Pledgee BO can accept the pledge as a pledgee if both the BOs are registered for CDSL's easiest facility. Further, the pledgee can execute the confiscation if the pledgor fails to fulfill the obligation.
BO also has the facility to initiate the pledge for the purpose of Margin from their easiest login. CM has the facility to accept the Margin pledge from its easiest login as a pledgee and the CM has the facility to re-pledge the securities to the CC as a pledgor.
Registration differs by holding pattern: a sole holder beneficial owner is not required to submit any registration forms to DP for authentication nor the trusted account declaration in case of easiest trusted account user. In case of a beneficial owner holding a joint demat account, the beneficial owner is required to submit the duly signed registration form to the DP for authentication.
And nomination can be handled there: the sole holder BO can update the nomination details or opt out of nomination details in their demat account through CDSL's easi/easiest facility as well as from the website of CDSL.
Where this is taught
Free preparation for NISM Series VIRelated terms
- Margin pledgeThe only permitted way for a client to give securities as margin — a special pledge created in the depository system that leaves the shares in the client's own demat account instead of transferring them to the broker.
- Early pay inDelivering securities to the clearing corporation's early pay-in account ahead of the pay-in deadline, mainly to earn margin exemption; now usually done by blocking shares in the client's own demat account.
- PledgeA charge created over demat securities in favour of a lender who may appropriate them unilaterally on default — created by book entry under section 12 of the Depositories Act, not by handing over anything.
- easiCDSL's internet facility for viewing a demat account — real-time holdings, instruction status, past transactions and daily portfolio valuation — with no ability to submit debit or credit instructions.
- IDeASInternet-based Demat Account Statement: NSDL's viewing facility, launched January 1, 2004, showing demat balances and transactions online, not real time, with a delay of at most 30 minutes.
- Inter-depository transferA transfer of securities from an account in one depository (NSDL or CDSL) to an account in the other, possible because SEBI regulations require the two depositories to be inter-connected.
- First holderThe first-named holder of a joint demat account: all communications, dividend and interest warrants, annual reports and meeting notices go to them, though beneficial ownership vests in all joint holders.
- CDSLCentral Depository Services (India) Limited — one of India's two depositories, promoted by leading Indian banks and the Bombay Stock Exchange, registered in February 1999 and operational from 22 March 1999.