SPEED-e
NSDL's internet-based facility, launched in September 2001, letting demat account holders and Clearing Members submit delivery instructions directly online instead of on paper.
In plain language
Before SPEED-e, every delivery instruction meant paper: a physical Delivery Instruction Slip, filled, signed and handed to the DP. SPEED-e changed that. It lets a demat account holder, including a Clearing Member, submit delivery instructions straight over the internet, through NSDL's own website.
Any DP of NSDL can subscribe to it, and each user who wants to use it signs an agreement with their DP first.
How it works
From Chapter 5, section 5.3.2: NSDL launched SPEED-e (pronounced "speedy") in September 2001. It is available only to DPs who have subscribed, accessed at eservices.nsdl.com. Users access it either as a Password User (capped at six Pre-Notified Clearing Member accounts) or a Smart Card/e-Token User (no cap; only this type can act as a Clearing Member). Later features layered on top include: redemption of mutual fund units through SPEED-e; a password-reset facility on the website itself; simplified on-boarding, so a separate Participant-client agreement is no longer required; and SIMPLE, which lets password users submit Client-to-CM-Pool-Account transfers from a mobile phone.
A worked example
Green Valley DP, an NSDL Participant, subscribes to SPEED-e so its 4,000 demat clients can submit instructions online instead of filling paper DIS forms.
A client, Mr Oza, signs the required agreement and registers as a Password User. He now submits a delivery instruction for 80 shares directly on eservices.nsdl.com rather than visiting his DP's office, though he remains capped at six Pre-Notified Clearing Member accounts because he chose the password route rather than the Smart Card/e-Token route.
Why NISM asks about it
Chapter 5, section 5.3.2, introduces SPEED-e as NSDL's internet-based instruction facility. Expect the September 2001 launch date, the NSDL-only nature of the facility, and the two access modes it offers.
Common exam traps
- SPEED-e is NSDL-specific; CDSL's equivalent internet facilities are easi and easiest, described separately, not as "SPEED-e for CDSL."
- SPEED-e itself carries no per-account cap — the six-account cap belongs specifically to the Password User mode, not to SPEED-e as a whole.
- Users must sign an agreement with their DP to use SPEED-e — it is not automatically available to every NSDL demat holder.
Check yourself
1.A Password User of SPEED-e can debit his demat account:
- a)In favour of any account
- b)Only in favour of specified Pre-Notified Clearing Member accounts, up to six
- c)Only in favour of accounts held with the same DP
- d)Not at all — password users can only view
Show the answer
Answer: (b) Only in favour of specified Pre-Notified Clearing Member accounts, up to six
Password Users can debit their demat accounts only in favour of specified Pre-Notified Clearing Member accounts (upto six), while Smart Card/e-Token User can submit instructions in favour of any number of accounts.
Option A describes the Smart Card/e-Token user. Option D confuses SPEED-e with IDeAS — SPEED-e is the instruction facility; IDeAS is the facility for viewing.
The credential also determines who may use it at all: a demat account holder will have the option of accessing SPEED-e either as a Password User or as a Smart Card/e-Token User. A Clearing Member must be a Smart Card/e-Token User to be able to access SPEED-e.
And one function is reserved for the stronger credential: as a smart card user, clients can also freeze or unfreeze their accounts by giving instructions through SPEED-e.
Both classes of user share some features: the launch of redemption of mutual fund units through SPEED-e facility... enable both type of users viz., password and e-Token users to give request to redeem the mutual fund units.
And password users have their own facility: SIMPLE, a facility that enables the password based users of SPEED-e facility to submit Client to Clearing Member Pool Account transfer instructions, on SPEED-e website through their mobile phones (enabled with GPRS).
Background: NSDL launched SPEED-e (pronounced as speedy) in September, 2001. Any DP of NSDL can subscribe to SPEED-e, the common infrastructure of NSDL. SPEED-e is available only to those DPs who have subscribed to it.
2.IDeAS is a facility that allows a demat account holder to:
- a)Submit delivery instructions over the internet
- b)View balances and transactions in the demat account, updated online with a delay of maximum 30 minutes
- c)Pledge and unpledge securities online
- d)Open a demat account online
Show the answer
Answer: (b) View balances and transactions in the demat account, updated online with a delay of maximum 30 minutes
IDeAS is the facility for viewing balances and transactions in the demat account updated on an online basis with a delay of maximum 30 minutes.
NSDL has launched a facility called IDeAS from January 1, 2004 for investors to view balances and transactions in demat accounts updated on an online but not real time basis.
It views; it does not transact. That is the whole distinction from SPEED-e, and option A describes SPEED-e: SPEED-e enables demat account holders (including Clearing Members) to submit delivery instructions directly on the Internet.
What IDeAS shows: IDeAS enables Clients (Beneficial owners) to view the latest balances and transactions that have taken place in the last five days... Clients now are able to view the transactions for a period of past 30 days. Clients can select the period upto 30 days from the current date.
Who can use it: the users of SPEED-e, clearing members who have subscribed to IDeAS and to those clients whose DPs are registered for IDeAS, either as a Password or a Smart Card/e-Token User.
Enhancements display values for mutual fund units (security type code '20')... based on the NAVs, price/face value and indicative value... in respect of non-convertible debentures, bonds, ETFs, unlisted equity shares, and the price as of the previous date and value in respect of ISINs pertaining Sovereign Gold Bonds.
For clearing members: they can view and download latest balances and transactions executed in their CM Pool accounts in respect of settlements for the current pay-in date, previous four and next four pay-in dates.
The CDSL equivalent is easi — Electronic Access to Securities Information — whereby beneficial owner can view their demat account holding, download the transaction statements.
Where this is taught
Free preparation for NISM Series VIRelated terms
- Delivery Instruction SlipThe signed form on which a beneficial owner instructs the DP to debit the demat account — no beneficiary account can be debited without one, whether the transfer is on-market or off-market.
- Password UserA SPEED-e access mode that lets a demat account holder submit delivery instructions online but only to a maximum of six pre-notified Clearing Member accounts, unlike a Smart Card/e-Token user who faces no such cap.
- SIMPLENSDL's facility letting a password-based SPEED-e user submit a Client-to-Clearing-Member Pool Account transfer instruction from a GPRS-enabled mobile phone.
- Smart Card / e-Token UserThe hardware-authenticated way of accessing NSDL's SPEED-e facility, required for any Clearing Member and carrying no cap on the number of accounts an ordinary user can instruct.
- SPICEThe SPEED-e facility letting a Clearing Member, holding a client's Power of Attorney, submit auto pay-in instructions on the client's behalf, with no paper delivery instruction from the client.
- 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.