Enhancement in DPM-SHR System for providing Form 121 (Exemption from Tax Deduction) for income streams viz., Interest and Dividend along with request for Beneficial Ownership (BENPOS) information

National Securities Depository Limited, vide Circular No. NSDL/CIR/II/21/2026 dated April 9, 2026, has announced an important update regarding enhancement in the DPM-SHR system for providing Form 121 for income streams such as interest and dividend along with request for Beneficial Ownership information.

Key Details of the Update –
• The circular refers to the Budget Announcement dated February 1, 2026 concerning Rule 211 of the Income Tax Rules, 2026 and Section 393(6)(a) of the Income-tax Act, 2025, under which Form 15G and Form 15H have been replaced by Form 121 for declaration relating to receipt of certain incomes without deduction of tax, effective April 1, 2026.
• In view of this change, depositories have enabled clients to submit Form 121 in respect of demat account holdings across all their demat accounts, so that clients are not required to file multiple declarations separately with multiple companies or their Registrar and Transfer Agents.
• The enhancement is intended to promote ease of doing business, investor convenience, and process efficiency by allowing clients to file Form 121 through the Unified Investor App feature available in the NSDL SPEED-e Mobile App.
• National Securities Depository Limited has also enabled electronic submission of Form 121 through an online process on the NSDL SPEED-e and IDeAS platforms.
• For Issuers and R&T Agents seeking Beneficial Ownership (BENPOS) information from National Securities Depository Limited, the circular requires that the interest and dividend entitlement information be provided along with the request for BENPOS.
• The entitlement information is to be captured in the DPM-SHR system under the module “Beneficiary Details > Beneficiary Details Request.”
• The circular introduces a new “Information Type” option called “Detailed with Form 121”. Upon selecting this option, details of Form 121 submissions made by clients will be made available as a separate download file, the format of which is provided in Annexure 1.
• As reflected in the system screen shown on page 2, the DPM-SHR interface has been updated to include the new “Detailed with Form 121” selection within the Beneficiary Details Request module, indicating the operational manner in which issuers and R&T agents are expected to access this information.
• The circular states that the above feature has been implemented in the DPM-SHR system from April 1, 2026.

Actions if Any –
• Issuers and R&T Agents seeking BENPOS information from National Securities Depository Limited must provide interest and dividend entitlement information along with the BENPOS request.
• Such entities should use the DPM-SHR module “Beneficiary Details > Beneficiary Details Request” and select the “Detailed with Form 121” option where Form 121-related details are required.
• Relevant stakeholders should align their internal processes to make use of the enhanced DPM-SHR system, including handling the separate download file containing Form 121 submission details.

Compliance Deadline –
The enhancement in the DPM-SHR system has been implemented with effect from April 1, 2026. Accordingly, Issuers and R&T Agents seeking BENPOS information for interest and dividend income streams are required to provide the relevant entitlement information and use the revised system functionality from April 1, 2026.