Depository Services in NSDL & CSDL2

8/7/2019 Depository Services in NSDL & CSDL2

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Depository services of NSDL and CSDL

Presented to: Prof Ramesh

Presented by: Group 6(Sec A)Sadhana

Swati NehaKriti


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D epository System

An Organization that holds securities of investor in electronic

format at the request of the investor through a registered

D epository Participant.

This system is also know as Scrip Less Trading system.

To utilize the services offered by a depository the investor is

required to open a demat account with the depository.


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D ifference Between Bank & D epository

BANK

H olds Funds in an Account

Transfers Funds between accountson the instruction of the accountholder.

Transfers without handling cashFacilitates safe keeping of money

D irect Contact

DEPOSITORY

H old securities in an account

Transfers securities betweenaccounts on the instruction of theaccount holder

Transfers without handling physical securities

Facilitates safe keeping of sharesContact through D epositoryParticipants

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Constituents Of D epository System

There are basically four participant:

The D epository

The D epository Participant

The Issuing Company

The Investor

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No. of D epositories Registered With SEBI

NSDLIt is the largest depository of Indian stocks, promoted by NSE,

ID

BI, UTI, SBI and other financial institution. NS D L commenced operation in November 1996.D .Ps registered with SEBI:

NS D L:359

CDSLIt is a depository promoted byBombay Stock Exchange jointly

with SBI, Bank of India,HD

FCBank and other financial institution.CS D L commenced its operations inJuly 15th 1999.D .Ps registered with SEBI:

CD SL: 619

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SH ARE H OL D ERS OF NS D L

State Bank of IndiaOriental Bank of CommerceCitibank Standard Chartered Bank

HD FC Bank LimitedThe H ong kong and Shanghai Banking CorporationLimitedD eutsche Bank D ena Bank Canara Bank Union Bank of India

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SH ARE H OL D ERS OF C D SL

Standard Chartered Bank

Centurion Bank of Punjab Ltd

Canara Bank

Union Bank of India

Bank of Maharashtra

Jammu and Kashmir Bank Limited

The Calcutta Stock Exchange Association Limited

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D epository Participants

An agent of the depository through which it interfaces with the investor. A

D epository Participants can offer depository services only after it gets

registration from SEBI.

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BENEFITS OF D EPOSITORY SYSTEM (1/2)

BE NEFIT S TO I NV E STOR S

This system will eliminate paper work as the book entry system doesnot need physical movement of certificates for transfer process

The risk of bad deliveries, fraud and misplaced, mutilated and lostshare certificates will not exists.The electronic media helps to save time and increase velocity of security movement.

Investors will be able to change portfolio more frequently.The cost of transfer is less as the share transfers are exempt fromstamp duty.Faster payment in case of sale of share

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BENEFITS OF D EPOSITORY SYSTEM (1/2)

BE NEFIT S TO C OMPA N IE S

The companies will be able to know the particulars of beneficial owners

and their holdings periodically.

At the time of declaration of dividends, bonus etc. there will not be any

rush for transfer related activities for the companies.

It would be possible to send notices and annual reports without delay.

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Services provided by D epository

D ematerialisation (usually known as demat)

Rematerialisation (usually known as remat)

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D ematerialisation

Process by which physical certificates of an investor are converted to an

equivalent number of securities in electronic form and credited in to the

investors account with his/her D P

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Rematerialisation

Rematerialisation is the process by which a client can get his electronic

holdings converted into physical certificates.

A client can rematerialise his dematerialised holdings at any point of time.

The rematerialisation process is completed within 30 days.

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Documents

Depository Services in NSDL & CSDL2