Depository participant

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All About The Depository Participants In Simple Language

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  • Very helpful presentation. A detailed workbook on Depository Participant can be found on http://www.PrepCafe.in
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Depository participant

  1. 1. DEPOSITORY• A “Depository” is a provider of facility for holding securities .• It is a kind of bank for securities like shares, debentures, bonds, etc.
  2. 2. DEPOSITORY IN INDIA• National Securities Depository Ltd. – NSDL• Central Depository Services Ltd. - CDSL
  3. 3. DEPOSITORY PARTICIPANT•Agent of the depository.•Intermediary between the depository and the investors. •Registered with SEBI.
  4. 4. CONT…• Organization – holds securities for TRADING.• Shares, Debentures, Mutual Funds, Derivatives and Commodities.
  5. 5. DEPOSITORY IN INDIA• National Securities Depository Ltd. – NSDL Having 95 lakh Demat A/c - 300 DPs in India• Central Depository Services Ltd. - CDSL – Having 65 lakh Demat A/c - 500 DPs in India
  6. 6. HOW DO DEPOSITORY OPERATE?• Interacts with its investors.• Through its agents, called Depository Participants normally known as DPs.• By opening Demat A/C WITH DPS• Agreement to be made between the parties.
  7. 7. IMPORTANT POINTS• Registered owner of Securities- Physical certificates – INVESTOR electronic form- DEPOSITORY• Beneficial Owner (BO) - INVESTOR
  8. 8. SERVICES PROVIDED BY THE DEPOSITORY• Dematerialisation ( demat) - converting physical certificates to electronic form• Rematerialisation ( remat) is reverse of demat.• Transfer of securities, change of ownership.
  9. 9. BENEFITS OF DEPOSITORY• Immediate transfer of shares• No stamp duty on such transfers• Reduced transaction cost• Transparency
  10. 10. BENEFITS (CONT…)Elimination of risks - associated in dealing withPhysical certificates - loss / theft / forgery /etc.

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