Securities, Issuers and Registrars and Share Transfer Agents: eg: an agreement between the depository , issuer of security and the designated registrar/ share transfer agents for the underlying security in the cases of issues like transfer of securities by their beneficial owners
SE is an organised market for dealings in securities commonly referred as secondary market.one of its main functions is price discovery i.e to cause prices to reflect currently avalable information about a security
SB are members of SE primarily engaged in 2 main activities i.e buy and sell securities for their clients charging a comm and as dealers or traders and dealers they buy and sell on their own a/c for trading gains
Clearing Corporation/ Clearing House and Clearing Members
A clearing corporation is a central organisation created to facilitate efficient , fast and economical settlement of transactions at a SE . it being an internal department of a SE is an independent entity
The members of Clearing Corporation brokerage firms, banks or other financial institutions who are called as clearing members.
Eg:all trades done at NSE & OTCEI are settled through National Securities Clearing Corporation Limited (NSCCL)
Once the company is admitted into depository system, an ISIN (international securities identifiction number) is allotted by the depository. This no. is unique for each security of the company that is admitted in the depository
The entire process takes about 15 days time.
However when large no. of certificates are submitted from institutions, it takes upto 30 days for demat
A subscriber to govt securities who opts for SGL securities may open an SGL a/c with RBI or any other approved entity on its own a/c are held in SGL 1 a/c and investments held on a/c of other clients are held in SGL 2 a/c