The document provides information on the depository system in India. It discusses key aspects such as what is a depository participant, the two depositories in India (NSDL and CDSL), how securities are held in dematerialized form through a beneficial owner account with a depository participant, and the processes of dematerialization and rematerialization of securities. The depository system eliminates risks associated with physical certificates and provides various benefits to investors such as convenient transfer of securities and safe custody of holdings.
The document discusses the depository system in India. It explains that a depository holds securities electronically, avoiding risks of paper certificates. It outlines the key entities in the depository system - depositories like NSDL and CDSL, depository participants that interact with investors, stock exchanges, and clearing corporations. The document also describes various services provided by depositories like dematerialization and rematerialization of securities, account transfers, and settlement of trades.
An investment banking is a financial institution that assists individuals, corporations and governments in raising financial capital by underwriting or acting as the client’s agent in the issuance of securities or both
A depository system allows for the electronic holding and transfer of securities without physical movement of share certificates. Under this system, securities are held in dematerialized form in electronic accounts maintained by depositories, and transfers occur via electronic book entries. The key entities involved are depositories, depository participants who act as intermediaries between investors and depositories, and registrars who confirm dematerialization requests. Opening a demat account, depositing physical shares for dematerialization, and conducting trades then involves electronic instructions between these parties. The benefits include faster trading, reduced costs, and convenience.
Meaning, need and benefits of depository system in India, difference between demat and physical share, depository process, functioning of NSDL and SHCIL Importance of Debt market in capital market, participant in the debt market, types of instrument treated in the Debt market, primary and secondary segments of debt market.
The depository system in India allows investors to hold securities electronically in depository accounts, eliminating the need for physical certificates. Introduced in 1996, depositories like NSDL and CDSL hold securities on behalf of investors through depository participants like banks and brokers. This electronic book-entry system reduces costs and risks compared to physical certificates, allowing faster and more convenient transfer of securities and funds.
The document discusses India's depository system. It begins by outlining problems with physical share certificates like theft, delays, and paperwork. It then summarizes the Depositories Act of 1996 which established depository services in India. Depositories dematerialize physical shares and allow for electronic trading and transfer of shares. Major players in India's depository system are the National Securities Depository Limited and Central Depository Services (India) Limited. Benefits of the depository system include safety, immediate transfers, and reduced costs.
The document discusses India's depository system for electronic trading and settlement of securities. It describes how the earlier physical system was inefficient and led to problems. To address this, the Depositories Act of 1996 was passed to dematerialize securities and facilitate electronic transfers through depositories like NSDL and CDSL (National Securities Depository Limited and Central Depository Services Limited). The system aims to make transfers faster, more accurate and secure by maintaining electronic records of ownership rather than physical certificates.
The document discusses the depository system in India. It explains that a depository holds securities electronically, avoiding risks of paper certificates. It outlines the key entities in the depository system - depositories like NSDL and CDSL, depository participants that interact with investors, stock exchanges, and clearing corporations. The document also describes various services provided by depositories like dematerialization and rematerialization of securities, account transfers, and settlement of trades.
An investment banking is a financial institution that assists individuals, corporations and governments in raising financial capital by underwriting or acting as the client’s agent in the issuance of securities or both
A depository system allows for the electronic holding and transfer of securities without physical movement of share certificates. Under this system, securities are held in dematerialized form in electronic accounts maintained by depositories, and transfers occur via electronic book entries. The key entities involved are depositories, depository participants who act as intermediaries between investors and depositories, and registrars who confirm dematerialization requests. Opening a demat account, depositing physical shares for dematerialization, and conducting trades then involves electronic instructions between these parties. The benefits include faster trading, reduced costs, and convenience.
Meaning, need and benefits of depository system in India, difference between demat and physical share, depository process, functioning of NSDL and SHCIL Importance of Debt market in capital market, participant in the debt market, types of instrument treated in the Debt market, primary and secondary segments of debt market.
The depository system in India allows investors to hold securities electronically in depository accounts, eliminating the need for physical certificates. Introduced in 1996, depositories like NSDL and CDSL hold securities on behalf of investors through depository participants like banks and brokers. This electronic book-entry system reduces costs and risks compared to physical certificates, allowing faster and more convenient transfer of securities and funds.
The document discusses India's depository system. It begins by outlining problems with physical share certificates like theft, delays, and paperwork. It then summarizes the Depositories Act of 1996 which established depository services in India. Depositories dematerialize physical shares and allow for electronic trading and transfer of shares. Major players in India's depository system are the National Securities Depository Limited and Central Depository Services (India) Limited. Benefits of the depository system include safety, immediate transfers, and reduced costs.
The document discusses India's depository system for electronic trading and settlement of securities. It describes how the earlier physical system was inefficient and led to problems. To address this, the Depositories Act of 1996 was passed to dematerialize securities and facilitate electronic transfers through depositories like NSDL and CDSL (National Securities Depository Limited and Central Depository Services Limited). The system aims to make transfers faster, more accurate and secure by maintaining electronic records of ownership rather than physical certificates.
This document appears to be an introduction or proposal for a study on the topic of dematerialization of securities. It includes the following:
- An introduction to the topic and objectives of studying dematerialization processes.
- An outline of the document structure, which will include chapters on literature review, company profile, data analysis, conclusion, and bibliography.
- A brief description of the methodology to be used, including both primary and secondary sources of data collection.
- Notes on the scope and limitations of the study, which will focus on the processes and services of depository participants.
This document discusses dematerialization of shares and securities. It defines dematerialization as the conversion of physical securities like shares and debentures into electronic form, which are then stored by a depository. The main benefits of dematerialization are reduced risk, time and cost savings, high liquidity, and ease of corporate actions. National Securities Depository Limited and Central Depository Services Limited are the two depositories in India that work along with depository participants and companies to facilitate dematerialization and provide additional services to investors.
Depositary receipts (DRs) like American depositary receipts (ADRs) and global depositary receipts (GDRs) allow foreign companies to list shares on an exchange outside their home country. ADRs trade on US exchanges and represent ownership of shares in a foreign company, while GDRs trade internationally. DRs offer benefits to both companies raising capital abroad and international investors, including exposure to foreign markets in familiar terms. Companies issuing DRs must comply with regulations of the foreign market and designate depositary banks and custodians to facilitate the issuance and trading of the receipts.
The IRDA was established in 1996 and formally constituted in 2000 as the regulator of India's insurance industry. Originally called the Insurance Regulatory Authority, it was later renamed the Insurance Regulatory and Development Authority to reflect its broader role in promoting growth of the Indian insurance market. The IRDA frames regulations and guidelines, and works to facilitate market integration, attract players, and align the domestic market with global standards, while protecting policyholders and ensuring the healthy growth of the industry.
Dematerialization is the process of converting physical share certificates into electronic form and holding them in a Demat account with a Depository Participant (DP). To dematerialize shares, an investor fills a form with their DP and submits their share certificates. The shares will be credited to their Demat account within 15 days. A Demat account allows investors to buy and sell shares electronically without physical certificates.
Regulations of insurance in India are listed in the Constitution as a subject of the Central government. The insurance market began in Lloyd's Coffee House in London in 1686 and catered mainly to sailors and merchants. In India, insurance has roots in ancient texts and its modern form began in 1818 with the Oriental Life Insurance Company. The life insurance sector was nationalized in 1956 with the Life Insurance Corporation of India being formed. In 1972, the general insurance sector was also nationalized. The IRDA was set up in 2000 to regulate the now-privatized insurance industry and encourage competition.
The document discusses money markets in India. It provides an overview of the types of financial markets including money markets, capital markets, cash or spot markets, derivative markets, and forex markets. It then discusses what money markets are, the structure and objectives of money markets in India, and the major players in the Indian money market which include the Reserve Bank of India, banks, and financial institutions. It also summarizes the role of the Reserve Bank of India in the money market and some developments and reforms that have improved the Indian money market over time.
In light of a lot of news relating to sham entities garnering funds through fraudulent investment schemes with promise of huge returns mainly in the name of property development and agriculture, SEBI has in the last few years, intensified its scrutiny of investment structures that raise domestic capital on an unregulated basis. Securities Appellate Tribunal recently passed an order upholding SEBI’s findings against Alchemist Infra Reality Limited. The SAT order along with recent pronouncement by the Supreme Court have probed unregulated investment arrangements to conclude whether or not they constitute CIS, as Schemes are required to be registered with SEBI in pursuance to Securities And Exchange Board Of India (Collective Investment Schemes) Regulations, 1999
Depository receipts represent ownership of shares in a foreign company that are held in trust by a domestic bank. There are three main types: American Depository Receipts (ADRs), which are issued and traded in the US; Global Depository Receipts (GDRs), which are issued and traded elsewhere; and Indian Depository Receipts (IDRs), which allow foreign companies to raise capital from the Indian market. ADRs/GDRs provide foreign companies access to international investors and capital markets. There are different levels of ADRs with increasing regulatory requirements associated with higher levels that provide greater visibility and trading opportunities in US markets. IDRs similarly allow Indian investors to invest in foreign companies.
This document provides an overview of the content and legal requirements of a prospectus according to the Companies Act, 2013. It begins with defining a prospectus and stating its purpose of providing important financial information to help investors decide whether to subscribe to a company's shares or debentures. It then discusses the types of prospectuses, including abridged, deemed, red herring, shelf, and when a prospectus is not required. The document also outlines the legal requirements for a prospectus and the key information it must contain, such as details about the company, directors, capital structure, and auditors' reports. Finally, it briefly discusses private placements under the Act and the applicable sections and rules.
The document provides information about investment banks, including their organizational structure, functions, and examples of investment banks in Pakistan. It discusses that investment banks are split into front office, middle office, and back office activities. The front office includes investment banking, investment management, sales and trading, and research and structuring. It also summarizes some of the major functions of investment banks such as IPOs, mergers and acquisitions advisory, trading, research, and risk management. The document then provides details about several prominent investment banks in Pakistan, including their investment banking services, such as NIB Bank, IGI Investment Bank, Citibank, and Meezan Bank.
RBI rules, regulations and guidelines for FIIs. This ppt covers the whole scenario of FII related to RBI's guidelines. The whole material is borrowed from RBI website as it is.
Interest Rate Swap Valuation Introduction and Practical GuideDmitryPopov47
An interest rate swap is an agreement between two parties to exchange future interest rate payments over a set period of time. It consists of a series of payment periods, called swaplets. The most popular form of interest rate swaps is the vanilla swaps that involve the exchange of a fixed interest rate for a floating rate, or vice versa. There are two legs associated with each party: a fixed leg and a floating leg. Swaps are OTC derivatives that bear counterparty credit risk beside interest rate risk.
Interest rate swaps are the most popular OTC derivatives that are generally used to manage exposure to fluctuations in interest rates. Swaps can be also used to obtain a marginally lower interest rate. Thus they are often utilized by a firm that can borrow money easily at one type of interest rate but prefers a different type. They also allow investors to adjust interest rate exposure and offset interest rate risks. Speculators use swaps to speculate on the movement of interest rates. More and more swaps are cleared through central counterparties nowadays (CCPs). This presentation gives an overview of interest rate swap product and valuation model.
The Over The Counter Exchange of India (OTCEI) was started in 1992 to provide a market for smaller companies that could not afford listing fees or meet capital requirements of larger exchanges. It allows trading of unlisted securities across member counters. Promoters include major public sector banks and financial institutions. Listing requirements include a minimum paid-up capital and public float. The process involves a sponsor appraising the company and submitting a listing application. Trading is conducted through paper-based forms across member counters nationwide.
1. Allotment refers to the acceptance of an offer to purchase shares. For allotment to be valid, certain requirements must be met including delivery of a prospectus to regulators, minimum application amounts, and minimum subscription levels being received.
2. Shares must also be listed on the stock exchange(s) mentioned in the prospectus.
3. Companies must complete allotment within 30 days of the subscription closing and obtain stock exchange approval for the basis of allotment. They must also complete trading formalities within 7 days of finalizing the allotment basis.
It provides a comprehensive analysis of the SEBI Invetsor Protection Guideline 2000 from the point of view of the companies. It covers offer documents, exceptions, price discovery, green shoe option, e-IPO, etc.
Corporatisation and demutualisation of stock exchangeSandeep Singh
This document discusses the demutualization and corporatization of stock exchanges in India. It provides background on the mutual structure of Indian stock exchanges prior to demutualization. It then outlines the steps taken towards demutualizing exchanges, including the BSE becoming a company limited by shares in 2005. Research analyzed BSE index and turnover data, finding more stability and increased turnover after demutualization in May 2005. Challenges of the process included potential ongoing conflicts of interest and loss of exchange identity.
The document summarizes securities markets and related concepts. It discusses that securities markets allow securities like stocks and bonds to be traded based on supply and demand. It then describes different segments of the securities market like the capital market, which deals in long-term securities, and the secondary market, where already issued securities are traded. Key stock exchanges in India are also outlined, including the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). The roles of trading, settlement, and regulatory bodies like SEBI are also summarized at a high level.
Merchant banking provides various financial services including investment banking, portfolio management, underwriting public offerings, and mergers and acquisitions advice. It originated in London when banks helped finance foreign trade and raise funds for developing countries. In India, merchant banking grew with the establishment of banks like Grindlays and Citibank in the 1960s-1970s. Merchant banks operate under regulations set by the Securities and Exchange Board of India that classify banks by the types of services they can provide and require minimum capital levels. They must obtain authorization, follow code of conduct guidelines, and contribute to the market by channelizing capital and ensuring regulatory compliance.
This document provides details about the Insurance Module offered by the National Stock Exchange of India. It includes 15 key points:
1. The Insurance Module costs Rs. 1500, takes 120 minutes to complete, includes 60 questions, and requires a minimum passing score of 60%.
2. The module covers topics like life insurance policies, general insurance policies, insurance claims procedures, and the role of insurance providers and regulators.
3. It also discusses the fundamentals of risk management, including risk identification, measurement, avoidance, transfer, financing, and retention.
4. The document outlines the elements of a valid insurance contract, including offer and acceptance, consideration, capacity, and legal purpose.
5. It
This Presentation would help to understand VBA for the following:
- Use the main features of the VBA Editor window
- Create procedures in Visual Basic for Applications
- Create and use variables
- Build and use user-defined functions
- Write code to control Excel objects
- Use a wide array of standard programming techniques
- Create a custom form complete with a variety of controls
- Create code to drive a user form
- Create procedures that launch automatically
- Write a range of error handling routines
This document appears to be an introduction or proposal for a study on the topic of dematerialization of securities. It includes the following:
- An introduction to the topic and objectives of studying dematerialization processes.
- An outline of the document structure, which will include chapters on literature review, company profile, data analysis, conclusion, and bibliography.
- A brief description of the methodology to be used, including both primary and secondary sources of data collection.
- Notes on the scope and limitations of the study, which will focus on the processes and services of depository participants.
This document discusses dematerialization of shares and securities. It defines dematerialization as the conversion of physical securities like shares and debentures into electronic form, which are then stored by a depository. The main benefits of dematerialization are reduced risk, time and cost savings, high liquidity, and ease of corporate actions. National Securities Depository Limited and Central Depository Services Limited are the two depositories in India that work along with depository participants and companies to facilitate dematerialization and provide additional services to investors.
Depositary receipts (DRs) like American depositary receipts (ADRs) and global depositary receipts (GDRs) allow foreign companies to list shares on an exchange outside their home country. ADRs trade on US exchanges and represent ownership of shares in a foreign company, while GDRs trade internationally. DRs offer benefits to both companies raising capital abroad and international investors, including exposure to foreign markets in familiar terms. Companies issuing DRs must comply with regulations of the foreign market and designate depositary banks and custodians to facilitate the issuance and trading of the receipts.
The IRDA was established in 1996 and formally constituted in 2000 as the regulator of India's insurance industry. Originally called the Insurance Regulatory Authority, it was later renamed the Insurance Regulatory and Development Authority to reflect its broader role in promoting growth of the Indian insurance market. The IRDA frames regulations and guidelines, and works to facilitate market integration, attract players, and align the domestic market with global standards, while protecting policyholders and ensuring the healthy growth of the industry.
Dematerialization is the process of converting physical share certificates into electronic form and holding them in a Demat account with a Depository Participant (DP). To dematerialize shares, an investor fills a form with their DP and submits their share certificates. The shares will be credited to their Demat account within 15 days. A Demat account allows investors to buy and sell shares electronically without physical certificates.
Regulations of insurance in India are listed in the Constitution as a subject of the Central government. The insurance market began in Lloyd's Coffee House in London in 1686 and catered mainly to sailors and merchants. In India, insurance has roots in ancient texts and its modern form began in 1818 with the Oriental Life Insurance Company. The life insurance sector was nationalized in 1956 with the Life Insurance Corporation of India being formed. In 1972, the general insurance sector was also nationalized. The IRDA was set up in 2000 to regulate the now-privatized insurance industry and encourage competition.
The document discusses money markets in India. It provides an overview of the types of financial markets including money markets, capital markets, cash or spot markets, derivative markets, and forex markets. It then discusses what money markets are, the structure and objectives of money markets in India, and the major players in the Indian money market which include the Reserve Bank of India, banks, and financial institutions. It also summarizes the role of the Reserve Bank of India in the money market and some developments and reforms that have improved the Indian money market over time.
In light of a lot of news relating to sham entities garnering funds through fraudulent investment schemes with promise of huge returns mainly in the name of property development and agriculture, SEBI has in the last few years, intensified its scrutiny of investment structures that raise domestic capital on an unregulated basis. Securities Appellate Tribunal recently passed an order upholding SEBI’s findings against Alchemist Infra Reality Limited. The SAT order along with recent pronouncement by the Supreme Court have probed unregulated investment arrangements to conclude whether or not they constitute CIS, as Schemes are required to be registered with SEBI in pursuance to Securities And Exchange Board Of India (Collective Investment Schemes) Regulations, 1999
Depository receipts represent ownership of shares in a foreign company that are held in trust by a domestic bank. There are three main types: American Depository Receipts (ADRs), which are issued and traded in the US; Global Depository Receipts (GDRs), which are issued and traded elsewhere; and Indian Depository Receipts (IDRs), which allow foreign companies to raise capital from the Indian market. ADRs/GDRs provide foreign companies access to international investors and capital markets. There are different levels of ADRs with increasing regulatory requirements associated with higher levels that provide greater visibility and trading opportunities in US markets. IDRs similarly allow Indian investors to invest in foreign companies.
This document provides an overview of the content and legal requirements of a prospectus according to the Companies Act, 2013. It begins with defining a prospectus and stating its purpose of providing important financial information to help investors decide whether to subscribe to a company's shares or debentures. It then discusses the types of prospectuses, including abridged, deemed, red herring, shelf, and when a prospectus is not required. The document also outlines the legal requirements for a prospectus and the key information it must contain, such as details about the company, directors, capital structure, and auditors' reports. Finally, it briefly discusses private placements under the Act and the applicable sections and rules.
The document provides information about investment banks, including their organizational structure, functions, and examples of investment banks in Pakistan. It discusses that investment banks are split into front office, middle office, and back office activities. The front office includes investment banking, investment management, sales and trading, and research and structuring. It also summarizes some of the major functions of investment banks such as IPOs, mergers and acquisitions advisory, trading, research, and risk management. The document then provides details about several prominent investment banks in Pakistan, including their investment banking services, such as NIB Bank, IGI Investment Bank, Citibank, and Meezan Bank.
RBI rules, regulations and guidelines for FIIs. This ppt covers the whole scenario of FII related to RBI's guidelines. The whole material is borrowed from RBI website as it is.
Interest Rate Swap Valuation Introduction and Practical GuideDmitryPopov47
An interest rate swap is an agreement between two parties to exchange future interest rate payments over a set period of time. It consists of a series of payment periods, called swaplets. The most popular form of interest rate swaps is the vanilla swaps that involve the exchange of a fixed interest rate for a floating rate, or vice versa. There are two legs associated with each party: a fixed leg and a floating leg. Swaps are OTC derivatives that bear counterparty credit risk beside interest rate risk.
Interest rate swaps are the most popular OTC derivatives that are generally used to manage exposure to fluctuations in interest rates. Swaps can be also used to obtain a marginally lower interest rate. Thus they are often utilized by a firm that can borrow money easily at one type of interest rate but prefers a different type. They also allow investors to adjust interest rate exposure and offset interest rate risks. Speculators use swaps to speculate on the movement of interest rates. More and more swaps are cleared through central counterparties nowadays (CCPs). This presentation gives an overview of interest rate swap product and valuation model.
The Over The Counter Exchange of India (OTCEI) was started in 1992 to provide a market for smaller companies that could not afford listing fees or meet capital requirements of larger exchanges. It allows trading of unlisted securities across member counters. Promoters include major public sector banks and financial institutions. Listing requirements include a minimum paid-up capital and public float. The process involves a sponsor appraising the company and submitting a listing application. Trading is conducted through paper-based forms across member counters nationwide.
1. Allotment refers to the acceptance of an offer to purchase shares. For allotment to be valid, certain requirements must be met including delivery of a prospectus to regulators, minimum application amounts, and minimum subscription levels being received.
2. Shares must also be listed on the stock exchange(s) mentioned in the prospectus.
3. Companies must complete allotment within 30 days of the subscription closing and obtain stock exchange approval for the basis of allotment. They must also complete trading formalities within 7 days of finalizing the allotment basis.
It provides a comprehensive analysis of the SEBI Invetsor Protection Guideline 2000 from the point of view of the companies. It covers offer documents, exceptions, price discovery, green shoe option, e-IPO, etc.
Corporatisation and demutualisation of stock exchangeSandeep Singh
This document discusses the demutualization and corporatization of stock exchanges in India. It provides background on the mutual structure of Indian stock exchanges prior to demutualization. It then outlines the steps taken towards demutualizing exchanges, including the BSE becoming a company limited by shares in 2005. Research analyzed BSE index and turnover data, finding more stability and increased turnover after demutualization in May 2005. Challenges of the process included potential ongoing conflicts of interest and loss of exchange identity.
The document summarizes securities markets and related concepts. It discusses that securities markets allow securities like stocks and bonds to be traded based on supply and demand. It then describes different segments of the securities market like the capital market, which deals in long-term securities, and the secondary market, where already issued securities are traded. Key stock exchanges in India are also outlined, including the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). The roles of trading, settlement, and regulatory bodies like SEBI are also summarized at a high level.
Merchant banking provides various financial services including investment banking, portfolio management, underwriting public offerings, and mergers and acquisitions advice. It originated in London when banks helped finance foreign trade and raise funds for developing countries. In India, merchant banking grew with the establishment of banks like Grindlays and Citibank in the 1960s-1970s. Merchant banks operate under regulations set by the Securities and Exchange Board of India that classify banks by the types of services they can provide and require minimum capital levels. They must obtain authorization, follow code of conduct guidelines, and contribute to the market by channelizing capital and ensuring regulatory compliance.
This document provides details about the Insurance Module offered by the National Stock Exchange of India. It includes 15 key points:
1. The Insurance Module costs Rs. 1500, takes 120 minutes to complete, includes 60 questions, and requires a minimum passing score of 60%.
2. The module covers topics like life insurance policies, general insurance policies, insurance claims procedures, and the role of insurance providers and regulators.
3. It also discusses the fundamentals of risk management, including risk identification, measurement, avoidance, transfer, financing, and retention.
4. The document outlines the elements of a valid insurance contract, including offer and acceptance, consideration, capacity, and legal purpose.
5. It
This Presentation would help to understand VBA for the following:
- Use the main features of the VBA Editor window
- Create procedures in Visual Basic for Applications
- Create and use variables
- Build and use user-defined functions
- Write code to control Excel objects
- Use a wide array of standard programming techniques
- Create a custom form complete with a variety of controls
- Create code to drive a user form
- Create procedures that launch automatically
- Write a range of error handling routines
Here are the key points about forwards contracts:
- A forward contract is an agreement between two parties to buy or sell an asset at a certain future date for a predetermined price, known as the forward price.
- Forwards are privately negotiated contracts between two parties, unlike futures which are traded on an exchange.
- The party that agrees to buy the asset in the future takes a long position, while the party that agrees to sell takes a short position.
- Forwards are not standardized and have unique contract terms negotiated between the two parties to the contract.
- They are traded over-the-counter (OTC) rather than on an exchange.
Derivatives advanced module (NATIONAL STOCK EXCHANGE OF INDIA LIMITED)yash nahata
NCFM’s workbook titled Options Trading Strategies module lists various strategies for trading
options, discusses their suitability in various market scenarios and the consequent pay-off
matrices. NCFM’s workbook titled Options Trading (Advanced) module gets into some of the
quantitative aspects of options including the option greeks.
This document provides an overview of the Macroeconomics for Financial Markets module. It outlines the module's curriculum, including 8 chapters that cover topics such as inflation, interest rates, national income accounting, fiscal policy, monetary policy, and the role of regulatory institutions. The document also provides learning objectives and weights for each chapter, with the highest weights assigned to chapters on national income accounting, inflation and interest rates, monetary policy, and the external sector. Overall, the module aims to provide financial professionals with an understanding of macroeconomic concepts and their impact on financial markets.
A project report on fundamental & technical analysis of automobile sector at ...Babasab Patil
This document provides an executive summary of a study analyzing the automobile sector in India through fundamental and technical analysis. Specifically, it analyzes Tata Motors and Maruti Suzuki.
The study aims to predict stock prices and identify optimal times to buy and sell shares. It uses tools like Relative Strength Index (RSI), moving averages, and candlestick charts to analyze past stock performance and identify trends.
Key findings include identifying periods when RSI signals indicated selling Tata Motors and Maruti Suzuki shares, as well as periods of low RSI that signaled buying opportunities. Moving averages and candlestick charts also provided insights into price trends.
The automobile sector in India is growing rapidly and these companies are financially
Mastering Social Media Strategies - Recruiting 2.0Holly Gunn
This document provides tips for using various social media platforms like LinkedIn, Facebook, Twitter, and job boards for recruiting purposes. It recommends connecting with candidates through shared connections on LinkedIn, using Facebook lists to organize contacts, searching relevant hashtags and keywords on Twitter, and checking specialty job boards that feature employer podcasts about open roles and company culture. The goal is to engage candidates on the platforms they use through real conversations and insights into opportunities.
NCFM - Mutual Funds A Beginners Module (NSE)Nimesh Parekh
The National Stock Exchange of India (NSE) is the largest stock exchange in the country. It has a sophisticated electronic trading platform and sets industry standards. NSE has four segments - wholesale debt market, capital market, futures and options, and currency derivatives. Thousands of investors rely on NSE's accessible and transparent markets.
The document is a module on mutual funds developed to provide basic information to investors. It contains 7 chapters covering topics like the structure of mutual funds in India, open-ended and closed-ended funds, equity funds, gold ETFs, debt funds, liquid funds, taxation related to mutual funds, and regulations governing mutual funds. The module aims to satisfy initial queries of investors and help them make
NCFM - Financial markets a beginners module (NSE)Nimesh Parekh
The document provides an overview of investment basics and the Indian securities market. It discusses various investment options including stocks, bonds, and mutual funds. It describes the roles of the primary and secondary markets. The primary market involves new stock issues, while the secondary market allows investors to buy and sell existing securities. Key regulators of the Indian securities market include SEBI, which oversees stock exchanges, brokers, and issues.
The document provides details on the National Stock Exchange of India's certification program in financial markets. It includes a test details table listing 14 certification modules offered, their fees, duration, number of questions, marks, pass percentage required, and certificate validity period. The modules cover topics like financial markets, mutual funds, securities market, derivatives market, debt market, depository operations, and more. The document also provides preface information on NSE as the largest stock exchange in India and its role in upgrading investor skills through programs like this certification.
This document provides details about the Banking Sector Module offered by the National Stock Exchange of India. The module consists of 6 chapters that cover topics like the introduction and evolution of banking, banking's role in the economy, bank deposits and services, the bank-customer relationship, and security creation. It is a 120-minute, 60 question test with a passing score of 60% that provides a certificate valid for 5 years upon completion.
NCFM - Fundamental analysis module (NSE)Nimesh Parekh
This document provides details on the National Stock Exchange of India's Fundamental Analysis Module, including an overview of the module curriculum.
The module is divided into 4 chapters that cover the basics of fundamental analysis, financial statement analysis, valuation methodologies, and related topics. It has a total duration of 120 minutes and includes 60 multiple-choice questions. The pass score is 60%.
The curriculum allocates approximately 15% of the weight to the introduction of fundamental analysis, 15% to brushing up on basic financial concepts, 35% to understanding financial statements, and 35% to valuation methodologies. Candidates are advised to check the NSE website for any updates to NCFM modules.
Fundamental analysis is a logical and systematic approach to evaluating securities by examining related economic, financial, and other qualitative and quantitative factors. It involves analyzing macroeconomic factors like GDP growth, as well as industry conditions and company-specific factors to estimate a security's intrinsic value and forecast future performance. The goal is to identify securities that are underpriced (presenting opportunities) or overpriced (presenting risks). Fundamental analysis uses various techniques including demand-supply analysis, price elasticity, balance sheets, and regression analysis to value assets and predict price movements.
Technical analysis is a method of predicting stock price movements by studying past price and volume data. It originated in the 17th century in European markets and was developed further in Asia by Homma Munehisa. In the early 20th century, technical analysis tools were developed and books written to explain the approach. Key pioneers included Dow, Elliott, Gann, Wyckoff, and Williams. Technical analysis differs from fundamental analysis by examining investor psychology and supply/demand rather than earnings or new products. Technicians use charts to identify price patterns and trends and attempt to exploit them when trading.
The document discusses India's depository system. It explains that a depository is an organization that holds securities electronically to facilitate paperless trading. India has two depositories - NSDL and CDSL. The depository system was introduced in 1996 to address issues like bad deliveries, fake certificates, and delays in trading physical shares. It allows investors to dematerialize physical shares and trade shares electronically through a depository participant.
This document discusses the objectives and functions of depositories and the depository system in India. It begins by outlining the key objectives of establishing depositories like providing a legal basis for ownership records, facilitating dematerialization of securities, making securities fungible and transferable. It then explains concepts like fungibility, depositories vs bank depositories, and the roles of depository participants and beneficial owners. Overall, the document provides a comprehensive overview of the Indian depository system.
Introduction to Depository Systems of IndiaGurbaniLuthra
The report highlights the need and benefits of the Depository System in India while focusing on the services provided such as paperless trading. It also gives a brief introduction to National Security Depository Limited (NSDL) and Central Depository Services Limited (CDSL).
The document discusses the Depositories Act in India. It provides a legal framework for the establishment of depositories to help investors buy and sell securities electronically. Before depositories, investors faced issues with paper certificates like bad deliveries, losses, and delays. Depositories now allow electronic trading and transfer of securities, eliminating paperwork. National Securities Depository Limited and Central Depository Services (India) Limited are the two depositories that maintain electronic records of shares and debt instruments in India. Depository participants act as intermediaries between depositories and investors.
The document provides an overview of the depository system in India and the roles of its key constituents. It discusses:
1) The historical background that led to the introduction of a depository system in India to improve settlement efficiency as trading volumes increased.
2) The key components of the depository system including depositories that hold securities electronically, depository participants that interface with investors, companies that issue securities, and investors.
3) The scope of audits for depository participants, which includes verifying compliance with regulations regarding account opening procedures, demat requests, delivery instructions, and addressing investor grievances.
Bhaskar Joshi presented on depository services in India. A depository allows investors to hold financial assets like stocks, bonds, and mutual funds in dematerialized electronic form. There are two main depositories in India - NSDL and CDSL. Depositories work through depository participants like banks and brokers. Benefits of the depository system include eliminating paperwork, providing faster transfers, and reducing risks of lost certificates. However, the system also introduces risks like potential for uncontrolled trading if not properly regulated. NSDL and CDSL maintain electronic records of share and debt holdings and facilitate transactions.
Bhaskar Joshi presented on depository services in India. A depository allows investors to hold financial assets like stocks, bonds, and mutual funds in dematerialized electronic form. There are two main depositories in India - NSDL and CDSL. Depositories operate through depository participants like banks and brokers. Benefits of the depository system include eliminating paperwork, reducing costs and risks of lost or fraudulent certificates. However, the system also introduces risks like potential for uncontrolled trading if not properly regulated. NSDL and CDSL play a key role in facilitating electronic trading of securities in the stock market.
unit-1 equity banking and finance stock marketas871534
Dematerialisation of shares refers to converting physical share certificates into electronic form for easy and secure trading. In India, two depositories, CDSL and NSDL, facilitate dematerialisation. The process involves opening a demat account with a depository participant, submitting verification documents, and requesting dematerialisation. Benefits include convenience, safety from physical certificate risks, ease of transactions, and access to corporate benefits like dividends electronically. Rematerialisation converts shares back to physical certificates if an investor prefers. Listing of securities on a stock exchange provides liquidity, encourages investment and savings, and protects investors through transparency of information.
The document discusses the benefits of a depository system for securities such as reducing risks of lost or fake certificates, expediting transfers and settlements, and facilitating dematerialization of physical shares. It explains the roles of various entities in a depository system like depositories, depository participants, registrars and investors. The document also outlines the benefits of a depository system for investors, issuers and the overall growth and liquidity of capital markets.
The document discusses depository services in India. It explains that a depository is an institution where investors can hold financial assets like stocks, bonds, and mutual funds in dematerialized form. The two major depositories in India are NSDL and CDSL. It describes how the depository system works through depository participants, issuing companies, and stock exchanges. It outlines the advantages and disadvantages of the depository system and the roles of NSDL and CDSL in the capital markets. Finally, it defines depository participants and their functions in providing depository services.
The document provides information about the process of dematerialization or "demat" of shares in India. It begins by explaining some of the risks of physical share certificates, such as theft, loss, or delays in transfer. It then defines dematerialization as the process of converting physical share certificates into electronic data stored by a depository. The rest of the document details the dematerialization process, benefits of holding shares in dematerialized form, what a depository participant (DP) is, and the procedures for opening a demat account.
A depository holds securities electronically for investors through depository participants like banks and brokerages. Dematerialization converts physical shares into electronic form. Depository participants act as intermediaries between depositories and customers, maintaining account balances and facilitating transactions. The two main depositories in India are NSDL and CDSL, regulated by SEBI. Depositories provide safe custody of securities and allow electronic transfer of shares without physical movement, similar to how banks hold funds electronically.
The document discusses depositories and their role in electronic trading of securities in India. It explains that National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) are the two main depositories that maintain electronic records of shares and debt instruments after dematerialization. Depository participants act as intermediaries between the depositories and investors, offering services like dematerialization, rematerialization, and maintaining electronic records of security holdings and facilitating settlement of trades.
Depository system and its role in stock marketBibhu Manik
This article deals with Depository system in India and its role in Indian security market . it will be helpful for those who want to know about depository system
A descriptive model on ‘demat operations’ – a case study for integrated enter...Projects Kart
The document provides information on demat operations through a Depository Participant (DP) in India. Some key points include:
1) Investors can open a depository account with a DP like a bank to avail of depository services and trade shares electronically without physical certificates.
2) Benefits of demat include elimination of bad deliveries, risks of physical certificates, faster transfers and settlements, and faster corporate benefits distributions.
3) The demat process involves giving physical shares to the DP who sends them for dematerialization and credits the electronic holdings to the investor's account.
The document discusses the key aspects of depository participants (DPs) and demat accounts in India. It explains that DPs act as intermediaries between investors and depositories like NSDL and CDSL. It provides an overview of the demat account opening process, transactions involved, and services provided like dematerialization, rematerialization, pledging of shares, and nomination facilities.
The Central Depository Company of Pakistan (CDC) was established in 1993 to operate an electronic book entry system called the Central Depository System (CDS), eliminating physical handling of share certificates. CDC handles the electronic settlement of transactions from Pakistan's three stock exchanges. It provides secured depository and custodial services, maintains investor accounts, and facilitates paperless trading of securities.
Dematerialization is the process of converting physical share certificates into electronic form and holding them in a Demat account. To dematerialize shares, an investor fills a form available from their Depository Participant (DP) and submits their share certificates. Within 15 days the shares will be credited to their Demat account in electronic form. A Demat account allows investors to buy and sell shares electronically without physical certificates.
The document discusses articles of association (AOA), which contain the internal rules and regulations of a company for the benefit of shareholders. AOA must be registered for certain types of companies and usually deal with matters like shareholder rights, board meetings, and resolutions. AOA can be altered by special resolution but cannot contradict the memorandum of association or companies act. The doctrine of indoor management protects outsiders dealing with companies by assuming they have constructive notice of AOA contents, with some exceptions. AOA are subordinate to the memorandum of association and govern internal company relations.
- Income from other sources includes income that does not fall under any other head of income such as salary, house property, business or capital gains.
- The document outlines various types of income chargeable under this head including dividends, winnings from lotteries/games, interest income, rent, director's fees, and receipts without consideration.
- It provides details on computation of income from other sources, deductions allowed, and tax treatment of specific cases like receipt of shares.
The document summarizes key aspects of the Constitution of India. It begins by explaining that the Constitution is the supreme law of India that establishes the framework and structure of government. It then describes the key features of the Constitution, including that it is the longest written constitution in the world. The summary also explains that the Constitution was drafted by the Constituent Assembly over several years and enacted on November 26, 1949. It came into force on January 26, 1950. The preamble establishes India as a sovereign, socialist, secular, democratic republic and guarantees certain fundamental rights and duties to its citizens. Key features of the Indian Constitution discussed include its federal structure with unitary features, an independent judiciary, adult franchise, and fundamental rights and directive principles
Industrial development & regulation act & other business laws yash nahata
This document discusses various laws and regulations pertaining to industrial development and business in India, as outlined in the Industrial Development and Regulation Act (IDRA) and other business laws. It addresses topics like registration and licensing requirements, setting up a new industrial unit, environment clearances, penalties for non-compliance, and provisions for delayed payments under the Micro, Small and Medium Enterprises Development Act. The document is in the form of frequently asked questions and answers on various sections of the IDRA and provides case studies related to the takeover of companies by the government under the Act.
This document discusses key aspects of industrial policy and regulations in India. It defines what constitutes an industry and outlines some major policies from past industrial policies announced in 1948, 1956, and 1991. It also discusses definitions for small scale industries, ancillary industries, environmental clearances, and strategic business units. The document provides information on various regulations regarding licensing, ownership, location of industries, and promoting exports for different sectors like agriculture, handicrafts, gems and jewelry, leather goods, and more.
Study & time management for cs students of bikaneryash nahata
The document provides information and advice about effective study and time management for computer science students. It discusses the importance of using time wisely, as time is a non-renewable resource. It recommends books and articles for students to read on topics like time management, study skills, and learning about circadian rhythms and body clocks. Specific tips provided include scheduling cognitive tasks like reading and problem-solving in the morning, and physical activities in the evening, as well as maintaining a consistent sleep schedule to avoid "student jet lag".
Walmart Business+ and Spark Good for Nonprofits.pdfTechSoup
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You will hear from Liz Willett, the Head of Nonprofits, and hear about what Walmart is doing to help nonprofits, including Walmart Business and Spark Good. Walmart Business+ is a new offer for nonprofits that offers discounts and also streamlines nonprofits order and expense tracking, saving time and money.
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Answers about how you can do more with Walmart!"
Main Java[All of the Base Concepts}.docxadhitya5119
This is part 1 of my Java Learning Journey. This Contains Custom methods, classes, constructors, packages, multithreading , try- catch block, finally block and more.
How to Setup Warehouse & Location in Odoo 17 InventoryCeline George
In this slide, we'll explore how to set up warehouses and locations in Odoo 17 Inventory. This will help us manage our stock effectively, track inventory levels, and streamline warehouse operations.
The simplified electron and muon model, Oscillating Spacetime: The Foundation...RitikBhardwaj56
Discover the Simplified Electron and Muon Model: A New Wave-Based Approach to Understanding Particles delves into a groundbreaking theory that presents electrons and muons as rotating soliton waves within oscillating spacetime. Geared towards students, researchers, and science buffs, this book breaks down complex ideas into simple explanations. It covers topics such as electron waves, temporal dynamics, and the implications of this model on particle physics. With clear illustrations and easy-to-follow explanations, readers will gain a new outlook on the universe's fundamental nature.
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...PECB
Denis is a dynamic and results-driven Chief Information Officer (CIO) with a distinguished career spanning information systems analysis and technical project management. With a proven track record of spearheading the design and delivery of cutting-edge Information Management solutions, he has consistently elevated business operations, streamlined reporting functions, and maximized process efficiency.
Certified as an ISO/IEC 27001: Information Security Management Systems (ISMS) Lead Implementer, Data Protection Officer, and Cyber Risks Analyst, Denis brings a heightened focus on data security, privacy, and cyber resilience to every endeavor.
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Date: May 29, 2024
Tags: Information Security, ISO/IEC 27001, ISO/IEC 42001, Artificial Intelligence, GDPR
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This slide is special for master students (MIBS & MIFB) in UUM. Also useful for readers who are interested in the topic of contemporary Islamic banking.
A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
বাংলাদেশের অর্থনৈতিক সমীক্ষা ২০২৪ [Bangladesh Economic Review 2024 Bangla.pdf] কম্পিউটার , ট্যাব ও স্মার্ট ফোন ভার্সন সহ সম্পূর্ণ বাংলা ই-বুক বা pdf বই " সুচিপত্র ...বুকমার্ক মেনু 🔖 ও হাইপার লিংক মেনু 📝👆 যুক্ত ..
আমাদের সবার জন্য খুব খুব গুরুত্বপূর্ণ একটি বই ..বিসিএস, ব্যাংক, ইউনিভার্সিটি ভর্তি ও যে কোন প্রতিযোগিতা মূলক পরীক্ষার জন্য এর খুব ইম্পরট্যান্ট একটি বিষয় ...তাছাড়া বাংলাদেশের সাম্প্রতিক যে কোন ডাটা বা তথ্য এই বইতে পাবেন ...
তাই একজন নাগরিক হিসাবে এই তথ্য গুলো আপনার জানা প্রয়োজন ...।
বিসিএস ও ব্যাংক এর লিখিত পরীক্ষা ...+এছাড়া মাধ্যমিক ও উচ্চমাধ্যমিকের স্টুডেন্টদের জন্য অনেক কাজে আসবে ...
it describes the bony anatomy including the femoral head , acetabulum, labrum . also discusses the capsule , ligaments . muscle that act on the hip joint and the range of motion are outlined. factors affecting hip joint stability and weight transmission through the joint are summarized.
This presentation includes basic of PCOS their pathology and treatment and also Ayurveda correlation of PCOS and Ayurvedic line of treatment mentioned in classics.
2. What Is Scrip Based System?
Scrip based system of securities
transactions involves enormous paper
work involving certificates and transfer
deeds.
Simply, securities are held in physical
form.
3. Feature of scrip based system:
1. There is physical movement of securities
certificates along with transfer deeds.
2. Registration with the company.
4. Problems with scrip based
system:
1. Time consuming (processing time by co.)
2. Bad deliveries due to signature difference
3. Mistakes in completion of transfer deeds
4. Tearing and mutilation of certificates
5. Fake certificates
6. Cost of transfer : stamp duty
7. Postal delays and charges etc.
5. What is depository system
A system in which securities of an
investor are held by depository on
behalf, and at the request, of an investor
in an Electronic Form.
This system is also know as Scrip Less
Trading system.
6. Features of Depository system
In the depository system, securities are held in depository
accounts, which is more or less similar to holding funds in
bank accounts.
Transfer of ownership of securities is done through simple
account transfers.
This method does away with all the risks and hassles
normally associated with paperwork.
Consequently, the cost of transacting in a depository
environment is considerably lower as compared to transacting
in certificates.
9. Who is depository?
Depository facilitates holding of securities
in the electronic form and enables
securities transactions to be processed by
book entry by a Depository Participant
(DP), who as an agent of the depository,
offers depository services to investors
10. Features of depository system in
India
1. In the depository system, the apex body is the
Depository..
2. A depository can be compared with a bank
3. Depository services through depository
participants.
4. Fungibility
5. Registered Owner/ Beneficial Owner (two types
of owner)
11. Who can be a depository:
Depository Act, 1996 provides that -
Depository means:
A company formed and registered under
the companies Act, 1956, and
Which has got a Certificate of Registration
from the SEBI.
12. Depositories in India
The depository model adopted in India provides
for a competitive multi-depository system. There
can be various entities providing depository
services. Such system is known as Multi-
Depository System.
At present two Depositories are registered with
SEBI.
13. NATIONAL SECURITIES
DEPOSITORIES LIMITED
NSDL is the first and largest depository in India, and
established in August 1996
It has 288depository Participants (as on 21.09.13)
Address:
Trade World, a Wing, 4th
&5th
Floors
Kamala Mills Compound
Lower Parel
Mumbai 400013
website: nsdl.co.in
14. PROMOTERS OF NSDL
1. Industrial Development Bank of India Limited
2. Unit Trust of India
3. National Stock Exchange of India Limited
15. SHAREHOLDERS OF NSDL
State Bank of India
Oriental Bank of Commerce
Citibank
Standard Chartered Bank
HDFC Bank Limited
The Hongkong and Shanghai Banking Corporation
Limited
Deutsche Bank
Dena Bank
Canara Bank
Union Bank of India
Axis Bank of India
16. CENTRAL DEPOSITORY SERVICES
(INDIA) LIMITED
This is the second depository in India.
This was formed and registered in 1999.
It has 579DPs as on 21.09.13
Address:
Phiroz Jeejeebhoy Towers
16th
Floor, Dalal Street
Mumbai
website: www.cdslindia.com
17. PROMOTERS OF CDSL
Bombay Stock Exchange Limited
Bank of India,
Bank of Baroda,
State Bank of India and
HDFC Bank
Standard Chartered Bank
Canara Bank
Union Bank of India
Bank of Maharashtr
The Calcutta Stock Exchange Limited
18. SHAREHOLDERS OF CDSL
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
Others
19. A Bank-Depository Analogy
Bank Depository
1.Holds funds in an account
on behalf of a customer
1.Holds securities in an
account on behalf of an
investor.
2.Transfer funds between
accounts on the instruction
of the account holder.
2.Transfer securities between
accounts on the instruction
of the account holder.
3.Physical handling of funds
is avoided.
3.Physical handling of
securities is avoided.
4.Provides safe custody of
fund
4.Provides safe custody of
securities.
20. Who Is Depository Participant:
A Depository Participant (DP) is an agent of the
depository through which it interfaces with an
investor.
A DP can offer depository services only after it
gets proper registration from SEBI.
A DP is just like a Branch of a Bank.
21. Who can be Depository
Participant?
In terms of the Depositories Act, 1996, SEBI
(Depositories & Participants) Regulations,1996, only
the following entities are eligible to become a
Depository Participant:
Financial Institutions,
Banks, including approved foreign bank
Custodians,
Stockbrokers,
A clearing corporation or a clearing house of a stock exchange
A non-banking finance company,
A registrar to an issue or share transfer agent
23. Who is registered owner
The registered owner is that person whose
name is registered in the register of
members of the company (issuer)
For the securities dematerialized,
NSDL/CDSL is the Registered Owner in
the books of the issuer.
But Registered Owner does not enjoy any
right and liability attached with the security.
24. Who is the Beneficial owner
Beneficial owner is that person who
enjoys all rights, duties, and liabilities
attached with the security.
It means voting right, dividend right,
bonus share right , right share right etc
are all exercised by the Beneficial
owner.
25. Benefits of depository system/holding
securities in dematerialized form
Depository system provides benefits to:
The investors,
The issuers.
26. Benefits to investors:
1. The transactions in electronic mode eliminated the risk and
problems of delays.
2. The risk of bad deliveries is totally eliminated
3. There is no requisite of filling up the transfer deeds, payment of
transfer stamp duty and a lot of other paper work at the end of
the investor.
4. It totally eliminates the risk associated with fraudulent
interception of certificates in postages or transits..
5. Transfer of ownership of securities is immediate in case of
depository mode.
6. The investment, automatically, becomes more liquid.
contd.
27. Contd.
7. The problem of odd lot is also eliminated, as the
depository mode does not have any concept of market lot.
8. Holding investments in equity and debt in a single account.
9. Change in address recorded with DP gets registered with
all companies in which investor holds securities
electronically eliminating the need to correspond with each
of them separately.
10. Transmission of securities is done by DP eliminating
correspondence with companies.
11. Nomination facility.
28. Benefits to the issuing company:
1. The company saves a lot of paper work which
otherwise is required in the physical mode.
2. The company saves a postal cost for the dispatch
of right shares, bonus shares or share certificates
after affecting the transfer.
3. By offering depository services to its
shareholders, a company may send a positive
sign to its shareholders about its concern for their
welfare.
4. Depository services adds liquidity to the security
thus fund raising capacity of the company.
29. How can services of Depository
availed by an investor?
ACCOUNT OPENING:ACCOUNT OPENING:
1.1. In order to avail of depository facilities, an investor has to open aIn order to avail of depository facilities, an investor has to open a
beneficiary account with a depository participant of his choice.Thisbeneficiary account with a depository participant of his choice.This
is similar to opening a bank account to use the banking services.is similar to opening a bank account to use the banking services.
Just as one can hold funds in a bank account and transfer fundsJust as one can hold funds in a bank account and transfer funds
across accounts without actually handling cash;one can holdacross accounts without actually handling cash;one can hold
securities in a depository account and transfer securities acrosssecurities in a depository account and transfer securities across
depository accounts without actually handling share certificatesdepository accounts without actually handling share certificates..
contd.contd.
30. Contd.
The account holder is called 'beneficial owner' in
a depository system and the account is known as
'beneficiary account'.
31. Features of Beneficiary Account
Features of Beneficiary Account
No minimum balance is required to be retained in a
beneficiary account.
An investor can close a beneficiary account with one
DP and open an account with another DP.
To dematerialize existing physical holdings, the
beneficiary account must be opened in the same
ownership pattern in which the securities are held in
the physical form e.g:
If one certificate is in individual name and another
certificate is jointly held by X & Y, two different
accounts should be opened
32. Procedure of Opening An
Account:
Investor will choose a DP for the purposes of
opening beneficiary account. The choice of the
investor may be based on convenience, comfort,
services offered, cost or any other reason.
The investor will obtain the relevant
account opening form from the chosen DP.
33. Contd.
For the purpose of verification, investor has to
submit the following documents along with the
prescribed account opening form.
1. Proof of Identity(POI) (voter card, pan card,
driving license etc.)
2. Proof of Address (POA) (ration card, ank
pass book copy voter id card etc.)
3. Passport-size photograph
34. Contd.
Copy of PAN card
The DP will also provide a copy of the DP-
Client agreement.
35. Some other aspects:
The demat account cannot be operated on "either or
survivor" basis like the bank account. In case of the joint
account for the beneficial owners, all the joint holders have
to sign the account opening form.
The investor will submit to his DP the duly filled in account
opening form & DP-client agreement along with the
documents.
On successful opening of the account, the DP will
give:
1. Client Id - an eight digit number to be used along with DP
Id for any future transactions.
2. Delivery Instruction slip book.
36. Some other aspects
contd.
More than one demat account can be opened in the
similar / identical name and order with the same DP
or different DPs.
A periodical statement of holdings and transactions
is provided by DP. This can also be asked for from
the DP
37. What is dematerialisation?
Dematerialisation is the process by which physical
certificates of securities of an investor are
converted to an equivalent number of securities in
electronic form and credited into the investor’s
account with his/her DP.
It is to be noted that an investor can hold shares in
physical form but for the purpose of trading in stock
exchanges shares should be in electronic form.
38. Process of dematerialisation
An investor intending to dematerialise its securities needs to
have an account with a DP.
The client (registered owner) will submit a request to the DP in the
Dematerialisation Request Form for dematerialisation, along with
the certificates of securities to be dematerialised. Before
submission, the client has to deface the certificates by writing
"SURRENDERED FOR DEMATERIALISATION".
The DP will verify that the form is duly filled in and the
number of certificates, number of securities and the security
type (equity, debenture etc.) are as given in the DRF. If the
form and security count is in order, the DP will issue an
acknowledgement slip duly signed and stamped, to the client.
39. Contd.
After intimating NSDL electronically, the DP sends the securities to
the concerned Issuer/ R&T agent. NSDL in turn informs the Issuer/
R&T agent electronically, using NSDL Depository system, about
the request for dematerialisation. If the Issuer/ R&T agent finds the
certificates in order, it registers NSDL as the holder of the securities
(the investor will be the beneficial owner) and communicates to
NSDL the confirmation of request electronically. On receiving such
confirmation, NSDL credits the securities in the depository account
of the investor with the DP.
This procedure takes 15to 30 days.
40. 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.
The securities sent for rematerialisation cannot be traded.
41. Procedure of rematerialisation
The client has to submit the rematerialisation request to the DP with
whom he has an account.
The DP enters the request in its system which blocks the client's
holdings to that extent automatically.
The DP releases the request to NSDL and sends the request form to
the Issuer/ R&T agent.
The Issuer/ R&T agent then prints the certificates, dispatches the
same to the client and simultaneously electronically confirms the
acceptance of the request to NSDL.
Thereafter, the client’s blocked balance are debited.