Depositories in India

Clearing (finance), Security (finance), Secondary market


1.| What is Depository|
2.| Why are Depositories needed|
3.| History of Depository|
4.| Registration & Commencement of Business|
5.| Depositories in India|
6.| Constituents of Depository System|
7.| Dematerialized Account|
8.| Facilities offered by Depsitories|
9.| Features of Depository System|
10.| Benefits of Depositories|
11.| Reference & Credits|

Shares and bonds are being issued by companies for quite some time. Ten years back, all these were issued in the form of physical certificates that the investor had to keep safe and then forward to the buyer once sold. This process was highly time consuming and gave rise to issues like fake securities and bad deliveries. All these reasons and the improvement in technology gave rise to depositories and the electronic mode of holding securities. The term Depository means a place where a deposit of money, securities, property etc is deposited for safekeeping under the terms of depository agreement. A depository resembles a bank; however in case of a depository the deposits are securities, such as shares, debentures, bonds and government securities, in electronic form. A depository functions as a bank- both are common houses that hold assets of the participating members and provide services to clients. A depository is an organization, which assists in the allotment and transfer of securities and securities lending. The shares here are held in the form of electronic accounts i.e. dematerialized form and the depository system revolves around the concept of paper-less or scrip-less trading. It holds the securities of the investors in the form of electronic book entries avoiding risks associated with paper. It is not mandatory and is left to the investor to decide. Depositories carry out its operations through various functionaries called business partners

Holds Funds in an...
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