TOPIC :

DEPOSITORIES -
AN
INTRODUCTION
DEFINITI
ON
A depository is
like a bank, safe
keeps your
securities in
electronic form.
Besides holding
securities, it
provides various
services related to
transactions in
securities.
DEMATERIALIZATION
Dematerialization is a process where securities
are held by us in physical form are cancelled
and credited to our DP account electronically.
It is shortly called Demat. Every company is
providing the facility to held our shares in
demat form but it is customer’s choice if he
wants the securities in demat or in physical
form.
 NSDL
NSDL stands for NATIONAL SECURITIES
DEPOSITORY LTD., which is the first, and the
largest depository presently in India formed
on 8th Nov. 1996. It is promoted by:
IDBI - Industrial Development Bank of India
UTI – Unit Trust Of India
NSE – National Stock Exchange
The actual The actual trading in dematerialized
securities started at National Stock Exchange
on 26th December , 1996.
 CDSL
CDSL is the CENTRAL DEPOSITORY
SERVICES LTD. Is the second depository,
which was permitted by SEBI (Securities and
Exchange board of India). CDSL was formed
on 8th February , 1999 It is promoted by:
BSE – Bombay Stock Exchange.
BOI – Bank Of India.
DP
DP means DEPOSITIARY PARTICIPANT. DP is an
intermediary between the Investor and the Depository.
Presently only followings are permitted to become DP’s:
Financial Institutions
Banks
Custodians
Stock Brokers
NBFC’s
Now, we can have accounts in more than one DP like we
may have accounts with more than one bank.
Book Entry
Segment
For the settlement of stocks traded in the
exchanges, there are two segments:
ONE is the physical segment where trades
are settled physically.
SECOND is the BOOK ENTRY SEGMENT
where trades are settled electronically by
making book entries. Book Entry Segment
offers a complete counter party
settlement guarantee for every trade.
Rolling
Settlement
Rolling system means the everyday’s trades are
settled keeping a gap between a trade and its
settlement, of a specified number of working
days. At present, the settlement takes place in
two working days which is called T+2 system.
This system was established in 1993. Now it
could be T+1 in 2011.
Advantages of
DEMAT
- There is no risk due to loss on account of fire,
theft or mutilation.
- There is no chance of bad delivery at the time
of selling shares as there is no signature
mismatch.
- Transaction costs are usually lower than that in
the physical segment.
- The bonus /rights shares allotted to the investor
will be immediately credited into his account.
- Share transactions like sale or purchase and
transfer/transmission etc. can be effected in a
much simpler and faster way.
Thank you

Made By:
Ramandeep Singh Kainth
&
Navneet Singh GILL.

Submitted to: Mr. Bhupinder Singh
(Subject Teacher)