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What Is Depository in Stock Market

The depository system is the process that facilitates the transfer of ownership of securities that are stored in dematerialized form in the depositories in the stock market.

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What Is Depository in Stock Market

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  1. What Is Depository System And Its Functions In Indian Stock Market ?

  2. Table of Content • What is a Depository? • Features of depository • Depositories in India • Differences between NSDL and CDSL • What is Depository System? • Role of depository participants in the depository system • What is a Global Depository Receipt? • What is an Indian Depository Receipt? • Conclusion

  3. Introduction Capital market is a place where IPO are listed and the buying and selling shares of the company take place. capital market divided into 2 types : primary and secondary market. Primary Market is the place where IPO of the get listed. Secondary Market:It is place where stocks are being issued for the first time. And it is the place where listed stocks are buy and sell.

  4. What is Depository? The depository is the Apek Organisation in the stock market and a unit of the Depository system. The depository is similar to a bank where the public deposit and withdraw their money. In the same manner, a depository is a place where an investor or trader deposits and withdrawal their shares in a depository. Depositories in India In India, there are mainly two Depositories which are Central Depository Services Limited(CDSL) and National Securities Depository Limited(NSDL). Know in Detail the twoDepositories and the difference between NSDL and CDSL

  5. Features of Depository • A Depository system is an institution that holds securities. • In the stock market, depository participants are the medium through which Depositories interact with the Investors. • Depository Participants are required SEBI's certificate to offer their services. • Depositories also help DPs to control the electronic transfer of securities and settlement of transactions. • Depositories issue receipts of bonus shares in an electronic form. • A Depository in the stock market offers a nomination facility in the Demat account. • Depositories can hypothecate dematerialized securities against bank loans.

  6. Stock market where the buying and selling of shares are done. whereas all the shares of registered companies are held in the dematerialized(electronic) form in the depositories. A depository system is the process of allotment and transfer of securities in electronic form. In the depository system, the depository is the apex body which can be compared to putting money in the bank and facilitating the transfer of ownership with the help of simple account transfers. It is a paper-free method of transfer of shares that does away with all the hassles and risks associated with the transfer of certificates. You also need to know what is depository participant and its role Depository System What is Depository System?

  7. What is an Indian Depository Receipt? Indian depository receipt is the Indian replica of the Global depository receipt. An Indian depository receipt is a financial instrument through which foreign companies can get listed on the Indian stock exchange and Indian investors can take advantage of the global competitive companies. You also need to know what is global depository receipt

  8. Conclusion In the past, shares were bought and sold in physical form. There were operational challenges such as loss and theft of share certificates, therefore to overcome such issues, shares were stored in the dematerialized form to ensure convenience. The capital market and the depositories are regulated by SEBI. Thank You StockDaddy The Complete Stock Learning Platform Learn Stock Market Trading and Investing with StockDaddy Website: https://www.stockdaddy.in

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