1 / 27

Welcome!!

Welcome!!. CDSL India Yogesh Kundnani (yogeshk@cdslindia.com) Amit Krishnan (amitk@cdslindia.com). CDSL’s Major Stakeholders. CDSL Today. BO accounts 5.67 mn DPs registered 475 Issuer Companies admitted 6,255 Securities under custody Volume 70.08 bn

herbert
Download Presentation

Welcome!!

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Welcome!!

  2. CDSL India Yogesh Kundnani (yogeshk@cdslindia.com) Amit Krishnan (amitk@cdslindia.com)

  3. CDSL’s Major Stakeholders

  4. CDSL Today • BO accounts 5.67 mn • DPs registered 475 • Issuer Companies admitted 6,255 • Securities under custody • Volume 70.08 bn • Value USD 137.02 bn

  5. Depository Structure Clearing Corporation Issuer / Registrar Depository Clearing Members DP DP DP DP DP DP DP DP B e n e f i c i a l O w n e r s

  6. Depository Role

  7. What a depository does • Records ownership of securities in electronic form • Records transfer of securities • Facilitates Pledge/Lock-in/Freezing of securities • Updates records when fresh securities are issued or existing securities are extinguished in case of buy-back • Makes available up-to-date list of Investors (BOs) for corporate actions

  8. Legal Framework

  9. Legal framework The Depositories Act, 1996 • Investor has the option to hold securities in Paper mode or Electronic mode • Depository will be the “Registered Owner” of the securities in the ROM • Rights, Liabilities and Benefits are with Shareholders ( who will be the beneficial owners of the securities )

  10. Depository to have net worth of Rs. 1 bn. Investor holdings in the depository cannot be attached except for orders from competent authorities Mandatory indemnification against negligence Legal Framework

  11. Legal Framework • SEBI (Depository & Participant) Regulations • Criteria for setting up of a Depository and for becoming a Depository Participant • Depository’s Bye-Laws • Every depository to frame detailed Bye-Laws and procedures for its operations • All participants will enter into agreement to follow the rules and regulations

  12. Type of DPs • Public Financial Institution • Bank under RBI act. • Foreign Bank with RBI approval • State Financial Corporation • Custodian • Clearing Corporation or Clearing House of Stock Exchange • Stock Broker (CM) • Non Banking Finance Company (NBFC) • Registrar & Transfer Agent

  13. Securities admitted • Equity shares • Preference shares • Debentures and bonds • Commercial papers • Certificates of deposits • Government securities • Exchange traded funds • Pass – through certificates • Warehouse receipts (Commodities)

  14. Type of accounts • Individual • Clearing Member • Corporate • FII • Bank • Mutual Fund

  15. Background of structure • India is a vast country with large number of investors • Accounts are opened and maintained by DPs • Provide impetus to dematerialisation • BO level holdings are maintained as compared to nominee level holding • Physical structure is replicated in demat

  16. Background of structure • Switchover from physical trading to demat trades – phase wise • Demat initially made mandatory for institutional investors • Subsequently, made mandatory for retail investors

  17. Merits of structure • Vast distribution network of DPs utilised effectively • Competition amongst DPs • Ensures availability of depository services all across the country • Benefits of depository availed by all types of investors • Ensures superior service quality • Cost benefits

  18. Benefits to Investors

  19. Security-related benefits to Investors in the depository system • Offers safety and convenience compared to holding securities in physical form • Enhances liquidity by instantaneous transfers • Operational risk minimised • Settlement cycle reduced from weekly settlement to T+2

  20. Other benefits to Investors in the depository system • Change of name, address, Power of Attorney, deletion of deceased’s name - can be done across companies by one single instruction to DP • Each share is a market lot for the purpose of transaction - so no odd lot problem • Any number of securities can be transferred/delivered with one delivery order. Therefore, paperwork and signing of multiple transfer forms is done away with • No stamp duty on transfer of securities

  21. Risk Mitigation Measures

  22. Internet based services – easi and easiest • SMS Alerts (SMART) • Dormant account monitoring • Concurrent and Internal audit of DP operations • Stringent networth requirements for DPs

  23. easi (electronic access to securities information) • Statement of Holding of Securities in CDSL Demat Account • Last 7 days transactions report for any ISIN • Know rate and valuation of holdings • Balances are updated after every 15 minutes from main system • Information about DPs, Issuers & RTAs • Printing and downloading of Statement of Holding

  24. easiest (electronic access to securities information & execution of secure transactions) • Issue of • On-Market • Early Pay-in • Off-Market • Inter-Depository instructions through internet

  25. Some recent innovations • SMART – SMS Alerts to registered accountholders for all debits and for credits arising from corporate actions and IPOs • Information about corporate announcements to registered users of easi

  26. Thank You!!

More Related