1 / 6

Merits and Demerits of Direct and Indirect account methods

Merits and Demerits of Direct and Indirect account methods . Presentation by National Securities Depository Limited (NSDL), INDIA. Direct Account Participant Account Beneficiary Account . Indirect Account Participant Account . Direct vs. Indirect Account Method.

lynn
Download Presentation

Merits and Demerits of Direct and Indirect account methods

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. Merits and Demerits of Direct and Indirect account methods Presentation by National Securities Depository Limited (NSDL), INDIA

  2. Direct Account Participant Account Beneficiary Account Indirect Account Participant Account Direct vs. Indirect Account Method

  3. Legal Framework • Depositories Act 1996 • Dematerialization of securities • Option to hold securities in dematerialized/physical form • Depositories to maintain accounts at Clients level as well as at Participants level • Beneficial ownership remains with the Client • Corporate decisions in terms of voting etc., exercised by the Clients directly

  4. Challenges of Direct Account Method • Large IT infrastructure requirement -Processing of large number of instructions -Large database -Demand for a higher bandwidth • Reconciliation -Participant Level -Beneficiary Level • Backoffice Reconciliation for participants

  5. Benefits of Direct Account method • Ability to provide the shareholder information to the issuers • Efficient distribution of corporate benefits • Investors can verify their account information from the depository • Ease in implementation of STP • Ease in implementation of statutory requirements • More Safety for investors

  6. THANK YOU

More Related