Investor’s awareness about the depository systems

Type :

Indian project

Pages :

39 pages

Format :

.doc

Published date :

06/15/2009

Category :

Economics & finance

Sub category :

Finance

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Summary :

Introduction of the study
Need of the study
Objectives of the study
Need of the study
Research methodology
Reference period
Limitations of the study
An overview of National Security Depository Ltd (NSDL)
Theoritical aspects of depository aspects
Analysis and interpretation
Conclusion
Suggestions
Bibliography

Abstract

Technology is revolutionizing every field of human endeavor and activity. Indian capital market is barrow meter of Indian economy; one of them is introduced technology into capital market. A major development in the Indian capital market has been setting up of depository system. The rapid growth in number, volume and value of securities in the Indian capital market exposed the limitations of handling and dealing securities in the physical / paper mode; the short coming of the market became in the manifest in terms of bad deliveries, delays in transfer and irregular settlement etc. depository used as elixir, bringing solution for all those problems.

The main objective's of depository systems are to accelerate scrip less trading, to make trust in individual investors participation in depository system and to create a competitive environment and be responsive to user's interest and concern. A depository holds securities in electronic forms and provides all services related to transactions of shares/ debt instruments. A depository interacts with clients through a depository participant with whom the client has to maintain a D-mat account.

depository means "one place where something is deposited for safe keeping; one who receives a deposit money, securities, investments or other property; a person to whom something is entrusted; a trustee; a person or group entrusted with preservation or safe keeping of something". The rapid growth in number, volume and value of securities in the Indian Capital Market is taking place, large number of companies issuing shares through IPO's, which requires the services of the depository system. It will take much time of allotment, refund in physical form of transactions. To reduce the delay in transactions and to eliminate malpractices depository system helps allot.