IT IS AN BRIEF INTRODUCTION OF DEPOSITORY SYSTEM IN INDIA

1. DEPOSITORY
SYSTEM IN
INDIA
BY :• SHASHI GAHERWAR-8202.
• TASHI TSERING-8254
• TENZIN LONDEN-8252
• SUNIL BIRAJDAR-8236
• ONKAR ARVIKAR-8251

2. What is Depository ?
• A depository can be compared to a bank. A
Depository holds securities of investors in
electronic form.
• A system in which securities of an investor are
held by depository on behalf, and at the request,
of an investor in an Electronic Form.
• This system is also know as Scrip Less Trading
system.

3. Features of Depository system
• In the depository system, securities are held in
depository accounts, which is more or less similar
to holding funds in bank accounts.
• Transfer of ownership of securities is done through
simple account transfers.
• This method does away with all the risks and
hassles normally associated with paperwork.
• Consequently, the cost of transacting in a
depository environment is considerably lower as
compared to transacting in certificates.

4. Constituents of depository system
There are basically four
participant:
• The Depository
• The Depository Participant
• The Issuing Company
• The Investor

5. Who can be a depository:
Depository Act, 1996 provides that Depository means:
•
A company formed and registered under the
companies Act, 1956, and
•
Which has got a Certificate of Registration from
the SEBI.

6. Depositories in India
• The depository model adopted in India provides
for a competitive multi-depository system. There
can be various entities providing depository
services.
Such system is known as MultiDepository System.
• At present two Depositories are registered with
SEBI.
• NSDL & CDSIL

7. NATIONAL SECURITIES DEPOSITORIES LIMITED
(NSDL)
• NSDL is the first and
largest depository in
India,
and
established in August
1996
• It has 288 depository
Participants (as on
20.12.12)
• Address:
Trade World, a Wing, 4th
&5th Floors
Kamala Mills Compound
Lower Parel
Mumbai 400013 website:
nsdl.co.in

8. PROMOTERS OF NSDL
1. Industrial Development Bank of India Limited
2. Unit Trust of India
3. National Stock Exchange of India Limited .

9. SHAREHOLDERS OF NSDL
•
•
•
•
•
•
•
•
•
•
State Bank of India
Oriental Bank of Commerce
Citibank
Standard Chartered Bank
HDFC Bank Limited
The Hongkong and Shanghai Banking Corporation
Limited
Deutsche Bank
Dena Bank
Canara Bank
Union Bank of India

10. CENTRAL DEPOSITORY SERVICES (INDIA) LIMITED
(CDSIL)
• This is the second • Address:
depository in India.
Phiroz Jeejeebhoy
• This was formed and
Towers
registered in 1999.
16th Floor, Dalal Street
• It has 455 DPs as on
Mumbai website:
4.08.08
www.cdslindia.com

11. PROMOTERS OF CDSL
•
•
•
•
•
Bombay Stock Exchange Limited
Bank of India,
Bank of Baroda,
State Bank of India and
HDFC Bank

12. SHAREHOLDERS OF CDSL
•
•
•
•
•
•
•
Standard Chartered Bank
Centurion Bank of Punjab Ltd
Canara Bank
Union Bank of India
Bank of Maharashtra
Jammu and Kashmir Bank Limited
The Calcutta Stock Exchange Association
Limited
• Others

13. Who Is Depository Participant:
• A Depository Participant (DP) is an agent of the
depository through which it interfaces with an
investor.
• A DP can offer depository services only after it
gets proper registration from SEBI.
• A DP is just like a Branch of a Bank .

14. Who can be Depository Participant?
In terms of the Depositories Act, 1996, SEBI (Depositories
& Participants) Regulations,1996, only the following
entities are eligible to become a Depository Participant:
•
•
•
•
•
Financial Institutions,
Banks, including approved foreign bank
Custodians,
Stockbrokers,
A clearing corporation or a clearing house of a
stock exchange
• A non-banking finance company,
• A registrar to an issue or share transfer agent

15. Thank u