depositories
Querist : Anonymous
This system is also know as Scrip Less Trading system
1).In the depository system, securities are held in depository accounts, which is more or less similar to holding funds in bank accounts.
2).Transfer of ownership of securities is done through simple account transfers. 3).This method does away with all the risks and hassles normally associated with paperwork.
4).Consequently, the cost of transacting in a depository environment is considerably lower as compared to transacting in certificates
There are basically four participant:
The Depository
The DepositoryParticipant
The Issuing Company
The Investor
Depository facilitates holding of securities in the electronic form and enables securities transactions to be processed by book entry by a DepositoryParticipant (DP), who as an agent of the depository, offers depository services to investors.
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
1.In the depository system, the apex body is the Depository..
2.A depository can be compared with a bank
3.Depository services through depository participants.
4.Fungibility
5.Registered Owner/ Beneficial Owner (two types of owner)
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