Hello,

Please find attached herewith a very useful file on Depository System. Hope this file would be off some help.

Regards

Thanks Ankur sir for the above file but i want to know why it is kept in fungible form. pls explain in brief what is the purpose of doing so ??? as it is not in the file

As per Section 9 of the DEPOSITORY ACT 1996, Securities in depositories shall be in fungible form.

Here, Fungibility means " EASILY INTERCHANGEABILITY OF SECURITIES", held in depository form.

As we are aware that shares in physical form carry a distinctive number, to distingusih one share from another shares like we see on "currency notes".

But , when the physical shares r dematerialized, it results into lost of their distinctive identity number and that is called "FUNGIBILTY".

In fungibilty, investor has no right to obtain the exact certificate, he has surrendered at the time of entry into depository.

So fungibility, add more liquidity to securities and they become "INTERCHANGEABLE".

And that's the reason, In the depository system of maintaining securities ,S ecurities are required to be kept in fungible form.

For CS Executive Exams

1. SAT (Procedures) Rules, 2000
2. SEBI AMENDMENT
   
3. SCRA AMENDMENT

Originally posted by : Rahul Bansal
	As per Section 9 of the DEPOSITORY ACT 1996, Securities in depositories shall be in fungible form. Here, Fungibility means " EASILY INTERCHANGEABILITY OF SECURITIES", held in depository form. As we are aware that shares in physical form carry a distinctive number, to distingusih one share from another shares like we see on "currency notes". But , when the physical shares r dematerialized, it results into lost of their distinctive identity number and that is called "FUNGIBILTY". In fungibilty, investor has no right to obtain the exact certificate, he has surrendered at the time of entry into depository. So fungibility, add more liquidity to securities and they become "INTERCHANGEABLE". And that's the reason, In the depository system of maintaining securities ,S ecurities are required to be kept in fungible form.

THANKS FOR THE EXPL"N BROTHER...............

Originally posted by : Rahul Bansal
	For CS Executive Exams   SAT (Procedures) Rules, 2000 SEBI AMENDMENT SCRA AMENDMENT

Thanks boss.......