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NCERT Book for Class 12 Other Subjects Operations Of Depository
Class 12 Other Subjects students should refer to the following NCERT Book Operations Of Depository in Class 12. This NCERT Book for Class 12 Other Subjects will be very useful for exams and help you to score good marks
Operations Of Depository NCERT Book Class 12
Chapter 8 Operations of Depository Participants
Learning Objectives:
After reading this chapter, you should be able:
1. To understand meaning and importance of ISIN
2. To understand the importance of dematerialization of securities and the process involved.
3. To understand the process of transfer of shares.
4. To apply the knowledge in real life situation.
Your guide engine to learning:
1. Introduction – Depository System
2. International Securities Identification Number
1. Securities that can be dematerialized
3. Dematerialization
1. Meaning
2. Process of Dematerialization
3. Benefits of having a demat account
4. Trading and Settlement of dematted shares:
1. Meaning of transfer of shares
2. Settlement of off-market Trades
3. Settlement of Market Trades
5. Rematerialization
8.1 Introduction – Depository System
The earlier settlement system on Indian stock exchanges was very inefficient as it was unable to take care of the transfer of securities in a quick/speedy manner. Since, the securities were in the form of physical certificates; their quick movement was again difficult. This led to settlement delays, theft, forgery, mutilation and bad deliveries and also to added costs.
To wipeout these problems, the Depositories Act 1996 was passed. It was formed with the purpose of ensuring free transferability of securities with speed, accuracy & security. It has been able to do so by:
a) Making securities of public limited companies freely transferable, subject to certain exceptions;
b) Dematerialising the securities in the depository mode; and
c) Providing for maintenance of ownership records in a book entry form.
For performing the above tasks, two depositories viz, NSDL & CDSL have come up.
National Securities Depository Limited (NSDL) does the above tasks for the trades done on NSE. It is a joint venture of:
- IDBI (Industrial Development Bank of India Limited);
- NSE (National Stock Exchange); and
- UTI (Unit Trust of India).
NSDL is the first depository to be set up in India. It was registered by SEBI on June 7, 1996.
The second depository Central Depository Services Limited (CDSL) has been promoted by Bombay Stock Exchange and Bank of India. It was formed in February 1999. Both depositories have a network of Depository participants (DPs) which are further electronically connected to their clients. So, DPs act as a link between the depositories and the clients.
The Depository system to some extent works like the banking system. There is a
central bank and the rules and regulations related to the working of all the
commercial, foreign, co-operative and other types of banks are framed by the central bank. In order to do the daily transactions, the investors open an account with the associate banks, and not with the central one. Like an investor can have a bank account with more than one bank, similarly one can have more than one Demat Account. We can further bring out the similarities as well as the differences between the two in understanding the depository system. (See Table 8.1)
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NCERT Book Class 12 Other Subjects Operations Of Depository
The above NCERT Books for Class 12 Other Subjects Operations Of Depository have been published by NCERT for latest academic session. The textbook by NCERT for Operations Of Depository Other Subjects Class 12 is being used by various schools and almost all education boards in India. Teachers have always recommended students to refer to Operations Of Depository NCERT etextbooks as the exams for Class 12 Other Subjects are always asked as per the syllabus defined in these ebooks. These Class 12 Operations Of Depository book for Other Subjects also includes collection of question. Along with Other Subjects Class 12 NCERT Book in Pdf for Operations Of Depository we have provided all NCERT Books in English Medium for Class 12 which will be really helpful for students who have opted for english language as a medium. Class 12 students will need their books in English so we have provided them here for all subjects in Class 12.
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