demat and depository

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Dematerialization AndDematerialization And

DepositoriesDepositories


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FINANCIAL ACCOUNTSFINANCIAL ACCOUNTSPROJECT BY :- FYBMS DIV C

183-DEEPAK GOSWAMI

147-DHANANJAY SHARMA

182-NEEL NAIN

176-RAKESH YADAV

162-TEJAS SURVE

136-KEDAR SAWANT

171-DAMIAN VAZ


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MMeaningeaning

Dematerialization - theDematerialization - theeconomic concept ofeconomic concept ofreducing the quantity ofreducing the quantity ofmaterials requiredmaterials required to serveto serveeconomic functions (doingeconomic functions (doing

more with less).more with less).

Dematerialization of sharesDematerialization of sharesrefersrefers

to conversion of physicalto conversion of physical

share certificates intoshare certificates intoelectronic certificates.electronic certificates.


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Know About AccountKnow About Account

Opening AndOpening And

Dematerialisation.Dematerialisation. Providing the bank account details atProviding the bank account details at

the time of account opening.the time of account opening.

Change in bank account details.Change in bank account details.

Change in the address of investor asChange in the address of investor as

provided to the DP.provided to the DP.

O enin multi le accounts.O enin multi le accounts.


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Account opening and ownershipAccount opening and ownershippattern of securities.pattern of securities.

Allowing somebody else to operateAllowing somebody else to operateyour Demat account.your Demat account.

Closing a demat account and transferClosing a demat account and transferof securities to another account withof securities to another account with

same or different DP.same or different DP.


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Freezing/Locking a demat account.Freezing/Locking a demat account.

Dematerialised shares do not haveDematerialised shares do not have

any distinctive number.any distinctive number.

Rematerialisation.Rematerialisation.


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Demat accountDemat account

This account is popular inThis account is popular inIndiaIndia. The. TheSecurities and Exchange Board of IndiaSecurities and Exchange Board of India(SEBI) mandates a Demat(SEBI) mandates a Demat

account for share tradingaccount for share tradingabove 500 shares.above 500 shares.

As of April 2006, itAs of April 2006, itbecame mandatory thatbecame mandatory thatany person holding aany person holding aDemat account shouldDemat account shouldposses aposses aPermanent Account NumberPermanent Account Number

(PAN), and the deadline(PAN), and the deadline
http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Securities_and_Exchange_Board_of_Indiahttp://en.wikipedia.org/wiki/Securities_and_Exchange_Board_of_Indiahttp://en.wikipedia.org/wiki/Permanent_Account_Numberhttp://en.wikipedia.org/wiki/Permanent_Account_Numberhttp://en.wikipedia.org/wiki/Permanent_Account_Numberhttp://en.wikipedia.org/wiki/Securities_and_Exchange_Board_of_Indiahttp://en.wikipedia.org/wiki/India


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DEMATERIALISATIONDEMATERIALISATION

PROCESSPROCESS


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ProcedureProcedure

1.1. Opening a Demat Account.Opening a Demat Account.

2.2. Submission of DRF and ShareSubmission of DRF and ShareCertificates.Certificates.

1. Forwarding and Uploading theRecords.

2. Verification And Updating the

Records.3. Recording by Depository.

4. Updating of Records by DP.

5. Confirmation to Demat Account


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DepositoryDepository

A system that eliminates the tedious paperA system that eliminates the tedious paperwork involved while buying and sellingwork involved while buying and sellingshares.shares.

A Depository Participant (DP) is the firstA Depository Participant (DP) is the firstpoint of contact with the investor andpoint of contact with the investor andserves as a link between the investor andserves as a link between the investor and

the company through thethe company through the NationalNational

Securities Depository LtdSecurities Depository Ltd [NSDL] or[NSDL] or thetheCentral Securities Depository LtdCentral Securities Depository Ltd[CSDL] for dematerialization of shares. A[CSDL] for dematerialization of shares. Adepository participant could be a financialdepository participant could be a financial

institution (like ICICI), bank (HDFC Bank,institution (like ICICI), bank (HDFC Bank,


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BANK-DEPOSITORY ANBANK-DEPOSITORY AN

ANALOGYANALOGY BANKBANK

1.1. Holds funds in anHolds funds in anaccount.account.

2.2. Transfers fundsTransfers fundsbetween accountsbetween accountson the instructionon the instructionof the accountof the account

holder.holder.3.3. FacilitatesFacilitates

safekeeping ofsafekeeping ofmoney.money.

DEPOSITORYDEPOSITORY

1.1. Holds securities inHolds securities in

an account.an account.

2.2. TransfersTransferssecuritiessecurities

between accountsbetween accounts

on the instructionon the instruction

of the BO accountof the BO account

holder.holder.

3.3. FacilitatesFacilitates

safekeeping ofsafekeeping of


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Today there are as manyToday there are as many

as 533 companies whereas 533 companies where

the investor can buy andthe investor can buy and

sell dematerializedsell dematerializedshares. Similarly thereshares. Similarly there

are 109 DP participantsare 109 DP participants

who have as many aswho have as many as1191 service centers1191 service centers

across the country. Anacross the country. An

investor could look atinvestor could look atsome of these


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Why Demat?Why Demat?

Reduces brokerage charges.Reduces brokerage charges.

Enables quick ownership ofEnables quick ownership of

securities.securities. Avoids confusion in the ownershipAvoids confusion in the ownership

title of securities.title of securities.

Provides easy receipt of public issueProvides easy receipt of public issueallotments.allotments.


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Why Demat?Why Demat?

It also helps you avoid badIt also helps you avoid baddeliveries.deliveries.

It eliminates risks.It eliminates risks.

Demat account holders canDemat account holders canavoidavoid stamp duty.stamp duty.

Demat account holders canDemat account holders can

avoid filling up of transferavoid filling up of transferdeeds.deeds.


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Importance ofImportance of

DepositoryDepositoryA) Benefits toA) Benefits to

investors:investors:

1.Quick transfer of1.Quick transfer ofshares.shares.

2.Less paper work.2.Less paper work.

3.No risk.3.No risk.

4.Less costs.4.Less costs.

..


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B) Benefits toCompanies:

1.Accurate Data ofShareholders.

2.Reduction ofInvestorsComplaints.

3.Quickcorrespondence(Negotiation).

4.Reduction in

Secretarial Work.


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C) Benefits to Capital

Market:

1.Transparency inTrading.

2.Increase inInvestorsConfidence.

3.Increase in ForeignCapital Inflow


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ReferencesReferences

Internet references:Internet references: http://en.wikipedia.org/wiki/Dematerialisationhttp://en.wikipedia.org/wiki/Dematerialisation NKGSB CO-OP.BANK LTDNKGSB CO-OP.BANK LTD

http://www.pdclipart.org/thumbnails.php?albuhttp://www.pdclipart.org/thumbnails.php?albu State bank of India-Details of demat.State bank of India-Details of demat. Icon commerce classes. SYJC notes.Icon commerce classes. SYJC notes.

Subject: Secretarial Practice. Chapter:Subject: Secretarial Practice. Chapter:Demat & Depositories.Demat & Depositories.
http://en.wikipedia.org/wiki/Dematerialisationhttp://en.wikipedia.org/wiki/Dematerialisationhttp://www.pdclipart.org/thumbnails.php?album=35&page=2http://www.pdclipart.org/thumbnails.php?album=35&page=2http://www.pdclipart.org/thumbnails.php?album=35&page=2http://www.pdclipart.org/thumbnails.php?album=35&page=2http://www.pdclipart.org/thumbnails.php?album=35&page=2http://www.pdclipart.org/thumbnails.php?album=35&page=2http://en.wikipedia.org/wiki/Dematerialisation


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