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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/India8/2/2019 demat and depository
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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/Dematerialisation8/2/2019 demat and depository
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