Depository Services in NSDL & CSDL2

Depository services of
NSDL and CSDL

Presented to: Prof Ramesh
Presented by: Group 6(Sec A)

Sadhana
Swati
Neha
Kriti
Depository System
• An Organization that holds securities of investor in electronic
format at the request of the investor through a registered

Depository Participant.
• This system is also know as Scrip Less Trading system.
• To utilize the services offered by a depository the investor is
required to open a demat account with the depository.

Difference Between Bank & Depository
BANK DEPOSITORY
• Holds Funds in an Account • Hold securities in an account

• Transfers Funds between accounts • Transfers securities between
on the instruction of the account accounts on the instruction of the
holder. account holder
• Transfers without handling cash • Transfers without handling
• Facilitates safe keeping of money physical securities
• Direct Contact • Facilitates safe keeping of shares
• Contact through Depository
Participants
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Constituents Of Depository System
There are basically four participant:

• The Depository
• The Depository Participant
• The Issuing Company
• The Investor
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No. of Depositories Registered With SEBI
NSDL CDSL
• It is the largest depository of • It is a depository promoted by
Indian stocks, promoted by NSE, Bombay Stock Exchange jointly
IDBI, UTI, SBI and other with SBI, Bank of India, HDFC
financial institution. Bank and other financial institution.
• NSDL commenced operation in • CSDL commenced its operations in
November 1996. July 15th 1999.
• D.Ps registered with SEBI: • D.Ps registered with SEBI:
NSDL:359 CDSL: 619
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SHAREHOLDERS OF NSDL
• State Bank of India
• Oriental Bank of Commerce
• Citibank
• Standard Chartered Bank
• HDFC Bank Limited
• The Hong kong and Shanghai Banking Corporation
Limited
• Deutsche Bank
• Dena Bank
• Canara Bank
• Union Bank of India
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SHAREHOLDERS OF CDSL
• Standard Chartered Bank
• Centurion Bank of Punjab Ltd

• Canara Bank
• Union Bank of India

• Bank of Maharashtra
• Jammu and Kashmir Bank Limited

• The Calcutta Stock Exchange Association Limited
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Depository Participants
An agent of the depository through which it interfaces with the investor. A Depository Participants can offer depository
services only after it gets registration from SEBI.
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Who can be Depository Participant?
• In terms of the Depositories Act, 1996, SEBI (Depositories & Participants)

Regulations,1996, only the following entities are eligible to become a
Depository Participant.
• Financial Institutions.
• Banks, including approved foreign bank Custodians, Stockbrokers.
• A non -banking finance company.
• A registrar to an issue or share transfer agent.
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BENEFITS OF DEPOSITORY SYSTEM (1/2)
BENEFITS TO INVESTORS
• This system will eliminate paper work as the book entry system
does not need physical movement of certificates for transfer process
• The risk of bad deliveries, fraud and misplaced, mutilated and lost
share certificates will not exists.
• The electronic media helps to save time and increase velocity of
security movement.
• Investors will be able to change portfolio more frequently.
• The cost of transfer is less as the share transfers are exempt from
stamp duty.
• Faster payment in case of sale of share
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BENEFITS OF DEPOSITORY SYSTEM (1/2)
BENEFITS TO COMPANIES
• The companies will be able to know the particulars of beneficial owners
and their holdings periodically.
• At the time of declaration of dividends, bonus etc. there will not be any
rush for transfer related activities for the companies.
• It would be possible to send notices and annual reports without delay.
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Services provided by Depository
• Dematerialisation (usually known as demat)
• Rematerialisation (usually known as remat)
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Dematerialisation
• Process by which physical certificates of an investor are converted to an

equivalent number of securities in electronic form and credited in to the
investor’s account with his/her DP
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Rematerialisation
• Rematerialisation is the process by which a client can get his electronic

holdings converted into physical certificates.
• A client can rematerialise his dematerialised holdings at any point of time.
• The rematerialisation process is completed within 30 days.
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Thank You
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Depository Services in NSDL & CSDL2

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Depository services of

NSDL and CSDL

Presented by: Group 6(Sec A)

format at the request of the investor through a registered

required to open a demat account with the depository.

• Holds Funds in an Account • Hold securities in an account

There are basically four participant:

• Standard Chartered Bank

• Centurion Bank of Punjab Ltd

• Union Bank of India

• Jammu and Kashmir Bank Limited

• In terms of the Depositories Act, 1996, SEBI (Depositories & Participants)

• Dematerialisation (usually known as demat)

• Rematerialisation (usually known as remat)

12/08/2021 CFM_ Group 6 12

• Process by which physical certificates of an investor are converted to an

• Rematerialisation is the process by which a client can get his electronic

• The rematerialisation process is completed within 30 days.

12/08/2021 CFM_ Group 6 15

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