A widely neither distributed nor such distress followed so quickly on the heels 1the equity brokerage industry in India is one of the oldest in the Asia region. India had an active stock market for about 150 years that played a significant role in developing risk markets as also promoting enterprise and supporting the growth of industry. The roots of a stock market in India began in the 1860s during the American Civil War that led to a sudden surge in the demand for cotton from India resulting in setting up of a number of joint stock companies that issued securities to raise finance. This trend was akin to the rapid growth of securities markets in Europe and the North America in the background of expansion of railroads and exploration of natural resources and land development. A new phase in the Indian stock markets began in the 1970s, with the introduction of Foreign Exchange Regulation Act (FERA) that led to divestment of foreign equity by the multinational companies, which created a surge in retail investing. A new set of economic and financial sector reforms that began in the early 1990s gave further impetus to the growth of the stock markets in India. As a part of the reform process, it became imperative to strengthen the role of the capital markets that could play an important role in efficient mobilization and allocation of financial resources to the real economy. Towards this end, several measures were taken to streamline the processes and systems including setting up an efficient market infrastructure to enable Indian finance to grow further and mature. The importance of an efficient micro market infrastructure came into focus following the incidence of market abuses in securities and banking markets in 1991 and 2001 that led to extensive investigations by two respective Joint Parliamentary Committees. The Securities and Exchange Board of India (SEBI), which was set up in 1988 as an administrative arrangement, was given statutory powers with the enactment of the SEBI Act, 1992.
[...] To speed the securities settlement process, The Depositories Act 1996 was passed that allowed for dematerialization (and rematerialization) of securities in depositories and the transfer of securities through electronic book entry. The National Securities Depository Limited (NSDL) set up by leading financial institutions, commenced operations in Oct 1996. Regulations governing selection of various types of market intermediaries as depository participations were made. Subsequently, Central Depository Services (India) Limited promoted by Bombay Stock Exchange and other financial institutions came into being. [...]
[...] Dematerialization of securities occurs when securities, issued in physical form, are destroyed and an equivalent number of securities are credited into the beneficiary owners account. TRADING PROCEDURE BEFORE ON-LINE THE TRADING RING: Trading on stock an exchange is officially done in the ring for a few hours from 11.00 A.M to 2.30 P.M. trading before or after official hour is called KERB TRADING. In the trading ring space is provided for specified and non-specified sections. The members of their authorized assistants have to wear a badge or carries with them identify cards given by the exchange to enter the trading ring. [...]
[...] India bulls securities and its depository services: Indiabulls Group is one of India's top Business houses with businesses spread over Real Estate, Infrastructure, Financial Services, Securities, Retail, Multiplex and Power sectors. The group companies are listed on important Indian and Overseas markets. Indiabulls has been conferred the status of a “Business Superbrand” by The Brand Council, Superbrands India. Credit policy Highlights of First Quarter Review for the financial year 2008-09 ( 29th July ) Bank Rate kept unchanged. Reverse Repo Rate kept unchanged. [...]
[...] Elimination of problems related to nomination:- An account holder can get securities in all companies transmitted/transferred to his account by completing formalities with a single entity i.e. DP. He need not deal with all companies individually. Dematerialized securities can be delivered in the physical segment:- Securities forming a part of the SEBI specified compulsory list (wherein delivery in demat form is mandatory for all categories of investors) can be delivered in physical form in the stock exchanges connected to NSDL & CDSL. [...]
[...] Inconvenience in portfolio Convenient portfolio shuffling and shuffling and traction within the adjustments within the group since group since buy/sell adjustments delivery is through a single needs movement of paper instrument, registration is instantaneous and cost less (no stamp duty) BENEFITS OF DEPOSITORY SYSTEM In the depository system, the ownership and transfer of Securities takes place by means of electronic book entries. At the outset, this system rids the Capital Market of the danger related to handling of paper. NSDL provides numerous direct and indirect benefits, like: Elimination of bad deliveries-in the depository environment, once holding of an investor are Dematerialized, the question of bad delivery does not arise i.e. [...]
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