![]() ![]() Its main function is the holding securities either in certificated or, dematerialized form, to enable book entry transfer of securities.Įquity Market, Definition of Equity Market:, An equity market is a market in which shares are issued and traded, either through exchanges, or over-the-counter markets. It was established based on a suggestion by a national institution, responsible for the economic development of India., &, Central Depository Services Limited (CDSL) is the second Indian central securities, depository based in Mumbai. It was established on 8th November 1996 as the first electronic securities depository, in India with national coverage. The term can also refer to a depository, institution that accepts currency deposits from customers., There are two depositaries in India and those are NSDL and CDSL., National Securities Depository Limited (NSDL) is an Indian central securities depository based, in Mumbai. It can refer to an organization, bank, or institution that holds, securities and assists in the trading of securities. What is a Depositary, A depository is a facility such as a building, office, or warehouse in which something is deposited, for storage or safeguarding. ![]() , , Reduced transaction cost., No "odd lot" problem: even one share can be sold, Transmission of securities is done by DP, eliminating the need for notifying companies., Automatic credit into DEMAT account for shares arising out of bonus/split, consolidation/merger, etc., A single DEMAT account can hold investments in both equity and debt instruments., Traders can work from anywhere., , Safer than paper-shares., Reduced paperwork for transfer of securities.,,., , Easy and a convenient way to hold securities.,,. ![]() The charges of DEMAT account vary as, per the volume held in the account, type subscribed, and the terms and conditions laid by the, depository and the stock broker.,, Benefits of DEMAT Account:, A DEMAT account holds all the investments an individual, makes in shares, government securities, exchange traded funds, bonds and mutual funds in one, place., In India, DEMAT account service is provided by depositories such as NSDL and CDSL through, intermediaries / Depository Participant / Stock Broker. During online trading, shares are bought and held in a DEMAT account, thus facilitating easy trade for users. What is DEMAT Account,, DEMAT account or dematerialized account provides the facility of holding shares and securities, in electronic format. Despite being 140 years old, the BSE is India's fastest exchange with 6 micro seconds!,, There are few more exchanges in India which are not so active in the market. Evolving, from an open outcry system, the BSE also shifted to electronic trading mode in a record 50 Days., With increased connectivity, the BSE was the first Indian Exchange to launch Mobile Trading in, 2010. BSE, The Bombay Stock Exchange (BSE) is India's & Asia's oldest exchange which began 140 years, ago under a banyan tree! It was India's primary exchange till the emergence of the NSE. NSE, The National Stock Exchange (NSE) is the leading stock exchange of India, located in Mumbai., It was established in the year 1992 as the first demutualized electronic exchange in the country., NSE was the first exchange in the country to provide a modern, fully automated screen-based, electronic trading system which offered easy trading facility to the investors spread across the, country.,, 2. In ASBA, an IPO applicant's account doesn't get, debited until shares are allotted to them. SCSBs would accept the, applications, verify the application, block the fund to the extent of bid payment amount, upload, the details in the web based bidding system of NSE, unblock once basis of allotment is finalized, and transfer the amount for allotted shares to the issuer., Applications Supported by Blocked Amount (ASBA) is a process developed by the India's Stock, Market Regulator SEBI for applying to IPO. It could be a new, young company or an old company which decides, to be listed on an exchange and hence goes public., Companies can raise equity capital with the help of an IPO by issuing new shares to the public, or the existing shareholders can sell their shares to the public without raising any fresh capital.,, ASBA,, ASBA process facilitates retail individual investors bidding at a cut-off, with a single option, to, apply through Self Certified Syndicate Banks (SCSBs), in which the investors have bank accounts., SCSBs are those banks which satisfy the conditions laid by SEBI. ![]() Initial Public Offering (IPO) is the process by which a private company can go public by sale of, its stocks to general public. ![]()
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