Pramit Chandra Rout, Advocate, Orissa High Court
ABSTRACT
The deposit system is a system or mechanism by which a trader can transfer its financial instrument to another trader by electronic means that ensure this transaction's settlement as quickly as possible. It is also known as an exchange system of scripless because it does not retain the financial instrument in physical mode.
In India, the depository system has made a substantial contribution to the development of the securities market, which is crucial for the growth and development of the market because it is transparent and automatic. There are different functions of depository systems through which it provides better securities they are like, Dematerialisation, corporate activities, pledge and hypothecation, linkages with clearing framework in India currently there are two depository systems which are registered with SEBI. They are, namely NSDL and CDSL.
This document will focus on India's two registered deposit schemes. I.e., NSDL and CDSL concerning their functions and regulations by which it provides securities and also, to develop other depository functions by which it seeks securities. It will also examine the contributions of these two systems to the growth of the Indian securities market.
Keywords: CDSL, Depository System, NSDL, SEBI, Securities.
