Central depository system or c.d.s, Finance Basics

Central Depository System or C.D.S

Its computerized ledger systems which enable the transfer or holding of securities with no necessitate for physical movement.  The shares or ownership of security is by the use of a book entry instead of physical exchange CDS is for security what such a bank is for cash transfer among banks.  As like A and B are 2 shareholders of XYZ Ltd.  XYZ Ltd. does not necessitate delivering the share certificate to A or B however a ledger account for both shareholders would be maintained at the CDS.  Their accounts will be credited along with the number of shares.  Whether A want to sell shares to B the CDS will debit A's account and credit B's account.

Posted Date: 2/1/2013 1:50:51 AM | Location : United States







Related Discussions:- Central depository system or c.d.s, Assignment Help, Ask Question on Central depository system or c.d.s, Get Answer, Expert's Help, Central depository system or c.d.s Discussions

Write discussion on Central depository system or c.d.s
Your posts are moderated
Related Questions
Reasons for major Growth in Venture Capital Reasons for Significant Growth in the Developed Countries in Venture Capital i) Public attitude that is a favorable attitude

a debt off Rs1000 with interest at 10% compounded quarterly will be repaid by payments Rs. 200 at the end of 3 months and three equal payments at the end of 6 9 and 12 months. find

what are the difference between receipt and payment account and income and expenditure account ?

risk structure of interest rates 1. Default risk 2. Liquidity 3. Income tax consideration 4. Expectations theory

Discuss the necessity of risk adjusted hurdle rates for companies with diverse lines of business. Every company invests in new projects based on the expectation of earnings


The Balance Sheet of International Trade Ltd. as on 31/3/2008 is as under:-                                  Liabilities Amount Assets

What financial report exactly do? Financial reports tell its intended readers about all the financial information of the company for the period it is reporting. It also contain

Illustrate the role of credit unions in depository institutions. Credit unions: Credit unions are non-profit institutions equally organised and owned through their member

Information Signaling Effect Theory Advanced via Stephen Ross in year 1977, He argued such in an inefficient market; management can utilize dividend policy to signal significa