Functions of central depository system or cds, Finance Basics

Functions of Central Depository System or CDS

1. Immobilization of securities that is removal of physical movement of securities.

2. Dematerialization that is removal of physical certificates or documents demonstrating entitlement to a security hence such ownership exists just as like computer records.

3. Effective Delivery Vs. payment or DVP such is simultaneous delivery and payment among the two parties transferring or exchanging securities. This can be done without delay whether CDS is linked to the central payment clearing system as like CBK.

4. Provision of detailed listings of investors consistent along with the verities of securities they hold as like preference shares and one is ordinary shares.

5. Effective Distribution of Dividends, rights issues, interests and bonus issues.

6. Provision of ownership of securities and payment of cash of book entry account electronic exchange.

Posted Date: 2/1/2013 1:52:31 AM | Location : United States







Related Discussions:- Functions of central depository system or cds, Assignment Help, Ask Question on Functions of central depository system or cds, Get Answer, Expert's Help, Functions of central depository system or cds Discussions

Write discussion on Functions of central depository system or cds
Your posts are moderated
Related Questions
#ques1. Steve and Ed are cousins who were both born on the same day, and both turned 25 today. Their grandfather began putting $2,500 per year into a trust fund for Steve on his 20

a.  In the accompanying diagram (which represents the market for chocolate candy bars), the initial equilibrium is at the intersection of S1 and D1. Circle the new equilibrium if t

Why do some investors prefer high-dividends paying stocks? Why ,ight other investors prefer low-dividend paying stocks?

Management of Account Receivable In order to keep current customers and attract new ones, most firms find it necessary to offer credit. Accounts receivable represents the exte

This case has been framed in order to test the skills in evaluating a credit request and reaching a correct decision

Define the term- Origination Origination offers to the work of investigation, analysis and processing of new project proposals. Origination starts before an issue is really

a bond that has a 1000 per value and a contract or coupon interest rate of 12.8%. The bond is selling for a price of $1125 and will mature in 10 years. The firm''s tax rate is 34%

Cash and Bonus Issue - Dividend For a firm to pay cash dividends, it should contain adequate liquid funds.Though, under conditions of liquidity and financial constraints, a fi

Expectation Theory The theory states here that the yield curve depends on the expectation concerning with future inflation rates. The rate on long-term bonds will exceed, If i

Discuss the applicability of an operating cycle in the vegetable growing business