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
Differences between Equity Finance and Preference Dissimilarity between Equity Finance and Preference are as follows:   Ordinary share capital

CBK - Monetary Policy The money supply in the economy has a main effect on both the rate of inflation and the level of economic activity. The level of money supply is controll

IRR or Internal Rate of Return This method is a discounted cash flow technique that uses the principle of NPV.  It is described as the rate such equates the present value of c

Relationships and interactions among money, bond, stock and mortgage markets

Example of Asset Based Valuation Extracted information from the books of Kent Limited.   Current liabilities Bank overdraft    Sh. 300,000

What are the types of financial assets? Types of Financial Assets: a. Loans b. Bank Deposits c. Stocks A share of ownership within a company d. Bonds A promis

Net Present Value Method - Example Jeremy limited wishes to expand its output by purchasing a new machine worth 170,000 and installation costs are estimated at 40,000/=.  In t


After carefully reading all the available information, prepare a two page (double-spaced) essay and answer the following questions: Assume that we have the following data: C=100+0.

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