Functions of central depository system or cds, Finance Basics

Assignment Help:

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.


Related Discussions:- Functions of central depository system or cds

Management of account receivable, Management of Account Receivable In ...

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

Example of payback period method, Example of Payback Period Method Sup...

Example of Payback Period Method Suppose a project costs Sh.80,000 and will produce the following cash inflows as:                                  Cash inflows      Accumu

IRR, How to compute the IRR of data

How to compute the IRR of data

Taxes, ADan lives in Duncan, a small town in Arizona. Because of a rare blo...

ADan lives in Duncan, a small town in Arizona. Because of a rare blood disease, Dan is required to take special medical treatments once a month. The closest place these treatments

PERDIEM CLAIM, how to make a perdiem claim format to maintain the records o...

how to make a perdiem claim format to maintain the records of staff

Yard stick required in ratio analysis, Yard Stick Required in Ratio Analysi...

Yard Stick Required in Ratio Analysis 1. Past performance of the company The company's previous performance past ratio is needed to gauge or measure the company's present

Calculate effective annual interest rate, 1 st bank offers you a car loa...

1 st bank offers you a car loan at an annual interest rate of 10% compounded monthly. What effective annual interest rate is the bank charging you?  Solution - Calculate

Common Stock Valuation, Bates, inc. pays a dividend of $1.25 and is current...

Bates, inc. pays a dividend of $1.25 and is currently selling for $36.95. If investors require a 12% return on their investment, what growth rate would Bates Inc. have to provide t

Acceptance rule of payback period or pbp, Acceptance Rule of Payback Period...

Acceptance Rule of Payback Period or PBP By using PBP method a company such will accept all those ventures whose payback period is less than to set via the management and will

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd