Depository_System_India OM sem 3 FINAL.pdf

organised market

1. ORGANISED
MARKETS
BHAGWAGAR KRISHNA
M.COM STATISTICS
ROLL NO: 02
NIDHI SARANG
M.COM STATISTICS
ROLL NO: 13
VISHAL YADAV
M.COM STATISTICS
ROLL NO: 20
Get to Know Our Team
SANIYA SHAIKH
M.COM STATISTICS
ROLL NO: 14
3
4
2
1

2. 1
2
3
4
BENEFITS TO THE
INVESTOS
BENEFITS TO THE
COMPANY
BENEFITS TO THE
FININACIAL
INTERMEDIARIES
BENEFITS TO THE
NATIONS
BENEFITS OF
DEPOSITORY
SYSTEM
APRIL 2025

3. INTRODUCATION DPOSITORYSYSETM
19961992
TheNSE isestablishedasatax-
paying,for-profitcompany,the
firstdemutualizedstockexchange
inIndia.Itscreationwasbasedon
therecommendationsofthe
PherwaniCommittee.
Incorporation
TheNSEbeganoperationswithafullyelectronic,
screen-basedtradingsystem(NEAT).Thismadethe
processofplacingbuyandsellordersinstantand
transparent.theownershiptransferandsettlement
onthephysicalmovementof papercertificates
NSEIntroduces
ElectronicTrading
NSEwithotherfinancialinstitutions,
promotedtheNationalSecurities
DepositoryLimited(NSDL).This
wasIndia'sfirstdepository,creating
theactualinfrastructuretomakethe
Dematsystema reality
1994 1999
TheDepositoriesAct &
NSDL
themarketregulator,SEBI,mandatedthatsharesof
certaintopcompaniescouldonlybetradedin
Dematformonthestockexchanges.Thislistof
companieswas graduallyexpanded,forcingthe
markettoshiftawayfromphysicalcertificates.
CompulsoryDemat
Trading
ThelistofcompulsoryDemat
stockscoveredalmostall
activelytradedcompanies.
Physicalsharetradingon
exchangeseffectivelyended,
andthedepositorysystem
becamethe universal
standard
2002
TheDigitalStandard

4. BENEFITS OF THE INVESTORS
1
Investor gets the dividend,
interest bonus shares etc
From the company very
quickly
2
Investor gets the
notice of the annual
general meeting in
time
3
Immediately after
allotment of shares
trading is possible
4
Share transfer
becomes fast and less
costly
5
The investor can lend
shares in demat
account and earn
incomefromlending
6
Problems like loss of
share certificates in
transit, artificial
certificates, forgery etc.
do not arise.

5. 1000
1100
1200
1300
1500
1600
1700
1800
1900
2000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
NSDL CDSL
NSDL vs CDSL Market Share

6. Reduces the cost of
printing of certificates
The company can get quickly the
names and addresses of the
shareholders from the depository
Reduces the cost of
distribution of certificates
Communication with share
holders becomes fast
It provides attraction to the
foreign investors toinvestinIndia
It is increase the efficiency
of registrar agent
1
2
3
4
5
6

7. BENEFITS TO THE FINANCIAL INTERMEDIARIES
It increases income of
brokerage by
increasing the volume
of trade
Brokers are freed from
the botheration of bad
delivery problems
Cost of purchase and
sales is reduced
Cash flow becomes
very fast
Can be pledged with
the bank for
gettingadvances

8. BENEFITS TO THE
NATION
25% 50% 75%
Growth rate of the economy
can be increased by attracting
foreign capital by providing
demat facility
It creates favourableclimate
for the privatisationof public
sector units
It increases the confidence of the
people in capital market which
again inspires them to invest
their savings for economic
development of the nation
10% 80%
Depository system increases the liquidity of
the capital market and thereby encourages
investment and economic development
Demat based trading increases the volume of trade
As result income of securities transactions tax and
service tax for government increases In tax revenue
for governmentincrease

9. REGULATED
MARKET
VS
ADVANTAGE OF
REGULATED MARKET
LIMITATION OF
REGULATED
MARKET
MARCH 2023

10. A regulated market is a marketplace
where transactions are governed by
statutory rules, administered by market
committees to ensure fair trade practices,
price transparency, and protection of
stakeholders, mainly farmers and traders
The primary objective of this
supervision is to ensure fairness,
transparency, and efficiency within
the market, protecting all
participants from manipulation and
fraudulent practices
INTRODUCATION OF REGULATED MARKET
1
2
3

11. ADVANTAGE OF REGULATED MARKET
As per prescribed rules and procedure of the market agricultural produce is sold
through the method of open competitive bidding Traders bid the price in an
environment of open competition and the produce is sold to the highest bidder
Therefore, farmers get the competitiveprice
Regulated market provides
facilities for
standardisationand
grading. As a result
farmers get better price for
better grade
Regulated markets by assuring
competitive prices and better
price for better grade
encourages farmers to grow
more And Contributes to the
development of agriculture
It collects Information
useful for marketing and
provides to the
government and media for
publication and telecast.
Regulated markets have
aroused marketing
awarnessamong the
farmers. Therefore, now
farmers have become
conscious of market forces
and try to get better price
for their produce.

12. ADVANTAGE OF REGULATED MARKET
Regulations can prevent the formation of monopolies and prohibit anti-competitive practices.
This ensures that smaller businesses have a fair chance to compete, which often leads to better
services and more competitive pricing for consumers.
Abolition of unwanted
middlemen Only the
licensed commission agents
are permitted to buy and
sell in the market. Others
have no place in the market.
Right information to the
producers: Market
committee provides right
information about prices on
the board placed in the
market.
Different types of
malpractices indulged into
by the middlemen before
the advent of regulated
markets have now been
abolished by the regulated
markets
regulated, transparent, and
stable market inspires
confidence among both
domestic and international
investors. This confidence is
vital for attracting foreign
investment which helps in
mobilizing capital for
economic growth.

13. LIMITATION
OF
REGULATED
MARKETS
many regulated
markets lack
proper
infrastructure such
as storage, grading,
and quality-
checking facilities.
Over-regulation
sometimes creates
opportunities for
corruption and it can also
discourage innovation by
limiting the development
of new trading practices
All the farmers growing
vegetables and fruits are not
in a position to reap the
benefits of the regulated
market because very few
markets are there for such
crops.
The cost of
regulation is often
high because
maintaining
compliance with
strict rules requires
significant
resources.
Traders, farmers,
and investors
have less
freedom to
negotiate terms
outside the set
regulations.
Bureaucratic procedures
can create delays in
transactions, and in many
cases, middlemen continue
to dominate despite the
regulatory framework,
which reduces the
bargaining power of
farmers or small sellers.
regulated markets
are not equally
available in all
regions, forcing
some sellers to
depend on
unregulated local
markets.
Regulated markets
(e.g., APMCs),
commission agents
and traders
sometimes
dominate, reducing
farmers’ or sellers’
bargaining power.

14. THANK YOU