INTODUCTION

TheDepositoriesAct,1996providesforregulationofdepositoriesinsecurities
andformattersconnectedthereto.TheActwhichinitiallycameintoforceasan
ordinanceviz.TheDepositoriesOrdinance,1995,wasdesignedtoprovidealegal
frameworkforestablishmentofdepositoriestorecordownershipdetailsinbook
entryform.

TheActalsomadeconsequentialamendmentsintheCompaniesAct,1956;the
SecuritiesandExchangeBoardofIndiaAct,1992;theIndianStampAct,1899;
theIncometaxAct,1961;andtheBenamiTransactions(Prohibition)Act,1988.

The Depositories Act, 1996 provides a legal framework for establishment of

depositoriestofacilitateholdingofsecuritiesincludingsharesinthedematform
(electronicform)andtoeffecttransferofsecuritiesthroughbookentry.

TheActestablishesthedepositorysysteminIndiabyprovidingforsettingupof
oneormoredepositoriestoenabletheinvestorstoholdsecuritiesinnonphysical
form(knownasdematerializedform)andtoaffecttransferofsecuritiesbywayof
bookentriesinaccountsmaintainedbythedepository.

EverydepositoryisrequiredtoberegisteredwiththeSecuritiesandExchange
BoardofIndia(SEBI)andwillhavetoobtainaCertificateforcommencementof
businessonfulfillmentoftheprescribedconditions.

Investorsoptingtojointhesystemarerequiredtoberegisteredwithoneormore
participantswhoaretheagentsforthedepository.Investorshavethechoiceof
continuingwiththeexistingsecuritiescertificatesoroptforthedepositorymode.

Thedepositorysystemenvisagesadepositofsecuritiesbyvariousinvestorswith
thedepository.Oncethesecuritiesarelodgedwiththedepository,theirtransfer
wouldbethroughbookentrytransfersinaccountsmaintainedbythedepository.
Thus the main function of a depository is to dematerialize the securities and
enabletheirtransactioninbookentryform.

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Thereareessentiallyfourplayerinthedepositorysystem:

TheDepositaryparticipant
TheBeneficialowner/investor
Theissuer
Thedepositary

Adepositaryisafirmwhereinthesecuritiesofaninvestorareheldinelectronic
form in the same way a bank holds money. It caries out the transactions of
securitiesbymeansofbookentry,withoutanyphysicalmovementofsecurities.
The depositary based settlement system is also called book entry transfer
settlement.Thedepositaryactsasadefecttoownerofthesecuritieslodgedwith
itformthelimitedpurposeoftransferofownership.Itfunctionsasacustodianof
securitiesofitsclients.Thenameofthedepositaryappearsintherecords.With
increaseinthenumberoftransactionsinthestockmarket,ithadbecomedifficult
fortheinvestorstoholdsharecertificatesanddebtinstrumentsinbulk.Butnow,
depositaryinstitutionshandlethisjob.AtpresentthetwodepositoriesinIndia.

NumberofDepositoriesinIndia

1. NationalsecuritiesdepositaryLtd.(NSDL)
2. Centraldepositaryservices(India)Ltd.(CDSL)

NSDLwasformedandregisteredunderthecompaniesact1956duringDecember
1995andcommencedoperationsduringnovember1996.NSDLwaspromotedby
IndustrialDevelopmentBankofIndia(IDBI)thelargestdevelopmentbankin
India,UnittrustofIndia(UTI)thelargestmutualfundinIndiaandNational
stockexchange(NSE)thelargeststockexchangeinIndia.Someoftheprominent
banksinthecountryalsohaveastakeinNSDL.

CentralDepositoryservices(India)limitedwhichcommencedoperationsduring
February1999.CSDLwaspromotedbystockexchange,Mumbaiinassociation

2
withBankofBaroda,BankofIndia,StateBankofIndiaandHDFCBank.

Depositories

A depository can be compared to a bank. A depository holds securities of

investorsinelectronicform.Besidesholdingsecurities,adepositoryalsoprovides
services related to transactions in securities. A depository interfaces with its
investorsthroughitsagentscalledDepositoryParticipants(DPs).Ifaninvestor
wantstoutilisetheservicesofferedbyadepository,theinvestorhastoopenan
accountwithaDP.Thisissimilartoopeninganaccountwithanybranchofa
bankinordertoutilisethebanksservices.

DepositoriesarethosewhoarelicensedbytheSecuritiesandExchangeBoardof
India (SEBI) to undertake depository functions i.e. holding and handling of
securitiesinelectronicform.TheNationalSecuritiesDepositoryLtd.(NSDL)
promoted by UTI, IDBI and NSE is the first depository of India. The Stock
Exchange,MumbaihaspromotedDepositoryServices(India)Ltd.(CDS)which
hasdrawnplanstosetuptheseconddepositoryinthecountry.

DepositorySysteminIndia

IndiahasadoptedtheDepositorySystemforsecuritiestradinginwhichbook
entry is done electronically and no paper is involved. The physical form of
securitiesisextinguishedandsharesorsecuritiesareheldinanelectronicform.
BeforetheintroductionofthedepositorysystemthroughtheDepositoryAct1,the
processofsale,purchaseandtransferofsecuritieswasahugeproblem,andthere
wasnosafetyatall.

TheMainFeaturesOfDepositorySystemInIndia:

o Securities in Dematerialised Form: Depository system provides for

1 1996.

3
 maintenanceofownershiprecordofthesecuritiesoftheinvestorinabook
entryform.Thesystemimmobilizesphysicalsecuritiessothatthereisno
physicalcertificateinexistence.Thesecuritiesaredematerializedtobe
heldonlyaselectronicrecordsmaintainedwiththedepository.
o Fungibility: Inthedepositorysystem,thesecuritiesdematerializedare
not identified by distinctive numbers or certificate numbers as in the
physicalenvironment.Thus,allsecuritiesinthesameclassareidentical
andinterchangeable.Forexample,allequitysharesintheclassoffully
paidupsharesareinterchangeable.
o PartiesInvolved:Inadepositorysystem,thepartiesinvolvedare:
(i) thedepository;
(ii) thedepositoryparticipant(DP);
(iii) thebeneficialowner;and
(iv) theissuer.

The depository renders service connected with the recording of ownership of

securities inits record.Adepositoryfunctions throughdepositoryparticipants
whoaretheagent ofthedepositorythroughwhomthe investors availofthe
depositoryservice.

Inthedepositorysystem,theownershipofsecuritiesdematerialized,isbifurcated
between Registered Owner and Beneficial Owner. For the securities
dematerialized,depositoryistheRegisteredOwnerinthebooksoftheissuer(i.e.
company); the investor of securities who has availed the services of the
depositoryistheBeneficialOwner.

Adepositoryisdeemedtoberegisteredowner(ofthesecurities)forthepurposes
ofeffectingtransferofownershipofthesecuritiesonbehalfofthebeneficial
owner.

However,thedepositorydoesnothaveanyvotingrightsoranyotherrightsin
respect ofthe securities which are under depositorys custody. The beneficial
ownerisentitledtoalltherightsandbenefitsandsubjectedtoalltheliabilitiesin
respectofhissecuritiesheldbyadepository.

4
 o Free Transferability of Shares: Transfer of securities held in
dematerialized form takes place freely through electronic bookentry
system.Thesystemdispenseswiththetransferdeedandotherprocedural
requirementswithrespecttotransferofsecurities.
o NoStampDuty:Nostampdutyfortransferofsecuritiesintheelectronic
formispayable.Incaseoftransferofphysicalshares,stampdutyof0.5
percentispayableonthemarketvalueofsharestransferred.
o NoRisk: Allrisksassociatedwithphysicalcertificatessuchasdelays,
lossintransit,theft,baddeliveries,etc.areeliminatedinthedepository
system.

BenefitsofDepositorysystem:

1. Depositorysystemtakesholdofallsecuritiesinthecountrylistedinthat
particularstockexchange.
2. Introduction of electronic system enables speedy transactions and
accuracy.
3. Inadepositorysystem,thesecurityholderscansellandbuysecuritiesby
whichliquidityisbroughttothesecurities.
4. BlanktransfersareavoidedandholdingofsharesinBenaminamesisalso
prevented.
5. Registrationandstampchargesforthesaleofsecuritiescouldbeeasily
collectedbythegovernmentwhichwasevadedundertheprevioussystem.
6. Depository promotes more activity in the capital market as trading in
genuineshare.isensuredunderDepositorysystem.
7. Depositoryavoidsuseofstationeryandpreventsdelayinregistrationof
transfers.
8. Dividendandinterestonsecuritiesareproperlydistributedthroughthis
systemandinthecaseofconvertibledebentures,ontheduedate,the
securitiesareconvertedintocompanyshares.
9. Depositoryactsascollateralsecurityfortheraisingof1oansfromany
financialinstitution.

5
DEPOSTORYSYSTEM

TheerstwhilesettlementsystemonIndianstockexchangeswasalsoinefficient
andincreasedrisk,duetothetimethatelapsedbeforetradesweresettled.The
transferwasbyphysicalmovementofpapers.Therehadtobeaphysicaldelivery
ofsecuritiesaprocessfraughtwithdelaysandresultantrisks.Thesecondaspect
ofthesettlementrelatestotransferofsharesinfavourofthepurchaserbythe
company.Thesystemoftransferofownershipwasgrosslyinefficientasevery
transfer involves physical movement of paper securities to the issuer for
registration,withthechangeofownershipbeingevidencedbyanendorsementon
thesecuritycertificate.Inmanycasestheprocessoftransferwouldtakemuch
longerthanthetwomonthsstipulatedintheCompaniesAct,andasignificant
proportionoftransactionswouldendupasbaddeliveryduetofaultycompliance
ofpaperwork.Theft,forgery,mutilationofcertificatesandotherirregularities
wererampant. Inaddition, theissuerhas the right torefusethe transferofa
security.Allthisaddedtocostsanddelaysinsettlement,restrictedliquidityand
madeinvestorgrievanceredressaltimeconsumingand,attimes,intractable.

Toobviatetheseproblems,theDepositoriesAct,1996waspassed.Itprovidesfor
theestablishmentofdepositoriesinsecuritieswiththeobjectiveofensuringfree
transferabilityofsecuritieswithspeed,accuracyandsecurity.Itdoessoby

makingsecuritiesofpubliclimitedcompaniesfreelytransferable,subject
tocertainexceptions;
dematerialisingthesecuritiesinthedepositorymode;and

6
 providingformaintenanceofownershiprecordsinabookentryform.

Inordertostreamlineboththestagesofsettlementprocess,theActenvisages
transferownershipofsecuritieselectronicallybybookentrywithoutmakingthe
securitiesmovefrompersontoperson.TheActhasmadethesecuritiesofall
publiclimitedcompaniesfreelytransferable,restrictingthecompany'srighttouse
discretionineffectingthetransferofsecurities,andthetransferdeedandother
procedural requirements under the Companies Act have been dispensed with.
Twodepositories,viz.,NSDLandCDSL,havecomeuptoprovideinstantaneous
electronictransferofsecurities.

LegalFrameworkofdepositarysystem

TheoperationsofthedepositoriesareprimarilygovernedbytheDepositories
Act,1996,SecuritiesandExchangeBoardofIndia(Depositories&Participants)
Regulations,1996,ByeLawsapprovedbySEBI,andBusinessRulesframedin
accordancewiththeRegulationsandByeLaws.

The Depositories Act passedby Parliament received the President's assent on

August10,1996.ItwasnotifiedinaGazetteonAugust12ofthesameyear.The
Actenablesthesettingupofmultipledepositoriesinthecountry.Thiswastosee
thatthereiscompetitionintheserviceandthereismorethanonedepositoryin
operation.Atpresent,twodepositoriesareregisteredwithSEBITheNational
SecuritiesDepositoryLimited(NSDL)andCentralDepositoryServices(India)
Limited(CDSL).

On companyregisteredundertheCompaniesAct,1956andsponsoredbythe
specified category of institutions can set up a depository in India. Before
commencingoperations,depositoriesshouldobtainacertificateofregistration
andacertificateofcommencementofbusinessfromSEBI.

Therights andobligationsofdepositories,depositoryparticipants,issuers and

beneficialownersarespeltoutclearlyintheDepositoriesAct1996.

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AspertheAct2:

Section4:DPisanagentoftheDepository:ADPisanagentofthedepository,
whoprovidesvariousservicesofthedepositorytoinvestors.TheDPhastoenter
intoanagreementwiththedepositorytothiseffect.Anyinvestorwhowouldlike
toavailtheservicesofadepositoryhastoenterintoanagreementwithanyDPof
his choice. The DP will then make the depository services available to the
investor.

Section 7: Free Transferability: The securities held by an investor in the

depositoryarefreelytransferablefromonebeneficialownertoanother.

Section8:Optiontoholdsecuritiesindematform:Inthedepositorysystem,
every investor subscribing to securities offered by an issuer has an option to
receivethesameinphysicalformordematerialisedform.Ifaninvestoroptsfor
receivingthesecuritiesindematerialisedform,theissuerintimatesthedepository
thedetailsofallotmentofsecurity.Onreceiptofthisinformation,thedepository
enters the name of the allottee as the beneficial owner of that security in its

2 Depositories Act 1996.

8
record.

Section9:Securitiesheldinadepositoryarefungible:Allsecuritiesheldby
thedepositoryareindematerialisedandfungibleform.

Section 10: Registered Owner and Beneficial Owner: The depository is

deemed to be the registered owner for the purpose of effecting transfer of
ownershipofsecurityonbehalfofabeneficialowner.Butasaregisteredowner,
itdoesnothaveanyvotingrightsoranyotherrightsinrespectofthosesecurities.
Thebeneficialownerisentitledtoallrightsandbenefitsaswellassubjecttoall
liabilitiesinrespectofhissecuritiesheldinthedepository.

Section14:Optiontooptoutofdepository:Abeneficialownermayoptoutof
adepositoryinrespectofanysecuritybyrequisiteintimationtothedepository.

Section 16: Depository to indemnify losses: A depository shall indemnify a

beneficialowner,an causedduetonegligenceofthedepositoryoritsparticipant

Every depository is required to maintain the following records and

documents.Thesehavetobepreservedforaminimumperiodoffiveyears.

1. Recordsofsecuritiesdematerialisedandrematerialised.
2. He names of the transferor, transferee, and the dates of transfer of
securities.
3. Aregisterandanindexofbeneficialowners.
4. Detailsoftheholdingsofthesecuritiesofbeneficialownersasattheend
ofeachday.
5. Recordsofinstructionsreceivedfrom,andsentto,participants,issuers,
issuers'agentsandbeneficialowners.
6. Records of approval, notice, entry and cancellation of pledge or
hypothecation.
7. Detailsofparticipants.
8. Detailsofsecuritiesdeclaredtobeeligiblefordematerialisationinthe
depository.

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 9. Such other records as may be specified by SEBI for carrying on the
activitiesasadepository.

FunctionsofDepository

Dematerialisation: One of the primary functions of depository is to

eliminateorminimisethemovementofphysicalsecuritiesinthemarket.
Thisisachievedthroughdematerialisationofsecurities.Dematerialisation
istheprocessofconvertingsecuritiesheldinphysicalformintoholdings
inbookentryform.
AccountTransfer:Thedepositorygiveseffectstoalltransfersresulting
from the settlement of trades and other transactions between various
beneficialownersbyrecordingentriesintheaccountsofsuchbeneficial
owners.
TransferandRegistration:Atransferisthelegalchangeofownership
ofasecurityintherecordsoftheissuer.Foreffectingatransfer,certain
legal steps have to be taken like endorsement, execution of a transfer
instrument and payment of stamp duty. The depository accelerates the
transferprocessbyregisteringtheownershipofsharesinthenameofthe
depository.Underadepositorysystem,transferofsecurityoccursmerely
by passing book entries in the records of the depositories, on the
instructionsofthebeneficialowners.
CorporateActions: Adepositorymayhandlecorporateactionsintwo
ways.Inthefirstcase,itmerelyprovidesinformationtotheissuerabout
the persons entitled to receive corporate benefits. In the other case,
depository itself takes the responsibility of distribution of corporate
benefits.
PledgeandHypothecation:ThesecuritiesheldwithNSDLmaybeused
ascollateraltosecureloansandothercreditsbytheclients.Inamanual
environment, borrowers are required to deliver pledged securities in
physicalformtothelenderoritscustodian.Thesesecuritiesareverified
forauthenticityandoftenneedtobetransferredinthenameoflender.
Thishasatimeandmoneycostbywayoftransferfeesorstampduty.If

10
 theborrowerwantstosubstitutethepledgedsecurities,thesestepshaveto
berepeated.Useofdepositoryservicesforpledging/hypothecatingthe
securitiesmakestheprocessverysimpleandcosteffective.Thesecurities
pledged/hypothecatedaretransferredtoasegregatedorcollateralaccount
throughbookentriesinrecordsofthedepository
Linkages with Clearing System: Whether it is a separate clearing
corporationattachedtoastockexchangeoraclearinghouse(department)
of a stock exchange, the clearing system performs the functions of
ascertainingthepayin(sell)orpayout(buy)ofbrokerswhohavetraded
onthestockexchange.Actualdeliveryofsecuritiestotheclearingsystem
from the selling brokers and delivery of securities from the clearing
systemtothebuyingbrokerisdonebythedepository.Toachievethis,
depositories and the clearing system should be electronically linked.
Having understood the depository system, let us now look at the
organisation and functions of National Securities Depository Limited
(NSDL).

BENEFITSOFDEPOSITORYSYSYEM

No risks associated with physical certificates such as loss of share

certificate,Fakesecurities,Etc.
Nobaddelivery.
Fastersettlementcycles.
Low transaction cost for purchase and sale of securities compared to
physicalmode.
IncreaseliquidityofsecuritiesyReductionofpaperwork.
AllotmentofIPO,Bonus,Rightssharesetc.inelectronicform.
Wavierofstampdutyontransferofsecurities.
Intimationlikechangeofaddress,bankmandate,nomination,requestof
transmission,required to begiven only to Depository Participant (DP)
Irrespectiveofthenumberofcompaniesinwhichsharesheld.

Beneficiaryaccount

AbeneficiaryaccountisanaccountopenedbytheinvestororabrokerwithaDP

11
of his choice, to hold shares in dematerialized form and undertake scrip less
trading.

Twodepositoriesact

1. NationalSecuritiesDepositoryLimited
2. CentralDepositarySecuritiesLimited

1. NationalSecuritiesDepositoryLimited

NDML formed in 2004, is a wholly owned subsidiary of National Securities

Depository Limited (NSDL). NSDL was set up in 1996 to establish the first

12
securities depository of India. After establishing a depository system of
international standards in India, NSDL has successfully established Tax
InformationNetwork(TIN)forCentralBoardofDirectTaxes(CBDT),Ministry
of Finance, and Government of India. NSDL has also established a Central
RecordkeepingAgency(CRA)fortheNewPensionSystem(NPS)onbehalfof
thePensionFundRegulatoryandDevelopmentAuthority(PFRDA).
NSDL has achieved and delivered pathbreaking success in the area of
automation of large and complicated processes by use of niche technologies,
managementexperienceandcreationofalargenetworkoftrustedservicecenters.
These service centers in form of Depository Participant branches, Facilitation
centersforTaxInformationNetwork&CRAandPointofServiceforNational
SkillsRegistryarespreadacrosslength&breadthofthecountry.NSDL'score
competenceisitsabilitytoconceive,design,implement,manageandmaintain
large databases that can bring in transactional efficiency for common good.
NSDLhasalsosuccessfullysetupsecuretechnologyhubformanagingthese
databases.

NDMLhasbeenformedtotakethebenefitsoftechnologicalexpertise,physical
network and management experience of NSDL to take up large and socially
relevantprojectsinegovernancespace.

SubsequenttotheenactmentofDepositories Actin1996,NationalSecurities
DepositoryLimited(NSDL)wassetupasthefirstsecuritiesdepositoryinIndia
in1996bynationalinstitutionslikeIndustrialDevelopmentBankofIndia(IDBI
whichwasthethenlargestdevelopmentfinancialinstitutioninIndia),UnitTrust
ofIndia(UTIwhichwasthethenlargestmutualfundinIndia)andNational
StockExchangeofIndiaLimited(NSEwhichisthelargeststockexchangein
India).SomeoftheprominentbanksinthecountryhavetakenastakeinNSDL.
NSDLhandlesover80%ofthesecuritiesheldandsettledindematerializedform
inIndiathoughitsnationwidenetworkofelectronicsysteminfrastructure.

13
NSDL also provides a number of eGovernance solutions to the Ministry of
Finance in the area of Direct & Indirect taxes and act as the Central
RecordkeepingAgencyfortheNewPensionSystem.

ThesolutionsdevelopedandimplementedbyNSDLweretotaltransformational
projects which covered use of modern information and communication tools,
businessprocessreengineering,policychanges,strengtheningadministrative&
legalinfrastructureandfacilitatingchangemanagement.

ThefollowingorganisationsareshareholdersofNSDLasonMarch31,2005.

1.IndustrialDevelopmentBankofIndia

2.AdministratoroftheSpecifiedUndertakingoftheUnitTrustofIndiaDRF

3.NationalStockExchange

4.StateBankofIndia

5.OrientalBankofCommerce

6.CitibankN.A.

7.StandardCharteredBank

8.HDFCBankLimited

NSDLperformsthefollowingfunctionsthroughdepositoryparticipants:

Enables the surrender and withdrawal of securities to and from the

depository(dematerialisationandrematerialisation).
Maintainsinvestorholdingsintheelectronicform.
Effectssettlementofsecuritiestradedontheexchanges.
Carries out settlement of trades not done on the stock exchange (off
markettrades).
Transferofsecurities.
Pledging/hypothecationofdematerialisedsecurities.
Electroniccreditinpublicofferingsofcompaniesorcorporateactions.

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CentralDepositarySecuritiesLimited

ThemainfunctionofCDCistooperateandmaintaintheCentralDepository
System (CDS), an electronic bookentry system used to record and maintain
securitiesandtoregisterthetransferofsecurities.

Thesystemchangestheownershipofsecuritieswithoutanyphysicalmovement
or endorsement of certificates and execution of transfer instruments. CDS
facilitates equity,debtandotherfinancialinstruments inthePakistaniCapital
Market.ItmanagesOrdinary&Preferenceshares,TFCs,WAPDABonds,Sukuk,
OpenEnd&ClosedEndfundsandModarabaCertificates.

BenefitsofElectronicSettlementthroughCDS

Followingaresomeofthebenefitsofelectronicsettlementofsecuritiesthrough
CDS:

Reduced workload and manpower requirements due to paperless

settlement.
Instantaneoustransferofownership.
NostampdutyontransfersinCDS.
Noriskofdamaged,lost,forgedorduplicatecertificates.
Noimpactincaseofsuddenincreaseofsettlementvolumes.
Instantcreditofcorporateentitlements(bonus,rightsandnewissues).
Paperlessenvironment(notraditionalvaults).
Securecustodyofsecurities.
Substantialreductionofpaperworkduringbookclosure.
Convenientpledgingofsecurities.
Substantialreductionintime&capitalinvestments.

ShareholdersofCDSL

CDSLwaspromotedbyBombayStockExchangeLimited(BSE)inassociation
withBankofIndia,BankofBaroda,StateBankofIndiaandHDFCBank.BSE
hasbeeninvolvedwiththisventurerightfromtheinceptionandhascontributed
overwhelminglytothefruitionoftheproject.Theinitialcapitalofthecompanyis
Rs.104.50crores.Thelistofshareholderswitheffectfrom11thDecember,2008

15
isasunder.

Cases:

ProbirKumarMisrav.RamaniRamaswamy3
ItwasheldthataftertheDepositoriesAct,1996,suchdepositorswhoareholding
equitysharecapitalofthe company andwhosenameis enteredas beneficial
owner are also deemed to be members of the company, thus making them
membersundertheAct.

NorthernProjectsLtd.v.BlueCoastHotelsandResortsLtd.4
Itwascontendedthatonlypersonsholdingequitysharescanbemembersofthe
CompanyintermsofSection41(3)oftheAct.ThiswasrejectedbyCourtandit
was stated that Subsection (3) ofSection 41is therefore only in addition to
Section41(1)andSection41(2)andnotinderogationorsubstitutionofthefirst
two subsections. The word shareholder and member is used in the same
connotationundertheActandtheSectioncoversthethirdcategoryofequity
shareholderswhoareneithersubscribersascontemplatedbySubsection(1)nor
whosenamesareenteredintheregisterofmembersascontemplatedunderSub
section(2)ofSection41.

3 28 august, 2009.
4 3 may, 2007.

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 CONCLUSION

The Depository Act which provides for the establishment of depositories like
NSDLandCDSLtocurbtheirregularitiesinthecapitalmarketandprotectthe
interestsoftheinvestorsandpavedawayforanorderlyconductofthefinancial
marketsthroughthefreetransferabilityofsecuritieswithspeed,accuracyand
transparency.

Butthereisaneedtostrengthenthisdepositorysystembyspreadingawareness
abouttheservicesofferedbyNSDL,CSDLanditstradingcompaniesthrough
advertisementandbyexpandingthemorebranchesofthissystemalloverthe
countryandalsobytappingthepotentialcustomersthroughinnovativemeans.

17