However, the transferee will be entitled to other benefits in the form of bonus, rights and dividend attached to the security. If an investor opts to exit from a depository, the issue of share certificates attracts stamp duty.
This would mean that on payment of agreed consideration, the buyer is automatically entitled to all the rights on securities.
It monitors substantial acquisitions of shares and take-over of companies.
Investors: For investors it provides protection and supplies accurate and correct information on a regular basis. It is a person with knowledge and experience in the securities marketlaw, finance, administration etc. But determined price and premium amount will be equally applicable to all without any discrimination.
Depository participants A depository participant could be a public financial institution as defined in Section 4A of the Companies Act,Scheduled banks, RBI approved foreign banks operating in India, State Financial Corporations established under Section 3 of the State Financial Corporation Act, institutions engaged in providing financial services, promoted by any of the institutions mentioned above, either jointly or severally, custodians of securities who are registered with SEBI, NBFCs having a net worth of Rs.
To check insider trading of securities. All share certificates are interchangeable like withdrawing money from a bank which we do without comparing the printed number on the currency notes against the number of currency notes deposited earlier.
Liquid and overnight schemes are no longer allowed to invest in short-term deposits, debt, and money market instruments that have structured obligations or credit enhancements. Investor Investors are the ones who keep the markets active.
Mutual funds schemes must invest only in the listed non-convertible debentures NCD. To regulate the business of stock exchanges and other securities market.
Quasi-Legislative: SEBI reserves the right to frame rules and regulations to protect the interests of the investors.