Business Principles, Tools, and Techniques in Participating in Various Types...
IFCI & depository
1. MBA – 3 SEM.
Submitted by:-
Bhawna Maheshwari
Megha Jain
2. IFCI Ltd. was set up in 1948 as Industrial Finance
Corporation of India, a Statutory Corporation to provide
medium and long term finance to industry.
After repeal of IFCI Act in 1993, IFCI became a Public
Limited Company registered under the Companies Act,
1956.
3. IFCI is now a Government controlled company
subsequent to enhancement of equity shareholding
to 55.53% by Government of India on December
21, 2012.
The primary business of IFCI is to provide medium
to long term financial assistance to the
manufacturing, services and infrastructure sectors.
4. Through its subsidiaries and associate organisations,
IFCI has diversified into a range of other businesses
including broking, venture capital, financial advisory,
depository services etc.
IFCI was one of the promoters of National Stock
Exchange (NSE), Stock Holding Corporation of India Ltd
(SHCIL), Technical Consultancy Organizations (TCOs) .
5. In order to promote entrepreneurship among the
scheduled castes and to provide concessional
finance to them, IFCI has been entrusted with the
setting up of a Venture Capital Fund for Scheduled
Castes in the Interim Budget for FY 2014-15.
The Fund would have an initial capital of Rs. 200
crore, which can be supplemented every year.
6. For setting up a new industrial undertaking.
For expansion and diversification of existing industrial
undertaking.
For renovation and modernization of existing concerns.
For meeting the working capital requirements of industrial
concerns in some exceptional cases.
Subscription and underwriting of public issues of shares and
debentures.
7. A system in which securities of an investor
are held by depository on behalf, and at the
request, of an investor in an Electronic Form.
This system is also know as Scrip Less
Trading system.
8. In the depository system, securities are held in depository
accounts, which is more or less similar to holding funds in bank
accounts.
Transfer of ownership of securities is done through simple
account transfers.
This method does away with all the risks and hassles normally
associated with paperwork.
Consequently, the cost of transacting in a depository environment
is considerably lower as compared to transacting in certificates.
9. There are basically four participant:
The Depository
The Depository Participant
The Issuing Company
The Investor
10. Elimination of bad deliveries
Elimination of all risks associated with physical certificate
Immediate transfer and registration of securities
Reduction in brokerage by many brokers for trading in
dematerialised securities.
11. NSDL
Stands for National Securities Depository Ltd.
First and largest depository in India, , established in August 1996.
Promoters are IDBI, UTI, NSE.
CDSL
Stands for Central Depository Services Ltd.
Second Indian central security depository.
Promoters are BSE, SBI, Bank of India, Bank of Baroda, HDFC Bank,
Standard Chartered Bank, Union Bank of India
12. Dematerialization:-Dematerialization is the process by which a client can get
physical certificates converted into electronic balances.
Rematerialization:-Rematerialisation is the process by which a client can get his
electronic holdings converted into physical certificates.
Inter-Depository Transfers:-Transfer of securities from an account in one
depository to an account in another depository is termed as an inter-depository
transfer.
