Highlight the depository system of trading in shares.
Depository Services:
The depository services originated recently in the Indian Stock Market. Now-a-days on-line (scripless or paperless) trading in the shares of any company is compulsory. To make it a success some new trading mechanism is needed. Depository service is the name of that mechanism which makes possible the on-line trading in shares. Through this system transfer of ownership in shares take place by means of book entry without the physical delivery of shares. When a person wants to deal in shares of any company he/she has to open an account with the depository through a depository participant. Hence, there are four players who participate in this system. These are the following:
(i) The Depository
(ii) The Depository Participant
(iii) The Investor
(iv) The Issuing Company
