ifci & depository

14
MBA 3 SEM. Submitted by:- Bhawna Maheshwari Megha Jain

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Page 1: IFCI & depository

MBA – 3 SEM.

Submitted by:-

Bhawna Maheshwari

Megha Jain

Page 2: IFCI & depository

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.

Page 3: IFCI & depository

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.

Page 4: IFCI & depository

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) .

Page 5: IFCI & depository

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.

Page 6: IFCI & depository

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.

Page 7: IFCI & depository

A system in which securities of an investorare held by depository on behalf, and at therequest, of an investor in an Electronic Form.

This system is also know as Scrip LessTrading system.

Page 8: IFCI & depository

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.

Page 9: IFCI & depository

There are basically four participant:

The Depository

The Depository Participant

The Issuing Company

The Investor

Page 10: IFCI & depository

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.

Page 11: IFCI & depository

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

Page 12: IFCI & depository

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.

Page 13: IFCI & depository

NSDL DPs

The Company INVESTOR

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Page 14: IFCI & depository