Financial Daily from THE HINDU group of publications
Wednesday, Feb 11, 2004
Financial Daily from THE HINDU group of publications Wednesday, Feb 11, 2004 |
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Markets
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Financial Services Transfer-cum-demat scheme withdrawn Our Bureau
Mumbai Feb. 10 NATIONAL Securities Depository Ltd (NSDL) has decided to withdraw the transfer-cum-demat scheme. The scheme was introduced by the depositories to counter the problems faced by the investors in the transition phase of moving from physical to demat trading mode, to decrease the time period involved in transfer and demat. However, as on date, a large number of stocks have already been dematerialised - almost 100 per cent trading takes place in dematerialised form - and hence, there is less pressure on the companies and share transfer agents, according to the notice from NSDL. The Securities and Exchanges Board of India had introduced compulsory dematerialised trading in select shares for all investors with effect from January 1999. Thereafter, an increasing number of shares were added to this list at regular intervals. During this phase, the companies and transfer agents were under tremendous pressure on account of the large number of physical shares being received by them for transfer and demat. Moreover, transfer and demat were two separate processes and the investors were required to submit the transferred shares to the share transfer agent, for dematerialisation.
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