Get premium membership and access questions with answers, video lessons as well as revision papers.

Give the functions of Central Depository system.

      

Give the functions of Central Depository system.

  

Answers


Kavungya
1. Immobilisation of securities ie elimination of physical movement of securities.
2. Dematerialisation i.e elimination of physical certificates or documents showing entitlement to a security so that ownership exists only as computer records.
3. Effective Delivery Vs. payment (DVP) ie simultaneous delivery and payment between the 2 parties exchanging or transferring securities. This can be done without delay if CDS is linked to the central payment clearing system e.g CBK.
4. Provision of detailed listings of investors according to the type of securities they hold e.g ordinary shares, preference shares.
5. Effective Distribution of Dividends, interests, rights issues and bonus issues.
6. Provision of book entry account ie electronic exchange of ownership of securities and payment of cash.
Kavungya answered the question on March 12, 2019 at 05:58


Next: Explain the life cycle of pork tapeworm
Previous: Explain the Parties Involved In Central Depository System.

View More Business Finance Questions and Answers | Return to Questions Index


Learn High School English on YouTube

Related Questions