- SEBI to be compulsorily traded in electronic form with effect from 4thJanuary, 1999.
Need for Depository System
The trading in physical segment is full of inefficiencies due tohandling of large volumes of certificates and also involves various other problems like delays in transfer, delay in settlement, loss in transit,forgerly certificates, stolen certificates, mutilation of certificates, postallosses, court cases, litigation etc. To overcome these deficiencies, a newsystem of trading, viz. Depository system was introduced, whichfacilitates investor to hold securities in electronic form and to trade inthese securities. The first depository set up in India is NationalSecurities Depository Limited (NSDL) and is promoted by IDBI, UTIand NSE.