The depository service facility offered by GIO Sanmar Financial, a unit of Sanmar Securities Trading Limited (SSTL), was formally inaugurated by K S Narayanan, Chairman Emeritus, Sanmar group on May 12, 1999. SSTL will offer depository services through National Securities Depository Limited (NSDL) to render value added services to its broking clients. The company has obtained the necessary certificate from the market regulator, Securities Exchange Board of India (SEBI) to carry on these operations.
The introduction of scripless trading and depository operations constitutes a major landmark in the history of the Indian stock market. Investors will no longer have to worry about bad deliveries, loss and mutilation of share certificates, delay in transfer and other problems associated with handling of physical securities. SSTL, as a corporate broker, with memberships in the National Stock Exchange, Madras Stock Exchange and OTC Exchange of India, have been extending broking services of a high standard to their clients.Always anxious to provide improved service to clients, SSTL have availed themselves of the opportunity to become a Depository Participant (DP), to extend to their clients, both broking and depository services of high quality under one roof.
K S Narayanan, Chairman Emeritus, Sanmar group lighting the Kuthuvilakku at the launch of the GIO Sanmar Depository service facility. Seen to his right are: N Kumar, Vice Chairman, Sanmar group, S B Prabhakar Rao, President, Corporate-Affairs, Chemplast Sanmar Limited, K P Dilip, General Manager, Sanmar Securities Trading Limited, B Chakrapani, Executive Director, Sanmar Shipping Limited and V K Parthasarathy.
Under the depository system, securities in physical form are substituted by securities in electronic form and the investor has electronic ownership of securities. Under the depository system, securities in physical form are substituted by securities in electronic form and the investor has electronic
ownership of securities. In India, the first depository was set up by NSDL, jointly promoted by IDBI, UTI and the National Stock Exchange in accordance with the rules and regulations framed by SEBI. SSTL, as a DP, serves as a representative of NSDL in the depository system.
It makes available various facilities to the investor including dematerialisation, rematerialisation, delivery/receipt of demat scrips etc. Dematerialisation is the process by which physical certificates of an investor are converted to an equivalent number of securities in electronic form and credited to the investor’s account. Rematerialisation refers to converting the investor’s securities in electronic form back into physical form.
The tie-up, between GIO Australia, a leading financial services group based in Sydney and the Sanmar group, aims at providing a wide range of financial services including asset management, risk management, stock and debt broking, equity trading and insurance. Discerning investors will definitely find the depository service facility from GIO Sanmar a safer and user friendly system.