Date:25/11/2006 URL: http://www.thehindubusinessline.com/2006/11/25/stories/2006112502032100.htm

Back `Demat accounts help in smooth functioning of market'

Our Bureau

MR G.S. SUBRHMONYA, Area Manager, Stock Holding Corporation of India Ltd, delivering a lecture on `Dematerialisation and capital markets' at Sullia on Friday.

Sullia (Dakshina Kannada Dist.) Nov. 24

The transformation of capital market from the days of physical accounts to demat accounts, and the role of demat accounts in the smooth functioning of stock markets were highlighted at the Business Line Club lecture at KVG College of Engineering at Sullia in Dakshina Kannada district on Friday.

Delivering a lecture on `Dematerialisation and capital markets', Mr G.S. Subrhmonya, Area Manager of Stock Holding Corporation of India Ltd (SHCIL), Mangalore, said that physical accounts involved lot of procedures such as making entry of the buyer at the back of the share certificate every time when one bought it. A lot of time was spent in share transaction. However, the advent of demat accounts has helped the market save time, paving the smooth functioning of the market.

Highlighting the role of depository participants (DP) in the capital market, he said SHCIL and most of the banks have taken up this activity. Some of the brokers have also added DP concept.

Quoting his experiences in the stock market, he said more and more students are evincing interest in investing in stock markets.

Stating that capital market is a good source of income for every one if it is done in a right way, he said securities are considered challenging and rewarding.

But investments in securities require skill and exposure and carry the risk of loss, he added.

Lauding Business Line, Mr Subrhmonya said the newspaper is extensively covering the market.

Prof S.G. Gopalakrishna, Principal of KVG College of Engineering, said that it is time for the rural India to invest in the capital market.

Dr Jyothi Renuka Prasad, Director of Academy of Liberal Education, Sullia, and Dr Vishnu Prasanna K.N., Director (MBA Programme), KVG College of Engineering, were present on the occasion.

Mr T. Ravi, Senior Regional Manager of The Hindu, Mangalore, gave an introduction on BL Club activities on the occasion.