Travel Report

India, a Nation of

24 Stock Exchanges


This time, cross training among members of the Asia Pacific Central Depository Group (ACG) was held in Mumbai, India. Observe the travel tale.



As in past years, the Central Depositories of several Asia Pacific member nations of Asia Pacific Depository Group (ACG) held a cross training. This year, the cross training was attended by 11 countries and was performed in Mumbai, India, from June 3rd to 5th 2002

 The theme of this event was “Risk Management”. The following is the travel report of two delegations sent by KSEI.

 The Capital Market of India is a large market complemented by its more than 3 million investors spread throughout the nation. At present, India is the home of 24 Stock Exchanges, National Stock Exchange (NSE) and Bombay Stock Exchange being the two of its most prominent.

India also has two clearing houses, two central depositories, which are National Securities Depository Ltd. (NSDL) and Central Depository Services (India) Limited, hundreds of brokers, and more than four thousand issuers (registered companies).

India has at least three million investors when seen from the number of sub accounts opened until 2002. This number of sub accounts dwarfs that of KSEI by a long shot, which is only 50 thousand sub accounts. The awareness of India’s participants to open sub accounts for its investor clients is remarkable.

At present, transaction settlement time in India is T+3. The same goes for most other nation members. Only Indonesia has one


of T+6. However, Indonesia will soon implement T+3 settlement, as of September 9th 2002.

Two of India’s Depository Institutions, which are National Securities Depository Ltd. and Central Depository Cervices Ltd., until this moment are only capable of Securities settlement. For the settlement of funds, a clearing body by the name of National Securities Central Clearing Limited (NSCCL) was formed.

Given this difference of Securities and fund settlement location, India has up until now not been able to implement True Delivery versus Payment (True DVP); while KSEI has already been applying True DVP owing to C-BEST’s