Speed-e from NSDL

SPEED-E is an Internet-based service planned to be provided by NSDL.

Any client keen on availing this service can do so, if his/her/its DP subscribes to SPEED-E. The client is required to submit a paper application to the DP. DP will register the client after ascertaining the client's identity. Investors will have two choices. As a low-end user, the client will have a password and securities can be transferred from its account to only predetermined clearing member accounts up to a maximum of three.

As a high-end user, the client would have to use a smart card. The client can then give delivery instructions to the DP on the Internet. Hence, paper instructions need not be given. The client's DP will collect the instruction from the Internet and would execute the same in its depository system. The DP would also update the status of the instructions on the Internet, which can be viewed by the client.

Companies: As on September 30, 2000, some 1,758 companies have signed agreements with NSDL. Of these, demat facilities are available for securities of 1,637 companies.

Depository participants: As on September 30, 2000, 151 depository participants are offering depository services.

Investors: More than three million investor accounts have been opened from across the country and abroad. More than 3,517 clearing member accounts have been opened to facilitate trading and settlement of demat shares in stock exchange connected to NSDL.

Settlement: In September 2000, a total quantity of more than 670 million shares worth Rs 2,15,700 crore were settled in the demat form in the stock exchange connected to NSDL. As on September 30, 2000 more than 22,620 million shares with a value of Rs 3,56,100 crore were dematerialised.

G-sec in Demat: Two primary dealers -- PNB Gilts Ltd and IDBI Capital Market Services Ltd -- have taken a lead in retailing of Government securities in demat form. Investors can buy government securities even in small value of Rs 25,000 in demat form.

The `dongle' device: NSDL enhances the security of messages transmitted between NSDL and Business Partners using `dongle'. Dongle is a hardware-based encryption device which enhances the security of messages transmitted between NSDL and Business partners. This device is specific to the business partner and is not interchangeable. After installation of the dongle, message transmission security has been strengthened further.

NSDL plans to launch a software to enable DP branches to be connected online to the main office. SDL will soon launch its software facility to enable the branch of a depository participant to make enquiries from the main system of the depository participant. The depository participant can use its own network for this purpose.