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How is a depository similar to a bank?

A Depositoryhey check out can be compared with a bank, which holds the funds for
depositors.hey check outhey check outhey check outhey check outhey check outhey check outhey check outhey check outhey check outhey check outhey check outhey check outhey check outhey check outhey check outhey check outhey check outhey check outhey check outhey check outThere are two depositories in India which provide dematerialization of
securities. The National Securities Depository Limited (NSDL) and Central
Securities Depository Limited (CSDL).

What is meant by ‘Listing of Securities’?

Listing means admission of securities of an issuer to trading privileges
(dealings) on a stock exchange through a formal agreement. The prime
objective of admission to dealings on the exchange is to provide liquidity
and marketability to securities, as also to provide a mechanism for effective
control and supervision of trading.

What is an ‘Abridged Prospectus’?

‘Abridged Prospectus’ is a shorter version of the Prospectus and contains all
the salient features of a Prospectus. It accompanies the application form of
public issues.

What does one mean by ‘Lock-in’?

‘Lock-in’ indicates a freeze on the sale of shares for a certain period of time.
SEBI guidelines have stipulated lock-in requirements on shares of promoters
mainly to ensure that the promoters or main persons, who are controlling
the company, shall continue to hold some minimum percentage in the
company after the public issue.

What does ‘Draft Offer document’ mean?

‘Offer document’ means Prospectus in case of a public issue or offer for sale
and Letter of Offer in case of a rights issue which is filed with the Registrar
of Companies (ROC) and Stock Exchanges (SEs). An offer document covers
all the relevant information to help an investor to make his/her investment
decision.
‘Draft Offer document’ means the offer document in draft stage. The draft
offer documents are filed with SEBI, atleast 21 days prior to the filing of the
Offer Document with ROC/SEs. SEBI may specify changes, if any, in the
draft Offer Document and the issuer or the lead merchant banker shall carry
out such changes in the draft offer document before filing the Offer
Document with ROC/SEs. The Draft Offer Document is available on the SEBI
website for public comments for a period of 21 days from the filing of the
Draft Offer Document with SEBI.

What is the role of the Secondary Market?

For the general investor, the secondary market provides an efficient
platform for trading of his securities. For the management of the company,
Secondary equity markets serve as a monitoring and control conduit—by
facilitating value-enhancing control activities, enabling implementation of
incentive-based management contracts, and aggregating information (via
price discovery) that guides management decisions.