Depository & depository participants, stock market crashes in india

There are two depository in india

•National securities depository limited (NSDL)

•Central depository services india limited (CDSL)

The main work of depository is to convert the physical share into dematarlise share.

For securities to be eligible to trade in the secondary market it should be held in electronic or dematrilised form.

National securties depository limited (nsdl)

It is an indian central securities depository based in mumbai established in august 1996 as the first electronic securities depository in india with national coverage.

The CEO of NSDL is G.V NAGESWARA RAO

The main shareholders of NSDL are:-

Axis bank ltd

Citibank

Deutsche bank

HSBC

Sbi

Hdfc bank

Standard chartered bank

Dena bank

Canara bank

Oriental bank of commerce

Benefits of nsdl

•No bad deliveries

•Elimination of risk related to physical certificates

•Stamp duty

•Immediate transfer

•Faster settlement and liquidity

•Reduction of brokerage

•Status reports

   Central depository services (india)ltd

•It is the first listed indian securities depository based in mumbai

•Share price around (260)

•Its fuction is also same like NSDL

•Neha vora Is the managing director and CEO

•Cdsl is having a market cap Rs 2786.49

Holding of nsdl

CATEGORIES	NO OF SHARES	% OF HOLDING
NO OF SHARES	104500000	100
PROMOTERS	20900000	20
FOREIGN INSTITUTIONS	1855502	1.78
NBFC AND  MUTUAL FUNDS	13445525	12.87
OTHERS	9015683	8.63
GENRAL PUBLIC	28912372	27.67
FINANCIAL INSTITUTIONS	30370918	2.06

Stock market crashes in india

A stock market crash is a sudden dramatic decline of stock prices across a major cross-section of a stock market, resulting in a significant loss of paper wealth. Crashes are driven by panic selling as much as by underlying economic factors. They often follow speculation and economic bubbles.

10 biggest stock market crashes in india

crash date	event	point lost	%lost
23-Mar-20	covid -19	3943.72	13.15%
16-Mar-20	covid -19	2713.41	7.96%
12-Mar-20	covid -19	2919.26	8.18%
09-Nov-16	Demonetization	1689	5.90%
24-Aug-15		1624	5.93%
24-Oct-08	us financial crisis	1070	10.95%
17-Mar-08	us financial crisis	951	6.03%
21-Jan-08	us financial crisis	1408	7.40%
18-May-06		826	6.76%
28-Apr-92	harshad mehta scam	570	12.77%

The crash of 2008

Harshad mehta scam

•Harshad Mehta was known as “The Sunny Deol of the Indian Stock Market”, “ The Big Bull”, and eventually was the eponym to his scam. Harshad Mehta was a broker known for his lush luxurious lifestyle. He took advantage of the regulations which barred banks from investing in the stock markets in the 1980s and 1990s. 

Crash of 1865

•India experienced its first stock market crash in 1865 Although the Bombay stock exchange had not yet been formed, Gujrati and Parsi traders often traded shares mutually at the junction of Rampart row and Meadows street

•Shares of the Back bay reclamation (face value Rs. 5,000) touched Rs. 50,000 and those of Bank of Bombay (face value Rs.500) touched Rs. 2,850. Money made from cotton was pumped into the stock market driving prices of stocks higher. Banks loaned money to speculators further fuelling the bull run and wealthy merchants like Premchand Roychand dispensed advice that led to ordinary people placing their bets on shares.

•the market crashed in May 1865 when the civil war ended, causing cotton prices to fall. Shares of the Backbay reclamation fell by 96% to under Rs. 2,000 and a number of merchants including Behramji Hormuzjee Cama went bankrupt.

•On 1 July 1865, when hundreds of "time bargains" had matured (as the future contracts were then known), buyers and sellers alike defaulted leading to the burst of the bubble. A share of Bank of Bombay which had touched Rs 2,850 at the peak of the market slumped to just Rs 87 in the aftermath of the bust.