Exchange · Part 2

12th Commerce Unit - - . . PM arose out of systematic risk like counter party risk, credit risk, bad deliveries, long delayed delivery, counterfeit scrips, and forged scrips. . Securities Trading Corporation of India (STCI) The Reserve Bank of India set up Securities Trading Corporation of India Limited (STCI) in May , under the provisions of the Indian Companies Act, , jointly with public sector banks and All-India financial institutions. The main objective of establishing the Corporation was to foster the development of an active secondary market for Government securities and bonds issued by public sector undertakings. It had an authorized and paid-up capital of Rs. crores of which, RBI contributed . percent. The RBI in December divested part of its equity in STCI in favor of the Bank of India, an existing shareholder of the Company. . National Securities Depository Limited (NSDL) The Government of India enacted the Depositories Act in August , paving the way for setting up o f depositories in India. Thus, pioneering the concept of depositories and ushering in an era of paperless settlement of securities. National Securities Depository Ltd (NSDL) was inaugurated as the first depository in India on November , . Trading in dematerialized securities on the National Stock Exchange (NSE) commenced in December , . The Bombay Stock Exchange, (BSE) also extended the facility of trading in dematerialized securities from December , .