VeDAS is a comprehensive system for the complete installation and commissioning of a depository in an automated environment. At the core of the system is a rich and highly parameterised software designed for a centralised banking application.

The system has enhanced security features that prevent user access to the server and the database. It forces policy-based password protection at regular intervals, has different user-level access rights for the depository staff and conducts regular audit trails and account monitoring.

The system can handle dematerialisation and rematerialisation of shares, and monitor the status of these activities. It has enhanced features to manage corporate actions (both cash and non-cash benefits) and initial public offers (IPOs). The system offers on- and off-market settlement of trades and ensures delivery versus payment (DvP). VeDAS has a provision for generating a number of operational, statistical and statutory reports according to users' requirements.

The system is built on a three-tier architecture with the top-end as the middle layer for transaction monitoring. The top-end ensures efficient and reliable management of communication within the system. The system is modular and scalable, and is built on a Unix system with Oracle as the RDBMS.

At CDSL, the system handles over one million beneficiary owner (BO) accounts and over ten million BO-ISIN records.

The product handles:

Account management

	Account opening
	Account closing
	Account freezing and suspension

Dematerialisation of existing scrips
Voluntary dematerialisation allows investors to dematerialise all or part of their holdings. Issuers of new securities can allot part or all of their issues in a dematerialised form.

Rematerialisation
Investors can receive share certificates after rematerialising their holdings with the depository.

Settlement / off-market trades
Trades that are concluded at the stock exchanges are sent to the central depository system (CDS) for settlement. Off-market trades (transfers) are processed directly through the CDS.

Securities lending and borrowing
Securities lending can be brought into play to avoid a failed trade owing to a lack of availability of securities for the seller. The CDS provides for book-entry movement of securities as agreed under a stock lending agreement.

Pledging and un-pledging
The CDS allows pledging, hypothecation and collateralisation of securities. The pledging function allows the investor to use the securities as collateral to borrow funds. Collateral in the form of liquid assets may be used to assure that the cash constituent of the delivery versus payment (DvP) can conclude.

Corporate actions
VeDAS allows the processing of capital increases through rights issues or capital reorganisation through splits, mergers, acquisitions or conversions.

Transmission
Legal and / or beneficial title of securities can be transferred in case of death or inheritance.

Billing
The system allows the billing of the users, according to the resources they utilise.

Enquiries and reporting
Participants can make on-line enquiries, download and upload data, and print reports. This function provides information on securities, participants, beneficial owners and corporate actions.

The VeDAS application software is on a UNIX platform with Oracle as the RDBMS. The front end is GUI-based, with Windows NT as the operating system. The programming language is Visual Basic.

Technical architecture, hardware and software platforms

Hardware installed	Server: HP
Operating system	Server: HP - Unix
RDBMS used	Server: Oracle

Strengths

	Versatile in functionality
	Highly parameterised
	User-friendly
	Robust and secure

Indicative client list

	Central Depository Services of India (CDSL), Mumbai
	Central Depositories, Dhaka, Bangladesh

Case study
CDSL, Mumbai

Contact
Head - BFS
CMC House
C-18, Bandra-Kurla Complex
Bandra (East)
Mumbai - 400 051
Tel: 022-26591000-2
Fax: 022-26591046
Email : bfs@cmcltd.com