Only a fortnight after start of operations, deals contracted on National Stock Depositories Ltd (NSDL) are commanding a 2-5 per cent premium.
This indicates that investors are ready to bear the additional cost of clearances through a depository to ensure clean and immediate transactions, which are the inherent advantages of paperless trading.
However, it is too early to draw conclusions as trading on NSDL is still sporadic.
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Besides, the size and volumes of transactions on NSDL are too small for significant comparisons as against the multi-crore turnovers seen under paper-based trading.
However, government officials consider this the beginning of a trend where depositories-based transactions will get a higher premium than those in the paper-based market.
This development may also clear the way for the start of an independent depositories price quote
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