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.
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
