Fossils in Kenya Essay Example for Free

Fossils in Kenya Essay Kenya lies in a strategic place in Africa. Its capital city is Nairobi with a current total population of 39. 11 million it has an area of 224,960 square miles. Two main discoveries in Kenya have made a great contribution to the evolution tree. These discoveries were made in the year 2000 by an association of international scientists, most of who were from France in collaboration with scientists associated with the National Museums of Kenya (NMK), working under an umbrella project known as the Koobi Fora Research Project lead by Louse Leakey who was at the time of the discoveries affiliated to the National Museums of Kenya and their findings were published in the science journal Nature. These studies preceded the earlier controversial findings by Kenyan researcher Richard Leakey on the exact age hominids found on Koobi Fora Area that lies east of Lake Turkana. The first specimen to be found was unearthed from the grounds of Kapsomon in Tugen hills that are found in the Kenyan district of Baringo in October 25, 2000. The main parts of the human that were excavated included jaws that contained teeth, upper and lower teeth that were also isolated from each other, and both the arm and finger bones. Initial studies on the finger bones seemed to lead to the suggestion that the hominid discovered were trees climbers while similar studies on the leg bones established them to be two legged creatures that walked on the ground. Similar initial studies on teeth showed that the canines were shorter than the apes however; they were longer if compared to the current human canine. This probably indicated that they lived on wild fruits particularly hard-skinned fruits. The leg bones on initial observation seemed to have chewed probably by a large carnivore that used to feed on the individuals who existed then. The researchers thought the carnivore might have been a cat for the simple reasoning that the cat feeds on its catch while on a tree and it’s during this process that the remains fell on the water below. Their research findings were published in 9th august 2007. The studies were done on samples that were found in Turkana which is in the Northern dry Kenya. Scientists who were studying the evolution history in Kenya reported on their findings disputing on early findings that Homo habilis and Homo erectus evolved one after the other being in a straight line to Homo sapiens. In stead their analysis based on two specimens, one being a Homo habilis dated 1. 44 million years, this being the youngest species ever found by scientists who were studying the evolution of human, and a homo erectus dated 1. 55 million years ago, lived concurrently alongside each other for an estimated period of five hundred thousand years. This disqualifies the thought that Homo habilis evolved from home erectus consequently rearranging the initial straight line to Homo sapiens. This indicated that there was an overlap between the Homo habilis and Homo erectus ages and further, it indicated that the fact they the two species managed to live concurrently on the same lake basin then it is right to suggest that they probably had different ecological niches as a result avoiding direct competition that would have led to elimination of one of the species. Stringer Chris one of the scientists involved in the study, who was then studying at the Natural History Museum in London in the field of human origins suggest the possible life styles. In his view the larger and more mobile erectus was possibly a more active hunter while the less active and smaller Homo habilis was a scavenger. This study took several years to prepare the specimen so as to be exactly sure of the identification of the specimen. It took around seven years for the group of scientists lead by Leakey to analyze and announce the results. This interpreted to the view that almost two to three million years ago both Homo habilis and Homo erectus must have originated from a common ancestor. This common ancestor is thought to have lived the age dating almost two to three million years ago, a time that there is no much fossil information. This discovery further indicates that the early general understanding that man evolved from a more ape like being to a more human like being is still poorly researched. However, the discovery does not contrast much from the early thought that homo habilis is the direct ancestor of Homo sapiens. The Homo erectus fossil discovered at Lake Turkana, dated 1. 55 million years ago, was a surprise discovery, according to Dr. Spoor a professor of professor at the University College London concerned with evolutionary anatomy; the skull had a striking feature as compared to early discoveries: it was the smallest. This small size was relatively close in size to Homo habilis than the previously discovered Homo erectus species. This new finding made scientists to consider re-examining early skulls they had already collected from various parts and dozes of partial fossils which together totaled to thirty in number. However, its neck, jaw and teeth and the cranium with a distinctive feature had the characteristics that indicated it was a Homo erectus. In addition, the skull of the individual that was found in Kenya was probably an adult in its young ages or a â€Å"sub-adult† in its late ages the scientists estimated the age to be between 18 and 19. The early discoveries had indicated that the large skull of the Homo erectus was a clear indication that home erectus was the most recent in the ancestry of the human being the only difference being that human beings had a larger brain that the former ancestor: Homo erectus. However, the small skull changed this view suggesting that Homo erectus was less human like than earlier assumed. However, different reporters on the Lake Turkana tend to give different opinions on the small size of the skull of Homo habilis that was found. One such reporter is Susan Anton an anthropologist at the University of New York. In her report she postulates that the small skull is an indication of the varying in skull sizes of erectus specimen with more emphasis on the differences between the male and the female of the erectus species. This difference in the two is what she called sexual dimorphism. She further writes to illustrate that on average the human males are in general almost 15% larger than their female counterparts. This same characteristic applies to chimpanzees and gorillas as well. The theory of sexual dimorphism, lead to other anthropologists to come up with other views for example; Dr. Lieberman of the Harvard university suggested that the initial discoveries of homo erectus must have been male since they were large in size while the specimen that were found at Lake Turkana are likely to be females due to small size. Susan Anton attributes sexual dimorphism to either reproductive strategy or sexual selection. In an example in support of this view she documents that in the silverback the male are far much large than females and one male usually has several females. In contrast in male gibbons are almost similar in size to their female counterparts consequently they mate in pairs. In other words in the a primate family where the male and the female have the same size skull the male tends to be monogamous whereas a family that has different sizes the male tends to be polygamous. Conclusion The discovery of fossils in Kenya and the rest of Africa especially Ethiopia and the subsequent dating procedures have provided a wide array of time frame work which has given a new dimension in answering questions of the origin and evolution of hominids. With improvement in dating techniques it is now easier to estimate, without a lot of doubts, the ages of a given carbon containing specimen as compared to earlier estimates that were in most cases were debated hotly before a consensus would be agreed upon. The improvement in dating techniques can be attributed to the incorporation of 40Ar-39Ar dating technique. With the new discoveries the evolutionary tree seems to scientists to be chaotic rather than being heroic. This is because the old evolution theory where it was thought that origin of man started from homo habilis to home erectus and finally to modern man or homo sapiens seems to be proven wrong and in a more simple manner. The new discoveries have further brushed off the idea that human beings evolved from Neanderthals. It is important to note that as new discoveries are made the evolutionary tree will keep on changing. However, according to Kimbel this should be considered as a basis for getting more convincing evidence, getting questions answered more clearly and formulating more clearer theories. References Asfaw B. , Hart W. K. ,Beyene Y. , Renne P. , Gilbert W. H. , WoldeGabriel G. et al. (2002): Remains of Homo erectus from Bouri, Middle Awash, Ethiopia. Nature, 416:317-20. Balter M. and Gibbons A. (2002): Were Little People the first to venture out of Africa? Science, 297:20-8. Clark J. D. , WoldeGabriel G. , Renne P. , Beyene Y. , Hart W. , Gilbert H. et al. (2003): Stratigraphic and chronological contexts of Pleistocene Homo sapiens from Middle Awash, Ethiopia. Nature, 413:767-82. George M. , Wilson G. , Noble S. , (2004) Fossils Link Pre-human in the West Europe to Earlier Date. London Academic Press New York University (August 13, 2007,). New Kenyan Fossils Challenge Established Views On Early Evolution Of Our Genus Homo. New York Richard Leakey (2002) the origins of human kind: a search of what makes us human. London. Harper-Collins Publishers.

Black Holes :: essays research papers

Black Holes A black hole is the velocity necessary to take one away from one’s own gravitational force. For example, the escape velocity of earth is equal to 11 km/s. anything that wants to escape earth's gravitational force or pull must go at least 11 km/s, no matter what the thing is . The escape velocity of an object depends on how compact it is; that is, the ratio of its mass to radius. A black hole is an object so compact that, close to it, even the speed of light is not fast enough to escape. A common type of black hole is the type produced by some dying stars. A star with a mass greater than 20 times the mass of our Sun may produce a black hole at the end of its life. In the normal life of a star there is a constant tug of war between gravity pulling in and pressure pushing out. Nuclear reactions in the core of the star produce enough energy to push out. For most of a star's life, gravity and pressure balance each other exactly, and so the star is stable. However, when a star runs out of nuclear fuel, gravity gets the upper hand and the material in the core is compressed even further. The more massive the core of the star, the greater the force of gravity that compresses the material, collapsing it under its own weight. For small stars, when the nuclear fuel is exhausted and there are no more nuclear reactions to fight gravity, the repulsive forces among electrons within the star eventually create enough pressure to halt further gravitational collapse. The star then cool s and dies peacefully. This type of star is called the "white dwarf." When a very massive star exhausts its nuclear fuel it explodes as a supernova. The outer parts of the star are sent into space and the core falls under its own weight. To create a massive core a progenitor (ancestral) star would need to be at least 20 times more massive than our Sun. If the core is very massive (approximately 2.5 times more massive than the Sun), no known repulsive force inside a star can push back hard enough to prevent gravity from completely collapsing the core into a black hole. Then the core compacts into a mathematical point with zero volume, where it is has infinite density.

Nursing Leadership/Management Role in Budgets Essay

Budgeting refers to a detailed financial plan for carrying out the activities an organization wants to accomplish between a certain amount of time to ensure that quality and cost-effective services are provided to their patients (Stafford, 2007). Many nurse managers/leaders cringe at the word â€Å"budget† due to the lack of training and support for that position and in many cases they are left on their own to get up to speed on all the business aspects for their department within the organization (Clarke, 2006). With the various types of budgets healthcare organizations use to monitor their financial status, it is essential for the nurse manager/leader to take initiative to understand these budget types since they are the closest to the patients and know exactly what is needed to provide quality of care for their unit. Types of Budgets The operating budget is a financial plan for the day-to-day activities of the organization and departments over a one-year period (Stafford, 2007). The expected revenues and expenses generated from these daily operations, given a specified volume of patients, are stated here. Each nursing unit is considered a cost center within the organization, with its own specific budget for personnel and supplies. The personnel budget, being the largest part of the operating budget, consists of multiple factors such as the average daily census, patient acuity, personnel required relating to full-time equivalents (FTEs), as well as productive and non-productive hours. The supplies include medical and office supplies, minor equipment, orientation and training, and travel expenses. Although budgets are based on assumptions, using the previous year’s expenses for personnel and supplies, helps the nurse manager/leader to accurately predict the next year’s budget. Lastly, the revenue budget is the final component of the operating budget which projects the income the organization will receive for providing care. Although nurse managers/leaders may not be involved in developing the revenue budget, having knowledge about it is essential for great decision-making. Another type of budget is the capital expenditure budget, which reflects expenses related to the purchase of major capital items (Stafford, 2007). Capital items are those that have a useful life of more than one year and must exceed a cost level specified by the organization such as $1000. If the item is below this cost, it is considered a routine operating cost. Capital items have a depreciated value, meaning that each year a portion of its’ cost is allocated to the operating budget as an expense and therefore is subtracted from the revenue. Healthcare organizations usually set aside a fixed amount of money for capital expenditures each year for items such as safety requirements, building renovations, and large equipment purchases such as monitors or x-ray machines. Nurse managers/leaders may not have authorization to purchase capital items within their budget but it is their responsibility to notify upper management within the organization the need for specific capital items and the reasoning behind it. Lastly, the cash budget, is the operating plan for monthly cash receipts and dispursements (Stafford, 2007). Organizational survival depends on paying bills on time to keep good standings amongst vendors. Although the nurse manager/leader may not be fully involved in preparing cash budgets either, it is helpful to know and nderstand when constraints on spending are necessary. Leadership/Management Role Nurse managers/leaders are challenged daily to be as cost-effective as possible and to do this, preparation is the key (Foley, 2005). The operating budget is the budget most nurse managers/leaders are responsible for and spend most of their time in managing their personnel and supplies (Stafford, 2007). Gathering information and planning for the average daily census, FTEs, patient acuity, etc†¦ is essential for developing their budgets and understanding the variances, the difference between the projected and the actual budget. Although a nurse manager/leader cannot control all variances, some can be controlled which is where the nurse manager/leader must step in to prevent these variances in the future. Another important role the nurse manager/leader plays is in collaborating with the nursing staff the budget for the unit as well as involving staff with budget monitoring activities to help foster the relationship between cost and the mission to deliver quality patient care for the organization (Stafford, 2007). Appropriate communication is the key, according to Brennan et al. (2008) to understand the financial aspect of the organization. Looking beyond numbers cannot be accomplished while sitting in the office and looking at spreadsheets. Regular, frequent, and focused conversations between staff and nursing executives are important for nurse managers to collaborate with to fully understand the budget (Clarke, 2006). If nurse managers/leaders do not learn to defend and negotiate their budgets, the finance departments within the organization will continue to drive the budget process and the quality of care for patients may be effected since they do not have the insight of the unit and patient’s needs as nurse managers/leaders do. Conclusion Nurse managers/leaders tackle countless responsibilities on a daily basis. Mastering the budget for their unit and for the organization is still one responsibility that needs work. Taking initiative and collaborating with all key personnel the budget plan for the unit is essentialfor nurse managers/leaders in creating an understanding amongst the unit as it relates to cost and patient care. Preparation continues to be the most important aspect of a successful budget process and involves nurse managers/leaders in collecting the appropriate data as well as monitoring, evaluating, and communicating any variances (Foley, 2005). Organizations are more effective and efficient at providing services when budgets are thoughtfully prepared and adhered to throughout the budget period.

Depository Systems In Indian Banking Finance Essay - Free Essay Example

Sample details Pages: 9 Words: 2670 Downloads: 5 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? As per section 2(e) of the Depositories Act, 1996, a depository means a company formed and registered under the Companies Act, 1956 and which has been granted a Certificate of Registration under sub-section (1A) of section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992). In simple words, a Depository is an organization which is similar to a bank. It holds the securities of investors in an electronic book entry form at their request and provides services related to transactions in securities with speed, accuracy and safety. It interacts with its clients through a `Depository Participant with whom the client is required to open a Demat Account. Don’t waste time! Our writers will create an original "Depository Systems In Indian Banking Finance Essay" essay for you Create order A depository participant is defined in section 2(g) of the Depositories Act, 1996 as participant means a person registered as such under sub-section (1A) of section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992). An application for the grant of certificate of registration as Depository Participant is made to the Board Form E along with application fee as specified in Part A of the second schedule of the Depository Participant Regulations. Public financialÂÂ  institutions, scheduled commercial banks,ÂÂ  foreign banks operating in India with the approval of the Reserve Bank of India, state financial corporations,ÂÂ  custodians, stock-brokers, clearing corporations /clearing houses, NBFCs and Registrar to an Issue or Share Transfer Agent complying with the requirements prescribed by SEBI can be registered as Depository Participants. Evolution of Depository System in India The growth in the Indian capital market both in number of transactions and the value of trade and resultant settlement of securities exposed the limitation of handling securities in the paper mode. Physical (paper) mode of holding securities was not only cumbersome and inefficient but also held numerous risks for the participant and led to dissatisfaction of issuers and investors alike. Due to limitations and problems associated it necessitated the setting up of depositories to move away from paper based holding of securities. Thus, Depository system was established to eliminate the inconvenience and confusion caused by the paper based trading and a scripless trading system came to be recognized. The enactment of Depositories Act in August 1996 paved the way for introduction of Depository system in India. Following the notification of the SEBI (Depositories and Participants) Regulations, 1996, National Securities Depository Ltd (NSDL), a company sponsored by the NSE, IDBI and UTI was granted a certificate of registration as a depository on June 7,1996. Some of the other shareholders are State Bank of India, HDFC Bank Limited, Deutsche Bank A.G., Axis Bank Limited, Citibank N.A.Standard Chartered Bank, The Hongkong and Shanghai Banking Corporation Limited, Oriental Bank of Commerce etc. The higher shareholding (of at least 51%) by sponsors, including stock exchanges in depositories was permitted in the initial stages for facilitating the setting up of depositories. Central Depository Services (India) Ltd (CDSL), the second depository, was promoted by Bombay Stock Exchange Limited (BSE) in association with Bank of India, Bank of Baroda, State Bank of India and HDFC Bank. BSE has been involved with this venture right from the inception and has contributed overwhelmingly to the fruition of the project. The initial capital of the company is Rs.104.50 crores. The list of major shareholders with effect from 5th July, 2010 is: Name of shareholders Value of holding (in Rupees Lacs) % Terms to total equity Bombay Stock Exchange Limited 5,663.46 54.20 Bank of India 582.00 5.57 Bank of Baroda 530.00 5.07 State Bank of India 1,000.00 9.57 HDFC Bank Limited 750.00 7.18 Standard Chartered Bank 750.00 7.18 Canara Bank 674.46 6.45 Inter-depository transfer through on-line connectivity between CDSL and NSDL was established in 1999. Benefits of the Depository System The main objective of the depository system is to maintain and safeguard the ownership and transfer records of securities in an electronic form. Depository system eliminates the inconvenience and confusion caused by the paper based trading. It is a safe and convenient way of holding securities and reduces the risks associated with certificates. In a depository system, the investors have the advantages like efficient settlements, lower costs and lower risks of theft. It also facilitates immediate transfer of securities and no stamp duty is required on transfer of shares. Change in address recorded with Depository Participant gets registered with all companies in which investor holds securities electronically eliminating the need to correspond with each of them separately. Also there is automatic credit into demat account of shares, arising out of bonus/split/consolidation/merger etc.A natural guardian is not required to take court approval for selling Demat securities on behalf of a minor. Ease in portfolio monitoringÂÂ  since statement of account gives a consolidated position of investments in all instruments. Holding investments in equity and debt instruments in a singleÂÂ  account is also another advantage of the depository system. Features of Indian Depository System: Dematerialization: There are two models for depository system across the world-dematerialization and immobilization. India has adopted the dematerialization model. India provides for a competitive multi-depository system. There can be various entities providing depository services.eg (NSDL and CDSL).The model adopted in India provides only for Dematerialization of securities. Dematerialization is the process of converting the physical form of shares into an electronic form and in short called Demat. Dematerialization of securities occurs when securities issued in physical form is destroyed and an equivalent number of securities are credited into the beneficiary owners account. The depositories can provide their services to investors through their agents called Depository Participants. These agents are appointed subject to the conditions prescribed under Securities and Exchange Board of India (Depositories and Participants) Regulations,1996 and other applicable conditions. The participants and investors get their respective IDs which has a unique identification in the depository system. Any number of depository accounts can be opened. After opening an account with the Depository Participant the investor should surrender the physical certificates held in his name to a depository participant. These certificates will be sent to the respective companies where they will be cancelled after dematerialization and will credit the investors account with the Depository Participant. The securities on dematerialization will appear as balances in the depository account. These balances can be transferred like the shares held in physical form. The securities in the Demat can again be converted into physical form which is called as dematerialization. Dematerialization of shares is optional and the investor can hold shares in the physical form, however the investor will have to demat the shares if he wishes to sell or purchase the shares through stock exchanges. Immobilization of securities is done by storing or lodging the physical security certificates with an organization that acts as a custodian a securities depository. All subsequent transactions in such immobilized securities take place through book entries. The actual owners have the right to withdraw the physical securities from the custodial agent whenever required by them. In the case of IPO, a jumbo certificate is issued in the name of the beneficiary owners based on which the depository gives credit to the account of beneficiary owners. Fungibility: Section 9 of the Depositories Act, 1996 states that securities in depositories should be in fungible form. In the depository system, the securities dematerialized are not identified by distinctive numbers or certificate numbers as in the physical environment. Thus all securities in the same class are identical and interchangeable. For example, all equity shares in the class of fully paid up shares are interchangeable. Registered Owner/ Beneficial Owner: In the depository system, the ownership of securities dematerialized is bifurcated between Registered Owner and Beneficial Owner. For the securities dematerialized, NSDL is the Registered Owner in the books of the issuer, but ownership rights and liabilities rest with Beneficial Owner. All the rights, duties and liabilities underlying the security are on the beneficial owner of the security. Free Transferability of shares: Transfer of shares held in dematerialized form takes place freely through electronic book-entry system. Legal Framework The depository business in India is regulated by: a. The Depositories Act, 1996 It was enacted to provide for regulation of depositoriesÂÂ  in securities and for matters connected therewith or incidental thereto. It came into force from 20th September, 1995. It provides for the establishment of single and multiple depositories. Anybody to be eligible needs to be formed and registered as a company under the Companies Act, 1956 and seek registration with SEBI and obtain a Certificate of Commencement of Business from SEBI on fulfillment of the prescribed conditions. b. The SEBI (Depositories and Participants) Regulations, 1996 SEBI on 6th May, 1996 issued SEBI (Depositories and Participants) Regulations, 1996 which apply to depositories and its participants. The Depositories Act requires that the registration of the depository, depository participant and custodian, is mandatory with SEBI. These regulations also contain provisions for operations and functioning of depositories, for application and certificates used and schedule of fees for participants etc. c. Bye-Laws of Depository Depository is required to frame its bye-laws with the prior approval of SEBI, consistent with the provisions of the Act and the regulations made by SEBI thereunder. However on non-compliance SEBI has the power to amend or revoke the bye-laws on its own. d. Other Laws Apart from the above, Depositories are also governed by certain provisions of Companies Act, 1956, The Indian Stamp Act, 1899, SEBI Act,1956, SCRA,1956, Benami Transaction Prohibition Act,1988, Income Tax Act,1961, Bankers Book Evidence Act,1891. Ownership Norms Setting up of a Depository: An application for the grant of a certificate of registration as a depository shall be made to the Board by the sponsor in Form A. A Sponsor (anchor investor), as per section 2 (g), SEBI (Depositories and Participants) Regulations, 1996, means any person or persons who, acting alone or in combination with another proposes to establish a depository and undertakes to perform the obligations of a sponsor under these regulations. It is to be accompanied by the fee and be paid in the manner specified thereof. The application should be accompanied by draft bye-laws of the depository that is proposed to be set up. The sponsor is to be from one of the mentioned categories: (i) A public financial institution as defined in section 4A of the Companies Act, 1956 (1 of 1956); (ii) A bank included for the time being in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934); (iii) A foreign bank operating in India with the approval of the Reserve Bank of India; (iv) A recognized stock exchange within the meaning of clause (j) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956); (v) A body corporate engaged in providing financial services where not less than seventy-five per cent of the equity capital is held by any of Securities and Exchange Board of India the institutions mentioned in sub-clause (i), (ii), (iii) or (iv) jointly or severally; (vi) A body corporate constituted or recognized under any law for the time being in force in a foreign country for providing custodial, clearing or settlement services in the securities market and approved by the Central Government; (vii) An institution engaged in providing financial services established outside India and approved by the Central Government; The applicant is supposed to be a fit and proper person. Presently, sponsors are required to hold at least 51% of the equity share capital in the depository, either alone or together. Also, no participant shall at any time, hold more than 5% of the equity capital of the depository No person other than a sponsor, whether resident in India, or not, shall at any time, either individually or together with persons acting in concert, hold more than 5% of the equity share capital in the depository. The expression person resident in India shall have the meaning assigned to it in clause (v) of section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999). The expression Persons acting in concert shall have the meaning derived from clause (e) of sub-regulation (1) of Regulation 2 of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997. The combined holding of all persons resident outside India in the equity share capital of the depository shall not exceed, at any time, 49% of its total equity share capital, subject further to the following: the sponsor shall, at all times, hold at least 51% of the equity capital of the depository and the balance of the equity capital of the depository shall be held by its participants. At present, the combined holding of all persons residing outside India in the equity share capital of an MII is capped at 49% subject to the following: The combined holding through FDI and FII routes are capped at 26% and 23%, respectively. FIIs can acquire the equity shares of an MII only through the secondary market. An FII cannot have representation on the board of an MII. After considering the application, if the Board is satisfied that the company established by the sponsor is eligible to act as a depository it may grant a certificate of registration in Form B to the depository subject to the prescribed conditions like registration fee, redressing of grievances etc. A depository is required to make an application to the Board for commencement of business in Form C within one year from the date of issue of certificate of registration. The SEBI (Depositories and Participants) Regulations, 1996, provides that: the depository shall not carry on any activity other than that of a depository unless the activity is incidental to the activity of the depository It is provided that a depository may carry out such activity not incidental to its activities as a depository, as may be assigned to the depository, by the Central Government or by a regulator in the financial sector, through the establishment of Strategic Business Unit(s), and by complying with other conditions specified by the Board. A Strategic Business Unit shall be an organizational unit of a company with its own mission, objectives and business strategy that is given the responsibility to serve the particular demands of one business area with appropriate technological, financial and other segregations. It is provided that for the purposes of clause (d) and (e) no foreign entity, individually and collectively either as a sponsor or as a participant or as a sponsor and participant together shall hold more than 20% of the equity capital of a depository. Board Composition The Board composition for the two main depositories in India can be summarized as follows: a. National Securities Depository Ltd (NSDL) Independent Directors: 5 Shareholder Directors: 5 MD/CEO: 1 b. Central Depository Services (India) Ltd (CDSL) Independent Directors: 2 Shareholder Directors: 5 Whole time Directors: 1 The board structure for depositories is not subject to stringent norms. Only financial institutions/banks/stock exchanges, etc. can be sponsors of a depository and these are mostly nominated as shareholder directors. Further there have been no requirements for appointment of MD/CEO that have been prescribed for depositories. Net Worth of Depositories The net worth requirement for Depositories is 100 crores. Disadvantages: Prior to dematerialization there was almost a gap of three months between application date and listing of shares. Dematerialization has reduced this gap to a great extent. Current regulations prohibit multiple bids or applications by a single person. But the investors open multiple demat accounts and make multiple applications to subscribe to IPOs in the hope of getting allotment. The recent IPO allotment scam proves that even a highly automated system is not the solution to prevent malpractices, if there is laxity. The scam of Yes bank and IDFC reveal the defect that investor banker fail to weed out multiple applications either direct or benami.eg. In the Yes Bank scandal thirteen investors had manipulated the allotment of shares by opening 7500 benami accounts and made profit in 1.7crores. Eventually all the thirteen investors were banned from trading in bank shares immediately. Lack of coordination between banks, DPs, brokers depositories, registrars and investment bankers and clarity of their roles has given rise to such problems. The depository system is complex and in need of greater supervision and control. Thus is the working of the Depository system in India. The advantages of the depository system outweigh the disadvantages. Few changes in the complex system and specifications regarding the appointment of Board of directors need to be specified.