Direct Cash Settlement
The Direct Cash Settlement Policy facilitates the immediate crediting of an investor’s bank account with the net proceeds of the stock market transaction through the Central Securities Clearing System (CSCS). In other words, when an investor offers some shares for sale, the proceeds from the sale would immediately be paid into the investors’ bank account directly.
This is the process of converting physical shares or bonds into electronic format. An investor who wants to dematerialize his shares needs to open a Demat account in the Central Securities Clearing System (CSCS) through a stockbroker of his choice. In return, he gets electronic shares in his Demat account.
Wonder Banks or Ponzi/Pyramid Schemes
These are investment scams carried out by unregistered and fraudulent “investment Operators” who illegally collect money from the public. Their sole purpose is to defraud the general public of their hard earned money! They deceive people with their incredibly unrealistic interest rates and returns, making them believe it is an opportunity to earn fast money. Eventually, they are unable to pay returns and they disappear with the money. They sometimes begin to operate again under different names at another location.