What are the benefits of a Depository Account?
The benefits of participation in a depository are: • Immediate transfer of securities; • No stamp duty on transfer of securities; • Elimination of risks associated with physical certificates such as bad delivery, fake securities, etc.; • Reduction in paperwork involved in transfer of securities; • Reduction in transaction cost; • Nomination facility; • Change in address recorded with DP gets registered electronically with all companies in which investor holds securities eliminating the need to correspond with each of them separately; • Transmission of securities is done by DP eliminating correspondence with companies; • Convenient method of consolidation of folios/accounts ; • Holding investments in equity, debt instruments and Government Securities in a single account; • Automatic credit into Demat account, of shares, arising out of split/consolidation/merger, etc.
