What are the benefits of availing depository services?
• A safe, convenient way to hold securities; • Immediate transfer of securities; • No stamp duty on transfer of securities; • Elimination of risks associated with physical certificates such as bad delivery, fake securities, Delays in transit, thefts etc. • Reduction in paperwork involved in transfer of securities; • Reduction in transaction cost; • No odd lot problem, even one share can be sold; • Change in address recorded with DP gets registered with all companies in one go in which the investor holds securities electronically thereby eliminating the need to correspond with each of them separately; • Easy Nomination facility; • Smooth Transmission of securities in case of any eventualities. How can services of a depository be availed? To avail the services of a depository one require to open an account with any of the depository Participant of National Securities Depository Limited (NSDL) or Central Depository Services ( India ) Limited (CDSL). How does one open such an account? One
