What services are provided by a DP?
Following services can be availed of through a DP: • Dematerialization i.e. converting physical securities into electronic form. • Dematerialization, i.e. converting electronic securities balances in a BO account into physical form. • To maintain record of holdings in the electronic form. • Settlement of trades by delivering/ receiving underlying securities from/in BO accounts. • Settlement of off-market trades i.e. transactions between BOs entered outside the Stock Exchange. • Providing electronic credit in respect of securities allotted by issuers under IPO or otherwise. • Receiving on behalf of demat account holders non-cash corporate benefits, such as, allotment of bonus and rights shares in electronic form or securities ensuing upon consolidation, stock split or merger/amalgamation of companies. • Pledging of dematerialised securities. Facilitating Securities Lending and Borrowing, if the DP is registered as an “Approved Intermediary” for the purpose.
