The Depository renders its services to investors through its agents called depository participants (DPs). DPs are directly appointed by the depository with the approval of Securities Exchange Board of India(SEBI). Banks, Financial Institutions and SEBI registered trading members can become DPs.
The various benefits enjoyed by DPs from depository are
• Instant transfer of securities
• Transfer of securities with no stamp duty on it
• Purging of risks associated with physical securities certificates such as bad delivery, fake securities, etc.
• Less or no paperwork involved in transfer of securities
• Decline in transaction cost
• Simplicity of nomination facility
• Change in address recorded with DP automatically gets registered electronically with all companies in which investor holds securities eliminating the necessitate to correspond with each of them separately
• Transfer of securities is done directly by the DP purging correspondence with companies
• Handy method of consolidation of folios/accounts
Holding various investments like equity, debt instruments and Government securities in a single account; automatic credit/debit into demat account, of shares, arising out of split/consolidation/merger etc.
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