![]() ![]() The Company has to signĪn Agreement with NSDL/CDSL (the depositories) and install ![]() Both theīanks and the Depository are accountable for safe keeping ofįunds and securities respectively. Without the actual handling of funds or securities. In both systems, the transfer of funds or securities happens A bank transfers funds between accounts whereas, aĭepository transfers securities between accounts. Whereas, a Depository holds securities in accounts for itsĬlients. To draw an analogy, the Depository system functions very much Investor, providing the link between the investor and the Is the medium through which the shares are held in theĮlectronic form. Investor are held in electronic form, through DepositoryĪ Depository Participant is the agent of the Depository and The Company is also calledĪ Depository (NSDL and CDSL) is an organisation like aĬentral Bank, i.e. Participation of a Depository, Depository Participants,Ĭompany/Registrars and Investors. The operations in the Depository System involve the Operation - National Securities Depository Limited (NSDL)Īnd Central Depository Services Limited (CDSL). Matters related and incidental to the operation ofĭepositories and demat operations. The Depositories Act, 1996 has been enacted to regulate the Shares, he/she will get delivery of the shares in demat ![]() However, as per theĭirections of SEBI, he/she has to demat the shares if he/she Share if that is what you deem necessary.ĭematerialisation of shares is optional and an investor can The largest advantage of having an electronic medium is theĪbility to make online investments and sell any number of Significantly lesser than its physical counterpart because The transaction charges associated with a demat account are Processing/fraudulent interception in postal transit, etc. Process of getting shares transferred in the name of buyersĪs well its inherent problems of bad deliveries, delay in Share certificate or transfer deed after the shareĬertificates have been converted from physical form toĭemat attempts to avoid the time consuming and complex Transfers are processed electronically without involving any State-of-the-art technology, whereby share transactions and It offers scope for paperless trading through Involved in the scrip based system is eliminated. Technology whereby voluminous and cumbersome paper work Tremendous progress made in the area of Information It is a direct application of scope provided by the Dematerialisation ('Demat' in short form) signifiesĬonversion of a share certificate from its present physicalįorm to electronic form for the same number of holding. ![]()
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