Purchase and sale of securities can be done through demat account
. Presently there are two depositories in India which are NSDL (National Securities Depository Limited) and CDSL (Central Depository Services Ltd). It depends on the bank which service they have to render to the customers.
Depository services India are also called as demat account, It is a service that is very much similar to a bank account in which one can keep your bonds, stocks, shares and other financial assets.
It is normally the agency that keeps a track of all the types of securities and makes them easily available in an electronic format as and when required. The two mentioned above NSDL (National Securities Depository Limited) and CDSL (Central Depository Services Ltd). Are the two main agencies that have many banks and several other financial institutions which keep guide over all the vital steps to carry out the depository service smoothly.
So it is banks and the other several financial institutions that act as the participant in the Depository services India.
Merits of a having a Depository services India.
1. Shares are held in an electronic form
2. Share certificates don't need to be kept under safe.
3. Record dates of various companies need not be remembered
4. Securities get transferred quickly.
5. Get free from stamp duty which is usually done on transfer of securities
6. Various Risks involved of bad delivery are reduced.
7. Paper Work is reduced during the process of transfer.
All these activities prove the importance of Depository services India. It helps to a great extent to reduce the overall transaction cost. Thus, the whole process gets faster and one can makes use of all the opportunities available in the market, as the securities are available in your account immediately after a pay out.
There transfer deeds are more quickly signed and bonus; right shares are credited by issuers directly into ones demat account. Thus the entire process of the Depository services India is beneficial in all ways to every investor.