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Depository
    What are the benefits of participation in a depository?
The benefits of participation in a depository are:
  • Immediate transfer of securities.
  • No stamp duty on transfer of securities
  • Elimination of risks associated with physical certificates such as bad delivery, fake securities, etc.
  • Reduction in paperwork involved in transfer of securities
  • Reduction in transaction cost
  • Ease of nomination
  • Change in address recorded with DP gets registered electronically with all companies in which investor holds securities eliminating the need to correspond with each of them separately
  • Transmission of securities is done directly by the DP eliminating correspondence with companies
  • Convenience of consolidation of folios/accounts
  • Holding investments in equity, debt instruments and Government securities in a single account; automatic credit into demat account, of shares, arising out of split/consolidation/merger etc.
    Does one need to keep any minimum balance of
      securities in his account with his DP?
No. The depository has not prescribed any minimum balance. You can have zero balance in your account.
    What is an ISIN?
ISIN (International Securities Identification Number) is a unique identification number for a security.
    How can one convert physical holding into electronic
      holding i.e. how can one dematerialise securities?
In order to dematerialise physical securities one has to fill in a Demat Request Form (DRF) which is available with the DP and submit the same along with physical certificates one wishes to dematerialise. Separate DRF has to be filled for each ISIN number.
    Can electronic holdings be converted into Physical
      certificates?
Yes. The process is called Rematerialisation. If one wishes to get back your securities in the physical form one has to fill in the Remat Request Form (RRF) and request your DP for Rematerialisation of the balances in your securities account.
    Can one dematerialise his debt instruments, mutual
      fund units, government securities in his demat
      account?
Yes. You can dematerialise and hold all such investments in a single demat account.
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