Overview
A Depository facilitates holding of securities in the electronic form and enables securities transactions to be processed by book entry by a Depository Participant (DP), who as an agent of the depository, offers depository services to investors. According to SEBI guidelines, financial institutions, banks, custodians, stockbrokers, etc. are eligible to act as DPs. The investor who is known as beneficial owner (BO) has to open a demat account through any DP for dematerialisation of his holdings and transferring securities.
The balances in the investors account recorded and maintained with the depository can be obtained through the DP. The DP is required to provide the investor, at regular intervals, a statement of account which gives the details of the securities holdings and transactions. The depository system has effectively eliminated paper-based certificates which were prone to be fake, forged, counterfeit resulting in bad deliveries.
Benefits of a Demat account
As an investor you will enjoy many benefits if you buy and sell shares in the depository mode. The following are some of the benefits you will enjoy:
- No bad deliveries
- No risk of loss, mutilation or theft of share certificates
- No stamp duty for transfer of shares
- Reduced paper work
- Fast settlement cycles
- Low interest rates on loans granted against pledge of dematerialized securities by banks
- Low margin on securities pledged with banks
- Increase in liquidity of your securities because of faster transfer and registration of securities in your account
- Instant disbursement of non-cash benefits like bonus and rights into your account
Rajgul - A Depository Participant
Rajgul Securities are a Depository Participant with the Central Depository Services (India) Limited (CDSL). The depository team at Rajgul consists of people with rich experience and strong understanding and knowledge of the functionality of the depository system. We at Rajgul have firm belief that services to customers stand above all and everything.