FACILITIES OFFERED BY DEPOSITORY SYSTEM:
The following are some of important facilities offered by depository system:-
1.Dematerialization2.Rematerialisation3.Electronic settlement of trade4.Electronic credit of securities allotted in public, rights and bonus issue.5.Pledging or hypothecation of dematerialized securities.6.Freezing of demat account.
ADVANTAGES OF DEPOSITORY SYSTEM:
The system is expected to offer the much awaited custodial services to Indian and Foreign investorstogether. It is likely to bring about the following benefits to various investors, issuing companies aswell as nation:
Advantages to the Investors
Quick transfer of funds and securities.
Elimination of all risks associated with physical certificates.
Minimized chances of fraud, theft of securities.
Statement of accounts.
(B)Advantages to the issuer:
Costs of registration & transfer of shares get reduced which were earlier incurred bythe issuer company.
Saving in cost involved at the time of public issues.
Easy to attract foreign investors without any cost of issuance in overseas market.