What are the services provided by a Depository?

The following services are provided by a depository through a depository participant: 
  • Open a demat account.
  • Maintain record of securities held by the demat account holder in electronic form.
  • Settlement of trades by delivery/receipt of securities from/in demat accounts.
  • Settlement of off-market transactions between demat account holders.
  • Dematerialisation - converting physical securities into electronic form.
  • Rematerialisation - converting electronic securities balances into physical form.
  • Receive electronic credit of securities allotted by issuers under IPO or otherwise.
  • Corporate Action- receive non-cash corporate benefits such as allotment of bonus and rights shares.
  • Pledge dematerialised securities & facilitate loans against shares.
  • Freeze demat account for debits, credits, or both.
  • Inter-depository Transfer- transfer of securities from an account with one depository to an account with another depository.
  • Transmission- transfer of shares in the event of death of a demat account holder.

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