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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