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BENEFITS OF DEPOSITORY SYSTEM

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(a) Elimination of bad deliveries.

(b) Elimination of all risks associated with the physical certificates.

(c) It facilitates the immediate transfer and registration of the securities.

(d) It facilitates faster disbursement of non – cash corporate benefits like rights, bonus, etc.

(e) It reduces the brokerage for trading in dematerialized securities.

(f) Elimination of paper work and recording of transactions like transfer of shares.

(g) Elimination of problems related to change of the address of investor, transmission, etc.

(h) Elimination of problems related to selling securities on behalf of minor.

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