Explain any four advantages of depository system to invesrors
Answers
Answer:
Answer
Guest User
Feeds
Trending
Topics
Watchlist
LOGIN
Bhavik Nehru made post
3 years ago
Fundamentals Personal Finance
What are some of the key benefits of the depository system over physical shares? Answer
image
vidhya Laxmi answered.
3 years agoFollow
Some of the key advantages of the depository system include:
Immediate transfer of securities
No stamp duty on transfer of securities
Elimination of bad delivery, fake securities, etc
Reduction in paperwork involved in the transfer of securities
Substantial reduction in transaction cost
Facilitate to nominate reducing the hassles in transmission
Change in address recorded with DP gets registered electronically with all companies in which investor holds securities
Eliminates the need to correspond with each of them separately
Transmission of securities is done by DP eliminating correspondence with companies
A convenient method of consolidation of folios/accounts for the sake of simplicity
Holding of multiple investments in asset classes like equity, debt instruments and Government securities in a single account
Puts your investing activity in auto mode. You get automatic credit into demat account, of shares, arising out of split/consolidation/merger etc.
Explanation:
I think this will help you