A Depository holds securities such as shares, debentures, bonds, government securities, units etc. of investors in electronic form. There are two depositories in India, The National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL). An individual who desires to avail the depository services can approach a Depository Participant (DP). Investors – Individual and Corporate can open demat accounts with CDSL through PANAM. Dematerialization and trading in the demat mode is the safer and faster alternative to the physical existence of securities. Demat as a parallel solution offers freedom from delays, thefts, forgeries, settlement risks and paper work.
Depository facilities
- Dematerialisation of shares: Customer can convert their physical certificate to electronic form by surrendering the physical certificate along with DRF (Demat request forms).
- Re-materialization: Re-materialization enables you to convert the dematerialised shares into physical form.
- Pledge: You can pledge securities to avail loan against your demat shares
- Statement of Transaction: If there is any transaction during the month then statement of transaction will be send to you on monthly basis otherwise statement of holding will be send on quarterly basis.
- EASI: If you register for Easi (Electronic Access to Securities Information) services, then you can find out online information of your demat account in CDSL Web site
(www.cdslindia.com)