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A Depository Participant is the link between the Depository and the investor. According to SEBI regulations, an investor cannot directly open a Demat account or buy/sell from the Depository. He can do so only through agents registered with the Depository for this purpose, known as the Depository Participants or DPs. The DP in turn opens the account with the Depository. Thereafter, it takes up the responsibility of maintaining the account and updating the same as per the instructions given by the investor from time to time. The DP generates and provides the holdings statement from time to time as required by the investor.
There are many benefits of participating in a Depository. The NSDL site, for instance, mentions the following:
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Immediate transfer of securities; |
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No stamp duty on transfer of securities; |
| 03 |
Elimination of risks associated with physical certificates such as bad delivery, fake securities, etc.; |
| 04 |
Reduction in paperwork involved in transfer of securities; |
| 05 |
Reduction in transaction cost; |
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Nomination facility; |
| 07 |
Change in address recorded with DP gets registered electronically with all companies in which investor holds securities eliminating the need to correspond with each of them separately; |
| 08 |
Transmission of securities is done by DP eliminating correspondence with companies; |
| 09 |
Convenient method of consolidation of folios/accounts; |
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Holding investments in equity, debt instruments and Government securities in a single account; |
| 11 |
Automatic credit into demat account of shares arising out of split/consolidation/merger etc. |
Vertex Securities Limited (VSL) is a Depository Participant (DP) registered with National Securities Depository Limited.We are offered in regard to the same have steered us ahead of our contemporaries. When you open an account with us, you would be assured that all your requirements would be immediately adhered to and that you would be provided with the best investment advice.
Related Links:
http://www.nsdl.co.in
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