Dematerialisation (Demat) is converting physical share certificates into electronic book entries similar to bank accounts. Depository Participants (DP) offer a safe & convenient way to hold securities in electronic form as compared to paper form. It offers freedom from delays, forgeries, settlement risk and paperwork.
Currently, In India two depositories are established. 1. National Securities Depository Limited (NSDL) and 2. Central Depository Services (India) Limited (CDSL). Depositories have appointed various intermediaries known as Depository Participants (DPs) to open and maintain Demat accounts for the investors.
We are depository participant (DP) of NSDL as well as of CDSL. Goldmine as DP offers depository services to its client.
Benefits of availing Depository Service(s)
A safe and convenient way to hold securities;
- Immediate transfer of securities;
- No stamp duty on transfer of securities;
- Elimination of risks associated with physical certificates such as bad delivery, fake securities, delays, thefts etc.
- Reduction in paperwork involved in transfer of securities;
- Reduction in transaction cost;
- No odd lot problem, even one share can be traded;
- Nomination facility;
- Change in address recorded with DP gets registered with all companies in which investor holds securities electronically eliminating the need to correspond with each of them separately;
- Transmission of securities is done by DP eliminating correspondence with companies;
- Automatic credit into demat account of shares, arising out of bonus/split/consolidation/merger etc.
- Holding investments in equity and debt instruments in a single account.