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benefits of depository system ?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Uma asked almost 3 years ago

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 narahari answered over 2 years ago

It reduces the cost of the issue and the transfer of securities by eliminating stamp duty. It reduces the scope of theft, forgery damages to securities certificates. It eliminates bad deliveries. It entitles the transferee to all the rights associated with the securities immediately on the settlement of purchase transaction.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 CA Sandeep Bohra answered over 2 years ago

Dear Friend, -It reduces the cost of the issue and the transfer of securities by eliminating stamp duty. -It reduces the scope of theft, forgery damages to securities certificates. -It eliminates bad deliveries. -It entitles the transferee to all the rights associated with the securities immediately on the settlement of purchase transaction. -It enhances the liquidity of securities in the market. -It makes faster disbursement of non cash corporate benefits like rights, bonus, etc. possible. -It reduces brokerage by many brokers for trading in dematerialized securities. -It eliminates problems relating to change of address of investors, transmission etc. -It eliminates problems relating to selling securities on behalf of a minor.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 veeru answered almost 3 years ago

The benefits from the depositary system are following: It reduces the cost of the issue and the transfer of securities by eliminating stamp duty. It reduces the scope of theft, forgery damages to securities certificates. It eliminates bad deliveries. It entitles the transferee to all the rights associated with the securities immediately on the settlement of purchase transaction. It enhances the liquidity of securities in the market. It makes faster disbursement of non cash corporate benefits like rights, bonus, etc. possible. It reduces brokerage by many brokers for trading in dematerialized securities.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 lochan answered almost 3 years ago

**BENEFITS OF DEPOSITORY SYSTEM** Hi, Following are the benefits of depository system No danger of loss of share certificates since the shares are credited to your account. No possibility of bad deliveries. Elimination of all rise associated with physical certificates such as loss, theft, forgery, mutilation etc. No need to affix share transfer stamp as it is a paperless trading. No postal / courier charges. Less brokerage charges. After the settlement, pay in and pay out are on the same day for paperless trading which means you get your securities and cash immediately. Scriptless trading helps allocate corporate benefits faster. Facilitates pledging and hypothecation of securities Eliminates the problem of odd lot shares. Facility to lock your account if you are abroad. Thanks

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Picsjoin 2017224123730582 Archana answered almost 3 years ago

Hie Uma, **The benefits from the depositary system are following:** - It reduces the cost of the issue and the transfer of securities by eliminating stamp duty. - It reduces the scope of theft, forgery damages to securities certificates. - It eliminates bad deliveries. - It entitles the transferee to all the rights associated with the securities immediately on the settlement of purchase transaction. - It enhances the liquidity of securities in the market. - It makes faster disbursement of non cash corporate benefits like rights, bonus, etc. possible. - It reduces brokerage by many brokers for trading in dematerialized securities. - It eliminates problems relating to change of address of investors, transmission etc. - It eliminates problems relating to selling securities on behalf of a minor.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 CHITRANJAN AGARWAL answered almost 3 years ago

Dear Uma, The benefits from the depositary system are following: 1) It reduces the cost of the issue and the transfer of securities by eliminating stamp duty. 2) It reduces the scope of theft, forgery damages to securities certificates. 3) It eliminates bad deliveries. 4) It entitles the transferee to all the rights associated with the securities immediately on the settlement of purchase transaction. 5) It enhances the liquidity of securities in the market. 6) It makes faster disbursement of non cash corporate benefits like rights, bonus, etc. possible. 7) It reduces brokerage by many brokers for trading in dematerialized securities. 8) It eliminates problems relating to change of address of investors, transmission etc. 9) It eliminates problems relating to selling securities on behalf of a minor. Any other query feel free to contact us Writer CA chitranjan Agarwal

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