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FAQS:

 

What is a 'Depository'?

A Depository is an entity, which holds shares in Demat/electronic form, at the request of the investor though the medium of a Depository Participant.

How many depositories are there in India?

There are two depositories in India i.e Central Depository Services Limited (CDSL) and National Securities Depositories Limited (NSDL).

 

Who is a Depository Participant?

A Depository Participant (DP) is an agent appointed by the Depository and is authorized to offer depository services to all investors. An investor cannot directly open a Demat account with the depository. An investor has to open his / her account through a DP only. The DP in turn opens the account with the Depository. The DP in turn takes up the responsibility of maintaining the account and updating them 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. Thus, the DP is basically the interface between the investor and the Depository. We being a DP with CDSL will be opening your Demat account. The balances in your account are maintained with the depository and are available to you through us.

 

Who is a Beneficiary Owner (BO)?

The person who holds a Demat account is a beneficiary owner. In case of a joint account, the account holders will be beneficiary holders of that joint account.

 

What is a BO Id?

The Demat account number of the beneficiary holder(s) is known as the BO Id.

 

 What is a DP Id?

 A DP Id is the number of the depository participant allotted by the depository. 

 

Why should I have a Demat account? / Why should I prefer to buy shares in the depository mode?

As an investor you will enjoy many benefits if you buy and sell shares in the depository mode. The following are some of the benefits you will enjoy: -

  • No bad deliveries.
  • No risk of loss, mutilation or theft of share certificates
  • No stamp duty for transfer of shares.
  • Reduced paper work.
  • Fast settlement cycles.
  • Low interest rates on loans granted against pledge of dematerialized securities by banks.
  • Low margin on securities pledged with banks.
  • Increase in liquidity of your securities because of faster transfer and registration of securities in your account