The pace of economic development


The gait of economic development is conditioned among other things by the rate of long-run investing and capital formation. And capital formation is conditioned by the mobilisation, augmentation and channelization of investible financess. The capital market serves a really utile intent by pooling the capital resources of the state and doing them available to the enterprising investors. A developed capital market can mobilise and pool together even the little and scattered nest eggs and augment the handiness of investible financess while the rapid growing of joint stock companies has been made possible to big extent by the growing of capital market. The debut of depositary services to the system was a sort of facilitation given to investors for their minutess in the capital market. The intent of this survey is to take an thought of the investors ‘ perceptual experience and satisfaction from the depositary services, which are considered to play really of import function in pull offing the minutess in capital market. The survey will assist in finding the hereafter of depositary services in India.


With the being of 23 accepted stock exchanges, Indian capital market has been witnessing rapid growing in recent yesteryear. However, this growing has non matched with back uping substructure to manage the turning volume of paper that has flooded the market choking and bing system. This has caused jobs like hold in transportation, long colony periods, bad bringings etc. With the position to globalise Indian capital market in a existent sense, the authorities of India has initiated a figure of fiscal reforms that were initiated in 1991 as portion of the structured reforms consisting industrial de-regulation, denationalization and globalisation. A thigh commission on fiscal system with Sh. Narsihma Rao as the president has set up in 1991, which made for making recommendations for banking sector and non-banking fiscal sector to better the flexibleness and operational efficiency of the markets. Securities Exchange Board of India, Reserve Bank of India, Department of Company Affairs and Ministry of Finance are the of import regulative organic structures of the capital market mensurating the effectual and efficient operation of the market.

SEBI besides constituted a figure of commissions such as G.S. Patel Committee to reexamine the system of carry forward minutess in the stock exchanges, Malegram Committee to reexamine the revelation patterns of companies in primary market, Bhave commission to analyze jobs refering to transport portions. The earlier system, a paper based manner, entails cumbrous legal formalities for the intent of transportation of securities and colony of dealing theorem. The earlier system suffered from the undermentioned defects, thereby originating the demand for depositary system, these are Lack of back uping substructure, Problems in minutess, Delayed colonies, Soaring costs of dealing, Transactions end up as bad bringings due to faulty conformity of paper work, mismatch of signatures on transportation workss with specimen record of the issuer, Theft, mutilation of certifications and other abnormalities. The modern system i.e. depositary system is the system whereby the transportation and colony of scrips take topographic point non through transportation workss and physical bringing of scrips which are traditional but through the modern system of set uping transportation of ownership of securities by agencies of book entry on the legers of the depositary without physical motion of scrips.

History of stock exchanges

The Indian stock markets are about 128 old ages old, with the Bombay stock exchange, the oldest of them working since 1875. At present there are 23 accepted stock exchanges. Stock exchanges are the most perfect type of market for securities whether of authorities and semi-government organic structures or other public organic structures as besides for portions purchases and gross revenues of portions are made in the conditions of the competitions. The deals that are struck in the trading ring by the members of the stock exchanges are at the fairest monetary values determined by the basic Torahs of supply and demand.

Development in the capital market

The reforms for Indian capital market is chiefly focused on market ordinance, primary market operation, secondary markets merchandising, development of a proper debt securities merchandising market, development of a derived functions market ( hereafters and options ) , development of an incorporate national market system, technological investing in exchanges, investor protection and more foreign portfolio investing in exchanges. SEBI, the regulative organic structure of the capital market, has been taking assorted stairss and has introduced assorted guidelines for the efficient operation of the market and has besides constituted assorted commissions to reexamine the bing system and suggestions for farther reforms.

Lacks in the bing system of Scrips Transfer

The bing system, a paper based manner, entails cumbrous legal formalities as per subdivision 108 of Indian Companies Act, 1956, for the intent for transportation of securities and colony of dealing at that place on. The present system suffers from the undermentioned defects, thereby originating the demand for depositary system, these are:

  1. Lack of back uping Infrastructure
  2. Problem in minutess
  3. Global Imperative moods
  4. Problems in covering with Securities
  5. Greater mobility of Securities
  6. Cumbersome legal system

Need for depositary system

Indian capital market has been witnessing rapid growing in recent yesteryear. However, this growing has non watched with back uping substructure to manage the turning volume of paper that has flooded the market, choking our bing system. This has caused jobs like hold in transportations, long colony period, high degrees of failed trade and bad bringings, bad exposure etc. These features were usually the properties of an under developed market. As the market grows, there is demand for better system to guarantee that such hindrance to growing is removed. The foreign investors seeking to put in India are besides discerning about the dependability of the station trade colony mechanism used in India.

The biggest hindrance or constriction in Indian capital market was mostly manual and paper based colony system that was disused for a quickly turning market. Since 1992, old trading system in Indian stock exchanges has been under changeless reappraisal. The chief lacks have been identified in 2 wide countries: –

  1. The glade and colony system in stock exchanges whereby bringing of portions by the marketer and payment by the buyer is made and
  2. Procedure for transportation of portions in the name of the buyer by the company.

The new system has eliminated paper work, facilitated electronic book entry of the transportation of securities, permitted automatic and crystalline screen based trading in securities, shorter colony periods and improved liquidness in investing in securities. All this has given drifts to the growing of the capital market in India. The minutess in a stock exchange, earlier involved physical motion of paper ( the portion certification ) which foremost changed manus from the marketer to purchaser on payment of monetary value and later was sent to the company ( issuer of the portion ) for the alteration of the ownership of the portions to be incorporated in the books of the company. The procedure of confirmation of the ownership of the marketer and hence cogency of the sale took a long clip, disenabling the buyer from the selling the portions further while the portions were being transferred in his or her name. Though subdivision 113 of the Companies Act, 1956, stipulates that the company effects the transportation within 2 months. In world reassigning portions in 1s name took longer. This hold reduced the liquidness of the investor, as during these times, he/she can non sell the portions. This has proved peculiarly inconvenient for big investors for whom fast transportations were indispensable to keep the liquidness. Apart from this, physical motion of portions besides meant the possibility of larceny and loss of portions in theodolite.

The magnitude of the job has increased manifold as the day-to-day turnover in stock exchange has increased well. The mean day-to-day turnover of BSE itself amounts to Rs. 500 crores with portions of more than 7500 companies, being traded by more than 650 agents for more than 30 million investors in the state. This has necessitated the usage of better and faster transportation system like computerized records as compared to the physical paper ( security )

Emergence of Depositories

There are two depositaries that have emerged in India: –

National Securities Depositories Limited

The Honourable Union Finance Minister, Shri. P. Chidambram inaugurated NSDL as the first depositary in the state on Nov 8, 1996. It has been promoted by three premier establishments in India the largest common fund UTI, the largest stock exchange NSE of India Ltd. Subsequently, the State Bank of India, the largest commercial bank in India has besides taken up a interest in NSDL.

NSDL provides for electronic ownership, keeping and transportation of securities merchandising in electronic securities on the NSE commenced in Dec, 96 and the first colony of minutess in electronic securities was successfully completed at NSDL on Jan 7, 1997. The stock exchange Mumbai BSE besides extended the installation of trading in electronic securities from December 27, 1997.

NSDL is responsible to every person to every single investor who holds electronic balances with the depositary. The depositary participant Acts of the Apostless as an agent of NSDL for supplying its services to the investors.

NSDL has designed the package for the operating systems in such a manner that the package systems at the depositary participant office are connected. Therefore, a extremely integrated set up for care of investor histories through the DP ‘s has been developed and implemented. NSDL has entree to all the histories of single maintained by the DP ‘s to guarantee equal control.

The operating system of NSDL besides maintains uninterrupted electronic connectivity with the registrar and transportation departments/agents of the companies whose securities can be dematerialized in NSDL. To all the investors both retail and institutional, NSDL offers the undermentioned services:

  1. Maintain good retentions through depositary participants.
  2. Provide for dematerialization and Rematerialisation of securities
    1. Dematerialization
    2. Rematerialisation
  3. Effect history transportations for colony of trades
  4. Allow for reception of allocation in the electric signifier
  5. Supplying pledging, hypothecation installations for stocks held with it.
  6. Receive and disburse corporate actions ( merely securities )

Central Depositories Services Limited

This is the 2nd depositary after NSDL. This inter connectivity will be established prior to the beginning of concern by CDSL. This will ease colony and motion of assets and detention from one depositary to another. CDSL has been promoted by the Stock Exchange, Mumbai ( BSE ) , in association with Bank of India, Bank of Baroda, HDFC Bank and Stare Bank of India. It has been able to bind up with every bit many as 35 agents till now.

CDSL and NSDL both have signed a MoU for inter-depository connectivity on 23rd April 1999. The MoU covers the apprehension between the depositaries for inter-depository transportations originating out of minutess non settled through the CH/CC ( off market ) . The process for inter-depository transportations between CDSL and NSDL originating out of minutess settled through a CH/CH ( on market ) are expected to be finalized individually.

The Depositories Act, 1996

The Depositories Act makes a proviso for the puting up of multiple depositaries in India. The investor has been granted the option of keeping securities in a physical or dematerialized from. Thus it is a affair of pick for the investor as to whether he wants to avail of depositary services. The depositary has been entrusted with the duty of indemnifying good proprietors for any loss caused due to carelessness of the depositary or its participants.

For keeping securities in the depositary, the two paths that are adopted by depositaries universe over as:

  1. Immobilization

In this the depositary holds the securities in the physical signifier in its ain vaults, but

transportation of securities takes topographic point through book entries.

  1. Dematerialization

In this the securities in physical signifier are shredded and matching recognition is made in the signifier of electronic balances that are maintained in the depositary history.

The construct of a depositary has made a late entry into our state so we are fortunate to hold the advantage o hindsight gained from the experience of other depositaries the universe over every bit good as following the latest engineering. Therefore, the jurisprudence in our state has preferred the demat path. The demat securities will be indistinguishable and interchangeable as they will non hold any alone features such as typical figure of pagination. The depositary will ease dematerialization of securities. The investor has the option of keeping securities in the physical signifier or in the depositary signifier. He can take non to choose for depositary system by bespeaking issue of physical certifications. The depositary will, therefore supply for Rematerialisation.

All rights with regard to the securities held in the depositary will be with the good proprietor ( investor ) and non with the depositary, the depositary playing as the registered proprietor merely. When transacting through a depositary, the investor will non be required to pay stamp responsibility on transportation of portions within the depositary.

The depositary will interface with the investors through market mediators called DP ‘s. The depositary will keep good proprietor the degree in formation through its web of DP ‘s. The depositary is obliged to supply this information to the issuer company or its registrar and reassign agent at regular intervals. This will ease proper distribution of benefits originating out of the investors retentions such as dividend, involvement, fillip and rights as on a given record day of the month by the issuer company or its registrar and reassign agent.

The SEBI Regulations, 1996

Based on the depositaries regulation, SEBI has notified ordinances on 16th May 1996, which specify the norms for operation and operations of depositaries. The depositary system is really similar to banking environment. Therefore, while a bank performs the map of keeping, reassigning and leting backdown of financess, a depositary performs the map of keeping, reassigning and leting backdown of securities. A bank reaches out to the multitudes by puting up its subdivisions. Similarly, a depositary reaches out to the general investor through its agents that are the DP ‘s. The ordinances have selected assorted classs of market participants, who are eligible to go DP ‘s and have a well-established client interface web and are therefore the ideal pick to go the agents of a depositary.

The classs are:

  1. Public Financial Institutions
  2. Scheduled Banks
  3. RBI approved Foreign Banks runing in India.
  4. State Financial Corporations
  5. Certified keepers of securities
  6. Uncluttering corporations of stock exchanges
  7. Registered stock agents
  8. Non-Banking Financial Companies.

Entities wanting to go DP ‘s must use to the depositary and are required to be recommended to SEBI by the depositary. If approved and registered by the SEBI, the DP can be admitted on to the depositary. The depositary has to explicate its ain set of standards for choice of participants.

The ordinances require the depositary to name out through its byelaws the securities, which are eligible to be admitted to depositary for dematerialization. Equity portions, unsecured bonds, warrant, bonds, units of common financess etc. are portion of list of eligible securities. The depositary is empowered to put its ain standards for choice of securities and do securities eligible to be maintained in the signifier of electronic retentions on the retentions of the depositary.

Agreements should be entered into by the undermentioned entities:

  1. Depository and every participant
  2. Participant and every client
  3. Depository, issuer company and the registrar

The bill of exchanges of these understandings are to be included in the byelaws and to be approved by SEBI. It is of import that participants are connected to the depositary through a uninterrupted electronic communicating system. The same is true for registrars or corporates pass oning with the depositary. In add-on, for enabling colonies of securities, the depositary is besides to be connected electronically to uncluttering entities. This imposes the demand for automatic informations treating systems with necessary security characteristics and signifiers one of the standards for choosing securities for dematerialization.

The depositary required to guarantee that sufficient precautions are at that place to protect the informations available with it and with the participants. To cut down hazard in operations, the ordinances stipulate that the depositary and DP ‘s must supply for, equal insurance screen as good.

Since the depositary acts as the beginning of information for the registrar in footings of supplying good ownership inside informations, the depositary has to accommodate informations internally with the participants to guarantee cogency of informations. The ordinances require this rapprochement to be carried out on a day-to-day footing.

Further the depositaries and the registrar will besides accommodate balances on a day-to-day footing and periodic footing.


NSDL is electronically linked to its DP ‘s, the R & A ; T section of the issuer co. and the glade corporation/ uncluttering house of the stock exchange. This is done in order to ease the colony of trades and to execute a covering rapprochement of all the histories balances with NSDL. The full system is called the NEST ( National Electronic Settlement & A ; Transfer ) system. Thus a higher incorporate set up for care of investor histories has been developed and implemented.

Components of Depository System


Depository Participant

Beneficial Owner


Benefits/Advantages of Depository System

Benefits of depositary system are:

To the State

  • Turning and more liquid capital markets to supply funding and development stemming from more efficient station trade systems with decreased minutess costs.
  • Addition in fight in the International market topographic point and pulling investors and fund directors by following with stipulated international criterion for and efficient and risk free trading environment.
  • Improved chances for denationalization of public sector units by making a conducting environment.
  • Restoration of religion in the capital market on the participants with system to minimise colony hazard and frauds.
  • Considerable decrease in the hold in enrollment which can presently impact trading.

To the Investing Public

  • Decrease of hazards associated with loss, mutilations, larceny and counterfeit or physical scrips.
  • Elimination of fiscal loss owing to loss of physical scrips.
  • Greater liquidness from speedier colonies and decrease in holds in enrollment.
  • Faster reception benefit and rights ensuing from corporate action.
  • Improved production of stockholder rights ensuing from more timely communicating from the issuers.
  • Decreased minutess costs through greater efficiency.

To issuer

  • Upto day of the month cognition of stockholders names and references.
  • Savingss in costs of new issuers from decrease in printing and distribution costs.
  • Addition in efficiency of registrars and reassign agent maps
  • Better installations for communicating with stockholders conveying benefits of corporate actions and information notices.
  • Improved ability to pull international investors without holding to incur the outgo of issue in abroad market.

Aims of the survey

  1. To cognize the perceptual experience and point of view of the investors sing depositary system.
  2. To cognize the satisfaction degree of investors sing depositary services.

Related Researchs

Alton ( 1994 ) found the rules of change overing portions into dematerialized signifier. He besides commented that with a expansive start the construct of demat of portions in Indian Market is all permeant and set to suppress the stock market.

George ( 1996 ) studied the growing and the dematerialization of merchandises and found that the construct of dematerialization is coming at a really fast gait.

Kumar ( 1998 ) studied the advantages of dematerialization and gap of Demat history. He besides compared the consequence on trading of portions of the companies have dematerialized their portions and who have non dematerialized their portions.

Mittal ( 1998 ) presented an extended information on dematerialization of portions, their advantages, investor grudges and insurance facet related to dematerialized portions and found that a really big potency of dematerialization of portions exists in the Indian Market.

Cholamandalam ( 1998 ) conducted research on demands to be fulfilled by a company to acquire its portions listed at a depositary so that they can be easy dealt in dematerialized signifier.

Hughes India Limited ( 1999 ) conducted a research to analyze the benefits and drawbacks, which are to be borne in head by company that is be aftering to dematerialise its portions and acquire them registered with NSDL.

Law ( 1999 ) in his article “Depository Revolution” has discussed that depositary is non merely taking bogus portions and bad bringings from the capital market but to turn out a great accelerator for reform. The depositary is a world today. The construct of depositary is set to revolutionise trading patterns, cut down dealing costs and increase investor safety.

Kumar ( 1998 ) in his Article “Demat trading – simpler the better” has shed visible radiation on the different fees construction charged by NSDL from depositary participants and by depositary participants from the investors. NSDL charges nominal fees under three caputs i.e. dealing fees in instance of purchases, detention fees and rematerialisation fees.

Gajra ( 1999 ) in his article “Claim your rights” has provided us the utile information that the investors get the compensation or the loss due to the depositary participant ‘s error. The investors for protecting their return should give debit direction to their DP ‘s for sale at least a twenty-four hours or two before colony twenty-four hours. Then the investor has to look for an direction carried out decently. If he failed to acquire it, so he should near NSDL, for arbitration. DP ‘s are personally apt for their losingss. This article was given in respect when SCHIL, one of the largest DP ‘s failed to convey instructions of its investor-clients to NSDL on clip before colony wage in.

Saikia ( 1999 ) in his article “Compulsory demat within a year” has shed visible radiation on the positions expressed by Ministry of Finance that one twelvemonth has been set in following the full demat path for primary and secondary market portions.

Research Methodology

The survey is based on descriptive research design. The primary information was collected and used for the research intent. Primary information was collected by study with the aid of a questionnaire. The questionnaire was administered by the personal interview i.e. inquiries were asked from the respondents in a face-to-face meeting and the survey was conducted with the aid of pre-structured non-disguised questionnaire. Respondents were interviewed with the aid of structured questionnaire. An investor residing and availing Depository Services in Ludhiana was taken as a sample. In the present survey, non-probability sampling technique i.e. convenience sampling is used to roll up the sample. Here in the survey, population consists of all the investors of Ludhiana and a sample of investors have been taken from it. It is a convenience sampling because the answering investors are chosen from those who happened to see the office of a peculiar agent and the agents themselves. The respondents were interviewed with a structural questionnaire by the research worker. A smaller sample but good selected sample may be superior to a larger but severely selected sample. A sum of 100 respondents ‘ were selected from the metropolis for the survey.

Investors ranked assorted advantages of depositary. Rank was determined by calculating the leaden mean i.e. 4 points were attached to rank foremost, 3 points to rank 2nd, 2 points to rank 3rd and 1 point to rank 4th. Then for ciphering ranks for assorted advantages, points allotted by investors were added and divided by 100 i.e. sample size. The advantage with the highest leaden norm was ranked foremost and the advantage with the lowest leaden norm was graded 4th i.e. last.

Similarly, the investors ranked jobs faced by investors in depositary system. Leaden mean method was used. For evaluation the satisfaction degree sing depositary services and the investors view point sing depositary system, leaden mean method every bit good as factor analysis were used. The points were given as such. For extremely satisfied +2, for satisfied +1, for apathetic 0, for disgruntled -1 and for extremely disgruntled -2.

Consequences of the Study

Respondents Profile

As per the survey, bulk respondents were professional i.e. 33 % such as C.A ‘s, MBA ‘s and C.S. , where as 22 % were post-graduates and the staying 45 % were alumnuss. The survey found that bulk of the investors i.e. 46 % belonged to age group 30 or less than 40. 18 % of the investors were belonging to age group 20 or less than 30, 26 % of the investors were belonging to the age group 40 or less than 50 and 10 % of the investors belong to the age group 50 or more. As per the survey bulk of the respondents i.e. 44 % of the investors were found operating in the capital markets for 6 old ages or more. Whereas 29 % of the investors have been runing for 4 old ages of less than 6 old ages, 18 % have been runing for 2 old ages or less than 4 old ages and the staying 9 % have been runing for less than 2 old ages. As per the survey, bulk of the respondents had opened their demat histories in twelvemonth 2000 and 1999.

The Different Sources Of Information From Where The Investors Came To Know About The Depository System.

Beginnings of Information

No. Of Investors








Newspapers & A ; Magazines



T.V. Programs









As per the survey, bulk respondents had agents, newspapers and magazines as the best beginning of information sing depositary system.

The Depository Participants With Whom The Investors Had Opened Up Their Demat Account

Depository Participants

No. Of Investors





Master Capital



LSE Securities



Karvy Advisers









The survey revealed that Majority participants had opened their histories with Stock Holding Corporation of India Limited followed by Master Capital, Karvy Consultants, LSE Securities and other depositary participants.

The Reasons For Opening Demat Account With Particular DP By The Investor

The respondents were asked to click the assorted factors being considered for opening demat history with a peculiar DP.



Nearness to location


Fast dealing


Infrastructure Facility


Good client covering


Goodwill of the Organization






As per the survey, the major factor lending in choosing the depositary was Fast Transaction followed by other factors such as Availability of Proper Infrastructure, Client Dealing, Goodwill of the organisation, accessibility etc.

The Ranking Given By The Investors To Various Advantages Of Depository System


Average Tonss


No range for any hazard of loss, larceny or fraud sing portion certifications



Investing is extremely liquid



No cast responsibility



Bad bringings are about eliminated



The survey found that bulk of the investors were of the position that the depositary system would get the better of the opportunities of loss, larceny or fraud as a first advantage followed by other such as liquid investings, riddance of bad bringings and absence of stamp responsibilities.

The Ranks Being Given By Investors To Different Problems Of Depository Services.


Average Tonss


Not to the full cognizant of the mechanism



Fear of questions from Income Tax Department



Increase in minutess costs



Trouble in keeping histories



Increased paper work



As per the survey the investors thought care of histories as a major job of Depository System and ranked it at first topographic point. The survey highlighted the other jobs such as addition in the cost of dealing, fright of questions from Income Tax Department, non full consciousness about the system and increased paper work.

Satisfaction Level Of The Investors Regarding Depository Servicess


Average Tonss

Satisfaction Level

Covering of DP ‘s


Highly Satisfied

Fees construction of DP ‘s



Service clip of DP ‘s



Infrastructure Facilities of DP ‘s



Dematerialization/Rematerialisation process



The survey found that the investors were extremely satisfied with dealing of Depository participants and satisfied from other services such as fee construction, substructure facilties and demateralisation/rematerialisation processs. However, many of the respondents were found indifferent from service timings of DPs.

The Investor ‘s View Sing The Different Factors Of Depository Services

Sr. No.


Average Tonss

View Point


More transparence in depositary system


Strongly Agree


Fear of losing physical ownership of portion certifications




More cost involved in gap, keeping and shutting of demat history




Manipulation done by DP ‘s and Agents




Burden on little investor has been increased




Cost of Depository System matches with the grosss from it




Demat procedure is a drawn-out one




Business for agents has been increased


Strongly Agree


Need of individual Depository




Demat has a bright hereafter


Strongly Agree

The survey revealed that the investors strongly believed that depositary system had more transparence, increased concern for agents and demat trading has bright hereafter. The investors were found holding to the fact that the in malice of higher costs incurred in depositary system, it reaps just benefits. The investors were found apathetic sing any uses done by the DPs or agents. They were besides apathetic about any addition in load on little investors and about the demand of individual depositary. The investor had non fear any loss of physical ownership of the portion certifications as they get deposited in their demat history, as per the survey


The survey may be concluded with this idea that investors in the metropolis are to the full cognizant about the depositary services and its advantages while operating in the capital market. The different beginnings of information from where the investors came to cognize about the depositary system were from agents, newspapers and magazines.The investors in Ludhiana have opened up their demat history with SHCIL. The investors of Ludhiana were satisfied with the services such as fee construction, substructure installations and demateralisation/rematerialisation processs and believed that depositary system had more transparence, increased concern for agents and demat trading has bright hereafter. The survey concluded that care of histories, cost of dealing, fright of questions from Income Tax Department, non full consciousness about the system and increased paper work were the major jobs of depositary services. The advantages of depositary services were that there was no range for any hazard of loss, larceny or fraud sing portion certifications, riddance of bad bringings was present and there was absence of stamp responsibilities. As per the survey, the major factor lending in choosing the depositary was Fast Transaction followed by other factors such as Availability of Proper Infrastructure, Client Dealing, Goodwill of the organisation, accessibility etc. Hence it can be concluded that benefits of availing depositary services were:

  • A safe, convenient manner to keep securities ;
  • Immediate transportation of securities ;
  • No cast responsibility on transportation of securities ;
  • Elimination of hazards associated with physical certifications such as bad bringing, bogus securities, Delays, thefts etc. ;
  • Decrease in paperwork involved in transportation of securities ;
  • Decrease in dealing cost ;
  • No uneven batch job, even one portion can be sold ;
  • Nomination installation ;
  • Change in reference recorded with DP gets registered with all companies in which investor holds securities electronically extinguishing the demand to match with each of them individually ;
  • Transmission of securities is done by DP extinguishing correspondence with companies ;
  • Automatic recognition into demat history of portions, originating out-of bonus/split/consolidation/merger etc