A depository is an organisation, which holds the beneficial owner's securities in electronic form, through a registered Depository Participant (DP). A depository functions somewhat similar to a commercial bank. To avail of the services offered by a depository, the investor has to open an account with it through a registered DP.
Who is a Depository Participant?
A Depository Participant (DP) is an agent of the depository who is authorised to offer depository services to investors. Financial institutions, banks, custodians and stockbrokers complying with the requirements prescribed by SEBI/ Depositories can be registered as DP. Integrated Enterprises is a DP registered with NSDL.
Who is a Beneficial Owner (BO)?
"Beneficial Owner" is a person in whose name a demat account is opened with NSDL for the purpose of holding securities in the electronic form and whose name is recorded as such with NSDL.
As a depository participant, what services do you provide?
We provide the following services:
Dematerialisation i.e. converting physical securities into electronic form.
Rematerialisation, i.e. converting electronic securities balances in a BO account into physical form.
To maintain record of holdings in the electronic form.
Settlement of trades by delivering/ receiving underlying securities from/in BO accounts.
Settlement of off-market trades i.e. transactions between BOs entered outside the Stock Exchange.
Providing electronic credit in respect of securities allotted by issuers under IPO or otherwise.
Receiving on behalf of demat account holders non-cash corporate benefits, such as, allotment of bonus and rights shares in electronic form or securities ensuing upon consolidation, stock split or merger/amalgamation of companies.
IDEAS (Internet-based Demat Account Statement) is used to check latest balances and transactions
Demat account holders can also log into our website (www.iepindia.com) to view the balances and transactions in their account >
What are the benefits of availing depository services?
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 sold;
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, thereby eliminating correspondence with companies;
Automatic credits into demat account of shares, arising out of bonus /split /consolidation /merger etc
Holding investments in equity and debt instruments in a single account.
ISIN (International Securities Identification Number) is the identification number given to a security of an issuer at the time of admitting such security in the depository system
Whether different securities issued by the same Issuer will have same ISIN?
No, different securities issued by the same issuer will have different ISINs.
