A depository can be compared to a bank. A depository holds securities of investors in electronic form.

Depositories in India

NATIONAL SECURITIES DEPOSITORY LIMITED

NATIONAL SECURITIES DEPOSITORY LIMITED [NSDL] is a depository promoted by National Stock Exchange of India Limited, IDBI,UTI,SBI and other financial institutions. NSDL commenced operation in November 1996.

CENTRAL DEPOSITORY SERVICE [INDIA] LIMITED

CENTRAL DEPOSITORY SERVICE (INDIA) LIMITED [CDSL] Is a depository promoted by The Stock Exchange, Mumbai jointly with SBI, Bank Of India,HDFC Bank and other financial institutions.CDSL commenced its operations in July 15th 1999.

Depository participant

A depository participant (DP) is an agent of the depository who is authorized to offer depository services to the investors.

Need for a DEMAT Account

Presently, it is compulsory to settle all trades done on any Stock exchange in DEMAT form only. Although, investors have an alternative to hold securities and settle trades up to 500 shares in physical forms, they need a DEMAT account as, in practice because almost all trades on stock exchanges are now being settled in DEMAT form only.

Benefits of holding securities in DEMAT form
	Risks of loss, mutilation or theft of certificates associated with physical certificates are completely eliminated.
	Elimination of bad deliveries.
	Effects immediate transfer and registration of securities.
	No stamp duty is payable by the investors for transfer of any kind of securities in DEMAT form.
	Facilitates recording of change of address, transmission, (bank a/c particulars, nomination) etc for all investments held in the account, instead of advising each company separately a single advice will do all such changes.
	Comparing and monitoring of the position of all the investments in a DEMAT account is provided by the statement of account sent periodically by the DP.

What should an investor do to open an account with Cochin Stock Brokers Limited DP (Depository participant)?
	Opening a DEMAT account is very simple. It is similar to the opening of a bank account.
	An application form can be got from us and apart from submitting a completely filled application form to the
	DP the investor has to provide a proof of identity and address (pan card, passport, ration card, etc).
	Before the DEMAT account is opened the investor will have to execute an agreement on a stamp paper
	On opening an account a unique BO ID (Beneficial Owners Identification) is allotted which will be quoted in all future transactions.
	One particular DEMAT account can have up to three holders (first holder, second holder, third holder). Account holders can make nomination.

The services offered by BHAS are :
		Account Opening
		Nomination
		Dematerialization
		Rematerialization
		Account Modification
		Pledge / Unpledge
		Initial Public Offer (IPO)
		Transmission in the case of death of holder
		Transmission along with demat
		Account Closure
		Account statement
		Power of attorney
		Shares in demat pending list
		Company name changes
		Shares Eligible for demat in CDSL depository
		DP Tariff Structure
		Easy / Easiest

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