5 Main Advantages of Depository Services

Depository services are helping many individuals to generate extra money, and save some for unforeseen emergencies or to spend more and live life king-size. Investing in depository services in India is obviously quite advantageous. Depository is basically a type of account where shares are held as a book entry, similar to a bank where money is stored. In this kind of account, operations are almost the same as that of a bank – which means securities can be withdrawn, deposited and transferred. Read and know about 5 of the main advantages of depository services.

Secure shares

With these services, shares can remain as secure as possible. There are no risks of misplacement or loss of shares, given that these are credited into the account via electronic means. There are no risks of shares getting forged, mutilated, damaged or stolen given the fact that physical shares do not play any role here. These services allow investors to hold all the securities in electronic mode and also conduct all the trading transactions via electronic means.

No delays

In the absence of physical shares, share transfer stamps are not needed. Trading is more or less free of paperwork. There are no delays or errors in the delivery process. You can expect immediate transactions where you can get securities or cash in only a small amount of time. The majority of transactions can be carried out in the same day. With fast growth in the worth, numbers and volumes of securities, the limitations of dealing and handling of shares in physical form came to light. With depository accounts, these problems could be solved at last.

No trading of physical shares

Trading of physical shares frequently results in various problems, given that the shares can get stolen, forged, misplaced, mutilated, damaged and even lost while being transported in physical form. There are various delays as well as litigations and lawsuits as a result. One of the main aims behind introducing depository services was to get over such kinds of issues. In India, the National Securities Depository Limited (NSDL) set up the first ever services of this kind. The Unit Trust of India, Industrial Development Bank of India, National Stock Exchange (NSE) and Bombay Stock exchange promoted this type of service.

Faster corporate benefits

Trading has almost become free of the involvement of paperwork due to depository services India. This is helping investors to get corporate benefits much quicker. At one time, investors had to face the allocation of odd numbers of securities. With depository services, this problem has been taken care of. The quickening of the process allows easier and faster trading, and the volume of trading is also increased due to this reason.

Locking of account

As an investor, you can conveniently keep your account locked when you want to cease trading for some days or if you are going out of the country. You can now get the opportunity to hypothecate and pledge securities and shares. With depository accounts, the level of security has been enhanced.