A Depository is like a bank where securities are held in electronic form. There
are two Depositories in India – National Securities Depository Limited (NSDL) and
Central Depository Services (India) Limited (CDSL).
Under the Depositories Act, investors can use the services of these Depositories
through Depository Participants (DP) such as Allied Financial Services Pvt. Ltd.
There are a number of benefits:
- Settlement of securities are traded on exchanges and as well as off-market transactions
- Shorter settlements enhance liquidity
- No stamp duty on the transfer of securities held in Demat form
- Changing your address, registering a power of attorney and even signatures can be
effected in Demat accounts by submitting requests along with the relevant documents
to the Depository Participant
- Allied Financial Services Pvt. Ltd. also facilitates registration of SPEED-e (NSDL).
These internet-based transaction allows you to submit delivery instructions electronically,
via the SPEED-e website. This way, you have security when processing transactions,
without the hassle of preparing and submitting instruction slips.
With facilities like 'IDEAS', you can view the current transactions and balances
of your Demat Account in real-time.
You can also hold mutual funds in a Demat Account. There are three steps to access
- Give your Demat Account details to the Asset Management Company (AMC) / Registrar
and Transfer Agent (RTA).
- Submit a request to your Depository Participant (DP) for conversion of existing
Mutual Fund units.
- Buy Mutual Fund units through the stock exchange platform.
This way, investors have a single Demat Account Transaction / Holding Statement
for Shares, Debentures and Mutual Fund units.