With the enactment of the Depositories Act in 1996 National Securities Depository Limited (NSDL) the country first and till date larges depository was established. It changed the century old paper based trading system into a more convenient, fast and safe paperless trading environment. In the depository system securities are held in depository accounts opened by Depository Participants (like Tracom) which is more or less similar to holding funds in the bank account. Transfer of ownership of securities is done through simple account transfers.
Tracom became a participant of NSDL in the year 2001 and is serving more than 8000 satisfied customers.
Benifits of Demat :
- Immediate transfer of securities;
- No stamp duty on transfer of securities;
- Elimination of risks associated with physical certificates such as bad delivery , fake securities , etc.;
- Reduction in paperwork involved in transfer of securities;
- Reduction in transaction cost;
- Nomination facility;
- Change in address recorded with DP gets registered electronically with all companies in which investor holds securities eliminating the need to correspond with each of them separately;
- Transmission of securities is done by DP eliminating correspondence with companies;
- Convenient method of consolidation of folios/accounts;
- Holding investments in equity, debt instruments and Government securities in a single account;
- Automatic credit into demat account, of shares, arising out of split/consolidation/merger etc.