CDSC offers numerous benefits to the issuers of securities. Some of the benefits are:
- The issuers can save considerable time and money being incurred on its share department in
case of transfer of securities. - Dematerialized securities are not subject to loss, theft, mutilation or misuse by faking or
forging certificates, thereby saving companies from lengthy correspondence, litigation
and complaint handling. It will, therefore, eliminate instances of bad delivery. - All non-cash corporate actions such as rights, bonus, mergers, consolidations, subdivision of
holdings, conversion of securities, issuing securities on mergers/ amalgamations and in IPO
can be handled in demat form without any hassles in the shortest possible time and at very
low cost. - With the CDSC’s centralized database, the issuer can get up-to the moment information on
any changes in its holding pattern of a security. Thus, the company effectively monitors the
change in holding and is alert to any undue threat. - Issuers can save substantial time of managing the share department. It reduces the work
load of the department and allows the management to use the excess manpower in other
productive departments. - New technology like e-Voting system for corporate improves transparency and corporate
governance standards and also helps in reducing the administrative cost associated with
postal ballot while facilitating declaration of results immediately after the close of the
Issuers can hugely benefit from such advanced technology which is possible to
achieve through a central depository company.