BOs should immediately contact their DP if there are any discrepancies in the holdings of
securities. In case the problem is not solved by DP, BOs must approach directly to CDSC.
BOs get information about the update of their account after each transaction through the
- DP provides a statement of transactions at end of every three months. BOs can get the
updated information via a statement provided.
- With the launch of easy (Electronic Access to Securities Information), BOs can get the
updated information about their demat account at any point in time with the access of the
A demat account can be opened and maintained even with zero balance.
Different securities, even of the same issuer, are provided a distinct ISIN number as an
identification of the securities and each ISIN is maintained and accounted separately within an
account. Therefore, there is no question of mix up of securities held in one demat account.
Yes. Any number of securities admitted with CDSC can be dematerialized and held in a single
account in case securities are owned by a single investor.
A DP does not have access to account details of BO of any other DP except that account only
which it has rendered the depository services.
A Demat account has become a necessity for all categories of investors due to numerous
Eliminates risk associated with physical certificates: In demat system, the ownership of securities are held in electronic form. Hence, the risk associated with physical certificates such as loss during carrying of certificates from one place to another, worn out, theft, cost incurred while making the duplication of certificates, etc. are eliminated.
Immediate transfer of securities: When an investor buys securities from the market, the
securities are immediately credited into his/her account along with the ownership. The securities
do not have to be sent to RTA for transfers of ownership in demat system. Moreover, the
investors do not have to wait for a long time period to get registered in the book of RTA as the
legal owner of the securities.
Immediate settlement cycle: The transactions of securities are settled within T+3 settlement
cycle in electronic form. At the last day of the settlement cycle, the securities are credited into the
demat account of the buyer resulting the immediate settlement cycle.
Immediate distribution of shares allotted in IPO: The shares allotted in IPO can be easily and
immediately credited in the demat account of investor held with CDSC. Hence, the investor does not have to wait to receive the share certificate from the issuers. This aids to list the securities
immediately in the stock market.
Easy in portfolio management: Investors receive the statement of their account periodically
which helps them in managing portfolio and receiving the detail information about their
Solve the problem of address change: Investors do not have to inform their individual issuers
about the change of address through correspondence separately. Investors can register the
change through their DP only. DP updates and informs the change to all issuers of the securities
held by an investor through the depository system.
Easy in pledge of securities: In case, the dematerialized securities are pledged, such account can be locked in. While pledging the securities, the securities do not need to get transferred from the pledgor’s account to pledgee’s account.
An investor, already having demat account with CDSC; can open another demat account.
A demat account cannot be directly opened with CDSC. The demat account has to be opened only
through a DP of CDSC.
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
- 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
- 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.