No stamp duty for transfer of securities in the Depository System. In the case of physical shares, stamp duty of 0.25% of sale value is payable on transfer of shares.

Elimination of bad deliveries and all risks associated with physical certificates such as loss in transit, theft, mutilation, damage, etc.

Facility for freezing/locking of investor accounts to make it non-operational for specified period.

 Instead of filling up transfer deed(s) a simpler form is to be given to the DP.

Facility to pledge and hypothecate securities. Pledging Dematerialized securities is easier and advantageous as compared to pledging physical shares. In respect of shares in "compulsory Demat" category, banks prefer to lend against shares held in electronic form, and offer better terms.

Odd lots are not differentiated in the electronic system. Even a single share can be traded at the market rates without any reduction in realization.

Just like a bank branch, the DP will give a periodical statement of account of holdings. In addition, investor can obtain a statement of holdings as and when required for a fee.

In case investor loses the statement of holdings, he can inform his DP and obtain a duplicate statement. Investor's statement of holdings cannot be used by anybody else for trading in his account.

When an investor opens an account with a DP, he signs an agreement with the DP in which the DP will indemnify the investor for any mis-use of his holdings. The depository will also ensure that the interests of the investor are protected. Grievances, if any, against his DP will be resolved by the Depository.

Every transaction in investor's account will have to be authorized by him, which ensures total control of the investor over his investment.