The benefits of participation in a depository are :

• 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.