Depository System results in reduced time, cost and efforts. - Vidyadip

Question

Depository System results in reduced time, cost and efforts.

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Answer

The depository System has a very important role to play in the successful functioning of the Capital market.
Under Depository System, securities are held in electronic form.
The transfer and settlement of securities are done electronically.
The Depository system maintains accounts of the shareholder, enables transfer, collects dividends, bonus shares, etc. on behalf of the shareholder.
It eliminates a huge volume of paperwork, storage, and handling of physical certificates.
Thus, it is rightly justified that, Depository system results in reduced time, cost and efforts.

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