Question
List any four benefits of Depository Services.
Solution
Benefits:
(i) Exemption of stamp duty for dealing in shares in the electronic form
(ii) Elimination of problems associated with transfer of shares in physical form (such as loss in transit, theft, delays, mutilation, etc.
(iii) The concept of ‘odd lot’ stands abolished
(iv) Increased liquidity through speedy settlement
(v) Reduction in paper work
(vi) Attract foreign investors and promoting foreign investment.
