Services offered by a Depository

Services offered by a Depository

Depositories offer a range of services to investors in the Treasury market, including:

Safekeeping of securities: Depositories hold securities on behalf of investors and provide a safe and secure environment for their storage.

Settlement of transactions: Depositories facilitate the settlement of securities transactions by transferring securities from the seller to the buyer.

Clearing of transactions: Depositories provide a central clearing service that ensures that all transactions are properly documented and recorded.

Corporate actions processing: Depositories manage corporate actions such as dividends, interest payments, and stock splits, ensuring that investors receive their entitlements in a timely and accurate manner.

Securities lending and borrowing: Depositories facilitate the lending and borrowing of securities between investors, providing liquidity to the market and enabling investors to earn additional income.

Proxy voting: Depositories provide proxy voting services to investors, enabling them to exercise their voting rights at shareholder meetings.

Investor services: Depositories provide a range of investor services, including account management, reporting, and communication.

• Maintenance of accounts of investors
• Settlement of market transaction through the release and receipt of securities in the investor’s account
• Off market and Inter-depository transfers
• Distribution of non-financial benefits from corporate to its shareholders
• Nomination facilities
• Transmission of shares
• Hypothecation of dematerialized securities for a bank loan
• Freezing of account to protect from any threat when not in use etc.

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