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.