The benefits of participating 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. 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. Investments in equity, debt instruments and Government securities held in a single account. Automatic credit of shares, arising out of split / consolidation / merger etc., into demat account.