There are no benefits to holding securities under the depository system.

In the depository system, the ownership and transfer of securities takes place by means of electronic book entries. At the outset, this system rids the capital market of the dangers related to handling of paper. The system provides numerous direct and indirect benefits, like: Elimination of bad deliveries. Elimination of all risks associated with physical certificates. Immediate transfer and registration of securities. Faster disbursement of non cash corporate benefits like rights, bonus, etc. Reduction in brokerage by many brokers for trading in dematerialised securities. Reduction in handling of huge volumes of paper and periodic status reports to investors on their holdings and transactions, leading to better controls. Elimination of problems related to change of address of investor, transmission, etc. Elimination of problems related to selling of securities on behalf of a minor.