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Issuer / Registrar and Transfer Agent Guided Tour/Benefits
Depository helps eliminating the following problems
- At the time of issue of securities, processing, printing and posting of physical securities increases the issue cost. In addition, very high load at the time of a public issue, both with the registrar and the postal system, results in inefficient distribution of securities leading to investor dissatisfaction.
- The increase in trading in secondary market increase the cost to the company for effecting transfers and also increases time taken for transfer causing inconvenience to the investors.
- The reconciliation of the securities in the hand of the various investors and market intermediaries is at best achieved once in a year in the physical form, which increases the possibility of proliferation of bad paper.
- The system of handling market deliveries also increases the unchecked growth of bad paper. In addition, the issuing company is unable to monitor, in a regular fashion, the change in holding pattern of its securities.
- The load on the registrar and the postal system also increases at the time of book closure and record date for distribution of corporate benefits, which results in higher cost and delay in processing these.
NSDL provides an efficient solution to the ills associated with paper and offers numerous benefits to various market participants and reduces transaction cost. Advantages specific to you as an issuing company/ registrar and transfer agent are:
- The electronic holdings reduce paperwork & thereby reduce direct costs of record keeping, physical handling, movement & safekeeping of certificates.
- Corporate actions such as public offers, rights, conversions, bonus, mergers/ amalgamations, subdivisions & consolidations will be carried out without the movement of papers, saving both cost & time.
- Information of beneficiary owners is readily available. The issuer gets information on changes in shareholding pattern on a regular basis, which would enable the issuer to efficiently monitor the changes in share holdings.
- Instances of loss/theft/mutilation/forgery, etc. of certificates will be completely eliminated.
- The company acquires a progressive, investor friendly image.
- Company can save substantial time of the secretarial department spent on transfer of shares, follow up with registrars, etc.