To begin with, the depository will not directly provide you any service. So, you don’t go to NSDL or CDSL and avail any of your services. You can avail these services through the depository participants. Normally, your broker will be a DP where you can avail all these services. Here are some of the important services that you can avail of. You can open a demat account and dematerialize shares, i.e. converting physical securities into electronic form. You can also rematerialize the electronic shares, i.e. converting electronic securities balances held in a BO account into physical form.
The DP basically maintains a record of securities held by the investor as a beneficial owner in the electronic form. The DP will also facilitate settlement of trades by delivery or receipt of securities from/in BO accounts as well as the settlement of off-market transactions between BOs. The DP also enables you to receive electronic credit in respect of securities allotted by issuers under IPO r otherwise on behalf of demat account holders.
Above all, you can receive non-cash corporate benefits such as allotment of bonus and rights shares or any other non-cash corporate benefits given by the issuers in electronic form on behalf of its demat account holders. You can also pledge shares and freeze your demat account if required.