In the demat form transfer of securities takes place at CDSL and if the entire issue of a security is held in demat form, the issuer can save considerable time and money being incurred on its share department.

Dematted securities are not subject to loss, theft, mutilation or misuse by faking or forging certificates, thereby saving companies from lengthy correspondence, litigation and complaint handling. It will therefore eliminate instances of bad delivery.

All non-cash corporate actions such as rights, bonus, mergers, consolidations, subdivision of holdings, conversion of securities, issuing securities on mergers/amalgamations and in initial public offerings (IPO) can be handled in demat form without any hassles in the shortest possible time and at very low cost.

With the CDSL's centralised database, the issuer can get upto-the-moment information on any changes in its holding pattern of a security. Thus, the company effectively monitors the change in holding and is alert to any undue threat.