1. It shortens the registration process in the stock exchange i.e. high speed of registering shareholders.
2. It improves the liquidity of stock exchange than increase the turnover of the equity shares in the market.
3. It will lower the clearing and settlement cost eg no need to prepare share certificates and seal them (putting a seal).
4. Its faster and less risky settlement of securities which make the market more attractive for investors e.g instances of fraud will be reduced since there is no physical share certificate which may be forged.
5. There will be improved and timely communication between company and the investors hence reduced delay in receiving dividends and right issues and improve information dissemination concerning a company.
6. It will lead to an efficient and transparent securities market to adhere to International Standards for the benefit of all stakeholders.
Kavungya answered the question on March 12, 2019 at 05:57
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