(i) Government:
- There will be greater mobilization of savings in the economy
- It is a convenient way for FOI
- It reduces the cost of capital since transaction costs are significantly reduced.
(ii) Capital Market Authority and NSE
- Increased share turnover
- Increased stock market liquidity
- Improved transparency of stock market
- Better service delivery
(iii) Investors
- Reduced share transfer costs
- Faster and more efficient settlement of deals
- Investments become more liquid
- Reduced share certificate is required (dematerialisation)
Kavungya answered the question on December 14, 2021 at 07:53
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