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What is depository

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What is depository

Posted by Juhi Bulchandani 5 years ago

CBSE > Class 12 > Business Studies

2 answers

Saloni Jain 5 years ago

In india there are two National level depositary - NSDL- national securities depository limited Which was promoted as a join venture between idbi, uti, and NSE. The next is the CDSL - Centra depositary services limited. Is was promoted by the BSE and bank of india. Both these national level depositories operate and function through depository participants (dp) who are connected to the depositaries via computers and act as link between depository and investors

Gaurav Seth 5 years ago

Depository is an institution or organisation, which holds securities (e.g. shares, debentures, bonds, etc) in electronic form, in which trading is done.
Depositories provide following services:
(i) Maintain records of shareholding in electronic form.
(ii) Enable deposit and withdrawal of securities to and from the depository through the process of dematerialisation and rematerialisation.
(iii) Effect the transfer of securities traded in the depository mode on a stock exchange.

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