What is a Depository and who is a Depository Participant?
A Depository can be compared to a bank. Just as a Bank holds cash in your account and provides services related to transactions of cash, a depository holds securities in electronic form and provides services related to transaction of securities. A depository interacts with clients through Depository Participant (DP) with whom the client has to maintain an account. Thus an investor who wishes to avail of Depository Services has to open a demat account with a depository participant.
Related Questions
- I have purchased some shares in paper form. Can I directly give the share certificates to my Depository Participant for dematting them in my favour?
- I have purchased some shares in paper form. Can I directly give the share certificate(s) to my Depository Participant for dematting them in my favour?
- I have purchased some shares in paper form. Can I directly give the share certificate(s) to my Depository Participant for demating them in my favour?
