What is a Depository? Who is a Depository Participant?
A depository holds the securities of investors in electronic form just like a bank holds cash of its customers. As in a Bank, investors can deposit/withdraw and transfer securities. The National Securities Depository Limited (NSDL) is the first depository in India. The Securities and Exchange Board of India (SEBI) regulate the functions of NSDL. The Depository Participants (DPs) are the link between the Shareholder, the Company and NSDL. Banks, Financial Institutions, Custodians, Stock Brokers etc. can become DPs subject to their meeting certain requirements prescribed by NSDL and SEBI. NSDL publishes from time to time the list of DPs registered with them. You can open your accounts with one DP, as you like. The procedure for opening an account with the Depository Participant is similar to opening a Savings Bank Account with the Bank. After opening the account, you can hold shares of any number of companies in your account, provided all such companies have entered the depository system
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?
