What is a depository?
A. Depository is an organization where the securities of a shareholder are held in the electronic form. This is done at the request of the shareholder through the medium of a Depository Participant (DP). A depository is similar to a Bank. If an Investor wants to utilize the services offered by a depository, he/she has to open an account with the depository through a DP.
A Depository is an organization, where the securities of a shareholder are held in Electronic Form at the request of the shareholder through the medium of a participant. A depository can be compared to a bank. If an investor wants to utilize the services offered by a depository, the investor has to open an account with the depository through a participant – this is very similar to the opening of an account with any of the branches of a bank in order to utilize the services of that bank.
A depository can be compared to a bank. A depository holds securities of investors in electronic form. Besides holding securities, a depository also provides services related to transactions in securities. A depository interfaces with its investors through its agents called Depository participants (DPs). If an investor wants to avail the services offered by a depository, the investor has to open an account with a DP.
A depository can be compared to a bank. A depository holds securities (like shares, debentures, bonds and units) of investors in electronic form. Besides holding securities, a depository also provides services related to transactions in securities. The two depositories in India are Central Depository Services Ltd. (CDSL) and National Securities Depository Ltd. (NSDL).
Related Questions
- Will clearing firms have access to FINRA’s Central Registration Depository (CRD) database in order to retrieve the CRD numbers of their correspondent firms?
- Can the exemption for acquisition of fiscal agency or depository services be applied to transactional banking services?
- How does the depository work?
