Money is to Bank while Share is to Depository
A Depository is an organization like a Central Bank where the securities of an investor are held in electronic form, through Depository participants.
There are two depositories in India – National Securities Depository Ltd (NSDL) and Central Securities Depository Ltd (CDSL).
Who is Depository participants?
A Depository Participant (NSDL & CDSL) a medium through which the shares are held in the electronic form. They are acting as a link between the investor and the company through the Depository.
Let’s understand how depository system works?
The Depository system functions largely like the banking system. Let’s understand in simple way:
What is the Function of a Depository Participant?
A Depository Participant (DP) acts as trade facilitator. The primary functions of a depository participant are outlined below:
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