DEPOSITORY

A

abhishreshthaa

Abhijeet S
WHAT IS DEPOSITORY ?

  • A depository is an organization where share certificates of a shareholder are held in electronic form.

  • This is done at the request of the shareholder through a depository participant (DP).

  • If an investor wants to use services offered by a depository, he/she has to open an account with the depository through a DP much like opening an account with any branch of a bank to utilize its services

  • In fact, in many ways, a depository is similar to a bank.


DEPOSITORIES IN INDIA

In India there are 2 DEPOSITORIES

NSDL

CDSL

National Securities Depository Limited

  • The National Securities Depository Limited (NSDL) is an organization established to provide electronic depository facility for securities traded in the equity and the debt market.

  • NSDL has been registered by Securities Exchange Board of India (SEBI) on June 7, 1996 as India's first Depository to facilitate settlement of securities in dematerialised form

  • NSDL is an organisation promoted by IDBI,UTI and NSE. Subsequently State Bank of India has also acquired a stake in NSDL.


Central Depository Services of (India) Ltd

  • Central Depository Services of (India) Ltd. was the second depository to be granted the commencement certificate by SEBI on 8 February1999.


  • Inaugurated on 15 July 1999; it is promoted by the Bombay Stock Exchange, in association with BOI, BOB, HDFC Bank, and SBI.


  • The depository are interconnected. It is possible to transfer shares from one depository to another.

:SugarwareZ-245:
 
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