What is Depository? What does it be used?

If you are associated with stock market and you do not know about depository, then in today's post you will know what is the meaning of depository in stock market? What are its functions? How many depositories are there in India?

Apart from this, to know something more related to Depository, definitely read the entire post.

What Is Depository in Stock Market, Depository System, Role of Depository Meaning, Types Of Depository Services, SNDL, CDSL, dharmendrakr

What is Depository?

Meaning in Hindi?

Depository means repository or storage place.

The depository is an institution in the stock market that maintains the accounts of shareholders.

Our Demat account opened by the broker is stored in the depository itself.

That is, the Demat account opens only in the depository.

Mutual funds, debentures, units, and securities are also held in this account.

What is the function of Depositories in the Share Market?

Your Demat account is opened in the depository. Where do you keep your shares?

The depository keeps a complete record of your shares and debt security.

The responsibility of maintaining ownership records and trading of shares rests with the depository.

Also provides the facility of electronic transactions.

How many depositories are there in India?

There are two depositories in India.

NSDL

CDSL

What is the full form of NSDL?

The full form of NSDL is "National Securities Depositories Ltd".

This is the first depository of India.

National Securities Depositories Ltd was started on 8 November 1996.

The promoters of NSDL include National Stock Exchange ie NSE.

Apart from this, many banks are included in the shareholder of NSDL.

What is the full form of CDSL?

The full form of CDSL is "Central Depositories Services Ltd".

This is the second depository of India.

Central Depositories Services Ltd was started in February 1999 in Mumbai.

It comes under the Bombay Stock Exchange (BSE).

What is the difference between NSDL and CDSL?

NSDL and CDSL are two separate depositories. But the purpose of working of both is the same.

To invest in the stock market, you have to open a Demat Account.

Our Demat Account is opened by the broker in NSDL or CDSL.

After opening the Demat Account, a mail comes to you. In which the name of the depository is written.

So this was the information about Depository, in which you know what is Depository? What is the function of Depositories in the Share Market? How many depositories are there in India? What is the full form of CDSL? What is the difference between NSDL and CDSL?

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