Depository
Also called: NSDL, CDSL, depository participant
An institution that holds securities in electronic form and maintains the official record of who owns them. India has two, NSDL and CDSL.
Depositories keep the electronic ownership records for shares and other securities. Investors do not deal with them directly; they open demat accounts through depository participants (DPs), which include many brokers and banks.
Because the depository records your holdings in your own demat account, your shares are recorded separately from your broker's own assets. Depositories send account statements so you can check your holdings independently.
Learn more in these lessons
- SEBI, brokers and demat accountsWhat are SEBI, brokers and demat accounts?
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