A depository is a place where something is deposit for storage and security in electronic form through registered Depository Participants. Basically, it’s an institution that functions like a bank, similarly some bank hold the fund of investors, likewise, depository keep an account for investors securities (share, mutual fund debentures etc) hold by them in a dematerialized form. A frequent of services is offered to investors by Depository Participants on behalf of the depository.
Banks, financial institutions, stock-brokers or clearing houses can be a Depository Participant in India by registering with Central Depository Services (India) Limited (CDSL) and National Securities Depository Limited (NSDL). Therefore, both of these depositories are registered with Securities and Exchange Board of India (SEBI).
An investor can open a Beneficial Owner (BO) account with a Depository Participant (DP) to avail of the depository services. The services provided by a Depository Participant (DP) and its benefits are listed below:
The storage of securities in electronic form allows easier access, high level of convenience in handling of securities and ease of access which has led a greater number of investors to opt for depository services to achieve a high level of competence in trading and management of securities.
Well, sharebazaarlive is a Depository Participant (DP) with National Securities Depository Limited (NSDL) and offers the wide range of Depository Participant (DP) Services.