Question

What is a depository and what services they offer to the investors?

Answer 1

Depository is an institution or organisation, which holds securities (e.g. shares, debentures , bonds, etc) in electronic form, in which trading is done.

Depositories provide following services :

(i) Maintain records of shareholding in electronic form.

(ii) Enables deposit and withdrawal of securities and from the depository through the process of dematerlisation and rematerialisation.

(iii) It effects the transfer of securities traded in the depository mode on a stock exchange.