Depository Services is an organization where the securities of a shareholder are held in the form of electronic accounts, in the same way as a Bank holds money. The depository also provides services related to various transactions in such securities.
There are only two depositories in India. Namely National Securities Depository Limited (NSDL) or Central Depository Services (India) Limited (CDSL) that are registered with SEBI which are as follows.
National Securities Depository Limited (NSDL)
It was registered by SEBI on June 7, 1996 as India’s first depository to facilitate trading and settlement of securities in the dematerialized form. It deals with National Stock Exchange (NSE).
Central Depository Service (India) limited (CSDL)
It commenced its operations in February 1999. It was promoted by Stock Exchange, Mumbai in association with Bank of Baroda, Bank of India, State Bank of India and HDFC Bank. It deals with Bombay Stock Exchange (BSE). CDSL is the second Indian central securities depository services based in Mumbai.
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