What are depositories and their role?
Depositories are institutions which hold your securities(Shares, bonds, debentures, Mutual Fund Units) in electronic form which is also known as dematerialization of shares or DEMAT account. So, Depositories are mainly responsible and accountable for safe-keeping of your securities and keep a record of all your trades.
Currently there are two Depositories in India that are registered by SEBI, which are:-
- Central Depository Services Limited (CDSL)
- National Services Depository Limited(NSDL)