Meaning and Explanation of Depository.

1.	Meaning and Explanation of Depository.
Answer» In India, a company registered under Companies Act, can perform function as depository. Depository has to obtain certificate of registration from SEBI before starting its operations. The primary function of depository is to convert securities from physical form into electronic form and to maintain the same in electronic form. At present there are two depositories in India: NSDL – National Securities Depository Limited and CDSL – Central Depository Services (India) Limited.

Answer»

In India, a company registered under Companies Act, can perform function as depository. Depository has to obtain certificate of registration from SEBI before starting its operations. The primary function of depository is to convert securities from physical form into electronic form and to maintain the same in electronic form.

At present there are two depositories in India:

NSDL – National Securities Depository Limited and
CDSL – Central Depository Services (India) Limited.

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Meaning and Explanation of Depository.

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